UK game industry holiday snapshot suggests weakening retail sales

Two major UK video-game retailers, HMV and Game, saw a drop in sales over Christmas, prompting HMV to reconsider its investment in games as a whole, The Telegraph reports. HMV's gaming market share fell 16 percent over the holidays, while sales in music and DVDs saw no change; games now account for 20 percent of HMV's sales. Chief Executive Simon Fox said HMV may focus only on AAA titles in the future.

Game's Christmas retail sales were down 15 percent, while year-on-year it lost 13 percent in sales, says. Online sales rose 4 percent, and sales for the year ending January 2012 dropped 12 percent, less than the UK gaming market's total loss of 13 percent. Game recently closed 39 stores and is expected to have 550 in the UK by 2013, GamesIndustry notes. CEO Ian Shepherd is banking on the Wii U and PS Vita to revitalize sales in 2012.

This article was originally published on Joystiq.