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NPD: Xbox 360 ruled a steadily declining video game empire in July
Microsoft must sometimes feel like its lead in the game market is a Pyrrhic victory. The Xbox 360 once again topped the NPD Group's hardware charts in July, claiming a near-majority 49 percent market share of consoles -- but the 203,000 units sold were a steep drop from the 257,000 units that traded hands in June, and a far cry from the glory days that would have given a victory more meaning. Nintendo and Sony haven't shared their own figures, although the analyst group notes that only Nintendo's 3DS and DSi had any kind of increase in the month. The industry as a whole was unmistakably feeling the combined effects of the pre-holiday doldrums and a console generation that's long in the tooth: hardware revenue was down 32 percent in the month to $150.7 million, while the games in question saw revenue dip 23 percent to $260.7 million. If you need a culprit, earlier reports for the second quarter had credited similar shifts to sales of physical game copies declining faster than digital sales could replace them. Hope remains in the usual fall spike; even so, the July figures suggest the big three platforms might be living on borrowed time.
NPD: Nintendo 3DS sales hit 5 million in US, Xbox 360 still claims the console crown
The NPD Group's gaming figures for June have made the rounds, and both Microsoft as well as Nintendo have something to crow about, albeit for very different reasons. Nintendo is the most eager to prove itself and says that the 3DS has hit five million total sales in the US since it reached gamers' hands in the country. The tally doesn't compete with the heady numbers smartphone designers are used to, but it's a milestone for a handheld console whose prospects were dim until a sudden price cut fueled sales a year ago. Before Nintendo lets the 155,000 3DS units it sold in June get to its head, however, it's important to get context from Microsoft's own achievements: Redmond shipped 257,000 Xbox 360 units that month and has had the lead among all US consoles for the past year and a half. We're in the dark on Sony data, although it's important that just 90,000 Wii units traded hands in the same month -- as clear a sign as any that the Wii U can't come quickly enough for Satoru Iwata and company.
Game sales up 16% in October on lower average price
On the heels of THQ's quarterly report comes some more positive gaming news. According to the NPD Group the gaming industry has posted a 16% jump in software sales. An interesting trend noted by the NPD Group is the average price of games sold has declined by $2.40. The decline in price could be confusing to many gamers, especially those staring down the $60 price tags on new Xbox 360 (and soon to be PS3) games. The decline in price was due mainly to the fact that new release PS2 games are now in the $40 range and six of the top ten software games were for the PS2 (the top ten was rounded out by three Xbox 360 games and one Xbox game). If the revenue is up and the game prices are down this means that unit sales are WAY up. The data pokes in the eye the argument that next-gen software needs a $60 price point to make a profit. If PS2 games are selling for $40 -- and selling well at that -- keeping $60 price tags emblazoned all over our precious games is absurd when gamers are clearly buying $40 merchandise in droves. By selling next gen software at even $50, gaming companies can easily use economics of scale to their advantage. The increased production costs can easily be drowned out by more sales generated by a lower price point. Stop gouging us guys ... you know you can make a profit without that $60 price tag.
