PS3 sucks, XBox 360 sucks, Revolution sucks

[Paco]

By Lisa Baertlein | December 14, 2005

LOS ANGELES (Reuters) - U.S. retail sales of video game hardware and software fell 9 percent from a year ago to come in just under $1.3 billion, market researchers NPD Group said on Wednesday.

Article Tools
Printer friendly
E-mail to a friend
Technology RSS feed
Available RSS feeds
Most e-mailed
More:
Business section |
Latest business news |
Globe front page |
Boston.com
Sign up for: Globe Headlines e-mail | Breaking News Alerts Video game sales dropped 18 percent to nearly $700 million, as consumers saved and waited for the launch of Microsoft Corp.'s <MSFT.O> next-generation Xbox 360 gaming console and as overall hardware unit sales dropped.

The decline was widely expected by analysts, who noted that video game sales have softened amid a transition to new console technology and Xbox 360 shortages. The November results also compared with year-earlier figures that were buoyed by strong sales of blockbuster titles "Halo 2" and "Grand Theft Auto: San Andreas."

"(The) current video game retail environment is tough," Bank of America equity research analyst Gary Cooper said in a client note.

NPD Group measures nearly two-thirds of retail sales in the United States and makes projections for the remainder of the market.

Microsoft's Xbox 360 debuted on November 22 in North America, sold out quickly and has remained in short supply.

Analysts noted that the launch of the software giant's new console was not enough to lift overall hardware unit sales, which fell 21 percent year-on-year to 2.9 million units, analysts said.

Nevertheless, hardware sales were up almost 10 percent on a dollar basis, landing at $456 million, NPD said.

Wedbush Morgan Securities analyst Michael Pachter attributed most of the November decline in video game sales to a sales shortfall on existing, or current-generation, gaming consoles -- particularly the original Xbox, which analysts said saw November unit sales plummet 75 percent.

Pachter had expected November video game software sales of $715 million, and noted that several new game releases performed worse than forecast, indicating a slow start for the holidays.

One game that analysts said underperformed was "True Crime: New York City" an Activision Inc. <ATVI.O> urban action game sequel to a popular title.

Still, Pachter said a late burst of buying over the next two weeks could move the needle back into positive territory.

UBS Investment Research analyst Michael Wallace said in a note that software sales are down 3 percent year to date. His estimate calls for a 1 percent decline in 2005.

Pachter's 2005 estimate calls for overall video game unit sales that are flat to negative.

Bank of America's Cooper said launch sales of the Xbox 360 totaled 325,902 units.

Analysts said renewed supplies could help boost year-end numbers, but that the likelihood of new stocks remained the big unknown for the holiday season.

"Given continued uncertainty among consumers about the availability of Xbox 360 units, we think that slow sales may persist in December," said Pachter, who noted that Xbox 360 software generated $70 million in sales in November.

Overall industry sales in dollars were up 5 percent year-to-date, NPD said.

http://www.boston.com/business/technolog...gy+stories

Handhelds fuel rise in video-game sales
Six-month of rise of 21 percent seen despite decline in console purchases
Updated: 10:22 a.m. ET July 28, 2005
Retail sales of U.S. video games hardware, software and accessories rose 21 percent in the first six months of the year, as the popularity of handheld devices offset a decline in aging game consoles, a study said.

The video games industry, which has been rocked this month by concerns over sexual content in one of its most popular titles — Take-Two Interactive Software Inc.'s "Grand Theft Auto: San Andreas," saw sales rise to over $4.1 billion in the period, from $3.4 billion in 2004, research firm NPD Group said in a report. Overall unit sales rose 11 percent.

NPD said the gains were buoyed by the introduction of new portable handheld game devices, including Sony Corp.'s PlayStation Portable (PSP) and Nintendo Co. Ltd.'s DS dual-screen machine. Overall, portable game hardware sales rose 181 percent over a year ago, the study said.

Sales of console hardware, such as Sony's PlayStation 2, Nintendo's GameCube and Microsoft Corp.'s Xbox, fell 6 percent.

Retail revenue from games for the personal computer fell 10.5 percent in the first half of the year.

Sony Corp's "Gran Turismo 4" racing game sold the most units in the period, followed by Nintendo's "Pokemon Emerald" and Electronic Arts Inc.'s "MVP Baseball 2005."

http://msnbc.msn.com/id/8740581

Video game sales seen pausing after record 2003
LONDON (Reuters) — Video game sales soared to a record $18.2 billion last year, but the days of strong growth are on pause as players await a new generation of consoles in 2005 and 2006, a new study showed on Wednesday.
Recent price cuts in Europe for Microsoft's Xbox and Sony's PlayStation 2 plus new releases in reliably selling franchises such as Grand Theft Auto, Halo and Doom are expected to boost sales in the second half of 2004.

But sales for the entire year are expected to be flat compared to 2003, at $18.2 billion, said London-based research group Screen Digest in its annual study.

Screen Digest pointed out that the slowdown had been long anticipated as it follows the typical trend for game consoles entering their third and fourth years on store shelves.

"2003 was the peak. But the slow to stable growth for 2004 is positive. There were a lot more consoles sold in this cycle than in the past one," said Ben Keen, executive director for Screen Digest.

Over the past decade, the growth rate for video game turnover has exploded, rivalling cinema box office takings and CD sales in several major markets.

Screen Digest defined the market in its annual report as including video games for personal computers and consoles such as PlayStation 2, Xbox and Nintendo's GameCube, plus "edutainment" titles, or hybrid entertainment-education software.

Global video game sales growth in 2003 was led by Europe, and in particular Britain, Screen Digest said.

The British video game market, the third-largest in the world behind the United States and Japan, jumped almost 20% to $1.88 billion. The Western European market climbed 21% to $6.4 billion, the researchers said.

Screen Digest predicted global retail sales will rise a further 16% to $21.1 billion by 2007.

http://www.usatoday.com/tech/techinvesto...ales_x.htm



There. Three against your none. Still not seeing how this is a broken industry. Nintendo's just trying to spin the trend of slower growth as we approach a new generation to sell you the idea that what they're doing is necessary.