Seeking Alpha

Eric Savitz

From Barron’s:

U.S. sales of video game hardware, software and accessories in June plunged 31% from a year ago, according to market research firm NPD Group. Total sales of $1.17 billion was down from $1.7 billion, but up from $863.3 million in May.

The year-over-year decline was the steepest since the 41% drop in September 2000. “This is one of the first months where I think the impact of the economy is clearly reflected in the sales numbers,” NPD analyst Anita Frazier said in a statement. “While the aggregate of content may not be as strong as what we saw in the first half of last year, and while the consumer base willing to spend dollars on hardware at the current price points may be thinning, the size of the decline could also point to consumers deferring limited discretionary spending until a big event (must have new title, hardware price cut) compels them to spend.”

Video game hardware sales took the biggest hit, falling 38% year over year, to $382.62 million, from $617.25 million. Software sales were down 29%, to $625.79 million, from $875.75 million. Accessories fell 22% to $158.20 million from $202.83 million.

The Nintendo Wii was again the best-selling console, with 361,700 units, up from 289,500 in May. The Microsoft Xbox 360 sold 240,600 units, up from 175,000 in May. Sony sold 164,700 Playstation 3 units and 152,700 Playstation 2 consoles, up from 131,000 PS 3 units and 117,000 PS 2 units in May.

Among the handhelds, sales for the month included 766,500 Nintendo DS units, up from 633,500 units in May, while the Sony PSP sold 163,500 units, up from 100,400.

Here’s a list of the top 10 selling video games in June, ranked by units:

  • Prototype, Activision (ATVI), Xbox 360, 419,900 units.
  • UFC 2009: Undisputed, THQ (THQI), Xbox 360, 338,3000 units.
  • EA Sports Active Bundle, Electronic Arts (ERTS), Wii, 289,100 units.
  • Tiger Woods PGA Tour 10, Electronic Arts, Wii, 272,400 units.
  • Wii Fit, Nintendo, Wii, 271,600 units.
  • Fight Night Round 4, Electronic Arts, Xbox 360, 260,800 units.
  • Fight Night Round 4, Electronic Arts, PS3, 210,300 units.
  • Mario Kart w/Wheel, Nintendo, Wii, 202,100 units.
  • Red Faction: Guerilla, THQ, Xbox 360, 199,400 units.
  • Infamous, Sony (SNE), PS3, 192,700 units.

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This article has 3 comments:

  •  
    The industry is getting wrecked by the economy. Sony is in a lot of trouble right now:

    www.videogamestocks.ne...
    Jul 17 11:17 AM | Link | Reply
  •  
    What about iPhone games?
    Jul 18 10:58 AM | Link | Reply
  •  
    That's a really poor selection of games for consumers to choose from. I wouldn't expect a listing like that to perform well in any economy, much less this one.

    Consumers are getting more picky. If a top franchise releases a new game, consumers will snap it up. But don't expect B-rated games to do as well as they did in boom times.
    Jul 19 11:56 AM | Link | Reply