Sales of video game hardware, software and accessories in the United States continued to slide in August according to new data from NPD Group, again dipping more than 20% compared to the same period last year. Overall industry sales slid 23% to $669.9 million last month from $873.8 million in August 2010. Hardware sales were down 12% from last year to $249.4 million, accessory sales were down just 1% to $134.7 million and software sales plummeted 34% to $264.8 million. ”August 2011 sales saw a decline versus August 2010 in all categories except for portable games hardware,” said NPD analyst Anita Frazier in a statement. “In software, the bulk of the decline can be attributed to the shift of the annual Madden release from August to September (8/30 release falls within NPD’s September 2011 reporting period).” Frazier continued, “Even though year to date performance of the new physical portion of the industry is down 5%, more than half of industry sales in this channel are still to be realized in the back four months of the year.  Given the strong release schedule in the coming months, new physical retail sales could still be flat to slightly up once full year sales are tallied.” Microsoft’s Xbox 360 was the best-selling console for the seventh consecutive month in August with 308,000 units sold. NPD’s top-10 list of video game software title sales in the month of August follows below.

U.S. video game industry sales were down 26% in July compared to the same period last year according to new data published by The NPD Group. Hardware sales were down 29% year-over-year to $223 million, video game software sales dipped 17% to $336.2 million and sales of video game accessories were down 8% to $127.8 million. Microsoft’s Xbox 360 was the best-selling console in the U.S. for the seventh consecutive month with unit sales of 277,000, though July marked the first time the Xbox saw a year-on-year decline since December 2009. ”There is no getting around the fact that video game sales in the new physical retail channel suffered its lowest month since October 2006,” NPD analyst Anita Frazier said in a statement. “Despite the very rough month, new physical retail sales are down just 4% year-to-date and based on seasonality trends observed over the last 10 years, which have been remarkably stable year-in, year-out, industry sales in this particular channel are poised to land in the flat to -2% range once the total year is completed.” NPD’s top-10 list of video game software title sales in the month of July follows below.

Image source: Kristen Lanae

Sales of video game hardware and software declined 10% in June according to new data reported by industry watcher The NPD Group. Total content sales including home consoles, portable consoles and PC game sales totaled $1.03 billion last month, down 10% from June 2010. Hardware sales declined 9% from $401.7 million in June 2010 to $366.6 million last month, and software sales dropped 12% over the same period to $469.5 million. Video game accessory sales also declined from June of last year, dropping 11% from $177.7 million in 2010 to $158.9 million last month. Game publisher Take 2 Interactive was responsible for the two best-selling games in June, with L.A. Noire occupying the top spot and Duke Nukem Forever coming in at No. 2 despite low ratings from reviewers. Sony’s Infamous 2 was the third best-selling game for the month, while Disney’s Lego Pirates of the Caribbean: The Video Game and Nintendo’s Legend of Zelda: Ocarina of Time 3D rounded out the top-5. Overall hardware, software and accessory sales in the first half declined 2.4% compared to the first half of 2010. A list of The NPD Group’s top-10 software titles for the month of June follow below.

Gartner Says Spending on Gaming to Exceed $74 Billion in 2011

Gaming Software Spending Dominates but Online Gaming Growing Fastest Over the Next Five Years

Egham, UK, July 5, 2011— 

The gaming ecosystem is undergoing major technology and business model transitions that will last beyond 2015. Gartner, Inc. estimates that worldwide spending on the gaming ecosystem* will exceed $74 billion in 2011, up 10.4 percent from 2010 spending of $67 billion. By 2015, spending will reach $112 billion.

Overall, Gartner estimates that the gaming software component will represent $44.7 billion in 2011, and it will continue to dominate the overall gaming market in the next five years as it absorbs almost two-thirds of consumers’ gaming budgets.

“This large market size means that many consumers embrace gaming as a core piece of their entertainment budget and will continue to play as long as game publishers deliver compelling and fun games,” said Fabrizio Biscotti, research director at Gartner.

In 2011, the gaming software spending will be followed at a distance by gaming hardware and online gaming, reaching $17.8 billion and $11.9 billion, respectively (see Table 1).

Table 1: Total Gaming Market Spending, 2010-2015 (Millions of Dollars)

	2011	2013	2015
Gaming Hardware	17,797	24,621	27,354
Gaming Software	44,730	51,129	56,512
Online Gaming	11,899	21,453	28,298
Total	74,426	97,204	112,163

Source: Gartner (June 2011)

Within the gaming software market, mobile gaming will experience the largest growth opportunity with its share growing from 15 percent in 2010 to 20 percent in 2015.

“As the popularity of smartphones and tablets continues to expand, gaming will remain a key component in the use of these devices. Although they are never used primarily for gaming, mobile games are the most downloaded application category across most application stores,” said Tuong Nguyen, principal research analyst at Gartner. “For this reason, mobile gaming will continue to thrive as more consumers expand their use of new and innovative portable connected devices.”

The segment that will drive the largest revenue will come from video game consoles (hardware and software). In 2010, it generated more than two-thirds of the gaming ecosystem revenue, and Gartner predicts revenue to grow 4 percent in 2011.

Over the next five years, gaming hardware’s market share will remain constant while software spending will lose share to online-gaming spending, the fastest-growing segment. Gartner estimates consumer spending on global online gaming (subscriptions and microtransactions) will show a compound annual growth rate of 27 percent through 2015, with consumer spending on subscription fees slightly declining while spending on virtual goods will grow exponentially.

“We find that subscription fees are giving way to ‘freemium’ models, in which the game is provided for free to gamers but is monetized through advertising (both in-game advertising and display advertising) and in-game microtransactions, such as the sale of value-added services or virtual-good purchases,” said Brian Blau, research director at Gartner. “This trend is prevailing given the rise of social gaming, in which online gaming is connected to social networking sites and social networking platforms.”

“Users have become multichannel-oriented by choice and expect vendors to continue to deliver quality content and experiences by extending their gaming possibilities across multiple platforms,” said Mr. Blau. “If today’s mobile technology does not evolve quickly enough, the gaming industry is set to see the rate of innovation severely decline. Alternatively, it will provide opportunities in technology and content genres that we can’t foresee today.”

Additional information is available in the Gartner report “Market Trends: Gaming Ecosystem, 2011″ at http://www.gartner.com/resId=1724014.

Sales of video game consoles in the U.S. hit a five-year low last month according to new data from research firm NPD Group. “May 2011 was the lowest month of sales for the industry since October 2006,” NPD analyst Anita Frazier said in a statement. “A light slate of new releases is at the heart of this month’s performance.” Combined sales of hardware, software and accessories totalled $743 million according to the firm, representing a 14% decline compared to May 2010. Software sales were down 21% from the same month a year prior to $400 million. Microsoft managed to combat the trend — and keep total console sales in May from sliding to unheard-of lows — having sold 270,000 Xbox 360 consoles, up 39% year-over-year. Take-Two Interactive’s L.A. Noire was the top-selling software title for the month.

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On Friday Nintendo announced that the much anticipated software update for the 3DS — which will deliver the eShop application store, a web browser, and more — will officially be available on June 6th. Anyone who installs the update before July 7th will also get a free 3D version of the NES game Excitebike. Nintendo also announced that it will deploy new content to the eShop every Thursday including Gameboy, Gameboy Color, and more than 350 Nintendo DSiWare titles. The initial Gameboy titles include Super Mario Land, Alleyway, and Radar Mission. Unfortunately, there was no mention of Netflix support in the update, but we won’t have long to find out if that’s a last-minute addition. Hit the jump for the full press release.

June 6 Nintendo 3DS System Update Adds Internet Browser, Online Store and Pokédex 3D

Nintendo Offers Free Re-mastered 3D Version of NES Classic Excitebike for Limited Time

REDMOND, Wash.–(BUSINESS WIRE)– Nintendo of America has announced that the first major system update for the hand-held Nintendo 3DS™ system will be available in North America the evening of June 6, Pacific time. By installing the free update via a wireless broadband Internet connection, Nintendo 3DS users will have access to an Internet browser and the Nintendo eShop, which contains a variety of new content, including Pokédex™ 3D, an application that lets fans see Pokémon™ characters in 3D. To celebrate the grand opening of the Nintendo eShop, Nintendo is offering the NES™ game Excitebike™ re-mastered in 3D as a free download until July 7 for anyone who installs the system update. Upcoming Virtual Console™ content available in the Nintendo eShop includes Game Boy™ games Super Mario Land™, Alleyway™ and Radar Mission™. New content will be added to the Nintendo eShop on Thursdays.

The Nintendo eShop is a digital store for Nintendo 3DS owners that provides access to a wide variety of downloadable content, such as original 3D software, classic games that have been re-mastered in 3D called 3D Classics, Game Boy and Game Boy Color “Virtual Console” games in their original 2D glory, and more than 350 Nintendo DSiWare™ games. Visitors can also view video game trailers, screen shots and product information for games, including those available at retail locations.

Within the Nintendo eShop, Nintendo 3DS users will also be able to download the free Pokédex 3D application and start collecting data for more than 150 Pokémon from the Pokémon™ Black Version and Pokémon White Version games. This new application lets users view each Pokémon in 3D with animated motion and sound. The Pokémon image can be rotated 360 degrees, allowing users to zoom in and view it from any angle. The detailed Pokédex also allows users to search, sort and filter all of the data they receive in a variety of ways, making it the essential guide for Pokémon fans. Players can complete their Pokédex by sharing data with friends and using the SpotPass™ feature, or by scanning special Pokémon AR Markers (augmented-reality markers). Once users have received data for a Pokémon, the AR Viewer allows them to view that Pokémon image in a real-world setting in real time, and create photos to share with friends.

“The Nintendo 3DS system is constantly evolving and growing,” said Nintendo of America president and COO Reggie Fils-Aime. “The Nintendo eShop is a one-stop resource for a broad range of Nintendo information and downloadable games and applications. It expands the Nintendo 3DS experience with new and entertaining content.”

Other capabilities that go live with the system update include a free Internet browser that has the capability to show 3D images on sites specifically designed to show 3D images. The browser can also be used during game play. Users can stop their Nintendo 3DS game and go to the browser by pressing the Home button and then resume their game when they are finished browsing.

The system update also gives Nintendo DSi™ and Nintendo DSi XL™ system owners the ability to easily transfer most of their previously downloaded Nintendo DSiWare™ games to their new Nintendo 3DS systems.

In the near future, users will be able to download a free application for a short-form video service that will enable them to view specially selected video content, including 3D movie trailers, comedy clips and music videos automatically received when the SpotPass feature is activated.

To install the recommended system update, Nintendo 3DS users can simply start the “System Settings” from the Home Menu, select “Other Settings” and scroll the page right to select “System Update.”

Remember that the Nintendo 3DS system features parental controls that let adults manage the content their children can access. For more information about this and other features, visit http://www.nintendo3ds.com.

If Amazon U.K.’s pre-orders are any indication of what’s to come, the Nintendo 3DS could be as big of a hit as it was in Japan when it launched in February of 2010. On its Twitter account Thursday, Amazon UK said that the Nintendo DS has become the most pre-ordered console ever. U.K. residents interested in buying the device can purchase it for £187 ($381 USD). The Nintendo 3DS will launch in the United States on March 27th for $249.99. As its name suggests, the 3DS offers a 3D display, and games are backward-compatible with previous Nintendo DS and DSi titles.

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Industry watcher NPD Group says sales of video game software in the U.S. declined by 5% year-over-year in January 2011, totaling $576 million. Console sales were down 8% to $324 million. On the back of continued strong sales of the Microsoft Kinect and PlayStation Move motion-based controllers, sales of video games accessories increased 6% year-over-year to $235 million. The only console to see growth in January was Microsoft’s Xbox 360, which sold 381,000 units — a 14.1% increase year-over-year. NPD ranked January’s software title sales as follows:

1. Call of Duty: Black Ops (Activision Blizzard) – Xbox 360, PS3, Wi, DS, PC
2. Just Dance 2 (Ubisoft) – Wii
3. Dead Space 2 (Electronic Arts) – Xbox 360, PS3, PC
4. Little Big Planet 2 (Sony) – PS3
5. Zumba Fitness: Join the Party (Majesco) – Wii, Xbox 360, PS3
6. NBA 2K11 (Take-Two Interactive) – Xbox 360, PS3, PSP, Wii, PS2, PC
7. Assassin’s Creed: Brotherhood (Ubisoft) – Xbox 360, PS3
8. Dance Central (MTV Games) – Xbox 360
9. Michael Jackson The Experience (Ubisoft) – Wii, DS, PSP
10. DC Universe Online: The Next Legend Is You (Sony) – PS3, PC

Overall, the U.S. gaming industry took in $1.14 billion excluding PC sales — a 4% slide versus the same month in 2010.

Good news for all those out there who are die-hard Nintendo fans. At a planned media event, the company officially announced its U.S. intentions for its 3DS portable gaming set. Launching on March 27th, the handset will have the same form-factor as the DSi and will be backwards compatible with both DS and DSi games. Nintendo noted that over thirty 3DS specific gaming titles will be available upon or shortly after device launch. The device will be available in “aqua blue” or “cosmo black” and will be priced at $249.99.

According to a Business Wire press release, Nintendo will be reducing the pricing of its Nintendo DSi and DSi XL portable gaming systems on September 12. The release reads: “Effective Sept. 12, the new suggested retail price of the Nintendo DSi system will be $149.99, while the new suggested retail price for the Nintendo DSi XL system will be $169.99.” Nintendo also notes that 42.3 million DS-family units family have been sold in the United States. Cammie Dunaway, Nintendo of America’s executive VP of Sales & Marketing said, “Our new Nintendo DSi prices make it easier than ever for consumers to access the tremendous variety of games, applications and social tools on the Nintendo DSi and Nintendo DSi XL systems.” Previously, the DSi had been priced at $169.99 and the DSi XL had been priced at $189.99.

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Today at E3, Nintendo delivered upon its promise and announced the 3DS, the only device of its kind to deliver 3D imagery without requiring users to wear dorky special glasses. The portables secret weapon is its 3.5″ 3D display which users can adjust based upon their proximity to the screen for optimal 3D viewing; there will also be an option to disable 3D. Like the 2D DS, the bottom display is a resistive touchscreen and the front-facing camera remains unchanged. Another neat feature is the dual camera system on the backside of the main display which allows users to capture 3D images. There’s also a gyropscope, motion sensor, and Wi-Fi which apparently is able to download content in the background and sniff out a connection and log onto the web without your instructing it to do so. Pricing and a release date were not disclosed.

April saw the video game industry suffer through its worst month in nearly 10 years, as both hardware and software sales tumbled for a combined total of 26%. Consoles saw the biggest decrease with a 36% drop to $398.5 million, while software titles and accessories fell 22% and 9% to $249.3 and $118.4 million respectively. According to NPD research analyst Anita Frazier, some of the decline has to do with Easter falling in early April. If it were to have fallen in the middle of the month as it did last year, Frazier believes the month would have seen an additional $55 million in sales. So what system suffered the most last month? That unfortunate title belongs to the Nintendo Wii which sold 50% less units than it did in March. On the bright side, it did manage to hold on to its title as the top-selling non-portable console with 277,200 units sold. Coming in second was Xbox 360 with 185,400 units sold, followed closely by the PS3 at 180,800. As for portables, sales of the Nintendo DS — fast approaching the Playstation 2 as being the best-selling console in history — were down 37% to 440,800 while the PSP essentially lost its will to exist selling only 65,500 for a drop of 44%. As for the top selling games… well, you’re just going to have to hit up the jump to find out. You wouldn’t want the home page of BGR to start looking cluttered, would you?

1. Tom Clancy’s Splinter Cell Conviction – Xbox 360
2. Pokémon Soul Silver – DS
3. New Super Mario Bros. Wii – Wii
4. Pokemon Heart Gold – DS
5. God of War III – PS3
6. Wii Sports Resort with Wii Motion Plus – Wii
7. Battlefield: Bad Company 2 – Xbox 360
8. Wii Fit Plus – Wii
9. Just Dance – Wii
10. Super Street Fighter IV – PS3

[Image: Toothpaste for Dinner]

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Today, Nintendo posted its 2009-2010 fiscal earnings, and the Japanese gaming giant is beginning to stumble. For the first time in six years, Nintendo’s annual net profit fell, dropping 18% to ¥228.64 billion ($2.45 billion) in this fiscal year, which ended in March 2010. Nintendo blamed the slide on the appreciation of the yen, a late 2009 price cut on the Nintendo Wii, and the lack of strong game titles to drive the sale of hardware. Speaking of hardware sales…they lagged a bit, with Nintendo selling 20.5 million Wii consoles, down from 26 million in the previous year. The DSi showed a similar decline as Nintendo sold 27.11 million units, down from 31.18 million in the previous year. Despite the decline, Nintendo remained optimistic for the current fiscal year with a forecast of: ¥200 billion in profits, 18 million Wii units, and 30 million DSi units. The Japanese gaming company dismissed concerns over increased competition from the XBOX 360, the Playstation 3, and the Apple iPad citing its knowledge of the gaming business and its unique hardware, which appeals to a wide audience. Nintendo did not comment on the future of the Wii hardware, but did confirm the rumored 3DS, a new handheld gaming device that will allow 3D gameplay without the need for special glasses.Read (PDF File)

Sure it might turn out to be nothing more than an incredibly expensive fad, but whether you like it or not, 3D everything is going to continue to be shoved in your face for the foreseeable future. Case in point: The Nintendo 3DS (temporary name) which today was announced by Nintendo. Images, specs, pricing, a list of launch titles and just about anything else imaginable have been withheld, but we do know the 3DS is headed for a Q1 2011 release and that “games can be enjoyed with 3D effects without the need for any special glasses” and that the system “will include backwards compatibility so that software for Nintendo DS series, including the ones for Nintendo DSi, can also be enjoyed.” Nintendo has said it will give out further details this June at E3, but man, that’s a lot of time for Nintendo junkies to go sleepless.

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Many would say the worst is behind us where the recession is concerned but gaming giants Nintendo, Sony and Microsoft would probably disagree. An industry that stumped analysts and remained strong throughout the recent turbulent economic climate is finally beginning to feel the impact of the wave of reduced spending that has attacked most industries in recent history. Video game sales began declining slowly in March but NPD Group has just released June numbers that show a slightly more alarming drop than we’ve been seeing over the past few months. US sales in June dipped a substantial 29 percent YoY — a record drop — and consoles sales were down a whopping 38 percent. Long story short, an industry that held strong on the back of Nintendo’s Wii and DS/DSi is looking like it may finally be approaching relative saturation. The odds of another Wii-like breakthrough reaching market any time soon are slim to none but something better happen in the near future to woo gamers back into opening those wallets. Drops in console pricing are rumored but still not confirmed, though we have little faith that minor price adjustments would have the kind of impact the industry needs to rebound significantly.

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