Network now...NEWS
September Sales Dip on Tough Comp
By Kris Graft
October 17, 2008
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"Our belief is that [sales] will absolutely be sustainable as we head into the holidays, because the price drop is just one part of our holiday campaign." - Microsoft's Aaron Greenberg
The U.S. videogame industry saw sales reach $1.27 billion during September, falling 7 percent year-on-year on a tough comparison, research firm NPD Group reported Thursday.
"This is the first true monthly decline the industry has experienced since March of 2006," NPD analyst Anita Frazier said in an e-mail.
September 2007 saw the launch of Microsoft's massive blockbuster Halo 3, a system-seller which drove its respective month's sales up by 75 percent a year ago.
In light of recent economic turmoil, Frazier categorized this month's sales as "quite strong."
Not including PC games, she said the U.S. games industry is on track to generate at least $22 billion in revenues.
Console wars
Hardware generated $498 million in the U.S., a decline of 9 percent, partly due to the introduction of price cuts. NPD said the average retail price of hardware dropped 8 percent from last September.
The high-def hardware battle between Xbox 360 and PS3 became a little more interesting thanks to an early September price cut across all Xbox 360 models. The cut brought the bottom-end Xbox 360 Arcade down to $199, making it the cheapest current-gen console on the market.
As a result, Xbox 360 sold 347,200 units during the five week month, as defined by NPD, up from August's (only a four-week month) 195,200. Taking the differing time periods into consideration, Microsoft's console saw a 42 percent lift month-on-month.
Aaron Greenberg, director of product management for Xbox 360 and Xbox Live told Edge in an interview, "Our belief is that [sales] will absolutely be sustainable as we head into the holidays, because the price drop is just one part of our holiday campaign."
He also noted high-profile Xbox 360 holiday exclusives such as Fable 2 and Gears of War 2.
Greenberg said that the $299 60GB Xbox 360 Premium appears to be the best selling model out of the three offered, but added that the $199 Arcade is selling "exceptionally well."
The PS3 performed slightly better than some analysts' predictions, selling 232,400 during September, versus 185,400 during August. Sales were flat taking into consideration the one-week discrepancy between the two months.
The house of PlayStation didn't return requests for interview, but Sony Computer Entertainment America CEO Jack Tretton said in a press statement, "We remain confident that our footing is solid as we enter the holiday season this year.
"Our new 80GB PS3 model has made its way to retail shelves and into consumers’ living rooms as the best value for both their gaming and entertainment needs.
"If the impressive pre-sale numbers and ratings for LittleBigPlanet, SOCOM: Confrontation, and Resistance 2 are any indication, we anticipate hardware and software sales to continue to lift in October..."
High-def matches aside, it was Nintendo who once again ran away with the hardware crown, selling 687,000 Wiis and 536,800 DS handhelds.
In a statement, Nintendo's Cammie Dunaway chalked up the success to unique controls. "The four Wii games in the top 10 all feature controls just not possible on other video game systems," she said.
In addition, PSP sold 238,100 units, while PS2 sold 173,500.
Frazier stated, "Hardware unit sales were flat versus last year so the decline in dollars is due to lower prices. The average retail price of hardware across all platforms declined 8 percent from last September."
Software
On the software side, the Xbox 360 version of LucasArts' Star Wars: The Force Unleashed topped the September chart with 610,000 units sold. Across Xbox 360, Wii and PS3, the title sold 1.16 million units domestically.
The title drove monthly software sales to $616.1 million, down 6 percent, primarily due to last year's "Halo effect."
The top ten list is below:
- 360: Star Wars: Force Unleashed, LucasArts--610K
- Wii: Wii Fit w/ Balance Board, Nintendo--518K
- 360: Rock Band 2, MTV Games/EA--363K
- Wii: Mario Kart w/ Wheel, Nintendo--353K
- PS3: Star Wars: Force Unleashed, LucasArts--325K
- 360: Mercenaries 2: World in Flames, EA--297K
- Wii: Wii Play w/ Remote, Nintendo--243K
- 360: Madden NFL 09, EA--224K
- Wii: Star Wars: The Force Unleashed, LucasArts--223K
- PS2: Madden NFL 09, EA--158K
Accessories
Videogame accessories were down 4 percent to $152.6 million. Frazier said despite the down sales in dollars, unit sales were up slightly.
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"we anticipate hardware and software sales to continue to lift in October"
Ummm, doesn't the article say that PS3 "sales were flat taking into consideration the one-week discrepancy between the two months." I'm sorry, Jack, did you say CONTINUE to lift, or START to lift? Gotta love corporate lyin..........i mean, "spin" ......yeah, that's it, spin.
This was supposed to be "the year of the PS3" and yet it only built up a 250K YTD advantage over 360 as of August and now in one month half of that has been eaten away (and we're not even into the heavy Holiday Season). It looks like the 360 will repeat last years trend and pull ahead significantly in Nov-Dec thus locking in this generations rankings (Wii/360/PS3).
The continued weakness of PS3 software sales has to be discouraging for Sony and third-parties and I would not be surprised to see some smaller third-parties go back to just making games for the 360 with its slightly shorter, and less expensive, development cycle. Of course, the big devs will continue to publish on everything they can for the big budget releases.
"the year of the PS3?" Only a few months from Christmas and it's only outselling it's 8 year old predecessor by less then 60 000 units.
For all the talk and hype people pour into Little Big Planet and Resistance 2 and all that, unless these games are 5 million "system mover" titles, they have a long way to go to get their install base up with the rest of the "big boys."
NPD Chart Get!
http://chartget.blogspot.com/2008/10/september-2008-npd-results-consoles...
Includes Monthly, LTD, Market Share, and the HD Console lead over Wii Charts.
Enjoy!
PL
Wasn't expecting this type of calm across the internet regarding 360 being outsold by the Wii despite price cuts. I called this on the 360 price cut story, when people swore the 350 would outsell the Wii due to the $199.99 price tag.
The Force Unleashed 52% sold for 360, 28% for PS3, 19% for Wii.
I think that's just more of a sign where the 3rd party games of that nature sell, and where they don't (as well). Funny to see Mercenaries 2 to make the top 10 list on the 360 and not make it at all on the PS3 it once was supposed to be exclusive for. I guess they made the right choice making it multiplatform. Irony is a funny thing.
Its also interesting to point out that from the 4 Wii titles in the top 10, 3 are 1st party. The 360's 4 games in the top ten are all 3rd party. And the PS3 only managed 1 entry. It'll be interesting to see when PS3's big guns hit where they'll land in the top ten.
3rd party games sells better on the 360, right. Because people don't have the money to buy all those excellent 1st party games on the PS3. Irony is a funny thing, you see. It's funny to see that there's nothing original on the 360. Still there's hope: cometh GoW2 and Fable2 in November (wait, those aren't originals either).
ps. I'm keeding mostly. Mostly.
Can't blame Nintendo for producing hit after hit after hit consistently. Can't blame Microsoft for not being nearly the same caliber a developer as Nintendo and not having 1st party games in the Top 10.
Wii play and Wii fit a hit??? Maybe from a share holder's perspective, but from a gamer's??? C'mon Ken, you're better than that.
Can't blame 3rd parties for knowing which system to focus their developement on either.
How you would argue with Wii Fit and Wii Play being hits is beyond me. People mostly bring the issue of quality into the mix, particularly with the latter. But as for Wii Play, it's up to interpretation. I think it's a great piece of software. It's job is to teach new gamers how to use to the Wii Remote and it has succeeded without a doubt. And as a bonus, it's the first game I break out when I bring chicks through - so I can't hate on it... lol! It's actually fun!
How would you define a "hit", Nick? Would you consider Mario Kart Wii or The Legend of Zelda: Twilight Princess hits? How about Gears of War or MGS4? Both games probably made about 10x the money back in which Nintendo spent on developing them, no doubt. That constitutes a hit in it's own right. Keeping in mind that Wii Play has sold 6,852,000 LTD in the US alone... that makes it a hit no matter how you would try to spin it. Wii Fit is is at 2,346,000 LTD, and will probably see close to 5million by the time the holidays are through. If those games aren't hits, I'd love to know you're operational definition of the term.
And you're right about 3rd parties knowing where to focus their development - that's exactly the reason Wii won TGS without Nintendo even showing up.
Silly Ken, don't you know Nick's taste in games by now? He's a self-proclaimed 360 defender and Wii basher, don't take his comments too personally. He just prefers his system, is all. Go easy on the guy.
But, I have to agree with you. So, because Nintendo makes better games then 3rd party devs and people buy millions of them, this is, somehow Nintendo's fault? And Yes, to call Wii Fit and Wii Play anything other then a hit is ridiculous. Doesn't matter if you're a "Gamer" or not, numbers like that don't lie. They may not be a hit WITH NICK PERSONALLY, but they are clearly hits.
Yeah, but Nick's cool... even if he is a 360 fanboy!
@Ken/Ozzy
Obviously I know they’ve sold millions and Wii Fit has been in the top ten for, I don’t know, ever? What I was getting at is that I think those two games aren’t quite hits among gamers (for the most part guys, if impressing your girls with Wii Play is you thing…^^) as much as games IMHO more deserving like MGS4, or Metroid (two games that didn’t stick around in the top ten as long as they should have). Neither game is really a GAME in the traditional sense. One is a controller pack-in with decent at best mini games. The other, a scale with some moderate exercises at best. From my personal experience (yeah, I bought Wii play…) Wii Sports games were of much higher quality than Wii Play was. As far as teaching people how to use it? I think Wii Sports more than covered that, but I’m sure it didn’t hurt either (for those who don’t get it right away). And as far as Wii-Fit actually offering a decent work out regimen? Check out this article... http://www.msnbc.msn.com/id/26061324/
I PERSONALLY wouldn’t consider a scale with a barely game in there a hit. Sales-wise? Of course, I never argued that. I said from a gamer’s perspective, we can care less if Wii Fit sells a lot, ozz and ken you gotta agree with that one. And Wii-Play, most people believe that sells so much because it packs a controller in and you get a game for 10 bucks. Not because Wii Play is such a good game. Would it sell that well at 50 bucks with no controller??? Seeing what other garbage sells a ton, shoot, maybe.
I love my 360 and play it as much as a can; I defend it as objectionably as possible (based on actually playing the thing), and give my honest opinions of my own personal experience with my Wii (the Nintendo system sickos). I own a Wii I bought a few months back, and haven’t played it since the first week I had it. I just can’t get into it, I tried, but it’s just not my thing. I don’t bash it for no reason; I bash it because from my own personal experience, I don’t like it. I’m not one of these guys bashing something I’ve never played, or bashing a game I’ve never played. I’ve played the Wii and a lot of the big games it offers, and just don’t get anything from it.
Yes, I can’t blame Nintendo for making (for the most part) excellent first party software. But there are those great 3rd party games that come out for the Wii that tank, and it’s sad. Those games aren’t selling poorly because they’re crap, it’s just because most Wii owners I think tend to stick to Nintendo developed software, and is why I said 3rd parties know where to go for business, and traditionally Nintendo’s systems haven’t been good to them (this goes back to the N64 days). And September’s numbers showed that while the Wii has a lead of the 360 in the US, a major multiplatform 3rd party game sold least on the system with the largest install base. That was my point. I don’t think people past up TFU on Wii because they wanted Wii play or Wii fit instead, but because the people who buy games like TFU tend to buy them on the PS3 or 360.
Hey, be nice, I'm a 360 gamer and fan, but not a fanboy. ^^
"What I was getting at is that I think those two games aren’t quite hits among gamers"
But, as WE said just because "GAMERS" don't think they're hits, doesn't mean they're not hits. There are other people buying games other then "gamers." And to keep looking at slaes and opinions only through the eyes of a gamer's perspective is an incomplete picture of reality.
True. But I guess what I'm truly getting at is the difference between critical and financial success. The fact that a game sells well doesn't mean its a good game, a finicial hit, but not necessarily critical acclaimed.
So, you're right...I can't say those games aren't hits, at least not financially anyway.
Well, those 2 games probably aren't "hits" with critics because, like you, they are looking at the games from a gamer's perspective, and not through the eyes of the people whom it was marketed to. I happen to love the "Find Mii" game in Wii Play, as I find it really gets my brain working and really "wakes me up" in the morning. My Girlfriend LOVES the cow racing. My former roomate used to play the tank battle for hours. We enjoyed all those games but, a person who's preference is a 12-person multiplayer COD4 battle online, probably won't enjoy them on the same level. And I'll give you a guess as to which catagory someone who reviews games for a living falls into."Critical acclaim" depends on who the critic is. Ultimately, the only critic that really mattters is the consumer.
I play a huge variatey of games, not just multiplayer FPSs. I've played a lot of 360 games from a lot of different genres (my gamerscore is 36k). I even own mini game type games. I liked wii sports, didn't like wii play. I didn't dislike wii play because its a mini-game, I didn't like it because its not a high quality (IMO) mini-game game (sorry to be so redundent). If you had a 360, you could just look at my game profile and see the games I've played and the time I've put into them (one of my favorite features of the 360).
But you're absolutely right, the consumer has the final say. So...you win. ^^
Dude, it's nto about wininig or losing. I wasn't trying to imply that you weren't a well rounded gamer or that you weren't being honest. You're entitled to your opinion, just like everyone else is. I was just getting at that yourself, and critics, most likely are not the intended audience these games are supposed to be appealing to, which is why they may not be "hits" in your eyes, or ciritcs eyes, but are to a lot of other people. If you think Wii Play is a low quality game and you don't enjoy, you're more then welcome to. But LOTS of other people DO like it, and that cannot be discounted just because "gamers" don't like it.
Fair enough.