Video Game Sales Falling

August 14th, 2009 at 12:00 am
 


Video Game Controllers

It was only some months ago that many analysts were saying that the video game market was recession proof. Many said that video games, due to its relatively low cost and flexibility in terms of entertainment value, would not suffer or feel the effects that the economic recession has on the overall retail market. But the recent numbers from succeeding months actually say the opposite- the video game market sales are actually falling.

According to reports released by market research firm NPD Group, video game retail sales fall for the fifth straight month. July numbers show that the video games industry posted sales of US$848.9 million, down 29 percent from US$1.1 billion worth of sales posted during the same period last year. Total video games sales to date stand at US$8.16 billion, down 14 percent from the sales numbers covering the same period last year.

By the numbers alone, it seems that analysts are changing their view that the video game market may be recession proof. The numbers show that the industry has been suffering for several months now and the worst may be yet to come. It seems that the freefall not only affects the sales of video game titles but is also shown in the other key sectors of the video game industry.

Hardware sales also suffered, showing only US$280.94 million sales in July, a drop of 37 percent from last year’s sales for the same month (US$447.71 million).  The same is also happening to sales of software (down 26 percent) and accessories (12 percent). It may be hard for the industry to recover from this, at least for the remaining months of this year. What most of them are hoping is that things will get better in the upcoming months with the industry expecting the release of new versions of popular game titles such as Guitar Hero 5, Halo 3:ODST and Call of Duty: Modern Warfare 2, just to name a few. But overcoming the fall that the industry experienced so far this year is highly unlikely.