While you may think that the economic news is totally bleak, the video game industry seems like it may well be one very bright exception to the worldwide gloom.
Bolstering the theory that the industry may be recession-proof, or at least better positioned to weather the storm than most, the video game business posted a startlingly strong November, according to figures released Thursday by the analyst firm, NPD Group.
NPD reported that overall, the industry posted sales of $2.91 billion, up 10 percent from $2.64 billion in November 2007. And for the year, sales stand at $16.04 billion, up 22 percent from $13.14 billion through November a year ago.
This is good news, clearly, for those in video games, but also a rare ray of sunshine on an otherwise destitute economy, particularly, NPD pointed out, because the November sales numbers included seven less post-Thanksgiving days than last year.
Once again, the biggest winner was Nintendo, which sold an astounding 2.04 million Wiis, as well as 1.57 million Nintendo DS handhelds. By contrast, Microsoft moved what it said was a company November record of 836,000 Xbox 360s and Sony sold just 378,000 PlayStation 3s and 421,000 PlayStation Portables.
November, therefore, was a major vindication for Nintendo, whose Wii far outsold the Xbox 360, despite Microsoft's having dropped the price of its lowest cost console to $199, lower even than the Wii's sticker price of $249.
However, Microsoft can smile about the fact that the two top-selling console games SKUs in November were for the Xbox, Gears of War 2, with 1.56 million units sold, and Call of Duty: World at War, with 1.41 million moved. The PS3 version of Call of Duty sold just 597,000 copies.
Activision Blizzard also has bragging rights, however, as its World of Warcraft: Wrath of the Lich King sold a record 2.8 million copies on its launch day, November 13, alone. Figures aren't available for the full month.
So, it's clear that video games are doing well right now. The question that faces the industry--now more so than other sectors, though--is whether it can sustain its success in the face of a global recession the likes of which haven't been seen since the Great Depression. It's one thing to sell well before the holidays. It's quite another to do well once the gifts have all been opened and people are realizing they have no jobs and their houses are worth less than their mortgages.
Still, it's nice to see a sign that consumers are still willing to spend their hard-earned and dwindling dollars. Let's hope that continues to be true.
Stay tuned.
World of Warcraft: Wrath of the Lich King, the second expansion to the mega-popular online game, sold 2.8 million copies in its first 24 hours last week, setting what its publisher said is an all-time record for PC games.
According to Blizzard Entertainment, Wrath of the Lich King, broke the one-day PC game sales record of 2.4 million copies, which was set 22 months earlier by The Burning Crusade, the first WoW expansion.
'Wrath of the Lich King,' the second 'World of Warcraft' expansion, sold 2.8 million copies in its first day, netting Blizzard Entertainment a one-day PC game sales record.
(Credit: Daniel Terdiman/CNET News)The new expansion was launched simultaneously in North America, Europe, Chile, Argentina, and Russia.
And at $40 a copy, the game would have brought in $112 million on its first day, though Blizzard would get somewhat less than that given that retailers pay the publisher less than full sticker price.
There are currently more than 11 million WoW players worldwide, and some analysts had predicted that as many as half might upgrade to Lich King. Given that, to play Lich King, players would have had to also upgrade from the original WoW to Burning Crusade, and that they pay a $15-a-month subscription fee, many have estimated that WoW is at least a $1 billion-a-year franchise.
And since the economy is heading into a serious worldwide recession, it is notable that the new WoW expansion has done so well out of the gate. Many are worried that retail sales will be down across the board. Some argue however that video games will do better than other products because people tend to want to spend money on entertainment when times are tough.
The inside of the 'Wrath of the Lich King' retail box teases players with a challenge. The expansion to the hugely popular 'World of Warcraft' goes on sale tonight at midnight.
(Credit: Daniel Terdiman/CNET News)For World of Warcraft players who over the years have grown accustomed to seeing busy in-world auction houses, the last few weeks may have seemed odd.
Normally bustling with players eager to buy or sell weapons, clothing, armor, or other goods, business at the auction houses has recently slowed to a crawl. But it's not because of the global economic crisis.
Rather, say WoW aficionados, players have been hoarding their gold in anticipation of the release Thursday of the game's latest expansion, , and holding off on buying items that would soon be obsolete.
This is just one example of players of the hugely popular massively multiplayer online game behaving differently as Lich King's release approaches.
The game will go on sale nationwide after midnight (12 a.m.) Thursday, and retail stores expect lines across the country.
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Blizzard Entertainment has recently opened up the beta for its forthcoming expansion to 'World of Warcraft,' 'The Wrath of the Lich King.' According to people familiar with the beta, the expansion offers some big improvements and appears likely to sell millions of copies.
(Credit: Blizzard Entertainment)Since its launch in the fall of 2004, Blizzard Entertainment's World of Warcraft has shattered expectations at every turn.
Prior to its release, no American massively multiplayer online game (MMO) had ever reached what was then seen as the magical million subscribers level--even major hits like EverQuest and Ultima Online. Yet almost before anyone could blink, WoW, as it's known, had surpassed 4 million paying users and now has more than 10 million worldwide, and at $15 a month for most users, it may well be bringing in more than $1 billion a year.
Then, prior to the January 2007 release of World of Warcraft: The Burning Crusade, no one had ever heard of the kind of nationwide midnight madness lines associated with iPhone and Xbox launches for a game expansion. Sure enough, however, people lined up at game stores everywhere for hours for the right to be among the very first to buy Burning Crusade, and the update went on to sell millions of copies.
And now, with the second major WoW expansion, The Wrath of the Lich King, in beta testing, Blizzard is getting ready to prove yet again that when it comes to American MMOs, it is the undisputed gold standard.
"It's just beautiful," said longtime WoW player and Lich King beta player Katrina Glerum. "The game really feels epic in a way that The Burning Crusade didn't....Burning Crusade felt like an extension of the (original) game. This really feels epic, and that you're part of something grand."
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