Video game sales slow to single digit growth

After two years of double-digit growth, sales of video games have slowed down. According to NPD market research, sales have slowed from 28% growth in July to only 9% growth in August. Sales in the video game industry will always be dependent on the titles released and the biggest seller in August was Electronic Arts' NFL Madden 09. That title has not been exempt from the growth slowdown as it sold only 2% more units than last year's edition of the game. Up to this point, the games industry has been doing a good job at bucking the overall slowing market trend but there are now signs that the video game industry is not isolated from the rest of the economy.

As we enter the 4th quarter and the holiday season, new titles will likely spur a resumption of growth. Nintendo increased Wii production in July to cope with shortages and, while that action did not come in time to affect August sales, it will make a difference for the holiday season. Microsoft has also just recently cut prices of the Xbox 360 and the entry level model is now less expensive than the Nintendo Wii. This will likely boost September sales.

Report a problem with article
Previous Story

Virginia, US: Citizens have a constitutional right to SPAM

Next Story

Yahoo! offers makeovers and access to competing content


Commenting is disabled on this article.

(A.B.L.N.N. said @ #10)
I've switched to a Gamefly/buying them when they are good scheme.

I tried that too. Gamefly kept losing the games and saying I did it.

Put out better games and stop charging 25% of a console's value for them and make them last longer. That would help. Great on the increased Wii production, and great on the 360 price cut, but they still need to fix the reliability problem with them.

I think we've had an unprecedented run of really top notch games over the last year or so. I know in my case, I have never bought so many games as I have in the last year. I also have bought zero in the last month (I just have too many at the moment) so my numbers track this story.

9% growth in an economy where GDP is expected to grow 3.5% -- still not bad.

That being said, I've "blown" too much on 360 games that royally suck and just prefer to rent them for $8 at the video store.

you rent games for 8 dollars "EACH" ?

cause that's WAY to much just to try out a game... especially if the game might not be good.

the most i would feel comfortable renting a game is 5 dollars max... although 3 dollars is about my standards and reasonable for a day's rental or so.

With the cost of game MSRP up, money getting tighter, quality and length of game play going down, luxury items are some of the first to be but back on.

9% growth is still growth. Also a market cannot just keep growing indefinately.

You only have to worry when it starts to decline.

This article compares July to August. Think of all the students starting / going back to school. This month, more money is spent on school supplies rather than console/PC games.