Video Game Sales Slump Continues

According to research firm NPD, sales of video game software, hardware, and accessories fell 4% in January from a year ago. There were a number of factors, including scant game releases as well as the knowledge by gamers of new game hardware on its way or just out or on its way — Sony’s (NYSE:SNE) NGP and Nintendo’s (PINK:NTDOY) Nintendo 3DS, respectively.

Exact numbers weren’t revealed, but Activision Blizzard’s (NASDAQ:ATVI) Call of Duty: Black Ops was again the best-selling game of the month. We can be assume it sold more than 452,000 copies, because that’s how many copies the No. 3 game,  Electronic Arts’ (NASDAQ:ERTS) Dead Space 2 sold, according to a source at NeoGAF, a prominent Web forum populated by both gaming enthusiasts and industry insiders.

Dead Space ‘s performance was especially impressive since it came out with just four days left in the month’s reporting period. Sony (NYSE:SNE) had great success with its PlayStation 3-exclusive Little Big Planet 2, which is said to have sold 353,000 copies to take the No. 4. Sony also claimed No. 10 with its new Warcraft competitor, DC Universe Online.

The biggest trend in software sales was the success of dancing titles. Ubisoft’s Just Dance 2 for Nintendo Wii and Michael Jackson: The Experience took the second and ninth spots on the list, while MTV Games’ (which closed shop in January) Kinect-only Dance Central took the No. 8 spot. The continued success of the Just Dance franchise in the declining Wii market should signal a number of new dancing titles in the coming year, with a Kinect entry for the series likely to come by this holiday.

Take-Two’s (NASDAQ:TTWO) NBA 2K11 took the No. 6 spot, continuing to perform for the company.

The biggest surprise was Majesco’s (NASDAQ:COOL) Zumba Fitness: Join the Party. It was thought that the fitness gaming market had reached a saturation point by the end of 2010, but Majesco’s title seems to be bucking the trend.

Microsoft (NASDAQ:MSFT) was the only real winner in hardware sales. The Xbox 360 enjoyed its 10th consecutive month as the best-selling console, with 381,000 devices sold. Despite a strong performance from Little Big Planet 2, the PlayStation 3 saw a dip of 3% with 267,000 consoles sold. Nintendo’s Wii continues its precipitous downward slide with 319,000 sales in January, down 32% from last year.

Console accessories performed well, with revenue totaling $235 million, up 6% over 2010. The rise indicates continued success for the Kinect hands-free controller, but it’s unclear if Microsoft’s popular machine has maintained its impressive holiday momentum without specific numbers.

At the time of publication, Anthony John Agnello did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, https://investorplace.com/2011/02/video-game-sales-slump-continues/.

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