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Retail

UK hardware sales down 32% in first half of year

Mon 12 Jul 2010 12:15pm GMT / 8:15am EDT / 5:15am PDT
RetailPublishing

Combined software, console and accessories sales fall in 2010 by 16 per cent to £963 million

UKIE

The Trade association for UK Interactive Entertainment

ukie.info

Sales in the UK for videogame hardware dropped 32 per cent to £256 million in the first half of 2010, from £378 million last year.

Total sales for all videogame software was also down by 10 per cent, from £592 million to £533 million, according to data from Chart-Track, ELSPA and ISFE.

Overall total gross sales generated in the UK during the first 26 weeks of 2010, including games, hardware and accessories, was £963 million, down 16 per cent from £1.143 billion in 2009.

The data does not include any figures from PC and console digital distribution services, nor from the second hand market.

"UK consumers are still facing economic uncertainty and everyone is looking to how they can make savings, which has naturally impacted on the entertainment industry as a whole," commented Michael Rawlinson, director general of ELSPA.

Although unable to supply any data on digital distribution, ELSPA did acknowledge its significant contribution to the games landscape.

"UK consumers are getting their gaming entertainment now in a variety ways," said Rawlinson. "Consumers are increasingly downloading videogames from websites, and are also increasingly playing games not only on consoles, but also on their mobiles or through social networking sites, such as Facebook.

"This is proof that interactive entertainment is expanding way beyond its traditional boundaries."

Despite the overall decline, ELSPA also said that the three current generation consoles – Wii, PlayStation 3 and Xbox 360 – saw a combined increase in sales over the first half.

14 Comments

Kingman Cheng Illustrator and Animator

957 185 0.2
Why is that surprising? Most people who want a games console should have already gotten what they want by now.

Posted:4 years ago

#1

Aleksi Ranta Product Manager - Hardware

292 154 0.5
A bit of a shortsighted comment there? You could also almost say that "games concoles only sell for 2 weeks because by that time everyone who wants one would have already bought one"?

Posted:4 years ago

#2

Barla Von Designer

31 0 0.0
Doesn’t surprise me, console gaming is getting worse by the generation.

Posted:4 years ago

#3

Olly Reid Managing Consultant, TNS

3 0 0.0
Isn't there a bigger story here? Most interesting thing I took away from this is that Wii, PS3 and Xbox 360 combined sales actually grew - meaning the decline is solely attributed to portable and legacy hardware. Now I don't believe that legacy hardware made up a significant proportion of total sales last year so that only leaves me to conclude that, if these figures are correct, portable hardware sales have absolutely nosedived.

I'd be interested in seeing to what extent portable hardware sales declined and if the home console market has grown, how have the proportions changed?

Posted:4 years ago

#4

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,287 2,507 1.1
Olly, that is a good observation and a correct one at that.

PSP and DS sales are down approximately 50% in many regions including much of Europe.

Blame it on saturation, piracy, lack of compelling software, rise of other portable devices, economy, etc....

Posted:4 years ago

#5

James Prendergast Research Chemist

741 439 0.6
@ Olly: One thing that has annoyed me this last year has been the complete retraction of the PS2 from the market. It's almost impossible to get a PS2 except through third party re-sellers (or used) and even then it's at inflated prices. Still don't know why they stopped.... i really wanted that last PS2 slim that had the internal power brick that we missed out on.

Posted:4 years ago

#6
PS2 production costs perhaps? and the cost of supporting it? kinda like not supporting Windows XP

Posted:4 years ago

#7

James Prendergast Research Chemist

741 439 0.6
I thought that the PS2 was sold at a profit over the last couple of years? Maybe i'm wrong in all of this?:

They're still selling it in other territories (e.g. USA) after commiting to the platform late last year.

[link url=http://www.gamertell.com/gaming/comment/ps2-turns-nine-sony-says-systems-life-cycle-will-continue/
]http://www.gamertell.com/gaming/comment/...[/link]

As far as i know they're still producing it.... they've just stopped selling it in the UK. We never received the update in 2008 and are still getting the 2006 slim.

Seems patently silly to stop selling a part of your product line-up that is supporting your not-profitable other products. It completely baffles me.

[link url=http://www.amazon.com/gp/offer-listing/B000TLU67W/ref=dp_olp_new?ie=UTF8&qid=1278966848&sr=8-1&condition=new
]http://www.amazon.com/gp/offer-listing/B...[/link]

[link url=http://www.amazon.fr/gp/offer-listing/B001ELK9R8/ref=dp_olp_new?ie=UTF8&qid=1278967142&sr=8-1&condition=new
]http://www.amazon.fr/gp/offer-listing/B0...[/link]

[link url=http://www.amazon.co.uk/gp/offer-listing/B00023HUMG/ref=sr_1_1_olp?ie=UTF8&s=gateway&qid=1278966852&sr=8-1&condition=new
]http://www.amazon.co.uk/gp/offer-listing...[/link]

Posted:4 years ago

#8

Haven Tso Web-based Game Reviewer

259 12 0.0
PS2 is still very widely available in Australia so far and I think nowadays you can get one below AU$100.

On the note of portables, I must agree with Olly and Jimmy that their performances have been underwhelming. There aren't really a lot of memorable software came out for them, especially on PSP. A lot of hot or major titles that can sell well are taking a long time to come to the PAL region (although it doesn't matter with handheld, just how they divide markets nowadays). Apart from LoZ: Spirited Track and Pokemon (both from Nintendo), other major titles like Persona 3 Portable, Dragon Quest IX, Shin Megami Tensei: Strange Journey, Final Fantasy: Warriors of Light etc. are all absent until this financial year. So it is not surprising to see drop in the portable market. Also iPhone offering cheap and instant relief games (though not necessarily good) must have a factor too.

Posted:4 years ago

#9

Private Industry

1,176 182 0.2
PS2 is for sure gone in Ireland and UK from big retailers like Game, the stores I know don`t have the console anymore and all the games they have are pre owned.

Would like to see the separate numbers of PS3, Wii and 360 to see who gained ground and who lost ground and see year over year for those three.

As for the amount of money, since last year there where a few price drops so even if you sell the same amount of consoles and games as in 2009 the end result would be lower due to lower prices.

Edited 1 times. Last edit by Private on 12th July 2010 10:32pm

Posted:4 years ago

#10

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,287 2,507 1.1
Werner, the following figures are UK approximates.

PS3 is up 20%
X360 is up 11%
Wii is down 35%

Posted:4 years ago

#11

John Blackburne Programmers

41 0 0.0
It seems odd the data does not include digitally distributed games and platforms such as smart phones and iOS devices. I suspect the growth in such devices has been at the expense of traditional portable gaming devices. Even the PSP is switching to digital distribution only, so an increasing proportion of its sales will be excluded. So the story here is not the declining game market, or a rebalancing from portable to home console, but simply new devices and distribution methods taking market share from five+ year old platforms. Data that captured that transition would be far more interesting and useful.

Posted:4 years ago

#12

Private Industry

1,176 182 0.2
35% would be a nice drop.

Not really odd the accurate numbers for digital distribution are only known by the platform holders. Smartphone and apple products would be very hard to track. Not only because 1st party is the only one who has the correct numbers, but also because you need to separate the different applications and sort out what is a game and what isn`t.

As for the PSP switching to digital distribution only, well that attempt did not work out so well with the PSPgo since it was not selling too good so far. For me the device was not typical for the company, while the other devices so far did introduce new things at a slower pace the Go was more like all or nothing try to switch to digital directly and right now without a slow transition. I think a PSP with UMD + internal storage media could have been a better idea to give the people the best of both.

Posted:4 years ago

#13

Kingman Cheng Illustrator and Animator

957 185 0.2
Aleksi I'm not saying that people have practically stopped buying consoles, hardware sales would grow over time to an extent. But it's been so many years now the number of people buying the consoles over the span of a good many years is different from your example of buying a game title in 2 weeks.

When games and consoles come out some people wait for price cuts and don't buy full price and I know that, I never suggested everyones bought what they want within weeks of release, you're reading into my comment a little too much.

The Xbox 360 has been out for rougly half a decade now, shortly after the PS3 and Wii came out so it's a good few years now at least. These current generation of consoles have more life to them and after so many years the market saturation must play into the figures as one of many factors.

Edited 1 times. Last edit by Kingman Cheng on 13th July 2010 12:08pm

Posted:4 years ago

#14

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