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  •  » Game Sales' Biggest Decline Since 2000; June Sales Off 31%

#1 2009-07-17 12:27 am

Bat
Flawless Cowboy
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From: Björk, Björk
Registered: 2001-05-14
Posts: 28541

Game Sales' Biggest Decline Since 2000; June Sales Off 31%

IndustryGamers now has its hands on the latest NPD video game sales data for the month of June, and as analysts predicted, we've just gone through the fourth consecutive month of decline. It's time to officially remove the absurd “recession proof” label from video games. Total industry sales dropped 31% year-over-year to $1.17 billion, while hardware fell 38% to $382.62 million and software fell 29% to $625.79 million. 

Accessories saw the smallest decline, but still dropped 22% to $158.20 million. Accessories were driven in part by the new Wii MotionPlus, which sold 169K units in its first month at retail (not counting those bundled with Tiger Woods PGA Tour 10), and video game points and subscription cards for things like Xbox Live or PSN (this category was actually up 67% as people buy more digitally).

The net result, however, is that the entire video game industry is now trending down across all categories and total revenues through June are tracking behind 2008 by 12%. NPD analyst Anita Frazier commented, “The first half of the year has been tough largely due to comparisons against a stellar first half performance last year, but still, this level of decline is certainly going to cause some pain and reflection in the industry. Because the question invariably arises, this month saw the greatest year-over-year monthly decline since September 2000 when the industry declined 41%.”   

At this point, we really have to wonder if 2009 will be able to top 2008's record-breaking performance. Frazier seemed cautiously optimistic: "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. Of course, that could be put further at risk if more highly anticipated titles move out of 2009 into 2010 or later."

http://www.industrygamers.com/news/npd- … lummet-31/


If all economists were laid end to end, they would not reach a conclusion - George Bernard Shaw

"Fire up a colortini, sit back, relax, and watch the pictures, now, as they fly through the air."

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#2 2009-07-17 6:56 am

ScifiterX
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From: NW Palm Bay, Florida
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

In my case it's due to an almost total depletion of funds due to equipment failures, family events, college finance, and changes in my situation down the road.

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#3 2009-07-17 7:17 am

Bat
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

I think I bought my most recent game Xmas '07.

I want H3: ODST come 9/09. Others want me playing L4D, and L4D2 is already slated for November. Sturner also wants me playing Red orchestra.

It's too much. I'll be lucky to afford one, tho I vaguely remember MacZ offering L4D1 for free (a spare, I guess).

By eating once a day I might afford a modest upgrade from '06 graphics. neutral CPU, mobo etc. will stay as is.


If all economists were laid end to end, they would not reach a conclusion - George Bernard Shaw

"Fire up a colortini, sit back, relax, and watch the pictures, now, as they fly through the air."

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#4 2009-07-17 8:37 am

macnuke
just a plano guy
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Registered: 2004-05-16
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

heh.. thought this was gunna be due to Bliz nerfing WoW again.  lol

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#5 2009-07-17 2:48 pm

Metacell
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From: The space between the spaces
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

It's my fault for only buying RPGs and online FPS'es that I can play for months or years without replacing.


Ho Eyo He Hum

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#6 2009-07-17 4:12 pm

NightCougar_37
For Gallia!!
From: The back of my Twilight Drake
Registered: 2001-07-22
Posts: 9140

Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

If they want sales, gotta get rid of that $60 price. There was talk of that awhile back but still all I see is new games at $60.


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#7 2009-07-17 5:23 pm

Metacell
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

NightCougar_37 wrote:

If they want sales, gotta get rid of that $60 price. There was talk of that awhile back but still all I see is new games at $60.

Oh hell yeah!  $60?  I'll wait till hits the bargain bin.   I'll pay $40 for the gold version with expansions.  The game's just as much fun a year later.


Ho Eyo He Hum

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#8 2009-07-17 6:13 pm

Bat
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

She continued, "Our latest gamer segmentation study suggests that more than 4 million new 'players' have entered the games market since last year, so certainly the decline isn't due to less folks participating in the industry . Some of these are new retail consumers and some are playing online for free, and others are a mix of both.  The trick is to continue to figure out how to monetize all the gaming that is going on across PC, mobile devices, and video game systems.  Certainly there is plenty of opportunity in the industry, but the rate of change in many areas of the industry presents a lot of challenge as well.

I think I read much of the increase is in female gamers. Won't sell many shooters there.

In terms of hardware, Nintendo still remains dominant, but Wii figures are nowhere near as impressive anymore. The DS sold another 766.5K units while the Wii sold 361.7K.  Xbox 360 followed with 240.6K while Sony's platforms trailed behind. PS3 sold 164.7K, PSP sold 163.5K and PS2 sold 152.7K. 

Frazier noted that Xbox 360 was “the only platform to have realized a unit sales increase over last June,” and year-to-date, “both the 360 and NDS have generated an increase in unit sales.” Additionally, although Wii demand has trailed off a good deal in recent months, Frazier believes the sales pace for the console is still quite decent. "While Wii sales are down from last year, the platform is still realizing very strong sales month after month.  Compared against historical performance of other systems this far into the console lifecycle, the unit sales performance is still strong," she said.

FWIW Wii down 45%, I think. Somewhat anomalous unless the market is approaching saturation. Also unusual in that you'd xpect women to be more Wii-oriented than 360, but online free PC play could account for that.

(Side note, uki, no change in Quake Live for Mac/Linux. I checked coupla days ago.)

Last edited by Bat (2009-07-17 6:15 pm)


If all economists were laid end to end, they would not reach a conclusion - George Bernard Shaw

"Fire up a colortini, sit back, relax, and watch the pictures, now, as they fly through the air."

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#9 2009-07-17 10:19 pm

Some1
The flying moleman.
From: Montral
Registered: 2003-05-17
Posts: 2701

Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

Bat wrote:

I think I bought my most recent game Xmas '07.

I want H3: ODST come 9/09. Others want me playing L4D, and L4D2 is already slated for November. Sturner also wants me playing Red orchestra.

It's too much. I'll be lucky to afford one, tho I vaguely remember MacZ offering L4D1 for free (a spare, I guess).

By eating once a day I might afford a modest upgrade from '06 graphics. neutral CPU, mobo etc. will stay as is.

You couldn't afford $5 for Red Orchestra on one of its many discount weekends? Just skip a couple of lunches and you're there big_smile

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#10 2009-07-17 11:08 pm

Bat
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From: Björk, Björk
Registered: 2001-05-14
Posts: 28541

Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

I didn't have a handy Steam vending machine to feed pocket change to.

Disability sucks.

Just skip a couple of lunches and you're there big_smile

At a meal/day, that'd mean 25-80 hours without food.

Last edited by Bat (2009-07-17 11:15 pm)


If all economists were laid end to end, they would not reach a conclusion - George Bernard Shaw

"Fire up a colortini, sit back, relax, and watch the pictures, now, as they fly through the air."

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#11 2009-07-18 5:57 am

NightCougar_37
For Gallia!!
From: The back of my Twilight Drake
Registered: 2001-07-22
Posts: 9140

Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

Heh, I still have no reason to buy a Wii lol.

Getting to the point now where i'm thinking...man i'm getting too old for all these consoles lol. Well that and my collection reminds me everyday that it would take me months to replay all of them again if I really wanted to big_smile.

Think i've finally lost the desire to sit all day in front of a TV playing video games and eating junk food....zomg, the painful realization i'm not a kid anymore!!...Hmmm, suddenly in the mood to blast some zombies in L4D sneaky


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#12 2009-07-18 9:30 am

Aaron_R
Apple Key - R.I.P.
From: Oshkosh, Wisconsin, USA
Registered: 2004-01-16
Posts: 546
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

Metacell wrote:

NightCougar_37 wrote:

If they want sales, gotta get rid of that $60 price. There was talk of that awhile back but still all I see is new games at $60.

Oh hell yeah!  $60?  I'll wait till hits the bargain bin.   I'll pay $40 for the gold version with expansions.  The game's just as much fun a year later.

Same thing here, if they wanted me to buy it new instead of used so they could move more carts than lower the damn price. The last game I paid full price for was when MGS:4 was released. I pay max $2 an hour for a game, so if a game is beatable and than gets boring after 12 hours I won't pay more than 24 bucks for it, etc.

Last edited by Aaron_R (2009-07-18 9:35 am)


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#13 2009-07-18 2:27 pm

Earendil the Mariner
Mahjong owns my soul
From: Minnesota
Registered: 2001-05-17
Posts: 4540

Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

Aaron_R wrote:

Metacell wrote:

NightCougar_37 wrote:

If they want sales, gotta get rid of that $60 price. There was talk of that awhile back but still all I see is new games at $60.

Oh hell yeah!  $60?  I'll wait till hits the bargain bin.   I'll pay $40 for the gold version with expansions.  The game's just as much fun a year later.

Same thing here, if they wanted me to buy it new instead of used so they could move more carts than lower the damn price. The last game I paid full price for was when MGS:4 was released. I pay max $2 an hour for a game, so if a game is beatable and than gets boring after 12 hours I won't pay more than 24 bucks for it, etc.

The last game I paid near full price for was Fallout 3 ($56 from NewEgg right after it was released), and while it was TOTALLY worth it, I almost never buy a game when it's that new or over $45.
For example: I just got Assassin's Creed from Amazon for $28.
I've also had good experiences buying used copies a month or two after release.

And in terms of overall sales numbers, have they considered that they're down month-to-month because nothing big has come out lately? or maybe because people actually spend time outside during the summer?
There will undoubtedly be huge growth around the holiday season.


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#14 2009-07-18 3:18 pm

robco
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From: Sodom
Registered: 2004-12-04
Posts: 7942
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

I just don't have the time anymore. And a lot of games are crap. I'm finding it more palatable to shell out >= $10 for a decent iPhone game that I can play on the go. The age of decent demos is on the decline and like many, I'm unwilling to take a chance with $60 on an unproven title. There are way too many devs hocking way too many titles each year. It's time to cull the herd. Unfortunately the high cost of development for modern PC and console games means that each title has to be a blockbuster in order to make any money.


It is an odd thing, but every one who disappears is said to be seen at San Francisco. It must be a delightful city, and possess all the attractions of the next world.
- Oscar Wilde

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#15 2009-07-18 3:30 pm

akb825
ph34r teh master sword
From: In a secluded room
Registered: 2003-12-25
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Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

Earendil the Mariner wrote:

And in terms of overall sales numbers, have they considered that they're down month-to-month because nothing big has come out lately? or maybe because people actually spend time outside during the summer?
There will undoubtedly be huge growth around the holiday season.

I believe that they were comparing with this time last year, so this wouldn't be the case.

I've normally been a few years behind in games, so fortunately I don't have to worry so much about their prices. The game that I bought closest to release that I can think of is Left 4 Dead, which I bought in May.

Some games don't really go down in price, though... Twilight Princess came out in 2006, but it's still selling at full price, even on Amazon. (ok, $47 instead of $50 tongue) That game is worth it, though, IMO.


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#16 2009-07-25 6:52 pm

MacZiMiZer
Jack of All, King of None
From: US of A
Registered: 2001-10-25
Posts: 1551

Re: Game Sales' Biggest Decline Since 2000; June Sales Off 31%

Senior Design and my car have cost me about 3k in one month, and nothing has come out in a while that has been an enticing buy, I'm borrowing Infamous from a friend for a bit.  But Bioshock 2 and L4D2 will definitely be on my shopping list, that is when each is on sale on Steam.  That is if I can save up the 50-75 total...   Graduate School tuition is not cheap, and I start in the fall

Last edited by MacZiMiZer (2009-07-25 6:52 pm)


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