Video Game Sales Plummet

August 17, 2009

Video game sales are in what one magazine calls a freefall. Those who read this blog regularly know that I see a negative correlation between video game sales and traditional toy sales; if video game sales are up traditional toy sales are down. It is for this reason that II have held that the advent of Wii and the 18% sales increase achieved by video games in 2008’s fourth quarter was a bigger factor than the economy in driving down sales of traditional toys during the same period.

That is why the traditional toy industry needs to take note of the continuing decline in video game sales this year. It could have a positive impact on traditional toy sales. In fact, the latest figures are so bad that TG Daily led with this headline on August 14, 2009: “Games market goes into freefall.” Here is how the article puts it:

Video game sales are continuing to plummet, according to market research from NPD.

Despite predictions that the recession would keep us all indoors giving ourselves repetitive strain injury, sales of games and consoles in July were 29 percent down on last year. It’s the fifth consecutive month of decline (emphasis mine).

This trend should alleviate later in the year when The Beatles: Rock Band and Halo 3 are released. Still, it appears that video gaming is not drawing consumers in anywhere the numbers they were last year. What will this mean for the traditional toy industry? We’ll see after Christmas.

Posted by Richard Gottlieb on August 17, 2009 | Comments (2)

August 31, 2009

In response to: Video Game Sales Plummet
Joseph J Capriccioso commented:

I think the big question is did the video game industry hurt themselves?With the creation of rock band and guitar hero most gamers are not buying a few games.Instead they are concentrated on playing hours and hours of rockband instead of having a variety.Also,Your whole family could play rockband.Check the sales of every rockband and guitar hero series and assessories and compare that to the regular new releases.If rock band sales are through the roof then that is a good indicator.Used sales may be great for profit for companies but it may also be killing the industry.Lack of software or games can also kill a system before it's time.If sony actually flooded the market with original psp games,you don't think psp's will be on the rise?I also feel the same goes for the ds.Sony is so busy with the ps3 that it basically abandoned it's other product the psp.Nintendo needs to put out more of their own titles and make sequels galore.New zelda,mario,metroid,kid icaris,another punch out and the list goes on.Why was it so long to put out a sequel to punch out?Why wait years for a new zelda?You also need to have something for everyone.Put out 2d sidescroller games too and not just for downloads.Mega man should come out with 2 games a year (mega man 10 & 11)Bring back mega man x series as well as the other ones.You should never go into a video games store where there is that 4 month dead period where very little comes out but christmas time everything is out.Microsoft should definitely put out a handheld to stir things up and nintendo needs to improve the DS graphics with a new ds system.It's good that the companies are extending the lifespan of the ps3,wii and 360 but it won't work if you don't flood the market with great games.

August 27, 2009

In response to: Video Game Sales Plummet
NateS commented:

The video game industry suffers from a lack of innovation. A money making concept comes to life, and other publishers wind up slapping a new theme or making a slight adjustment to it before getting it stocked on a shelf somewhere. While there are arguments in favor of the practice, those arguments come from trying to win new customers. The smartest adjustment to an existing game that I see in the video game market is the Rock Band Beatles edition. It provides a means of getting more baby boomer demographics interested in video games.