Video game retail sales plunged in Apr 2013. According to
market research firm NPD, sales decreased 25.0% to $495.2 million
from $630.0 million reported in Apr 2012. However, sales in
dollar terms were almost half from $992.5 million reported in
March and declined massively from $810.0 million reported in Feb,
Software sales declined 17.0% year over year to $254.3 million in
April. This was much worse than $602.4 million reported in March
and $369.9 million reported in February. Although sales decline
was massive in the month, NPD noted that new games launched in
Apr 2013 jumped 118% in unit sales and 130.0% in dollar sales.
Injustice: Gods Among Us
from Warner Bros. Interactive was the top-selling game in the
month, pushing March topper
Take-Two Interactive (
to the #3 position.
Dead Island: Riptide
from Deep Silver took the #2 spot.
Activision Blizzard (
had two games in the top-ten list namely
Call of Duty: Black Ops 2
Currently, both Take-Two and Activision carry a Zacks Rank #3
Hardware sales fell a massive 42.0% year over year to $109.5
million from $221.6 million reported in March. March hardware
sales were lower than $244.2 million reported in February.
) Xbox 360 was again the top-selling console. However, it sold
just 130,000 units in April compared with 261,000 units sold in
March. This was also much less than 302,000 units sold in
February. On a year-over-year basis, Xbox unit sales declined
As per NPD data, Nintendo's 3DS handheld sales grew 52.0% year
over year last month. However, PlayStation developer
) did not provide any sales data.
The huge decline in hardware unit sales primarily reflects a
matured console market. Moreover, customers postponed their
purchases as both Sony and Microsoft are slated to release their
new console hardware by the end of this year.
According to NPD, total US video game sales were $802.0 million
in Apr, 2013.
We expect video game sales to remain sluggish over the next few
months. Although we believe that the ongoing transition from the
physical to the digital platform will ultimately benefit the
video game industry (due to the cost effectiveness), low priced
digital games have failed to offset the rapid decline in
high-priced retail sales in recent times.
Moreover, declining software sales remain a concern. We believe
that the rapid adoption of free-to-play games will continue to
cannibalize retail software sales in 2013. Further, the highly
fragmented video game market will continue to witness increased
competitive pressures, which will hurt overall profitability.
However, we believe that the highly anticipated launch of new
hardware consoles from Microsoft and Sony will boost the sagging
video game retail sales market by the end of 2013.
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