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Software, Interrupted

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October 8, 2009 3:26 PM PDT

Resurgence of U.S. game sales predicted

by Dave Rosenberg
  • 4 comments

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.

June 14, 2009 3:42 PM PDT

Nintendo outsells competition nearly 2 to 1 in May

by Dave Rosenberg
  • 19 comments

Video game sales were down by 23 percent in May, according to the latest data from NPD Group. The bright spot of the report is the ongoing domination by Nintendo, whose hardware and associated games outsold the competition by nearly 2 to 1.

As CNET's Lance Whitney reported, "NPD blamed most of the decline on the lack of blockbuster games rather than the weak economy. The report noted that last year's sales were boosted by the launch of popular software titles such as Grand Theft Auto IV. Nintendo's Wii Fit also was a hot commodity in 2008."

While there are a wealth of new games coming in 2009, including what appear to be some winners for PS3 and Xbox, Nintendo platform games made up just shy of 50 percent of the top 10 sales in May:

  1. UFC 2009 Undisputed(THQ) Xbox 360 - 679,600
  2. Wii Fit(Nintendo) Wii - 352,800
  3. EA Sports Active(EA) Wii - 345,800
  4. UFC 2009 Undisputed(THQ) PS3 - 334,400
  5. Infamous(Sony) PS3 - 175,900
  6. Pokemon Platinum(Nintendo) DS - 168,900
  7. Mario Kart(Nintendo) Wii - 158,300
  8. Punch Out!!(Nintendo) Wii - 156,900
  9. X-Men Origins: Wolverine Uncaged(Activision) Xbox 360 - 120,700
  10. Wii Play(Nintendo) Wii - 109,800
Total Nintendo software: 1,292,500
Total other vendor software: 1,310,600

... Read more
April 19, 2009 12:20 PM PDT

Video game sales hit the wall in March

by Dave Rosenberg
  • 6 comments

New March sales data from NPD Group reveals that video game sales are finally being hit (and hit hard) by the recession. Despite a strong showing through February, March sales across the board dropped by 15 percent to 18 percent year over year from 2008 to 2009.

As reported on Gamespot.com:

Although unnerving on their own, NPD's March numbers also signaled a more alarming trend. When taken into account, the month's numbers caused 2009's first-quarter game sales to go from solid growth to a near flat line. For the January-March period, the U.S. game industry generated $4.25 billion, barely up from the $4.24 billion that it generated during the same period in 2008.

So, is it time to panic? Probably not. There has been a dearth of new hit titles and the Nintendo Wii and Nintendo DS (arguably both less expensive in terms of console and games) are the dominant platforms. Analysts have also suggested that with such a meteoric rise over the last year, the market was due for correction.

US VIDEO GAMES INDUSTRY - MARCH 2009
Software: $792.83M (-17 percent)
Hardware: $455.55M (-18 percent)
Accessories: $185.67M (-15 percent)
Total Games: $1.43B (-17 percent)

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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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