Providing market intelligence for more than 35 years

E-commerce Times

Gaming Industry Likely to Pick Up Following Weak June

Gaming software sales were down in June, although hardware saw a boost...

It is unusual for software sales to drop while hardware sales increase, said Pietro Macchiarella, an analyst with Parks Associates. "That discrepancy tells us this is not because of the recession," he told the E-Commerce Times. "Otherwise, they both would be moving in the same direction -- down."

Rather, the drop in software sales is due in large part to other trends in the gaming sector, said Macchiarella. These include a trend toward games that have become more complex and involved, and that take longer to play -- which means consumers are inclined to buy fewer of them. That, coupled with fewer releases, accounts for much of the drop in sales, he said.

Also, the hardware figures might have been goosed by new consoles coming to market. Last month, for example, Microsoft released an updated Xbox with a larger hard drive, Macchiarella noted.

Total industry sales for the year through the end of June reached $6.66 billion -- a 9 percent drop compared with the same six-month period last year, according to NPD. However, the year could close out having posted some $20 billion in sales, the research firm projects -- an assessment with which Macchiarella agrees. "This is a seasonal industry, so I think the second half of the year will definitely see some improvement," he said, adding that new product releases such as PlayStation Move and Microsoft Kinect will attract more sales.

From the article, "Gaming Industry Likely to Pick Up Following Weak June" by Erika Morphy
 

Previously In The News

Speed Bills: Here Comes Verizon's Pay-as-You-Go 4G Network

Perhaps the biggest issue for Verizon will be how consumers react to metered pricing -- particularly since Sprint continues to offer an unlimited data access plan for its 4G network, Harry Wang, di...

Crushing Sales Figures Don't Signal 'Game Over' for Industry

Indeed, there is a sense that game developers have pulled back on releases this year, with few if any delivering the blockbusters that are so important to goosing sales, Kurt Scherf, principal anal...

When the Home Entertainment Systems Market Rebounds

However, integrators and manufacturers should not build their strategic plans based on "doom-and-gloom" headlines. Parks Associates expects the market will start to recover in 2010. In-home ent...

Home Server vs. the Cloud: Connecting Digital Devices

Parks Associates predicts that in the home of the future, one method will not dominate the other -- i.e., cloud media versus media server -- but instead, an adaptive scenario will evolve, bringing...