Video Game Industry Slumps Despite Surge in Hardware Sales
Despite strong sales of Microsoft's Xbox 360 console, the video game industry swooned again in July, according to a report from The NPD Group.The video game industry inched lower in July, down 1 percent, to $846.5 million, compared with $850.6 million in July 2009, despite a 12 percent increase in hardware sales. Year-to-date (YTD) overall sales are down 8 percent, at $7.5 billion, compared with $8.2 billion for the same period last year. Software sales fell 8 percent, to $281.1 million, compared with $313.8 million in July 2009, and sales of video game accessories slipped slightly to $129.3 million from $131.5 million in July 2009, a 2 percent decline. "While video game retail sales show a very slight decline versus last July, we have to consider the success of Starcraft II this month, which helped the PC games category to realize a 103 percent increase in dollars over last July," said NPD Group analyst Anita Frazier. "PC games and video game industry sales combined for an increase of 4 percent in revenues as compared to July 2009."
Strong sales of Microsoft's Xbox 360 console led the sharp rise in hardware sales, with 443,5000 units moved in July, followed by Nintendo's portable DS console, which sold 398,400 units in July. The company's motion-controlled Wii console followed in third, with nearly 254,000 units sold. Sony took the last two spots with its PlayStation 3 console and PSP portable console, which sold 214,500 units and 84,000 units, respectively.