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NPD: Behind the Numbers, July 2010

Gamasutra: One cannot simply sugarcoat the results of the past year and a half in the U.S. retail videogame industry. During that period, the market has shown year-over-year growth in only four months, according to the latest figures for July 2010 reported by the NPD Group, a retail industry tracking firm.

To put it in raw number form, the industry generated around $25.8 billion in revenue. In the 18 months prior to that, the figure was $33.7 billion. There is no spin for a 23% drop in revenue.

Regrettably, the downturn is not yet over. Even as we pore over the July figures, analysts like Wedbush's Michael Pachter and Cowen and Company's Dough Creutz are already expecting software to show a significant decline in August.

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8800gtx3107d ago (Edited 3107d ago )

The Open Platform saw a 3% growth in 2009 vs 2008. Yet it still gets labaled as "dieing". Clearly its the closed platforms that seem to be "dieing".

8800gtx

rroded3106d ago

how did 8800gtx get slapped with trollin for this?

"The Open Platform saw a 3% growth in 2009 vs 2008. Yet it still gets labaled as "dieing". Clearly its the closed platforms that seem to be "dieing".

8800gtx "

musta changed his comment or something...

RememberThe3573106d ago

We're having regular comments being labeled as spam and left that way.

nickjkl3106d ago

people need to start reporting them

Azurite3106d ago

Would be interesting to know the digital sales data, hope it'll release regularly one day.

rroded3106d ago (Edited 3106d ago )

"David Wesley
16 Aug 2010 at 6:48 am PST
The most significant factors impacting current sales trends are often ignored in analyst briefings, despite the fact that they follow fundamental technology adoption patterns.

First, and foremost, we are seeing the effect of late adopter purchases. Late adopters, as we have previously mentioned, have a lower economic status, are less educated about the products they are purchasing, and are much more price sensitive. The launch of the new Xbox 360 slim attracted two types of customers, early adopters (and close followers) who purchased the new slim units, and late adopters who purchased older arcade units at a significant discount as retailers like Walmart and Target cleared out old stock. That latter provided a temporary hit that will not be repeated. As a result, one should expect a decline in August and September until sales pick up again in the run-up to the holiday season.

Second, the increase in HDTV adoption means that more people are upgrading to high definition consoles such as the PS3 and Xbox 360. They include existing Wii owners as well as previous generation console owners who are only now upgrading.

Finally, the decline in software revenue is normal in this stage of the product cycle. This is simply due to the wider availability of budget titles and used games. One will still see short term surges with the launch of highly anticipated titles like Halo Reach, but one should expect the trend to continue until the next generation of consoles is launched. Longer term, the decline in software revenue will be mitigated by the larger install base of console owners."

def more used n older cheaper games around n with a 60 dollar price tag on new games most of us are being a lot more cautious with our purchases.
with hdtv flying off the shelves more people are gonna buy hd consoles... n dont forget a lot more stuff is going digital which aint reported the same way...