Videogame revenue falls 17% in April
PHYSICAL: Month hampered by few new game releases
By Susanne Ault -- Video Business, 5/14/2009
MAY 14 | PHYSICAL: Videogames took a hit in April, according to NPD Group, indicating that the genre is not as immune to the economic slowdown as previously thought.
The industry fell 17% from the same month in 2008 to $1.03 billion, impacted by a 52% drop in normally untouchable Wii game console unit sales. Overall hardware slipped 8% to $391.63 million; software declined 23% to $510.74 million.
Year-to-date, the entire industry has fallen 4% from its record 2008 revenue to $5.28 billion.
NPD analysts urged the game world not to view the developments as a sky is falling scenario. There are tough comparisons with last April, which included the releases of popular Wii games Super Smash Brawl and Mario Kart.
Wii continues to dominate the next-generation console field, selling 340,000 units. Xbox 360 was next at 175,000 units sold; followed by PlayStation 3 at 127,000 units sold. Older-generation PlayStation 2 clocked in at 172,000.
Among handhelds, Nintendo DS was tops at 1.04 million sold; the PlayStation Portable moved 116,000 units.
“Overall weakness in hardware sales other than the DS and the PS2 platforms is likely to capture a lot of attention this month, particularly the year-over-year decline of Wii sales,” said NPD analyst Anita Frazier. “It is important to remember that last April, Wii hardware sales were fueled by two huge titles, Super Smash Brawl and Mario Kart. Taking that into account, Wii unit sales are still very strong and only followed DS this month in terms of dollars and unit sales contribution.”
That said, Frazier does concede that the recession is likely affecting game purchasing. But she still insists that the category remains among the hottest entertainment choices.
“While the continued difficult economic environment is a factor to consider, our monthly Consumer Spending Indicator study still shows that videogames is the category that consumers tell us they’re least likely to cut their spending on in the coming months,” said Frazier.
April also was hampered by few new game releases. The top 10 list mainly includes games that have been available for some time.
Wii’s Fit was the month’s top ranked game, selling 471,000 units. Others in the top five, in descending order, were DS’ Pokemon Platinum at 433,000; Wii’s Mario Kart at 210,000; Wii’s Play, 170,000; and Xbox 360’s The Godfather II at 155,000.
