Report: U.S. Game Sales Plunge 31% to $1.17B in June

Authored by Mark Hefflinger on July 17, 2009 - 7:18am.

Port Washington, N.Y. - U.S. video game sales plunged 31% in June, to $1.17 billion, the most precipitous drop since the industry saw a 41% year-over-year decline in September 2000, according to figures from market research firm NPD Group. "This is one of the first months where I think the impact of the economy is clearly reflected in the sales numbers," said NPD analyst Anita Frazier.

"While the aggregate of content may not be as strong as what we saw in the first half of last year, and while the consumer base willing to spend dollars on hardware at the current price points may be thinning, the size of the decline could also point to consumers deferring limited discretionary spending until a big event (must-have new title, hardware price cut) compels them to spend."

Hardware sales were off 38% in June, to $382.6 million from $617.3 million a year ago.

Microsoft's (NASD: MSFT) Xbox 360 was the only console to see a slight sales boost; Nintendo Wii sales fell 45%, while Sony (NYSE: SNE) PlayStation 3 sales were down 59%.

Game software sales were down 29% in June, to $625.7 million.

The top-selling title last month was Activision Blizzard's (NASD: ATVI) "Prototype," selling 600,000 units across all platforms.

Also featuring in the top 10 were THQ's (NASD: THQI) "UFC 2009: Undisputed"; Electronic Arts' (NASD: ERTS) "EA Sports Active Bundle," "Tiger Woods PGA Tour 10" and "Fight Night Round 4"; and Nintendo's "Wii Fit" and "Mario Kart."

"Even with the industry down 12% year-to-date, with a strong back-half performance, full year sales could still be flat to slightly up to 2008's record-breaking performance," Frazier added.

Related Links:
http://www.npd.com

Published in DMW Daily, July 17, 2009

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