NPD: U.S. Hardware Sales Continue Decline


Recommended Posts

It was another depressing month for the video game industry in the United States, the fifth consecutive monthly drop in a row. Hardware sales fell across the board, with the Wii, PSP and PlayStation 3 seeing the biggest year-over-year declines. While Nintendo managed to dominate on the portable front—the Nintendo DS and DSi sold 538,900 units combined according to the NPD Group—the Wii didn't have a great July. It sold a little more than a quarter million units last month, less than half of what it did in July of 2008.

PSP and PlayStation 3 sales tell a similar story. Sony's handheld platform sold 122,800 in July, with its PS3 lagging just behind with 121,800 units sold. A stark change from last year, when the PlayStation 3 was enjoying better sales than the Xbox 360 during the summer. This July, however, Microsoft's console dipped only slightly in comparison to its competitors.

Will rumored hardware price drops on the Xbox 360 and PlayStation 3 help reverse the video game industry's fortunes?

Here's how the hardware race went down in July, according to the NPD Group.

  • Nintendo DS - 538,900
  • Wii - 252,200
  • Xbox 360 - 202,900
  • PSP - 122,800
  • PlayStation 3 - 121,800
  • PlayStation 2 - 108,000

All told, U.S. consumers snapped up $280.94 million worth of video game hardware in July. That's a 37% drop from the year prior, likely ensuring that the industry won't come close to matching its record breaking revenue in 2008.

"Hardware sales have slowed considerably on nearly every platform," NPD analyst Anita Frazier points out. "The Xbox 360 is the only console system showing a unit sales increase year-to-date, while the NDS has the highest sales of all hardware platforms both for the month, and year-to-date."

Link

We all know the situation with the PS3, but what about the Wii? It's sales are dropping like a stone. It's in desperate need of a price drop as well. Now, I think a big part of it is market over saturation in it's case, but you've got to think a good $50 price drop would stimulate sales a fair bit. I know I for one would pick it up if it was closer to $200. It would be worth it to me just to play Mario.

Link to comment
Share on other sites

Honestly, I'm surprised the Wii didn't drop off sooner... IMO, it's a good idea, but once the novelty wore off there simply aren't enough good games to justify wanting to get one.

Link to comment
Share on other sites

Once Sony cut to $299 and MS reshuffle the Elite to $299 the Wii will have a hell of a lot of pressure to cut. Right now though it's still selling the most, so something to keep an eye on for Nintendo but not much of a concern yet.

It'll be interesting to see if the PS3/360 will outsell it for the month of September (they'll both be $299 then and the Slim will be out).

You do know though the minute Nintendo cut the price/release a new colour and bring out some whacky new invention it will soar.

Link to comment
Share on other sites

Since you have to buy all the extra crap for the Wii, they should at least give you the console for $129.99.

It's funny you should say that, Miyamoto said he originally wanted to make the Wii $99, but then Nintendo had to add in stuff like Wi-Fi, Bluetooth, MASK ROM and Flash Memory, among other things, which bumped up the price.

To be honest, I'm not sure if a price drop *this month* would work, perhaps mid-November, maybe even the same day as the Wii's release date 3 years ago.

Link to comment
Share on other sites

Honestly, I'm surprised the Wii didn't drop off sooner... IMO, it's a good idea, but once the novelty wore off there simply aren't enough good games to justify wanting to get one.

I agree with you at it's current price. But to be able to play Mario Galaxy, Mario Kart, Zelda, NSMB, ect... as well as emulators (it's apparently ridiculously easy to put emulators on it), for $200ish is a no-brainer for me.

Link to comment
Share on other sites

I agree with you at it's current price. But to be able to play Mario Galaxy, Mario Kart, Zelda, NSMB, ect... as well as emulators (it's apparently ridiculously easy to put emulators on it), for $200ish is a no-brainer for me.

Provided you have a system menu under 4.0 and Zelda TP, then yes, it's easy.

Link to comment
Share on other sites

I think MS is going to be in serious trouble once that PS3 price drop hits. I think there are a ****ton of people out there that have been wanting a PS3, but found it too expensive and have just been waiting for the drop to a reasonable price. Simply dropping the price of the Elite to the price of a pro is far too little on MS's part. I'm really hoping they have something else planned and that's not their only answer.

Link to comment
Share on other sites

They do..

Halo 3 ODST

:p

Haha. Touche. And you know what, that might just work. Only short term though. I really feel like they are going to have to do more on the hardware pricing front though to keep the momentum. I guess that's what Natal is for?

Link to comment
Share on other sites

Since you have to buy all the extra crap for the Wii, they should at least give you the console for $129.99.

since the wii is basically a gamecube they should sell it for ?100. once natal drops u better believe the wii will be ?100 or less. nintendo's greed will bite them in the ass if they dont pricedrop soon

Link to comment
Share on other sites

They should deffiantly drop the price of the wii.. its more expensive then a 360 arcade, and the 360 60gb pack is the same price at $399! The PS3 is still $700..

Link to comment
Share on other sites

Haha. Touche. And you know what, that might just work. Only short term though. I really feel like they are going to have to do more on the hardware pricing front though to keep the momentum. I guess that's what Natal is for?

They would have to. There is only so many times you can milk the Halo name before it dries up.

Link to comment
Share on other sites

Halo isn't milked, there is only 4 games currently in the series and that's well over the period of 10 years. It's easily going to be one of the best sellers this xmas/year.

In the past year alone we've had what, 3 Guitar Hero games? That my friend is milking (Y)

Link to comment
Share on other sites

To be honest, I don't see the 360 elite being able to hold off a PS3 at the same price (and this is coming from a 360 owner).

me too I know there's a good portion of people who just prefer the 360 but when it comes down to it a LOT of people would choose the PS3 given an equal price point. but microsoft don't seem that concerned so I would guess they know what they're doing.....

Link to comment
Share on other sites

Halo isn't milked, there is only 4 games currently in the series and that's well over the period of 10 years. It's easily going to be one of the best sellers this xmas/year.

In the past year alone we've had what, 3 Guitar Hero games? That my friend is milking (Y)

GH/RB have quite a bit more variety than Halo at this point. They have the advantage of consumers with different genre tastes... all of which they can accomodate.

There really is only so many times you can regurgitate the same ol' shooter plot. We need a new series to buck the trend - Halo certainly does not.

Hell, even UT is guilty of this. War games hugged onto the WWII idea too long.

Link to comment
Share on other sites

In the past year alone we've had what, 3 Guitar Hero games? That my friend is milking (Y)

I believe this calendar year there are 5 GH games...milking the cow dry and then some.

GH/RB have quite a bit more variety than Halo at this point. They have the advantage of consumers with different genre tastes... all of which they can accomodate.

Variety is not an excuse for releasing 5 different versions of the same game. They can achieve the same thing by releasing all their tracks on PSN/XBL. But obviously from their point of view there's far more money in releasing a new, disc-based titled which forces people to pay ?30-40.

But I agree that WWII, and shooters in general, has been done to death. They're all guilty of it. That's why COD:MW was such a breath of fresh air. But now even the non-hardcore gamers (that I know) keep saying "all these games are the same"...referring to titles like Halo, Resistance, COD:WAW, Killzone etc. Hopefully MW2 will go some way to make things exciting again.

Link to comment
Share on other sites

Once Sony cut to $299 and MS reshuffle the Elite to $299 the Wii will have a hell of a lot of pressure to cut. Right now though it's still selling the most, so something to keep an eye on for Nintendo but not much of a concern yet.

It'll be interesting to see if the PS3/360 will outsell it for the month of September (they'll both be $299 then and the Slim will be out).

It will be the Slim, no doubt. As much as people like to see an SKU drop in price, Sony has shown that people will cobble up slim revisions.

Link to comment
Share on other sites

I believe this calendar year there are 5 GH games...milking the cow dry and then some.

Variety is not an excuse for releasing 5 different versions of the same game. They can achieve the same thing by releasing all their tracks on PSN/XBL. But obviously from their point of view there's far more money in releasing a new, disc-based titled which forces people to pay ?30-40.

But I agree that WWII, and shooters in general, has been done to death. They're all guilty of it. That's why COD:MW was such a breath of fresh air. But now even the non-hardcore gamers (that I know) keep saying "all these games are the same"...referring to titles like Halo, Resistance, COD:WAW, Killzone etc. Hopefully MW2 will go some way to make things exciting again.

On the spot(Y)) Although I still disagree that Halo or Killzone are milked. I mean how can Killzone be milked, there is only 2 home console games. The stories might not be everyone's taste but they are definitely unique (ok not completely, but to their fans they are still exciting).

Link to comment
Share on other sites

This topic is now closed to further replies.
  • Recently Browsing   0 members

    • No registered users viewing this page.