June video game sales decline again, NPD says

Jul 16, 2010 By BARBARA ORTUTAY , AP Technology Writer

(AP) -- Summer doldrums weighed on the video game industry in June, with U.S. retail sales of hardware, software and accessories down 6 percent from a year earlier, to $1.1 billion.

Market researcher NPD Group said Thursday that sales of game software tumbled 15 percent to $531.3 million. Analysts were generally expecting a smaller decline.

Hardware sales climbed 5 percent to $401.7 million. NPD Analyst Anita Frazier said Microsoft Corp.'s Xbox 360 and Sony Corp.'s saw unit sales increase notably from a year earlier. Although Nintendo's handheld DS was the month's best-selling game system, the Xbox 360 surpassed Nintendo's with the number of units sold.

June was unusual in that software sales fell while hardware sales increased, said Jesse Divnich, an analyst with Electronic Entertainment Design and Research. Last month's discrepancy, he added, could have resulted from people replacing older consoles with new ones. The Xbox also got a boost from a new model put out by Microsoft last month - one that's smaller, sleeker and has a bigger hard drive.

As in May, Take-Two Interactive Software Inc.'s "Red Dead Redemption" for the was the month's best-selling title. The game is now the best-selling game of 2010, NPD said. Nintendo's "Super Mario Galaxy 2" for the Wii was in second place. And in an unusual showing for a game based on a movie, "Toy Story 3" from Disney Interactive Studios, a unit of The Walt Disney Co., also made it in the top 10.

"There has been a downward trend (both in quality and sales), for movie based games," Divnich said. "The presence of 'Toy Story 3' shows that as long as you focus on quality, there is certainly a consumer base for these types of games."

Total industry sales for the year through the end of June were down 9 percent to $6.66 billion compared with the same six-month period last year.

Even so, Frazier said the industry, which brings in the bulk of its money in the holiday season, could still pull in $20 billion for the full year.

A strong slate of games to come, and new motion controllers from Sony and Microsoft will likely give games a boost, she said.

Explore further: Why the Sony hack isn't big news in Japan

not rated yet
add to favorites email to friend print save as pdf

Related Stories

March video game retail sales climb 6 percent

Apr 15, 2010

(AP) -- After a rocky 2009 followed by two months of double-digit declines, U.S. retail sales of video game software, hardware and accessories finally saw an uptick in March.

March video game sales slump more than expected

Apr 17, 2009

(AP) -- U.S. video game sales slumped more than expected in March and were flat in the first quarter when compared with a year earlier - hurt by the recession, a shift in the Easter calendar and fewer big game launches.

June video game sales drop sharply

Jul 17, 2009

(AP) -- Squeezed by the economic downturn, U.S. retail sales of video games dropped sharply in June, the largest year-over-year decline the industry has seen in nearly nine years.

February video game sales drop 15 percent

Mar 12, 2010

(AP) -- U.S. retail sales of video games declined 15 percent in February, hurt in part by an ongoing decline in sales of music games and lower sales of the Wii system.

Recommended for you

Why the Sony hack isn't big news in Japan

18 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

23 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

Lordjavathe3rd
not rated yet Jul 16, 2010
What ever happened to games like Super Mario RPG: Legend of the Seven Stars? I'm a little afraid that the videogame industry may take the wrong turn (rockband perhaps) and then decide there is no money in games when people stop buying.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.