Rapid increase in popularity of gaming consoles observed in Russia, with a significant boost of 32%
Gaming Console Sales in Russia: A 20% Year-Over-Year Increase and Potential EU Restrictions
Russian consumers demonstrated a growing preference for gaming consoles, such as PlayStation, Xbox, and Nintendo Switch, last year. The median price of these consoles in Russia increased by approximately 14% year-over-year, reaching nearly 26,000 rubles, as reported by payment service "YooKassa." This growth was accompanied by a 20% increase in the Russian gaming segment's turnover.
The surge in gaming console demand in Russia was attributed to overall consumption growth and buyers' inflation expectations, as explained by the "Check Index" service. The issue of access restriction to video games has also been resolved. Analysts took note of the low base effect in console sales expected as early as 2023.
However, there is speculation that the European Union may ban the supply of PlayStation and Xbox gaming consoles to Russia as part of the 16th package of sanctions. Financial Times reported on January 28 that European authorities believe the Russian military might employ gaming consoles in combat zones in Ukraine for drone control. Conversely, "Marvel Distribution" informed TASS that such a ban would not significantly impact consumers, as most console supplies reach Russia through Kazakhstan, the United Arab Emirates, and China.
Sony, Microsoft, and Nintendo halted console sales in Russia as early as March 2022. Russian gamers additionally lost access to video game stores owned by Sony, Microsoft, Nintendo, and Valve. The geopolitical climate and international sanctions have significantly impacted the technology and electronics sectors in Russia, potentially affecting the availability of gaming consoles.
Recent developments in the gaming industry show Sony's move to slash PlayStation 5 prices during the Days of Play event, aiming to boost sales in other markets[4][5]. Meanwhile, Xbox has seen success with software sales, specifically titles like The Elder Scrolls IV: Oblivion Remastered[2]. Although these developments do not explicitly address the Russian market, it is likely that manufacturers have adjusted their strategies in response to the sanctions and geopolitical situation.
In the midst of the potential EU restrictions, consumers in Russia might seek alternatives to PlayStation, Xbox, and Nintendo Switch, showing a growing interest in lifestyle tech and gadgets. As the entertainment landscape evolves, technology companies may capitalize on this by offering an array of devices tailored for gaming and streaming experiences, catering to consumers' needs in these challenging times.
