Video Game Sales Took Another Hit in July, Report Says
Sales of the Sony PlayStation 3, Microsoft Xbox 360 and Nintendo Wii consoles all saw steep declines for the month of July, NPD Group reports. Industry sales overall dropped 24 percent compared with the same period in 2008, to $848 million, according to NPD Group.Long touted as one of the most recession-proof markets, the video game industry is currently feeling the continued effects of the economic downturn. Market research company NPD Group issued a depressing report in July concerning steep June video game sales declines, then announced that sales dropped even more dramatically in July, falling below even the pessimistic estimates of industry analysts. The NPD Group said video games sales in July followed a now five-month long decline in industry figures, with sales falling 24 percent from the same period in 2008, to $848.8 million. NPD analyst Anita Frazier cautioned in a statement that although year-to-date results are weak, there are some major titles set for release over the next several months, including the popular NFL football title "Madden" in August, which are likely to give the industry a much-needed boost in sales.
NPD also said sales of gaming systems and consoles fell to $280.9 million, representing a 37 percent drop from the same period last year. Wedbush Morgan Securities analyst Michael Pachter told the AP the numbers were worse than he had predicted, though he too felt the industry was poised for a turnaround-if the console makers can entice consumers. "We need hardware to turn around or the industry is going to be in trouble," Pachter told the news agency.