Total consumer content spending within the video game industry has hit US$3.5 billion during 2013, influenced by strong digital spending.

The 2012 Games Market Dynamics report from NPD Group says that in addition to the $1.37 billion spent by consumers on new physical video and PC game software during Q1, the total consumer spend on other physical forms of content reached $559 million.

Yet content in the digital format generated $1.59 billion according to the report.

“Digital spending fully offset the declines in physical format spend in Q1’13," said Liam Callahan, industry analyst, The NPD Group.

"There is strong growth in full-game downloads and downloadable add-on content sales across consoles, PCs, and portables, up a combined 25 percent in the first quarter of this year.”