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Retail

15% climb in physical sales keeps US industry flat

Mon 12 Dec 2011 8:52am GMT / 3:52am EST / 12:52am PST
Retail

Hardware, peripherals drop but boxed games compensate

A year-on-year shrinkage of 0.5 per cent in the US video game market for the month of November has been reported by NPD, with a contraction of hardware and peripheral sales offset by a 15 per cent rise in physical media.

Hardware sales were down 9 per cent since last year, according to the report, with November's total dropping from $1.08 billion to $982.4 million since last year. Peripheral sales dropped massively year-on-year, a 34 per cent shrinkage probably largely explained by last November's launch of Kinect.

PS3 and 360 sales were strong for the period, with Battlefield 3, Assassin's Creed and Just Dance 3 contributing strongly to a field inevitably lead by Modern Warfare 3 and Skyrim. According to the report, PC boxed sales rose by an incredible 57 per cent.

Across all formats, Modern Warfare sold 8.99 million units, leaving plenty of clear ground between itself and second-best selling Skyrim, which totalled 2.8 million sales for the month.

Sales of software for the Wii continued to decline, shrinking by 28 per cent in line with recent months. Handheld sales almost reversed their trend of shrinkage, dropping by 1 per cent instead of the 20 per cent recent trend, thanks to a strong showing from the newly discounted 3DS.

Analysts at Cowen Research predicted a small drop in overall business for December from last year, thanks to the season's traditional reliance on Wii sales and a strong month in 2010.

"We expect a mid-single digit year-on-year decline in sales during December," read a report from the firm.

"[This is] Due in part to a tough comp versus the launch of 'Epic Mickey' last year, and in part because December sales tend to weigh more heavily towards the Wii/handheld platforms, where overall sales trends are worse. However, we believe that sales on the Xbox 360/PS3 platforms will once again be up double digits."

Despite the drop in numbers for the Wii, November's Black Friday period, when American retail traditionally sees a huge boost from Thanksgiving sales, was largely successful for Nintendo, with Zelda Skyward Sword becoming the fastest-selling Zelda game of all time, whilst Super Mario 3D Land was the quickest-selling handheld Mario title ever.

2 Comments

Nick Parker
Consultant

279 143 0.5
The hardware and peripheral performance in value terms is fairly irrelevant for most of the industry unless you're a retailer. What counts is software sales or "physical media" which is showing a 15% uplift year on year for the November month. The good news is that a number of triple A titles seem to be able to raise their heads above the parapet and enjoy significant sales despite the competition. It is, however, a little too late to restore the whole calendar year to positive year on year as so much damage has been done so far with weak comparables.

Posted:2 years ago

#1

Morville O'Driscoll
Games Blogger & Journalist

1,484 1,254 0.8
Hmmm... And all the nay-sayers and their "Boxed product is going down the tubes" haven't commented on this. I'm shocked.

Seriously, over-and-above MW3 (which everyone knew was going to sell metric tons), it's good news... Skyrim selling almost one third of MW3's sales shows that there's people willing spend money on RPGs, even if they are slightly streamlined. Now if only publishers would stop focussing so much on the September-December period.

Oh! And, what's that, PC sales rose? Must be those pesky pirates, buying things again... Oh, no, wait.

Posted:2 years ago

#2

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