LOS ANGELES--If the huge crowds and crowds at E3 this week are any indication, the video game industry is in a lot better shape than a lot of people thought.
All throughout the two main halls at the Los Angeles Convention Center where E3 has been going strong since Tuesday morning, throngs of people make it hard to move, and at booth after booth, if you don't have an appointment, there's little chance you're going to get your hands on any of the hot games and hardware being shown here this year.
For more than a year, there's been a hint of doom and gloom surrounding the industry as its leading analyst, The NPD Group, has reported month after month of year-over-year sales declines. In April, for example, the firm bore the bad tidings that the industry as a whole saw 26 percent year-over-year declines, and that hardware revenues were down 37 percent year-over-year.
But on Wednesday, in a confession clearly timed to hit during the industry's premiere event, NPD admitted that its longstanding methodology for measuring industry sales has ignored some significant streams of revenue. … Read more