Supply Chain Research

U.S. videogame console sales may be shaping up for a record year. Imports in the third quarter climbed by 9.0% on a year earlier, Panjiva data shows, after a marked acceleration in growth in September of 23.2% from a 12.2% decline in July. Growth likely continued in October, with seaborne imports for the month – the peak for the year – rising 6.1% to the highest since 2010.

Chart compares U.S. imports of videogame systems by sea (left hand axis) and in total (right hand axis) Source: Panjiva

That was likely due to a rapid growth in shipments of the Nintendo Switch. Imports of Nintendo-related products climbed 64.1% on a year earlier in the past four months. By contrast imports of Microsoft’s Xbox and Sony’s Playstation falling 26.9% and 47.1% respectively. The initial sales of Microsoft’s Xbox One X likely shipped by air – as was the case at Nintendo’s Switch launch – and may transfer to sea as production matures.

Chart compares U.S. seaborne imports of products based on company / product name for Sony Playstation, Microsoft Xbox and Nintendo Switch. Source: Panjiva

The same may not be true globally, however. Chinese exports of consoles fell 3.7% on a year earlier in the third quarter, with shipments to markets outside the U.S. (which account for 60% of the total) actually falling by 7.5%. That would suggest the leading manufacturers – Hon Hai (39.9% of shipments) and Mingshuo (31.0%) are not participants in the Nintendo value chain but rater focussed on Microsoft (note the peak in 2016).

Chart segments Chinese exports of videogame systems by destination market. Source: Panjiva