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 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)
Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)
Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)