US video game retail sales fall 25 percent in May

Jun 18, 2013

U.S. retail sales of video games, hardware and accessories declined 25 percent in May as demand for aging game consoles continued to fade and fewer new games launched compared with last year, according to market researcher NPD Group.

NPD said late Monday that total were $386.3 million, down from $517 million in May 2012. The decline comes as and Microsoft Corp. and . are getting ready to launch new consoles later this year. The Xbox One, the successor to Microsoft's Xbox 360, and the PlayStation 4, successor to Sony's PS3, are expected to boost game sales over the holiday season.

Hardware sales dropped 31 percent year-over-year to $96 million from $139 million. Software sales also fell 31 percent to $175.1 million from $255.4 million. The month's best-selling game was "Injustice: Gods Among Us," from Warner Bros. Interactive, followed by "Call of Duty: Black Ops II" from Activision Blizzard Inc. Nintendo's "Donkey Kong Country Returns" came in at No. 3.

Sales of gaming accessories slid 6 percent to $115.3 million from $122.5 million.

NPD estimates that sales of new video game discs, hardware and accessories account for about half of what people spend on games.

Cowen and Co. analyst Doug Creutz expects the year-over-year declines to continue in June and July, but after that expects several consecutive months of increases, with the launch of the next "Madden" game from EA, the launch of "Grand Theft Auto V" from Take-Two Interactive Software Inc. in September and other releases.

"In general, we believe the fact that (the new) consoles appear poised for a good launch is far more important than current NPD trends," Creutz wrote in a note to investors.

Activision's shares were unchanged at $14.73 in morning trading. Shares of Corp., the world's largest video game retailer, slid 20 cents to $38.30. Microsoft's stock rose 3 cents to $35.03. Shares of Electronic Arts Inc. rose 27 cents to $22.70.

Explore further: Strong iPhone 6 demand boosts Taiwan export orders

1 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

NPD: US retail video game sales fell in September

Oct 14, 2011

(AP) -- U.S. retail sales of video game hardware, software and accessories dipped 4 percent to $1.13 billion in September, according to market researcher NPD Group. Sales of the games themselves grew somewhat, but this was ...

NPD: October video game sales rise 1 percent

Nov 11, 2011

(AP) -- U.S. retail sales of video game hardware, software and accessories rose 1 percent to $1.08 billion in October, helped by sales of "Battlefield 3," market researcher NPD Group said Friday.

Recommended for you

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

Apple starts iPhone 6 sales in key China market

Oct 17, 2014

Apple began selling its latest iPhone in China Friday, nearly a month after other major territories due to a licence delay by regulators, but it faces a tough battle with rivals led by Samsung in the crucial ...

Microsoft CEO launches diversity training effort

Oct 17, 2014

(AP)—Microsoft CEO Satya Nadella has again apologized to employees and announced in a company-wide memo that all workers will receive expanded training on how to foster an inclusive culture as he works to repair damage ...

Arguments made in ex-dictator's suit against game

Oct 17, 2014

(AP)—A judge has heard arguments from lawyer and former New York City Mayor Rudy Giuliani calling for the dismissal of a lawsuit filed against video game giant Activision by former Panamanian dictator Manuel Noriega.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

VendicarE
5 / 5 (1) Jun 18, 2013
No time for Video Games...

I'm "texting".