What Factors Impacted Consumer Demand for Video Games from 2020 – 2022?

Pattern Data Science

August 29, 2022

The Factors Affecting Consumer Demand for Video Game Products

Pattern takes a closer look at what factors impacted consumer demand for video game products the most during 2020 – 2022. Specifically, we’ll look at:

  • How COVID-19 impacted consumer demand for video game consoles

  • When consumer demand is highest for video game consoles

    • How demand changed from 2020 to 2021
    • How demand changed from 2021 to 2022
  • How virtual reality has taken over the video gaming landscape

    • How demand changed from 2020 to 2021
    • How demand changed from 2021 to 2022
  • Key takeaways for gaming brands

With National Video Games Day approaching on September 12th, our team wanted to evaluate how consumer demand for video game products has changed in recent years. As we analyzed search data around some of the most popular video game products, we recognized interesting trends that gaming brands can’t afford to ignore.

How COVID-19 Impacted Consumer Demand for Video Game Consoles

One of the biggest observations from our data analysis was the obvious increase in consumer demand for video game consoles after the COVID-19 pandemic was formally declared on March 11, 2020. When looking at consumer demand for Nintendo, Xbox, and PlayStation consoles, we can see a slight uptick in interest around the time the pandemic was declared:

While all video gaming consoles saw a moderate jump around the time the pandemic was declared, Nintendo Wii consoles were the most popular with a 75% increase in consumer demand. As more people were told to stay indoors, consumers craved a way to stay physically fit while also escaping the uncertain reality we all faced as a society. Nintendo Wii was the clear choice for gamers looking to cover both needs.

What is even more interesting about this data is that the pandemic was arguably the least influential factor on consumer demand when compared to things like reveal events, preorders for new gaming systems, and gaming system release dates. For example, the week of the PS5 reveal event by Sony saw a 807% jump in consumer demand for PlayStation 5 consoles. Similarly, the week prior to the Xbox Series X release date saw a 258% increase in demand for the new system.

Since Nintendo hasn’t released any new gaming systems recently, consumer demand appeared to be largely affected by seasonal sales and events. Prime Day and the week of Black Friday – Cyber Monday had the biggest impact on consumer demand for Nintendo consoles in 2020.

When Is Consumer Demand Highest for Video Game Consoles?

Using 2021 as the baseline for the “new normal”, our team can see some interesting observations for when consumer demand is the highest for specific gaming consoles. Generally, we see a seasonal uptick in demand from the first week of January until the last week of April. From there, demand steadily decreases, bottoming out between July and August. Once Fall hits in September, demand climbs back up again, surging around the last week of November and continuing to increase through December.

Again, we can see how consumer demand is impacted by things like gaming system releases, console updates, and seasonal deals. For example, when the Xbox Headset was released in March 2021, there was a 77% increase in demand week over week. Similarly, when online retailers announced a restock of PlayStation 5 consoles in March 2021, demand for the gaming system increased 183%.

How Console Demand Changed from 2020 to 2021

As pandemic worries lessened and the initial buzz around gaming system releases dwindled, we can observe a downward trend in consumer demand across PlayStation and Xbox from 2020 to 2021.

Nintendo, on the other hand, saw more consistent consumer demand throughout 2021. This is likely due to the fact that Nintendo did not release any new systems in 2020, and therefore did not experience any surges in consumer demand during that year.

How Console Demand Changed from 2021 to 2022

PlayStation and Nintendo have continued to see a downward trend in consumer demand when comparing 2022 to 2021. Aside from another restock announcement in March 2022 and Prime Day 2022, demand for PlayStation 5 has remained fairly low all year. Where Prime Day was an obvious factor for Nintendo demand in 2021, demand for Nintendo systems actually fell during Prime Day 2022:

By contrast, demand for Xbox consoles has picked up in recent months compared to this time last year. One noteworthy reason for why demand may have increased for these consoles is that the Xbox Game Pass continues to add new games to its repertoire. In anticipation of Crusader Kings 3’s addition to Xbox Game Pass, consumer demand surged by 22% (the second-largest jump following increased demand around Prime Day 2022):

Virtual Reality Has Taken Over the Video Gaming Landscape

One of the most interesting stories to emerge from our video game consumer demand data is how demand has changed around VR-based games. Our team used searches for “VR headsets” to illustrate how demand for virtual reality games has surged in recent years.

How VR Demand Changed from 2020 to 2021

During the first pandemic year, demand for VR headsets was rather volatile, seeing dramatic increases and decreases in demand throughout the year.

During the entire year in 2020, VR headset demand never climbed too much higher than a 40% increase over demand for the week prior. However, when comparing year over year demand from 2020 to 2021, we can see that consumer demand for such products has surged exponentially. Following Facebook’s rebrand to Meta in October, demand for VR headsets experienced a meteoric rise, peaking at 5,778% in December 2021:

How VR Demand Changed from 2021 to 2022

Compared to last year, demand for virtual reality headsets has remained significantly higher — particularly from January – June. Gaming retailers can likely expect an upcoming increase in interest if 2021 seasonality is any indication of how consumer demand will change:

Key Takeaways for Gaming Brands

This data dive provides essential intel for gaming brands — particularly those operating within the ecommerce space. First, video game consumers are educated shoppers who are strongly influenced by updates within their community. It’s important for gaming brands to remain up-to-date on emerging trends and preferences so they can better tailor their offerings to their target consumers. 

Secondly, brands do matter in the gaming space and the increase in interest and traffic syncs with huge product announcements and releases. Inventory, fulfillment, marketing, and customer service are essential to capitalize on these key moments in the product life cycle.

Lastly, the rise in demand for virtual reality (VR) gaming products is something brands should not ignore. Especially as Meta continues to lead the charge in shaping the metaverse, brands will need to expand their virtual reality gaming offerings to accommodate the changing landscape. 

If you’re interested in using patterns like these to your brand’s advantage, request a demo with Pattern to enhance your ecommerce strategy today. 

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Sept 22, 2022

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

Sept 21, 2022

How An Image Change Instantly Increased Stance’s Conversion Rate on Amazon

It’s challenging for brands on their own to maintain the many different focus areas to have remarkable success on their own D2C platform. But ecommerce is a complex, growing landscape and encompasses more than just your own DTC site. An effective ecommerce strategy includes multiple different digital marketplaces, such as Amazon, and it is an uphill battle for brands to stay competitive, relevant, and drive conversions across all.  

Brands can have in-house experts who specialize in different areas of ecommerce, but it’s extremely difficult to have the depth of resources to stand up an entire team of experts who know all the intricacies and nuances of each ecommerce channel.

Pattern, the premier global ecommerce accelerator, has marketplace experts in all areas, across all global marketplaces, who help any brand expand their bandwidth, gain access to new resources, data, and expertise, while accelerating their ecommerce growth.

Download our Stance 1-page Case Study

Amazon Creative Underperforms for Stance   

Stance is an extremely popular, fast-growing, and visually engaging lifestyle clothing brand.  Stance’s in-house creative experts nailed down their D2C product imagery and established a clear brand vision and voice on its own platforms. However, the problem was that the product images that work on their D2C sites differ from images that perform well on Amazon and other ecommerce marketplaces.

Stance was in search of a partner with deep knowledge of and experience on ecommerce marketplaces who could help curate lifestyle and product imagery catered to Amazon.

Original Stance Product Images on Amazon:

Pattern Creates Stellar Amazon Images for Stance

As its 3P partner on Amazon, Pattern experts organized, produced, and shot product imagery that highlighted the brand and the product while complying with Amazon best practices.

To accompany the new, updated image look and layout, brand experts also revised the overall listing. This included:

  • Adding information like a size guide, quality materials, etc. on specific product imagery

  • Brand highlights such as the brand’s mission statement in the image stack

  • Additional lifestyle imagery that was consistent with its other ecommerce channels       

Stance Product Images with Pattern:

Stance Sees an Instant Conversion Rate Increase by 13%

  • Same day results when the images were updated:

    • Average Conversion Rate Before Image Stack Update: ~21.8%

    • Average Conversion Rate After Image Stack Update: ~34%

Pattern Can Help Brands Curate Quality Content for Amazon and Beyond

Pattern has the unmatched expertise to help brands make smart decisions and strategies to ensure all channels flourish. Creative and copy experts for Amazon and other digital marketplaces will make sure your image stack, copy, and product listing is curated, optimized, and impactful to grow your brand and increase conversion.

Get in touch with our team to learn how Pattern can reimagine your creative strategy.

Sept 20, 2022

4 Ecommerce Marketplace Consultant Must-Haves

Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces. 

Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.

So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.

Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products. 

What is an Ecommerce Consultant?

An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.

An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.

Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.

1. Brand Obsession/Specialization/Passion

At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services. 

2. Proven Results

It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.

3. Wide Range of Marketplace Expertise

It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.

4. Network of Resources

The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.

Achieve Your Ecommerce Goals With Pattern

Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces. 

With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.

Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.