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: Alibaba IPO comes with unusual structure

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

Job listing service ZipRecruiter raises $63 million

12 hours ago

ZipRecruiter, a California start-up that tries to simplify tasks for recruiters, has raised $63 million in initial venture capital funding as the 4-year-old service races to keep up with growing demand.

Alibaba IPO comes with unusual structure

21 hours ago

Foreigners who want to buy Alibaba Group shares in the Chinese e-commerce giant's U.S. public offering will need to get comfortable with an unusual business structure.

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".