September 10, 2010

Video Game Sales Continued To Drop In August

NPD Group reported on Thursday that videogame sales slipped again in August as the industry hoped that hot titles and new motion-sensing controllers would kick the market back up.

According to NPD, revenue from videogame software and hardware tallied $818.9 million, 10 percent less than the $910.3 million taken during the same month a year prior.

"In fact, this month reflected the lowest sales for August since 2006," NPD analyst Anita Frazier told AFP news.

"While all categories are down in both dollars and units, the portable portion of the industry is down to a greater extent than is the console portion."

NPD reported that sales of portable videogame devices, accessories and games plunged 25 percent, while revenue from consoles was down six percent.

The report came with fading hopes that a recovering economy would help jump-start sales in the videogame industry.

According to NPD, sales of videogames and gear at of the end of August were $8.37 billion, down 8.0 percent from the $9.09 billion taken in at the same point the year before.

NPD said that U.S. videogame industry sales dropped about one percent in July despite a jump in the number of shoppers snatching up Xbox 360, PlayStation 3 (PS3) and Wii Consoles.

Microsoft's console was the number one selling console for August with $356,700.

Sony posted a 13th straight month of improved year-over-year PS3 sales in the U.S. with $226,00 in August.

Videogame software sales slipped 14 percent to $403.5 million.

Sony is expected to start selling its motion-controller accessory in coming months, along with Microsoft adding its Kinect hardware to its line.

Frazier forecast that U.S. retail videogame sales this year would be about $18.6 to $20 billion given "the incredible games and accessories that are coming out."


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