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Abstract
The majority of economic literature on video games industry focuses on the details of the manufacturer side of this market. This study is an attempt to deviate from the popular trend and investigate the consumer side of the market. Making use of the data collected via Consumer Expenditure Survey (CES) provided by the Bureau of Labor Statistics (BLS), this article investigates the household demand model for video games in the United States. Result of this estimation state that video games are a necessary normal good in the U.S. Market since households’ expenditure per capita and income level have significant effects on the demand of video games and households’ demographic composition have no significant effects on the goods demand. These results are estimated using cross-sectional data for the year of 2016 and Ordinary Least Square (OLS) procedure due to time constrains.