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.

Kazuo Hirai was appointed Sony’s new chief executive on Wednesday and one day later, the company reported a wider than expected loss in the third fiscal quarter of 2011 that sent its stock tumbling more than 6% in early trading. The firm posted an operating loss of $1.2 billion on $23.4 billion in revenue, down more than 17% compared to the same quarter in fiscal 2010, and its net loss for the quarter totaled $2 billion. Sony also said it now anticipates a full-year loss of $2.9 billion, more than twice its earlier projection of $1.2 billion. The flooding in Thailand was seen as contributing to Sony’s poor performance in the third quarter, but the company noted that its hefty losses were “primarily due to an impairment loss on the shares of S-LCD, which were sold in January 2012, and the recording of a valuation allowance on deferred tax assets at Sony Ericsson.” The company cut its full-year PlayStation 3 console sales forecast to 14 million units from 15 million, and it trimmed its full-year digital camera sales forecast to 21 million units from earlier estimates of 23 million.

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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.

New data from Nielsen suggests that console owners are using their Xbox 360, PS3 and Wii game consoles to stream video content more than ever before. “Streaming now represents a reported 14 percent of Xbox 360 time, 15 percent of PS3 time and 33 percent of Wii time,” Nielsen said Wednesday. The market research firm explained that the growth in time spent streaming was driven by services such as ESPN 3, Netflix, MLB Network and Hulu, but that time spent using consoles also increased overall. Console usage during the first half of 2011 jumped 7% from the same time period last year. Nielsen said gaming is the most popular activity on Xbox 360 (34% of usage), the PS3 is most used for DVD/Blu-ray viewing (22% of usage) and the Wii is used most for offline gaming (55% of usage).

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The wait is finally over and late Tuesday evening we’ll be making our way over to our local game store to pick up Call of Duty: Modern Warfare 3. The latest title in Activision’s hit series achieved record pre-order figures, surpassing even the staggering pre-orders totals racked by by Call of Duty: Black Ops. The single-player campaign will pick up right where we were left off at the end of Call of Duty: Modern Warfare 2 but, let’s be honest, we’re all in it for the multiplayer matches and revamped perk system. Activision is also offering a “Call of Duty Elite” option that costs $50 per year and allows gamers to connect with other players, manage load-outs and more from the web, a game console or a mobile device. The full press release follows after the break. Frag out!

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.

Much has been made of the video game console business’ steady decline, and rightfully so; console sales have dropped considerably in recent months. Some attribute the sliding sales to a weakened economy while a minority believe trends are turning toward casual mobile gaming, but market research firm IDC says we shouldn’t be sounding any alarms just yet. In a new report, IDC suggests that console gaming will begin to reverse current downward trends in 2012, with a big-time resurgence to follow in the coming years. “Total console hardware and disc-based software revenues are on track to slide a few percent in 2011 compared to 2010,” Lewis Ward, an IDC research manager, said in a statement. “But prognostications that consoles have peaked as a product category are premature. I expect that the launch of the Wii U, a revamped interactive entertainment console from Microsoft in the 2014 timeframe, and the arrival of Sony’s ‘PS4′ circa 2015 – along with more than a few exclusive, innovative games – will help drive a new wave of console-centric spending in the next several years.” Of course the market could rebound even sooner than that. BGR reported exclusively that Microsoft may be preparing to unveil a new Xbox model as soon as E3 2012, and Sony could be fast-tracking plans for a new PlayStation 4 console as well. The Xbox is now six years old, Sony’s PlayStation 3 is five years old and Nintendo’s Wii is almost five years old as well. As quickly as technology now evolves, it shouldn’t be any mystery that console sales are currently waning. IDC’s press release follows below.

IDC Finds the Demise of Game Consoles Is Greatly Exaggerated

18 Aug 2011

FRAMINGHAM, Mass., August 18, 2011 – Despite recent macroeconomic instability and particularly weak overall video game spending in North America this summer, the latest International Data Corporation (IDC) forecast of the worldwide video game and interactive entertainment console market points to a rebound beginning in 2012, largely driven by new platform releases and rising console penetration and spending in select developing economies.

“Total console hardware and disc-based software revenues are on track to slide a few percent in 2011 compared to 2010,” says Lewis Ward, research manager, Consumer Markets: Gaming, at IDC. “But prognostications that consoles have peaked as a product category are premature. I expect that the launch of the Wii U, a revamped interactive entertainment console from Microsoft in the 2014 timeframe, and the arrival of Sony’s ‘PS4′ circa 2015 – along with more than a few exclusive, innovative games – will help drive a new wave of console-centric spending in the next several years.”

IDC forecasts direct global console hardware and disc software sale revenue will increase at a compound annual growth rate (CAGR) of 3.6% from 2010 to 2015, reaching $39.7 billion in 2015 with developing economy growth rates about twice those in developed markets. Despite this rebound, the installed base of actively used game consoles won’t keep pace with the number of worldwide households. IDC expects there to be about 257 million active consoles worldwide by 2015, or 12.7% of anticipated households that year, down about 1% when compared to same console penetration figure for 2011. In this sense, it’s possible to conclude that console popularity will slip due to the rise of media tablet gaming, casual, free-to-play/social online PC games, etc.

This IDC study, Worldwide Game and Interactive Entertainment Console Hardware and Software 2011 -2015 Forecast (IDC #229438), assesses and forecasts the demand for, usage of, and revenue associated with video game console hardware and software on a worldwide basis through 2015. It provides a competitive assessment of the leading current-generation console platforms based on survey data, interviews, and other research sources and models next-generation platform releases based on historical precedent and other inputs. Worldwide game console totals are broken down into four regions: North America, Western Europe, Japan, and the rest of the world.

The forecast also shows the PS3 will have the largest active installed base of any game console worldwide by 2015. In this sense, the PS2′s “long tail” may ultimately repeat.

Sony announced on Tuesday that it is lowering the price of its 160GB PlayStation 3 console to $249, down from the console’s original $299 price tag. In addition, Sony will now sell the 320GB version of the PlayStation 3 for $299 instead of $349. The Japanese consumer electronics firm also dropped the price of the system in Japan and in Europe. The move is likely an effort to tackle Microsoft’s Xbox 360 console, which has been the best-selling console in the United States for past seven months according to the latest data from The NPD Group. Recent rumors have suggested Sony is already working on the PlayStation 4, which could launch as soon as next year to compete with Nintendo’s Wii U and Microsoft’s next-generation Xbox.

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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.

George Hotz, the hacker better known as “geohot” has joined the team at Facebook. Hotz made a name for himself in the enthusiast community as an iPhone and iPad jailbreaker with his blackra1n tool, and he’s was also sued for jailbreaking the Sony PlayStation 3. Reportedly, Hotz joined Facebook in May and recently wrote on Facebook that the social network is “really an amazing place to work.” Hit the read link for a video during which GeoHot mentions his recent move.

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Fifteen years and several delays after Duke Nukem 3D’s original release, the sequel Duke Nukem Forever — announced in 1997 — is finally available for Windows, Xbox 360, and PlayStation 3. “June 14 in North America will forever be celebrated as the day that legendary Duke Nukem Forever went from video game folklore to earth-shattering reality,” Christoph Hartmann, president of 2K Games, said. “For 15 years, fans have waited in limbo just yearning to hear those two little lovely words strung together–now available.” Unfortunately, early reviews of the game aren’t as earth-shattering. Ars Technica’s Ben Kuchera said Duke Nukem Forever was “barely playable, not funny, rampantly offensive,” in his headline and concluded the only good thing about the experience was that “the game doesn’t last very long.” The Guardian’s review of the game was somehow even less complimentary: ”If this was 15 years in the making, it makes you wonder what they did for the other 14 years and 10 months.” Even still, Duke Nukem was such a staple in our early first-person shooter experience that we can’t help but feel some temptation to stop by Gamestop this afternoon.

[Via CNET]

Read [Ars Technica] Read [Guardian]

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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According to Kotaku, neither Microsoft nor Sony will launch new gaming consoles before 2014. “Both [Microsoft] and Sony are telegraphing to each other that they’re delaying, to milk the current [generation] and fill in previous craters better,” one source told Kotaku. By contrast, Nintendo’s next generation gaming console is expected to land sometime next year. Microsoft and Sony may decide to build onto the current systems, however; for example, Microsoft may release a “Kinect-upgraded” Xbox 360 in 2013. “Sony definitely isn’t launching a successor before 2014 and could stand to benefit by having Microsoft launch first as PS3 builds in North America and builds a strong position in Europe,” said Billy Pidgeon, an analyst with M2 Research. Microsoft has gone on the record saying that it will offer support for the Xbox 360 through 2015, but we’re curious how it will hold consumer interest in a system that made its debut in 2005.

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