The video game industry capped off a rough year in the United States with a horrible holiday month that saw sales plummet year-over-year across all categories. Market research firm The NPD Group recently released its sales estimates for December 2011 and the full year, and neither set of figures paints a pretty picture. Last month, total industry sales plummeted to $3.99 billion, down 21% from $5.07 billion in December 2010. Hardware sales dropped 28% to $1.32 billion in December, and software sales were down 14% to $2.08 billion. “December was very rough for new physical sales of video games hardware, software and accessories,” NPD analyst Anita Frazier said in a statement. “Because of the great slate of content that came to market during the fourth quarter, I had expected December sales to represent a larger portion of total year sales than what occurred. This year, December accounted for just 23% of annual sales, while the average for the past ten years has been 28.” For the full year, hardware sales were down 11% to $5.58 billion, software sales dipped 6% to $8.83 billion and total industry sales slid 8% to $17.02 billion. The NPD Group’s full press release follows below along with a list of the top-10 best-selling games of 2011.

Image source: Kristen Lanae

2011 TOTAL CONSUMER SPEND ON ALL GAMES CONTENT IN THE U.S. ESTIMATED BETWEEN $16.3 TO $16.6 BILLION

-  U.S. VIDEO GAME INDUSTRY NEW PHYSICAL RETAIL CONTENT SALES REACH $9.3 BILLION -

PORT WASHINGTON, NY, January 12, 2012 – According to leading market research company, The NPD Group, the preliminary estimate* for total consumer spend on gaming content via all monetization methods, including new physical video and PC games, used games, game rentals, subscriptions, digital full-game downloads, social network games, downloadable content, and mobile games, is between  $16.3 to $16.6 billion. This total consumer spend on games content in 2011, which includes both physical and digital formats, represents sales that are down approximately 2 percent when compared to 2010.

Based on this estimate, spending on new physical content at retail continues to account for the majority of the total consumer spend on games content.  U.S. retail sales of new physical video game content, which includes portable, console and PC game software, generated revenues of $9.3 billion, an 8 percent decline over the $10.1 billion generated in 2010.

Bright spots came from HD console software sales, which were up 9 percent in 2011, as well as increases in the consumer spend on used games sales, full-game digital downloads and downloadable content, and mobile gaming apps, which partially offset declines in the other areas of consumer spend on content.

“Overall industry results are not entirely surprising given that we are on the back end of the current console lifecycle, combined with the continued digital evolution of gaming.  Core gamers continue to be engaged and spend on established franchises across both the digital and physical format using multiple devices for different gaming occasions,” said Anita Frazier, industry analyst, The NPD Group.

“Our overall estimate of the market continues to point toward the increased imperative for deeper visibility into digital distribution than is available today, not only in the U.S. but globally.  This is the goal of our partnership with EEDAR, and central to our discussions with publishers and others in the gaming community,” said David McQuillan, president, Games at The NPD Group.

When it comes to mobile gaming, no one does it better than Gameloft. The French company is known for its visually stunning and in-depth game-play, having repeatedly raised the bar for mobile gaming throughout the years. Gameloft’s paid games range from $0.99 to $6.99, however, from December 29th through January 5th all of the company’s paid games can be had for $0.99. There is no catch and no gimmick; all games means all games, including the newly released first-person shooter Modern Combat 3: Fallen Nation, originally priced at $6.99. Other titles you may want to check out, should you have a compatible device, include Order & Chaos Online, N.O.V.A. 2 HD, 9mm HD, Adventures of TinTin, and BackStab HD. The sale begins tomorrow, December 29th, at 1:00 p.m.

[Via DroidGamers]

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Sony recently published a list of the games that will be available when its brand new PlayStation Vita portable gaming console finally makes its debut on February 22nd in the United States. The $250 console, which we enjoyed during our initial hands-on during E3 2011, will launch alongside exciting titles such as Ultimate Marvel vs Capcom 3, Dungeon Hunter Alliance, Uncharted: Golden Abyss, LEGO Harry Potter: Years 5-7 and more. Sony will also offer a 4GB memory card for just $19.99, or users can opt to spend up to $99 for a 32GB memory card. The full list of launch day games follows below in Sony’s press release. 

PlayStation Vita to Launch With Biggest and Best Software Lineup in Sony Computer Entertainment History

SCEA Announces U.S. and Canadian Lineup of PS Vita Games and Accessories

FOSTER CITY, Calif., Dec. 22, 2011 /PRNewswire/ — Sony Computer Entertainment America LLC today announced software launch details for the highly anticipated PlayStation®Vita (PS Vita) handheld entertainment system, which will boast the biggest and best launch lineup across the history of PlayStation platforms. PS Vita will offer the most popular franchises in gaming along with entirely new titles – all built from the ground up to take advantage of PS Vita and the unique ways it enables gamers to play.
The PS Vita platform has the full development support of the gaming industry, including SCE Worldwide Studios and all third-party publishers, who are combining to deliver 25 titles on day one. First-party launch titles will include Escape Plan™, Hot Shots Golf®: World Invitational, Little Deviants™, ModNation™Racers: Road Trip, UNCHARTED: Golden Abyss™, and wipEout® 2048.  Key launch titles from third-party partners will include EA SPORTS FIFA Soccer (Electronic Arts, Inc.), Lumines ™ Electronic Symphony (Ubisoft, Inc.), Touch My Katamari™ (Namco Bandai Games America Inc.), Ultimate Marvel vs Capcom 3® (Capcom Entertainment, Inc.) and Virtua Tennis™4: World Tour Edition (Sega® of America).

Pricing for all software will range between $9.99- $49.99 (MSRP). Software titles will be available via PS Vita game cards at retail stores or digitally via PlayStation®Network. In addition, a select number of titles will be available exclusively on PlayStation Network

“PlayStation Vita is the ultimate portable gaming device, offering all of the interface, controls and social connectivity that gamers have been dreaming about to deliver unsurpassed entertainment and completely new ways to play,” said Jack Tretton, president and CEO, Sony Computer Entertainment America. “PS Vita features the most extensive launch lineup in PlayStation’s history, and there are more than 100 games in development, ensuring that PS Vita gamers will always have a steady stream of amazing titles at their fingertips.”

The gameplay experience on PS Vita is unmatched by any other mobile device in the market, providing new ways to interact through features such as its 5-inch OLED multi-touch screen and rear touch pad, dual analog sticks, dual cameras, and six-axis motion sensing system. PS Vita will also interact with the PlayStation®3 (PS3™) with compatible titles, offering multi-player gaming across both platforms and cloud-saving so consumers can play a game on one platform and pick up where they left off on the other.

PS Vita will draw consumers deeper into the gameplay experience by providing both 3G/Wi-Fi and Wi-Fi only models, enabling them to connect and play with the world around them, including their friends and other PS Vita owners. A variety of social networking and communications services such as Facebook, flickr, foursquare, Skype™, and Twitter will be available on PS Vita.

PS Vita launches at major retailers in the United States and Canada on February 22, 2012. The Wi-Fi model will be available for$249.99 (MSRP), and the 3G/Wi-Fi model will be available in the United States for $299.99 (MSRP). Consumers who pre-order the PS Vita First Edition Bundle will be able to pick up their devices as early as February 15, 2012. All first-party launch software titles and a selection of peripherals and third-party games will be available that day to support the release of the pre-sale Bundle.

Consumers who purchase PS Vita will also be able to experience Augmented Reality (AR) right out of the box.  Included with every PS Vita system are six AR Play cards and one voucher to download a handful of augmented reality mini games via PlayStation®Network.

SCEA Launch Day Titles
Escape Plan™ (PSN Only)
Hot Shots Golf®: World Invitational
Hustle Kings™ (PSN Only)
Little Deviants™
ModNation™ Racers: Road Trip
Super StarDust™ Delta (PSN only)
UNCHARTED: Golden Abyss™
wipEout® 2048
Launch Window Titles
Gravity Rush™
MLB® 12 The Show
Reality Fighters™
Unit 13™
Third Party Publisher Launch Day Titles
Army Corps of Hell ©	Square Enix, Inc.
Asphalt® Injection	Ubisoft, Inc.
BEN10™ GALACTIC RACING	D3 Publisher of America
Blazblue: Continuum Shift EXTEND*	Aksys Games Localization, Inc.
Dungeon Hunter Alliance	Ubisoft, Inc.
Dynasty Warriors Next	Tecmo Koei America Corporation
F1 2011™	Codemasters®
EA SPORTS FIFA Soccer	Electronic Arts, Inc.
Lumines ™ Electronic Symphony*	Ubisoft, Inc.
Michael Jackson The Experience	Ubisoft, Inc.
Plants vs. Zombies™ (PSN Only)	Sony Online Entertainment LLC
Rayman® Origins*	Ubisoft, Inc.
Shinobido 2: Revenge of Zen	Namco Bandai Games America Inc.
Tales of Space: Mutant Blobs (PSN Only)	Drinkbox Studios
Touch My Katamari™	Namco Bandai Games America Inc.
Ultimate Marvel vs Capcom 3®*	Capcom Entertainment, Inc.
Virtua Tennis™4: World Tour Edition	Sega® of America
Launch Window Titles
LEGO® Harry Potter™: Years 5-7	Warner Bros. Interactive Ent. Inc.
Disgaea ®3:Absence of Detention	NIS America, Inc.
NINJA GAIDEN® Sigma PLUS	Tecmo Koei America Corporation
Ridge Racer®	Namco Bandai Games America Inc.
Silent Hill Book of Memories	Konami Digital Ent. America, Inc.
Supremacy MMA: Unrestricted™	505 Games

Microsoft announced on Tuesday that last week marked the Xbox 360′s best ever week of sales. The company sold more than 960,000 Xbox 360 consoles and more than 750,000 Kinect controllers last week. Microsoft also confirmed that more than 800,000 of the consoles it sold last week were purchased on Black Friday alone. ”We have seen tremendous excitement from customers for our hot holiday gaming offers,” said Chris Homeister, senior vice president and general manager of Home Entertainment at Best Buy, in a statement. “Xbox 360 was among the best-sellers at Best Buy this Black Friday, and is a testament to the continued popularity of the gaming category this holiday.” Microsoft’s full announcement follows below.

Entering the seventh year of its lifecycle, Xbox 360 just closed the biggest sales week in the history of Xbox, selling more than 960,000 consoles in the U.S. during the week of Black Friday.

Microsoft’s retail partners are equally excited about our sales performance this holiday.

“We have seen tremendous excitement from customers for our hot holiday gaming offers,” said Chris Homeister, senior vice president and general manager of Home Entertainment at Best Buy. “Xbox 360 was among the best-sellers at Best Buy this Black Friday, and is a testament to the continued popularity of the gaming category this holiday.”

Sales highlights in the U.S. during the week of Black Friday include:

• Xbox 360 sold more than 960,000 consoles in the U.S. alone, of which more than 800,000 were sold within a period of 24 hours – the biggest week of sales in Xbox history. (Source: Internal data)
• More than 750,000 Kinect for Xbox 360 sensors were sold in the U.S. – standalone and bundled. (Source: Internal data)

If you’re unfortunate enough to be sitting at your in-laws wearing that itchy sweater you hate so much, at least we have you covered with a few games to get you through the night. EA and Gameloft have a huge sale going on and both are offering most titles for just $0.99. Gameloft has Starfront: Collision, Sacred Odyssey: Rise of Ayden, Shrek Kart and dozens more up for grabs, each for just a dollar. In addition, EA has Need for Speed: Hot Pursuit, Tiger Woods PGA Tour 12 for iPad, The Sims: Medieval and much, much more for just $0.99 a piece. That’s the same price as a McChicken, but so much more rewarding — and none of us should be thinking about more food right now.

Read [TouchArcade] Read [EA]

Activision’s Call of Duty: Modern Warfare 3 has become the fastest-selling video game in history, crushing previous records set by earlier titles in the Call of Duty franchise. The game lab on Tuesday announced that week-one sales of Modern Warfare 3 totaled 12.3 million units, making it the biggest launch of all time and pulling in an estimated $738 million in revenue. The Xbox 360 version of the game lead sales with more than 7 million copies, a record for game sales on a single console that was previously held by Call of Duty: Black Ops (5.8 million), and 4.8 million copies were sold for the PlayStation 3. Nintendo’s Wii split the remaining half-million copies with the PC version of the game. Activision announced late last week that the new title sold 6.5 million copies and reeled in $400 million during its launch weekend alone, also a record. We reviewed Call of Duty: Modern Warfare 3 last week and called it our favorite first-person shooter ever.

Nintendo’s president Satoru Iwata recently reiterated that Nintendo will not develop games for Apple’s iPad, iPod and iPhone, despite recent pressure from investors to jump on the iOS bandwagon. “This is absolutely not under consideration,” Iwata told the Japanese news outlet Nikkei following the company’s recent 3DS press conference. “If we did this, Nintendo would cease to be Nintendo. Having a hardware development team in-house is a major strength. It’s the duty of management to make use of those strengths. It’s probably the correct decision in the sense that the moment we started to release games on smartphones we’d make profits. However, I believe my responsibility is not to short term profits, but to Nintendo’s mid and long term competitive strength.” Several analysts have argued that Nintendo will continue to struggle against mobile gaming platforms that offer a larger selection of free or $0.99 games. Nintendo recently dropped the price of the 3DS to $169.99, which helped increase sales, but the system is still expected to miss sales targets for the year. According to AdriaSang, which translated the Nikkei article, Iwata believes Nintendo’s current business model works and he expects that to be reflected during the holiday shopping season.

[Via The Loop]

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During the Nintendo 3DS Conference in Japan on Tuesday, Nintendo’s president Satoru Iwata discussed the company’s plans to boost interest in its 3D portable gaming console. Nintendo will add the ability to record 3D video on the device, which is currently only capable of snapping 3D photos, and will sell a new joystick add-on. Nintendo will also launch a pink 3DS in October in an effort to attract female gamers. But those new options as well as 43 new games, including Super Mario 3D Land, will not be enough to help the company meet its sales expectations according to analysts surveyed by Bloomberg. The analysts collectively estimated that Nintendo may miss its goal 16 million 3DS units sold goal by about 16%. Read on for more.

Reportedly, Nintendo may sell 2.5 million units by March 31st, which marks the halfway point for the company’s fiscal year. Those sales may have been spurred by Nintendo’s decision to drop the price of the console to $179, which consequently resulted in a 260% increase in sales. “[Nintendo] can’t compete with free or $0.99 downloads,” Wedbush Securities analyst Michael Pachter said, comparing the system to the iPhone, iPad and iPod. Pachter estimates Nintendo will sell 10 million units for the fiscal year. “Nintendo should consider embracing social networks, even though it’s going to be a latecomer,” Daiwa SB Investments portfolio manager Koichi Ogawa told Bloomberg. “Even with the price cut, it’s hard to lure consumers as various platforms including the iPhone and iPad are available now. Those people wont use 3DS to play cards or mah-jongg.”

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The Windows Marketplace for Mobile is now home to more than 30,000 applications according to app tracking website WindowsPhoneAppList. On July 2nd, the Windows Marketplace for Microsoft’s Windows Phones passed the 25,000 milestone. By comparison, Apple’s iTunes App Store is populated with more than 500,000 applications and Google confirmed in May that the Android Market has more than 200,000 apps. The Windows Marketplace’s paid app list is loaded with games — as it should be considering the great Xbox Live integrations — and the top-five paid apps are Angry Birds, Fruit Ninja, Sonic the Hedgehog 4: Episode 1, Need for Speed Unleashed and Cro-Mag Rally.

[Via MobileBurn]

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Google announced on Thursday that it is following in Facebook’s footsteps yet again by adding games to its Google+ social network. “We want to bring the nuance and richness of real-life sharing to the web,” the company said in a blog post. “That means giving you control over when you see games, how you play them and with whom you share your experiences.” Thankfully we won’t be bombarded with Farmville requests and updates on Mafia Wars: “games in Google+ are there when you want them and gone when you don’t,” the company said. A new ‘Games’ button will be added to the top of the Google+ stream that will bring users to the gaming page. Launch titles include Angry Birds,  Bejeweled Blitz, Bubble Island, City of Wonder, Collapse! Blast, Crime City, Diamond Dash, Dragon Age Legends, Dragons of Atlantis, Edge World, Flood-It!, Monster World, Sudoku, Wild Ones, Zombie Lane and Zynga Poker. Google will be rolling out the update to its users gradually and it will be available to all users “soon.”

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Redbox on Thursday announced that it will add video game rentals to an additional 5,000 kiosks beginning August 1st. The company announced last month that game titles for the Microsoft Xbox 360, Sony PlayStation and Nintendo Wii would be added to 16,000 more redbox kiosks by the end of June, and the total after this coming round of additions will approach 27,000. Redbox owns and operated approximately 33,000 rental kiosks around the country, and the company did not indicate if or when video games might be added to the remaining 6,000 kiosks. ”Whether customers are playing a new game or genre, trying a game before they buy it or simply entertaining friends and family, they’re embracing the availability of games at redbox,” said Joel Resnik, vice president of video games, in a statement. Company president Mitch Lowe continued, “More than 1.5 billion movie rentals and the positive consumer reaction to video games highlight the ongoing demand for physical media.” All game titles carried in redbox kiosks can be rented for $2 per night. Redbox’s full press release follows below.

PLAY MORE!  REDBOX ANNOUNCES VIDEO GAMES WILL ROLL OUT TO APPROXIMATELY 5,000 ADDITIONAL KIOSKS

Milestones:  Redbox Surpasses 4 Millionth Game Rental and 1.5 Billionth Movie Rental

OAKBROOK TERRACE, Ill. – July 28, 2011 – Following last month’s launch of video game rentals, redbox announced today it will expand video game rentals to approximately 5,000 additional redbox^® kiosks beginning August 1.  Even more consumers will soon have the opportunity to discover and rent the latest PlayStation^® 3, Nintendo Wii™ and Xbox 360^® games at approximately 27,000 kiosks nationwide.

“Whether customers are playing a new game or genre, trying a game before they buy it or simply entertaining friends and family, they’re embracing the availability of games at redbox,” said Joel Resnik, vice president of video games, redbox.

Redbox recently rented its 4 millionth video game since the company began testing game rentals in 2009. In addition, redbox reached its 1.5 billionth movie rental this June – yet another milestone in its eight-year history.

“More than 1.5 billion movie rentals and the positive consumer reaction to video games highlight the ongoing demand for physical media,” said Mitch Lowe, president, redbox.

With 68 percent of the U.S. population living within a five-minute drive of a redbox^® kiosk*, finding the most convenient location around the corner or on the go is easy at www.redbox.com or via the redbox iPhone^® or Android™ mobile apps. Since its launch in November 2009, the iPhone app has been downloaded nearly 4.5 million times, and the Android app has been downloaded more than 2 million times since it launched in February 2011. Plus, the redbox rent and return anywhere^® policy allows families to rent at one destination and return at another.  Redbox rents new-release movies and video games for as low as a buck a day for DVDs.

Microsoft is being sued for patent infringement over motion-sensing technology used in its blockbuster gaming accessory, the Microsoft Kinect. Ohio-based Impulse Technology has filed a complaint alleging that Microsoft’s Kinect controller infringes on seven of its technology patents. One patent referenced in the lawsuit covers “wide variety of games where the movement of a player is tracked in three dimensions…and certain exercise games where the motion of the player is tracked to effect movement of a virtual avatar, and the exertion of the user is monitored, including where the tracking of the player is done by the use of a camera.” A separate patent describes an “education system challenging a subject’s physiologic and kinesthetic systems to synergistically enhance cognitive function.” Impulse Technology is seeking a permanent injunction to block the import and sale of Microsoft’s Kinect, and it is also suing Electronic Arts, Konami and Sega for developing Xbox 360 games that utilize Kinect and infringe on its patents. Impulse is seeking damages, treble damages, interest, and attorney fees from Microsoft as well. The Kinect motion-based video game controller has been a smash hit for Microsoft, having set numerous sales records since its launch. This past March, Microsoft announced that it had sold 10 million Kinect controllers since the device’s launch just before the holidays last year.

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Research In Motion on Tuesday announced a major milestone for its on-device software portal BlackBerry App World: 1 billion downloads served. ”The BlackBerry App World storefront launched a little over two years ago, and over that time, we’ve made many feature improvements, enhanced the look and feel, and added a ton of compelling apps,” RIM’s Alex Kinsella wrote on the company’s blog. “BlackBerry App World is now in over 100 countries, seeing an average of 3 million downloads per day, and we recently crossed the 1 billion app download milestone!” While the achievement is still impressive, RIM did confirm to BGR that the 1 billion figure includes application updates, however, and not just initial application downloads.

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A staggering $1.85 billion was spent on video game content outside of physical video and PC game hardware and software in the U.S. during the first quarter. The number represents just over 31% of total spending on video games in the U.S., which came in at $5.9 billion in the first quarter of 2011. The impressive stat is noted by The NPD Group in its latest Games Industry: Total Consumer Spend report, which includes used game purchases, game rentals, subscriptions, digital full-game downloads, social network games, downloadable content and mobile games in this emerging category. The firm notes that physical retail channels still accounted for the the majority of industry sales in the first quarter, but the fact that these newer gaming channels such as social gaming and mobile gaming have grown to encompass nearly a third of the U.S. gaming industry so quickly speaks volumes to where gaming might be headed in the future. The NPD Group’s full press release follows below.

Image source: Kristen Lanae

RESEARCH SHOWS ADDITIONAL $1.85 BILLION SPENT ON VIDEO GAME CONTENT FOR FIRST QUARTER 2011 Total Consumer Spend on Hardware, Content, and Accessories in the U.S. Estimated at $5.9 Billion

PORT WASHINGTON, NEW YORK, July 11, 2011 – According to the Q1 2011 Games Industry: Total Consumer Spend report from leading market research company, The NPD Group, in addition to the $2.03 billion spent in the U.S. by consumers on new physical video and PC game software in the first quarter of 2011, the total consumer spend on content via other monetization methods, including used games, game rentals, subscriptions, digital full-game downloads, social network games, downloadable content, and mobile games, is estimated at $1.85 billion. The total amount spent by consumers on hardware, content and accessories is estimated at $5.9 billion, an increase of 1.5 percent versus Q1 2010.

“While the new physical retail channel still generates the majority of industry sales, our expanded research coverage allows us to assess the total consumer spend across the growing number of ways to acquire and experience gaming, including mobile apps and downloadable content,” said Anita Frazier, industry analyst, The NPD Group. “Through a combination of point-of-sale and consumer research tracking, The NPD Group is providing an expanded, more comprehensive measure of a dynamic and rapidly evolving games industry.”

Developers looking to attack mobile app segments where they might have the best chance of scoring big with smartphone users would be well served to take notice of Nielsen’s latest findings. The market research firm on Wednesday published some findings from its Mobile Insights and Mobile Apps Playbook reports for the second quarter of 2011, and “Games” was once again the most popular app category. In the second quarter, 64% of app downloaders — smartphone users surveyed who had downloaded an app within the past 30 days — reported having downloaded at least one game over the past 30 days, just ahead of weather apps at 60% and social networking apps at 56%. What’s more, a whopping 93% of app downloaders are willing to pay for the games they play. IPhone owners seem to be the most avid gamers according to Nielsen’s data; iPhone gamers play games for about 14.7 hours on average each month, nearly twice as long as the average mobile gamer last quarter. Nielsen also found that consumers with iPhones, Windows Phones or Android phones were likely to have downloaded the games they play, while BlackBerry users and feature phone users typically played pre-loaded games. Hit the break for additional charts highlighting Nielsen’s findings.

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