Down again: Video gaming Sales Dip 20 % in August

U.S. video game retail sales fell 20 percent in August, with dualshock 3 wireless controller for ps3 total industry sales falling to $515.6 million from $647.2 million recently, based on consumer online survey firm NPD Group.
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The monthly sales drop is getting becoming a familiar thing. While gaming keeps growing as a business, sales through digital distribution keeps growing while purchases at physical retail locations is falling.

Hardware sales can also be down, which has a 39 percent decline from last year’s $248.4 million to $150.6 million. Video game software sales were down 9 percent, to $237.7 million from $261.8 million a year ago.

The poor efficiency in August matched the 20 % decline in July. In June sales were off 29 percent, and May saw sales drop 28 percent compared to a year ago. Total paying for software sales was $252.8 million, down 11 percent from $283.3 million this past year.

NPD is dealing with gaming research company EEDAR in order to put together more accurate numbers for global digital and physical game sales.
The highest game of August was THQ’s Darksiders II for Xbox 360 system, PlayStation 3 along with the PC. Nintendo’s New Super Mario Bros. 2 for that 3DS was second. Your next top-selling games were Square Enix’s Kingdom Hearts 3D: Dream, Drop Distance with the 3DS, Electronic Arts’ NCAA Football 13, and Warner Bros.’s Lego Batman 2: DC Super Heroes.

NPD analyst Anita Frazier said in a very statement, “These sales ps3 wireless controller figures represent new physical retail sales of hardware, software and accessories, which take into account roughly fifty percent in the total consumer spend on games. Considering our preliminary estimate for other physical format sales in August, including used and rentals at $104 million, and our estimate for digital format sales, including full game and add-on content downloads, including microtransactions, subscriptions, mobile apps, as well as the consumer invest in social networking games at $391 million, we would estimate the total consumer spend in August being $989 million.”

She added, “You can’t speak about the gaming market if you don't take into account the growth inside the volume of mobile gamers on smartphones and tablets. Our recently released gamer segmentation research shows that the mobile gamer segment in the marketplace is now slightly larger than the core gamer segment, although their cost towards the industry varies significantly.  A foundation are invariably the core gamer who spends 35 % much more about physical games than does the normal gamer.”

For hardware, Frazier said, “Of the platforms that have been out there last August, none realized 1 year-over-year sales increase.  However, as compared to July 2012, the 3DS and the PS3 both experienced unit sales increases in August. The 3DS XL launched on Aug. 19 and represented 44 percent of total 3DS unit sales, which can be noteworthy since only a week of 3DS sales are captured therein report.”

Frazier also said, “The latest hardware systems are showing a wii remote plus controller comparative age, then it is evident which it will be great to possess new systems breathe life into traditional retail industry sales. I will be anxious to understand more about the Wii U launch later this month. With any luck we are going to hear news about other systems on the horizon.”