The industry suffered drops across the board, with sales of hardware, software and accessories all falling.
video game industry suffered another decline in sales in June, dropping 10
percent from the same period last year. Total U.S. game sales fell to $995
million this June from $1.11 billion in June 2010, with software, hardware and
accessories sales all posting declines.
sales dropped 12 percent to $469.5 million from $531.3 million in the same
period last year, while hardware sales fell 9 percent to $366.6 million from
$401.7 million in June 2010. Accessories sales also slid, falling 11 percent to
$158.9 million from $177.7 million compared with June of 2010.
Pachter, an analyst with Wedbush Morgan Securities, told
the Los Angeles Times that sales of Nintendo's Wii and portable DS console were
falling due to the emergence of mobile devices like smartphones and tablets,
which are increasingly able to offer a fully featured mobile gaming experience.
"The DS is losing share because of smartphones," Pachter told the paper.
"Seventy percent of DS users are pre-teens. Within that population, 50 percent
are perfectly happy with an iPhone or iPod Touch. So Nintendo has lost access
to about half of that market."
2 Interactive's "L.A. Noire," available on Sony's PlayStation 3 (PS3) and
Microsoft's Xbox 360 consoles, led software sales for the month, one of three
titles from Take 2 to make the top 10. Sales of "Duke Nukem Forever," which
landed in the No. 2 spot, gave Take 2 the top two releases of the month.
monthly point-of-sale data reports on U.S. game industry sales occurring from
new physical purchases at retail, which is the largest channel for game sales,
but it does not represent 100 percent of industry sales. The numbers do not
account for consumer purchases made via digital distribution, used game sales,
subscriptions, mobile game apps, rentals or social network games.
Games Industry: Total Consumer Spend, a new report on the total consumer spend
against the games industry, will be issued quarterly and will be NPD's official
estimate of the consumer spend on the industry going forward.
the numbers may look gloomy, the recent acquisition of PopCap games by
publishing giant Electronic Arts (EA) suggests industry confidence in online
and mobile gaming, two areas that continue to see growth as mobile multimedia
devices gain traction in the marketplace. "We picked EA because they have
recast their culture around making great digital games," said David
Roberts, CEO of PopCap. "By working with EA, we'll scale our games and
services to deliver more social, mobile, casual fun to an even bigger, global
a deal announced July 12, EA will pay approximately $650 million in cash and $100
million in shares of EA common stock to be issued to certain stockholders of
PopCap. The company is one of the largest digital and social gaming companies,
with more than 150 million games installed and played worldwide on platforms
such as Facebook, RenRen, Google, iPhone, iPad and Android. In calendar year
2010, approximately 80 percent of PopCap's revenue was on high-growth digital