Sales of video game hardware and software in the United States plummeted last month according to new data from market research firm The NPD Group. The firm’s January figures suggest that sales of video game hardware fell 38% to $199.5 million, down from $324 million in January 2011. Video game software sales slid 38% as well in January, falling to $355.9 million, and sales of accessories in the U.S. dropped 18% year-on-year to $195.2 million. Total industry sales were down 34% to $750.6 million. “January retail performance experienced steep declines with a lack of software launches, and poor Hardware and Accessory performance partly related to bad comps from Kinect-related success in Jan’11,” NPD analyst Liam Callahan said in a statement. “Outside of new physical retail sales, we estimate that the consumer spend on other ways to acquire content including used games, full game and add-on content downloads, social network games, mobile games, rentals and subscriptions accounted for an additional $350 – $400 million in sales.” Callahan noted that Microsoft’s Xbox 360 was the best-selling console for the sixth consecutive month in January, and Call of Duty: Modern Warfare 3 was the top-selling software title. A complete list of NPD’s top-10 games for the month follows below.

Owners of Apple’s iPhone and iPod touch can now enjoy a remake of the first-ever PC game, co-written by Bill Gates himself, which came pre-installed on several IBM computers in 1981. First released late last month, XVision’s DONKEY.BAS is a terrific recreation of the PC game by the same name. Players control a race car as it advances up the screen. Donkeys repeatedly come into view, and the simple goal is to switch lanes before colliding with any curious creatures. “We did this game as a tribute to the original,” XVision founder Johnny Ixe told BGR, noting that the firm added a number of new features to the game in order to distinguish it from the original. The spirit of the game remains, however, and gamers looking for a bit of nostalgia would be hard-pressed to find a better blast from the past. DONKEY.BAS is available now in the App Store for $0.99.

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The U.S. Patent & Trademark Office published a patent application from Apple on Thursday that reveals a 3D eye-tracking-based interface that could be used for gaming, digital photography and videography in future iOS and iMac devices, reports PatentlyApple. The new features could work in conjunction with Apple’s current 3D head tracking and ambient light technologies. The solution would utilize a variety of sensors such as an accelerometer and compass in combination with eye-tracking technology to alter the perspective of 3D graphics displayed on an iPhone. The result would be a 3D experience that constantly adjusts to the user’s position and a device’s position, creating a unique experience far more advanced and precise than current solutions. The patent application was originally filed in the third quarter of 2010 and it is unclear if Apple is currently experimenting with the technology.

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An Oklahoma lawmaker has proposed levying a new tax on violent video games. Oklahoma Democrat Will Fourkiller has suggested the tax be applied to all games that receive an ESRB rating, which is intended for adults only. In addition, Fourkiller thinks T-Rated games should also have a tax added to the cost of the games, since some include “simulated gambling.” But a tax on all T-Rated games would be too broad, Ars Technica points out, as there are also titles that are rated T for “cartoon violence, crude humor and suggestive themes.” Read on for more.

During his effort to gain backing for the proposed tax, Rep. Fourkiller refers to a crime in which a man killed a police officer and stole his car after playing Grand Theft Auto. ”Not everybody is going to react the same, but I believe after hours and hours of watching the screen, playing the video game, being that person and taking on that role, people get desensitized,” Fourkiller said. It is unclear how imposing a 1% tax will impact the effects violent video games may or may not have on those who play them.

The Entertainment Software Association (ESA) has been vocally opposed to Fourkiller’s plans to tax such video games. ”We are disappointed that even in the wake of an overwhelming decision in the United States Supreme Court finding proposals such as this to be patently unconstitutional, there are those who still try to attack video game with outdated notions of our industry,” VP of ESA Dan Hewitt explained to Ars Technica. “Taxing First Amendment protected material based on its content is misguided.”

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Apple has hired a former marketing executive from Microsoft to help promote the App Store and iTunes in Europe, MCV reports. Robin Burrowes, former head of Xbox LIVE marketing in the EMEA region for Microsoft, joined Apple in January according to his LinkedIn profile. His formal duties at Apple remain unclear — Burrowes’s profile only states that his role involves “App Store Marketing” — but the executive’s background suggests gaming will be a strong focus. Apple has hired a number of executives with experience in the gaming market recently, including Nintendo’s former head of public relations Robert Saunders and former Activision, EA and Xbox PR head Nick Grange. The video game industry finds itself among a number of businesses that have been disrupted by Apple’s iOS lineup, and the company’s recent hires suggest that Apple intends to continue pushing the gaming capabilities of its mobile device lineup.

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Microsoft will reportedly not launch the highly anticipated follow-up to the Xbox 360 this year. Cedrick Delma, Microsoft’s marketing director in France, recently told Le Point that he was “certain” the Redmond-based company would not release a new Xbox this year. Gamers shouldn’t give up all hope on at least getting a glimpse at Microsoft’s next-generation console this year, though. BGR exclusively reported last June that Microsoft has plans to unveil its Xbox 360 successor during this year’s E3 gaming show in Los Angeles. A few Microsoft patents recently suggested that the “Xbox 720″ might double as a set-top box complete with DVR functionality, and a rumor last week also suggested that the new console will be six times more powerful than the Xbox 360.

[Via The Verge]

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Valve on Thursday released mobile versions of Steam, the company’s digital game distribution platform. The mobile app is available for both iOS and Android devices. Games cannot be played through the app for obvious reasons, however users will be able to access to the store and connect with friends. ”With the free Steam app, you can participate in the Steam community wherever you go,” read the app’s description. “Chat with your Steam friends, browse community groups and user profiles, read the latest gaming news and stay up to date on unbeatable Steam sales.” Steam is a digital distribution, digital rights management, multiplayer and communications platform developed by Valve. The software was first released in 2003 and as of January 2012 and it now features 1504 games and 40 million active user accounts. It is estimated that Steam has roughly a 70% share of the digital distribution market for video games.

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A Microsoft spokesperson recently suggested that the Redmond-based firm is working to bring its Xbox Live games to other platforms. Microsoft’s Xbox Live titles are currently limited to the Xbox and the company’s Windows Phone mobile platform. “While the Xbox Live experiences and games always work best on the Windows platform, we understand that some Xbox fans may be using other types of devices,” a Microsoft spokesperson told Forbes. “To satisfy that need, we are working to extend a few of our Xbox experiences and titles to other platforms.” Microsoft didn’t come out and say specifically that it’s going to target Android and iOS, but it would make sense for Microsoft to target the two largest mobile platforms.

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Microsoft may be preparing to discontinue its virtual currency system by the end of the year, according to Inside Mobile Apps. The software giant is reportedly looking to phase out Microsoft Points in favor of real money transactions. After the switch, customers with existing Microsoft Points balances will have them converted into their local currency. Microsoft is said to have already warned mobile developers to plan their upcoming downloadable content and in-app purchases in accordance with the change. The move isn’t all that surprising; Microsoft has been gradually introducing cash purchases for its full Xbox Live games instead of using the points system, which many have seen as confusing and unnecessary. Microsoft Points are currently used to purchase games and media content on Xbox Live, the Zune Marketplace and Windows Phone, however the system isn’t used universally, with certain features using real money transactions and others using points. Microsoft declined to comment on the story.

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Capcom announced recently that Resident Evil 6 will launch on Xbox 360 and PlayStation 3 on November 20th, and that a PC version will follow soon after. The company said the game will take place in a world where bioterrorist attacks are occurring around the globe, inciting fear everywhere and turning everyone into zombies. The President of the United States decides to address the U.S. until he, too, is attacked and becomes a zombie. Leon S. Kennedy and Chris Redfield will work together to save the world alongside new characters, and we hope to give the game a whirl later this year during E3 — provided it’s on display, of course. The Resident Evil series made its debut in 1996 and the series has achieved global sales in excess of 47 million units. The trailer and press release for Resident Evil 6 follow after the break. 

Capcom® Confirms Latest Installment of the Resident Evil® Franchise Coming to Home Consoles This November

SAN MATEO, Calif.–(BUSINESS WIRE)–Capcom®, a leading worldwide developer and publisher of video games, is very proud to announce that Resident Evil® 6 is in full development and scheduled for release on the Xbox360® video game and entertainment system from Microsoft® and PlayStation®3 computer entertainment system on November 20, 2012 with a Windows PC version to follow. Blending action and survival horror, this latest instalment in the multi-million selling franchise, is the most ambitious, immersive and feature rich title of the series to date and promises to be the dramatic horror experience of the year.

Resident Evil 6 portrays a world where an escalation in bioterrorist attacks across the globe has led to widespread fear among the population. In an attempt to quell the panic and curb the bioterrorist activity the President of the United States has decided to speak to the nation but not before the very location of the address itself comes under attack. With the President’s safety compromised the situation for the rest of the world seems hopeless.

In a first for the franchise, Resident Evil 6 sees series favourites Leon S. Kennedy and Chris Redfield come together to face this unprecedented threat. They will be joined by new characters, each with their own unique perspective and involvement in this relentless dramatic horror experience enacted on a global scale.

Since the landmark release of Resident Evil in 1996, the franchise has firmly established itself as a truly worldwide entertainment brand and mainstay of contemporary culture with a series of live action movies, CG anime, manga, novels and numerous merchandising lines. To date the Resident Evil series of videogames has achieved global sales of over 47 million units, while the live action movies starring Milla Jovovich have grossed in excess of $525 million dollars at the box office.

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.

Sony’s PlayStation Vita portable gaming console launched in Japan with wind in its sails, but the device’s success appears to have been short lived. A recent report from 4Gamer suggests Sony sold just 72,479 units during the week ended December 25th, down from the estimated 324,859 units 4Gamer said Sony sold during the Vita’s first week of availability. Nintendo sold 482,200 3DS units during the same time period and Sony also sold 101,121 units of its older PSP console. Perhaps Sony will need to follow in Nintendo’s footsteps and initiate a price drop to help spur continued sales, and a wider launch ahead of the holiday shopping season surely would have helped the portable console as well. The PlayStation Vita will launch in the United States on February 22nd for $250, and a 3G-enabled version is expected to launch at a later date.

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A recent study published in Frontiers in Psychology by three Florida State University psychologists suggests that playing video games won’t make people smarter. The study also argues that violent games such as Call of Duty: Modern Warfare 3 don’t damage gamers’ brains or compel them to commit violent acts, the Associated Press said Friday. The research is on a par with studies performed by Texas A&M International University clinical psychologist Christopher Ferguson, who has found “nothing” after researching whether or not violent video games may compel gamers to commit acts of violence. Other scientists have spoken out against the Florida State report, however, and while they didn’t discuss the effects of violence, they did suggest that playing video games actually can increase a gamer’s cognitive function. Read on for more.

Scientists from Rochester’s Department of Brain and Cognitive Science and the University of Minnesota argued that playing games actually can result in “a wide range of behavioral benefits, including enhancements in low-level vision, visual attention, speed of processing and statistical inference.” Still, more research is required before any conclusions are made about whether video games make gamers more violent or whether or not games have the ability to increase our cognitive abilities.

“Play these games because they are fun and you enjoy doing them, and let’s kind of wait for more research to suggest whether or not they are actually good for us,” Walter Boot, a Florida State University psychologist involved with the study said. ”Don’t sit down and play a game. Go out there for a walk,” he added, noting that exercise is the best proven way to boost one’s brain power.

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We were huge Mega Man fans back when the game made its debut on the NES — and later on the Game Boy — and now we can finally relive some of those amazing gaming days by playing Mega Man X on the iPhone and iPod touch. Capcom released the title in the iTunes App Store recently and, while it’s a bit expensive at $4.99, it should be worth the purchase. Mega Man X features Game Center support and 60 different levels following a 20-level opening “Story Mode” campaign. It currently has a 4.5 rating in the iTunes App Store, with just a few complaints from users who aren’t fans of the controls. Unfortunately, the game does not currently support the iPad.

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Sales of Microsoft’s Xbox 360 video game console trounced the competition in November, nearly doubling PlayStation 3 sales and sales of Nintendo’s Wii console. According to November sales data from leading market research firm The NPD Group, Microsoft sold 1.7 million Xbox 360 consoles in November. While Sony managed unit sales growth of about 70% year-over-year, the company only sold about 900,000 PlayStation 3 consoles last month. Nintendo sold 860,000 Wii consoles, 795,000 portable Nintendo 3DS consoles and 350,000 older Nintendo DS units in November. “This is the fourth consecutive month in which the Xbox 360 has been the top selling hardware system,” NPD analyst Anita Frazier said in a statement. “The gap between 360 sales and sales of the next best selling platform was the largest we’ve seen since December 2008 when the Nintendo DS was the top selling system.” Total industry sales were up less than 1% to $3.00 billion in November according to NPD, and hardware sales dipped 9% from 2010 to $982.4 million. Software sales were up 15% year-over-year to $1.67 billion but accessory sales dropped 34% to $273.8 million despite strong holiday sales of Microsoft’s Kinect controller. The NPD Group’s list of the 10 best-selling video game titles in November follows below.