U.S. video game industry sales plunged in October, dropping 19 percent from a year earlier, and 16.4 percent from September, according to data released Thursday by the NPD Group.
But with the tremendous, record-breaking, out-of-the-gate performance of Activision's Call of Duty: Modern Warfare 2 and the coming holiday season, NPD is bullish on the industry's fortunes for November.
Still, the $1.07 billion in total sales turned in by the industry in October were paltry, compared with $1.32 billion in October 2008 and $1.28 billion in September 2009. NPD analyst Anita Frazier tried to soften the blow a little bit in her monthly report, noting that while sales were down precipitously in October, it was still the third-best October sales report turned in by the video game industry.
"The continued economic turmoil, and in particular the troubling unemployment rate, is undoubtedly impacting industry sales," Frazier wrote in a statement. "Our latest Economy Tracker indicated that although consumers' general opinion about the economy is improving, their outlook on their own personal situation is worsening. If consumers' personal outlook continues to erode, they could very well be much more conservative with their holiday shopping this year."
That last sentence is no doubt one of the most chilling group of words imaginable to the honchos at companies like Microsoft, Sony, Nintendo, Electronic Arts, Activision, and many others involved in putting video game hardware and software in consumers' hands, especially as their most important sales months of the year are now at hand.
As always, regardless of the monthly results, the big console makers each had some things to celebrate in the NPD numbers.
For Nintendo, which has seen sales of its once-high-flying Wii dip and perceptions that the console's days of seeming infallible may be over, the numbers had some hope: in October, the Wii took back first place among the consoles--respectively the Wii, Microsoft's Xbox 360, and Sony's PlayStation 3. In October, Nintendo moved 506,900 Wiis, beating out the PS3 (320,600) and the Xbox (249,700).
Sony was coming off the first month the PS3 won since being launched in the fall of 2006, but while the console was beaten out by the Wii, there must certainly be some measure of gratification in having the PS3 come out ahead of Microsoft's console offering.
"In October, we saw continued momentum [for the] PS3, with nearly 70 percent growth, when compared to last October," Peter Dille, Sony Computer Entertainment of America's senior vice president of marketing, said in a statement. It was "the only console to see any growth year over year."
NPD itself touted Microsoft's chief bragging point for October: "Across all categories, the Xbox 360 platform contributed the greatest portion of total industry sales, representing 27 percent of total industry sales for the month," Frazier wrote.
Yet despite the record-smashing first-day sales posted this week by Call of Duty: Modern Warfare 2, the video game industry as a whole is facing a very painful reality: If sales don't improve quickly, there will be layoffs, slashed budgets, canceled games, and more.
Electronic Arts, for example, announced this week that it is planning to lay off 1,500 people as part of a major restructuring--the company's latest--and as a way to stave off growing losses.
And while the industry may have hoped that console sales--especially with prices for next-generation hardware now at their lowest levels ever--would help it rebound, Frazier did not offer much hope.
"Year to date, the hardware category has experienced the sharpest decline in the industry, with unit sales down 10 percent compared to the same time period last year," Frazier wrote. "Recent price cuts helped spur a one- to two-month increase in unit sales, and this month's Wii sales reflect that boost, but the other platforms have not sustained the sales momentum [after] price reduction."
(Credit:
Sony Computer Entertainment America)
Sony Computer Entertainment America on Thursday announced that a new 250GB variation of the PlayStation 3 Slim will be available beginning November 3 for $349.99. The PS3 hardware will otherwise remain the same as the 120GB flavor of the Slim, which costs $50 less. The console maker will also continue to sell the physically larger, previous model of the PS3 which comes with either an 80GB or 160GB hard drive.
The extra 130GB of storage in the 250GB model gives PS3 owners more room for downloaded movies, game installs/saves, music, and photos. According to Sony, "more than 600 million pieces of content have been downloaded from [the] PlayStation Network as of September 2009." (Note: "content" could be anything from 5MB themes to HD movies which can take up gigabytes of storage.) For most though, the extra storage will keep users from having to offload these files onto external drives when they run out of space, or manually replace the included hard drive with something bigger.
The increase should not be a surprise to most gamers though. It's coming just in time for the holiday season where console makers stand to sell more hardware than at any other time of year. Also, at the Tokyo Game Show last month, the company announced a special 250GB version of the console to coincide with the release of Final Fantasy XIII. Shortly thereafter it said Australia would be getting a 250GB variation of its own. There had also been purportedly leaked shots of holiday bundles acquired by blog Engadget, depicting 250GB versions of the consoles with games like Uncharted 2, which was just released this week.
As market research firm NPD Group prepares to release sales data data for the U.S. game market next Thursday, other analysts have predicted a return to double-digit growth after six months of decline.
According to Edge Online, Wedbush Morgan Securities analyst Michael Pachter and Electronic Entertainment Design and Research's Jesse Divnich expect monthly software sales of $750 million (up 21 percent year over year) and $715 million (up 16 percent), respectively. And while these are still just estimates, it shows that consumers are still willing to spend on high-quality new games.
EEDAR's top 10 forecast:
Halo 3: ODST (360, Microsoft) - 1,800,000
Wii Sports Resort (Wii, Nintendo) - 500,000
The Beatles: Rock Band (Wii, EA) - 350,000
The Beatles: Rock Band (360, EA) - 325,000
Marvel: Ultimate Alliance 2 (360, Activision) - 300,000
Madden NFL 10 (360, EA) - 275,000
Batman: Arkham Asylum (360, Eidos) - 250,000
Batman: Arkham Asylum (PS3, Eidos) - 250,000
Guitar Hero 5 (360, Activision) - 250,000
Guitar Hero 5 (Wii, Activision) - 200,000
One interesting note on the top 10 list is that it contains only seven titles, which shows the importance of supporting multiple consoles.
Microsoft is offering a $50 mail-in rebate on the Elite through October 5.
Nobody likes a mail-in rebate, but if you're the patient type who doesn't mind waiting to get your cash back on your purchase, Microsoft will send you $50 if you buy the Xbox 360 Elite between now and October 5 (this is for U.S. customers only).
While you'll have to fill out all the requisite paperwork to get the discount, that mail-in rebate drops the price of the Elite--which only a short time ago cost $400--down to $250. Details of the rebate are here.
As other blogs have pointed out, that $50 might come in handy to buy an HDMI cable, Wi-Fi adapter, or a game. All we can say is, thank you, Sony, for dropping the price of the PS3 to $299. There's nothing like a good price war to keep things interesting in the game-console space.
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(Source: Joystiq via Major Nelson)
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What's better than a brand-spankin'-new Sony PlayStation 3 Slim for $299.99? A brand-spankin'-new Sony PlayStation 3 Slim for $199.99, of course.
I suspect I'll get an earful for this, but the deal comes courtesy of our old friend, the Sony Visa card. When you make a purchase of $299 or more, you get a $100 credit in 8 to 12 weeks. Final price: $199.99.
All you do is sign up for the card, then head over to SonyStyle and drop a sweet, sweet 120GB PlayStation 3 in your cart. (I know it doesn't say "Slim" anywhere, but this is definitely the new model.) Watch CNET's video review if you want to learn more about it.
When your Visa card arrives, stick it in a drawer until the $100 credit appears on your statement. Then spend the money like you would cash. Then cut the card into pieces and burn the pieces.
Not interested in this kind of hoop-jumping just to save $100? That's cool. But think about it: This isn't much different than filling out a rebate form and waiting on a check in the mail. In fact, it's quite a bit easier overall, and you're much less likely to get burned.
Still not convinced? Then try this: Sony just lowered the price on refurbished consoles! Now you can pick up a 40GB PlayStation 3 for just $219.99 shipped. If you can live with a 90-day warranty, that's one of the best PS3 deals to date.
Of course, a new PS3 for $199.99 is even better. What do you think? Did you already pull the trigger on last week's deal (long since expired), or did your Cheapskate senses tell you something better was just around the corner?
Microsoft official confirmed the worst-kept secret in games: the Xbox 360 is receiving a price cut on its top-end Elite system starting Friday. In other words, the long list of leaked catalog circulars weren't fakes. What this means is that the 120GB hard-drive-toting Xbox 360 Elite that used to be $400 will now be $300--the same cost as a PS3 Slim.
The Xbox 360 Pro, with its 60GB hard drive, will drop to $250 instead of $300, and will keep being sold until it vanishes off shelves. Kudos, by the way, to Microsoft for actually lowering the price on a soon-to-be-discontinued model, as opposed to the fate of the PS3 Fat. The updates are official on the company's Web site.
Great value, or just fair?
(Credit: CNET)The Xbox 360 Arcade, however, will continue to cost $200. While that's somewhat fair, considering it's technically the cheapest next-gen console on the market, it's a bad deal. A hard drive, however, is an absolute necessity. The 360's proprietary 120GB hard drive costs $150, so you're effectively saving 50 dollars on the purchase of an Elite. If the 360 had a removable standard hard drive like the PS3 does, we might be singing a different tune on the Arcade.
This only makes the sound of that ticking clock over at Nintendo headquarters even louder. Will the Nintendo Wii reduce its price this holiday season? According to Nintendo's Yasuhiro Minagawa, the company still has no plans to do so. This doesn't mean, however, that a similarly priced bundle with a Wii MotionPlus and possibly a new game (Wii Sports Resort?) isn't in the plans.
Now that the 360 and PS3 are cheaper, the landscape of gaming is shifting in terms of value. We commented on this in terms of handheld systems, but it's also true in terms of the Wii. It can no longer be called a budget system by any stretch.
Realistically, Nintendo probably won't lower the price until one of its rivals makes its fully fledged system even cheaper than a Wii, and that's not likely to happen soon...or ever.
The other question is, has the PS3 leapfrogged the 360 in terms of console value, even with the new Elite price cuts? The Slim consumes less power, has Blu-ray, and is already based on hardware that came out a year after the Xbox 360 hit store shelves. Meanwhile, the Xbox 360 has held the fort with a console that still lacks built-in Wi-Fi, a feature available on the Nintendo DS.
So, which is it...a $300 Xbox 360 Elite, a $300 PS3 Slim, or a $250 Wii?
Or, a $200 Xbox 360 Arcade?
(Credit:
Sony)
Updated coverage: Read CNET's full review of the PS3 Slim
Sony on Tuesday finally took the wraps off the much-rumored PS3 Slim and gave it the more affordable $299 price tag consumers have been clamoring for.
Sony Computer Entertainment CEO Kaz Hirai performed the unveiling at a press conference in Cologne, Germany, preceding the opening of the Gamescom Expo. He took the stage and announced the PS3 was "getting a new model" and that, indeed, it was called the PS3 Slim.
The Slim is hitting stores September 1 in North America and Europe and will cost $299 (or for those who live in regions, 299 euros or 29,980 yen). Hirai says the device has the same features and functions as the "old" PS3 but is 33 percent smaller, 36 percent lighter, and comes with a 120GB hard drive. (See photo comparison here).
Sony says that to achieve the new form factor, the internal design architecture of the new PS3 system has been completely redesigned--"from the main semiconductors and power supply unit to the cooling mechanism."
The PS3 Slim is powered by a new 45nm version of the Cell processor, which runs at the same speed as the 60nm processor in the "old" PS3 but is smaller and more energy efficient. According to company reps, power consumption for the Slim has also been cut to two-thirds, "helping to reduce fan noise," which is important.
On the cosmetic front, this model has a textured surface finish that gives the PS3 a fresh, casual look that the company hopes will make it more appealing to a wider audience (read: casual gamers). As previously rumored, the PS3 logo has undergone a redesign and Sony's changing the PS3 brand name from "PLAYSTATION 3" to "PlayStation 3" (we've actually been calling it the PlayStation 3 for a while).
Like the 80GB and 160GB models, the 120GB PS3 Slim has built-in Wi-Fi and two USB ports (sorry, Sony didn't add IR or backwards compatibility for PS2 games). You can also upgrade/replace the hard drive without voiding the warranty, though Sony has moved the hard drive from the side of the unit to the front for "easier access." (To remove the hard drive, you simply unscrew two screws). The one feature missing from the Slim is the ability to install another operating system (i.e., Linux)--Sony is doing away with that feature.
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Comic browsing on your PSP.
(Credit: GameSpot)A new, slimmer PlayStation 3 wasn't the only news to come out of the Sony press conference at Gamescom in Germany Tuesday. There were also plenty of announcements about the PSP and PlayStation Network that weren't completely expected.
First, the PlayStation Network will get an overhaul beginning September 1. New features and a more logical navigation are among the updates. A "What's New" tab highlighting new PlayStation Store releases will also be accessible directly via the XMB (cross media bar).
There was also a lot of news regarding the PSP. Along with the PSP Go, October 1 will also bring the launch of PSP Minis, a new series of bite-size games. These titles will be more affordable, in addition to smaller in size (all games will be 100MB or less). PSP Minis will debut with 15 titles, totaling 50 by the end of 2009.
The PSP will also be getting a Digital Reader in December with various comic book publishers onboard to offer content. Marvel will be providing Spider-Man, X-Men, and Fantastic Four comics to start, with Wolverine, Captain America, Iron Man, and the Hulk all to follow. Compatibility with other Sony readers and more digital comics publishers will be announced soon.
Sony also disclosed that the company will have more details on the PS3 motion-sensing controller at next month's Tokyo Game Show. In addition, customers who preorder Gran Turismo 5 for PlayStation 3 will get a free download of the portable version, Gran Turismo PSP.
(Credit:
Kmart.com)
For all those who've been waiting for the PS3 to drop in price from $399 to $299, that day apparently has finally arrived.
While Sony has yet to make an official announcement, Kmart.com features an ad on its home page that reveals a price cut and appears to announce the arrival of the new PS3 Slim.
Clicking on a preorder button from the Kmart.com home page leads to this.
(Credit: Kmart.com)Additionally, Kotaku has posted an image of an apparent promotional poster that a reader sent in, announcing price cuts for the 80GB PS3 ($299), as well as for the 160GB bundle ($399).
We're off to a press event at Sony headquarters in New York, where we expect to hear more about all this and perhaps get word on that "new" PS3. We'll update this post as soon as we get more info. (Update: The New York event was dedicated to new line of Sony wireless audio products. Now the focus shifts to Sony's press conference in Cologne, Germany. Check out the live coverage from our sister site, GameSpot..)
Additional reading: Sony's first move--cut price of current PS3 to $299?
(Credit:
Kotaku)
Is this the new PS3 Slim? Rumors have it Sony may unveil such a device at the Gamescom show in Germany Tuesday. On the other hand, it may all be fanboy-driven fervor with no substance. Either way, to CNET News reporter Daniel Terdiman, the excitement is unlikely to be matched by the reality of anything Sony may introduce.
While all new technology product rumors have to be taken with a grain of salt, you can sometimes tell--often by the volume of online chatter about a particular morsel--that one is more likely to turn out to be true.
That seems to be the case with the so-called "PS3 Slim," a rumored new PlayStation 3 form factor that could well be on the horizon. And if the latest slew of blog and forum posts are right, there's a pretty good chance Sony will formally announce the new console Tuesday at the Gamescom conference in Cologne, Germany.
That may be true, and, of course, it may not. But what I want to know is why so many people seem to be so excited about this as-yet-unseen console? After all, the PS3--once thought by many to be the most likely winner of the next-generation console wars between Sony, Microsoft (with its Xbox 360), and Nintendo (with its Wii)--has lagged far behind its competitors.
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