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US video game sales hurt by lack of hits
By Barbara Ortutay |
May 16, 2009, Saturday
|
Print Edition
Print Edition
LACKING the big hits that made last year a standout, United States video game sales dropped sharply in April for the second month in a row as customers continued to watch their wallets.
Market researcher NPD group said yesterday that retail sales of game software, hardware and accessories dropped 17 percent last month, to US$1.03 billion. Software sales plunged 23 percent to US$510.7 million, more than many analysts had expected. Hardware sales, meanwhile, declined 8 percent to US$391.6 million.
A major culprit for the year-on-year decline was last year's launch of blockbuster "Grand Theft Auto IV," which raked in more than US$500 million within a week of its launch in April, 2008.
The handheld Nintendo DS was the month's best-selling gaming system, which was not a surprise considering the recent launch of the new DSi model.
In all, Americans bought more than 1 million DS systems in April. Of these, Nintendo said about 800,000 were sales of the new DSi, a slimmer, more interactive version of the system that includes two digital cameras.
Nintendo's Wii console came in a distant second, selling 340,000 units. The company estimates it has about a 70 percent share of the US gaming hardware market.
Microsoft Corp's Xbox 360 sold 175,000 units, only slightly more than the nine-year-old PlayStation 2 from Sony Corp.
"This is a testament to the impact a price reduction can have on hardware acquisition, with price being only second to compelling new content as a catalyst for hardware sales," said NPD analyst Anita Frazier.
Market researcher NPD group said yesterday that retail sales of game software, hardware and accessories dropped 17 percent last month, to US$1.03 billion. Software sales plunged 23 percent to US$510.7 million, more than many analysts had expected. Hardware sales, meanwhile, declined 8 percent to US$391.6 million.
A major culprit for the year-on-year decline was last year's launch of blockbuster "Grand Theft Auto IV," which raked in more than US$500 million within a week of its launch in April, 2008.
The handheld Nintendo DS was the month's best-selling gaming system, which was not a surprise considering the recent launch of the new DSi model.
In all, Americans bought more than 1 million DS systems in April. Of these, Nintendo said about 800,000 were sales of the new DSi, a slimmer, more interactive version of the system that includes two digital cameras.
Nintendo's Wii console came in a distant second, selling 340,000 units. The company estimates it has about a 70 percent share of the US gaming hardware market.
Microsoft Corp's Xbox 360 sold 175,000 units, only slightly more than the nine-year-old PlayStation 2 from Sony Corp.
"This is a testament to the impact a price reduction can have on hardware acquisition, with price being only second to compelling new content as a catalyst for hardware sales," said NPD analyst Anita Frazier.
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