Consumers spent $4.6 billion on video games in Q1 2014

Video game spending for Q1 2014 totaled $4.6 billion, NPD Group revealed today. Though the total is actually 1 percent less than the same period in 2013, spending on video game hardware actually grew 47 percent to $983 million.

According to industry analyst Liam Callahan, "The dramatic increase in hardware sales can be attributed to the new Xbox One and PlayStation 4 and these strong year-over-year trends are likely to continue through most of 2014." And with Microsoft having announced a Kinect-less Xbox One for $399, I'd have to agree with Callahan.

Physical format spending did see a decline of 8 percent to $372 million; however, digital format spending collectively increased by 4 percent. This is likely due to an increase in full game downloads and downloadable content.

“For the first quarter of 2014, content spending increased for used games, digital full games, DLC, and mobile with a modest increase in subscription revenue." Callahan said, adding, “This is another example of the interplay of physical media as well as digital downloads as consumers transition further into this console generation.”

Gaming accessories sales also fell 11 percent during the first quarter to $446 million. Gamepads and interactive gaming toys were noted as "two bright spots" for the category.

So the next time someone tells you that video games aren't a business, kindly let them know that it's actually worth $4.6 billion. So they can suck it.