Report: Videogame Sales Continue Downward Spiral

by Christopher Freeburn | March 17, 2013 8:53 pm

Video Games 300x225 Report: Videogame Sales Continue Downward Spiral[1]Last month, sales of packaged video game software and equipment plunged 25%[2] compared to the same time last year.

Industry research firm NPD estimates that gaming hardware sales plummeted 36% in February. Software sales weren’t much better, down 27%. All video-game related sales totaled about $810 million for the month, the Seattle Times noted.

The top selling video game last month was Electronic Arts’ (NASDAQ:EA[3]) Dead Space 3. Activision Blizzard‘s (NASDAQ:ATVI[4]) Call of Duty: Black Ops II was ranked second, followed by EA’s Crysis 3, 2K Sports’ NBA 2K13, Konami‘s (NYSE:KNM[5]) Metal Gear Rising: Revengeance and Sega’s Aliens: Colonial Marines.

Physical gaming hardware and software sales have been hammered by the rise of digital gaming app downloads. Sales of video-game accessories suffered the lowest drop last month, falling only 3%.

Microsoft‘s (NASDAQ:MSFT[6]) Xbox gaming consoled topped equipment sales. Monthly Xbox sales have surpassed rival consoles for more than a year an a half. In December, Microsoft announced the launch of download-able apps for the console[7].

Despite the weak sales news, shares of video game retail chain GameStop (NYSE:GME[8]) rose fractionally in Friday trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/Video-Games.jpg
  2. sales of packaged video game software and equipment plunged 25%: http://blogs.seattletimes.com/brierdudley/2013/03/14/february-game-sales-down-25-percent-npd-reports/
  3. EA: http://studio-5.financialcontent.com/investplace/quote?Symbol=EA
  4. ATVI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ATVI
  5. KNM: http://studio-5.financialcontent.com/investplace/quote?Symbol=KNM
  6. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  7. launch of download-able apps for the console: http://investorplace.com/2012/12/coming-soon-40-new-apps-for-xbox-live/
  8. GME: http://studio-5.financialcontent.com/investplace/quote?Symbol=GME

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