NEWS

US Software And Hardware Sales Drop 23 Per Cent

Tom Ivan's picture

By Tom Ivan

June 12, 2009

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US industry sales totalled $863,300 in May, the first time monthly figures have fallen below $1 billion since August 2007.

Hardware sales declined 30 percent, software 17 percent and accessories 25 percent.

"The videogames industry continues to struggle with difficult comparisons to last year,” said NPD analyst Anita Frazier, adding that “May is typically one of the lowest revenue-generating months in any given year for the industry in general.

"Every category declined versus a year ago with the exception of portable hardware sales which were bolstered by the continued strong sales of the Nintendo DS, including both the DSi and the Lite."

Total DS sales hit 633,500 units, while Wii sold 289,500 units, taking the home system's life-to-date US sales past the 20 million mark. Microsoft’s Xbox 360 sold 175,000 units, comfortably outpacing PS3’s 131,000 sales. The ageing PS2 moved 117,000 units and PSP 100,000.

"Unit sales declined less than dollar sales did,” Frazier added. “The dollar sales decline was exacerbated by a decline in average retail prices for almost all of the categories

"There is a lot of new DS content coming to market this month for a wide variety of gamers, so we should see strong hardware sales continue."

Monthly software rankings and sales data can be found here.

NickgamertagO1's picture

When combining the PS3's first 5 months last year with this year and doing the same for the 360, MS has a 14% edge over Sony.

When MS was bragging about being the only console this year to increase, I thought I look into it. So far in 2009 compared with 2008...

360: +19%
PS3: -20%
Wii: -30%

I figured the 360's increase was due to doing just plain bad in the first 5 months last year, but in comparison the PS3 outsold the 360 in the first five months last year by a grand total of 81,400 units. This year the 360 has outsold the PS3 in the first five months by 424,800 units.

I think the 360 is going to have a hard time matching its 2008 numbers.

Jan-June 2008, 360: 1.3 million consoles sold
July-December 2008, 360: 3.4 million consoles sold

Jan-June 2008, PS3: 1.6 million consoles sold
July-December 2008, PS3: 1.9 million consoles sold

I think what's going to happen is the 360 will start tapering off as the year goes on which will look bad on the year-over-year monthly comparisons. With the inevitable PS3 price-drop, the PS3 will have a much stronger 2nd half 2009 than its 2nd half 2008. Sony will then boast about its year-over-year monthly percentage increases. When dealing with percentages, it's easy to turn old bad-news into new good-news. Sony had a terrible 2nd half 2008, so having a better-than-2008 2nd-half 2009 numbers isn't saying anything at all. Just like MS bragging about their "22%" increase over their first five months last year (not sayin much). They won't be saying much when their 2nd half 2009 numbers pale in comparison to their 2nd half 2008. MS'll move away from percentages and year-over-year bragging when the numbers start to look bad, then they'll just stick to strictly 2009 sales (or some other way to make the numbers sound better). Stats, aren't they lovely...

ArronC07's picture

So by your own figures the terrible 2nd half year for the PS3 was maintaining its 1st half numbers in the face of the 360 that's is over half its price. That's pretty spectacular to be fair.

MS are in for a pretty hard shafting when the PS3 price cut occurs.

Kenology's picture

I say no. Because once Sony drops the price, MS will do the same - MS has a lot more wiggle room than Sony. That buffer zone will be maintained.

NickgamertagO1's picture

I don't know Ken, MS can't really drop the price that much more than they already have. If MS intends on having the 360 around for another 3 1/2 to 4 years (before the 720 comes out) cutting the price too much too quickly won't leave them with much option down the road. They can phase-out the arcade making the pro model the entry level which will give them a bit of breathing room, but after that a $149 360 just seems too cheap if they expect the console to be viable for another 4 years (assuming price drops will be the only thing that will keep them competitive down the line).

Unless, likes been joked before, MS starts giving 360s away free to people who buy the newest iteration of Halo.

Indrema's picture

Of course, there's is the rumored "system-on-a-chip" Microsoft's working on. The idea is that it would dramatically reduce manufacturing costs, & shrink the system to "Wii-size". The newest rumor encircling the S.O.C. device is that it will launch bundled with Natel as a new Xbox 360 option.

If the chip's what they say it is, they should be able to drop the price. It's in PowerPC format - like the cell processor; so the die-shrink isn't so far fetched. Only X86 is having troubling with this level of miniturization.

NickgamertagO1's picture

Correct.

dreamhunk's picture

some one was saying sony will lose 350 million if they make a price cut

http://www.industrygamers.com/news/sony-could-lose-350-million-in-profit...

Digital-Hero's picture

Which is why they won't price cut until Fall 2009. Mark my words, they will price cut from $50 to $75 on PS3 this fall.

ArronC07's picture

Seeing as consoles are normally sold at a loss and the profit made from software that isn't really a) surprising b) news c) a worry d) unusual e) please go away f) right now g) we're sick of your constant drivel.

dreamhunk's picture

truth hurts huh but yet the whole Industry plus the media likes to trash pc gaming and they were doing it for years. Now pc gamers had facts to the table you can't handle it. You know what I think, what a joke.

Indrema's picture

Does it ever!

Assuming you're correct about everything....

Let's assume you bought an Xbox on launch day, & realizing that E3 games could be as far as a year off. You would get 5 years out of your console. Everything "plummets", & we're all playing PC games. We would have to spend $500, as you said, which is the same price a new console could very well cost anyway

From your perspective, having hardware companies all go bankrupt..sorry, bankurpt..tommorow it would mean absolutely nothing. Except that Ex-Console companies would shovel so much console nonsense on your PC that it would force out the games you do play.

NickgamertagO1's picture

Face it, consoles had facts to the table and we can't handle it. You know what dream thinks!!!

mentor07825's picture

Dreamhunk, it's gotta be said.

No one is ever going to bring you down.

Now, if people don't mind, I'm going to smash my head into the tv.

Goodbye world.

dreamhunk's picture

why would you say that??? life is too big and beautiful to mash your head into a tv. lol

ArronC07's picture

I must say it's rather impressive that the PS3 is only 44,000 behind the 360 yet costs double the initial store price. I think a decent price cut will push it ahead quite comfortably.

NickgamertagO1's picture

I agree, a price cut would even out the two month-to-month if not put the PS3 ahead (it would remain to be seen though how long that'd hold).

ArronC07's picture

History has shown us that for 7 months the PS3 was slightly ahead of the 360 before the recent 360 price cut and it was still more expensive. I know its popular to poor doom and gloom on the PS3 but I think its really far too early to write it off just yet.

NickgamertagO1's picture

Another interesting statistic is the year-over-year drop for the Wii and PS3 are significantly higher than the 360.

May 2008 compared to May 2009

Wii-386k drop (57%)
PS3-77k drop (37%)
360- 11k drop (5%)

To be fair to the PS3, the 360 had a pretty slow start in 2008 (arguably due to some supply issues the first few months).

Kenology's picture

The PS3 never had a slow start due to supply issues in 2008. The 360 definitely did.

The Wii had back to back to back system selling titles released in back to back months during the first half of 2008. Anita Frazier and Denise Kaigler both talked about this and said it makes year over year comparisons a bit tough right now - dunno why everyone ignores this fact. The big titles for Wii are coming second half of the year, so expect Ninty to do better this year than last once the final figures are tallied.

NickgamertagO1's picture

I agree the PS3 shouldn't be written-off entirely, but it should be written-off that it's going to do anything but remain in a distant 3rd until SOMETHING shows some signs of changing.

I had a huge post typed up about comparing price-drops, phaze-outs, etc. but decided against it (it sounded all-too Kim-like).

Bottom-line to the point I was trying to make with my huge post is both Sony and MS have dropped their price at somewhate desperate times (Sony 8 months after launch, MS 24 months after launch). But other than in the US where the 360 still holds a 2:1 advantage over the PS3, the 360 and PS3 are neck-and-neck which clearly if the PS3 is "doom and gloom" so is the 360. ^^

NickgamertagO1's picture

So the sales numbers (at least for the 360 and PS3) look even compared to last month. The Wii is down though.

It looks like the big 3 titles for Nintendo are slowing down as well. I'm surprised to see the UFC game do so well (and inFamous do mediocre). I guess the question is, what PS3 game is going to set the charts on fire if MGS4, LBP, KZ2, inFamous, Uncharted, Valkyria Chronicles, Resistance 2, (all the games the SDF were claiming were Sony's big exclusives that were going to make the PS3 turn the corner) couldn't? Hell, UFC on the 360 had a better first month than pretty much any PS3 exclusive ever (except MGS4, it had over 777k in the US its first month).

Off-point (on-point really it seems), Dream is starting to turn overy console sales/analyst story into a PC-is-better-than-consoles debate. This story has nothing to do with PCs, and it's really starting to annoy me that every console story it seems dream is posting a million links and talking nonsense. We get it dream, you're a huge PC supporter/enthusiast/elitist/mega-fanboy. Please stop posting PC stuff on non-PC stories.

dreamhunk's picture

here checkout freerealms this is in a recession too. that does even count wow or guild wars

http://www.vg247.com/2009/06/12/free-realms-users-hit-the-3-million-mark...

free rea,s has even went to consoles! come back to me when you have real hard facts! it makes me wonder if NDP gets paid on the side not to talk about pc gaming from sony and microsft.

NickgamertagO1's picture

...nobody cares...

dreamhunk's picture

I am sure share holders care, I sure publishers care their money is on the online LOL when console game devs go bankuprt or lose their jobs they are going to care alot.

Indrema's picture

They probably care more that their money's in the bank than online

;)

dreamhunk's picture

the bank is the worse place to keep money. there is something called infaltion

ArronC07's picture

I think you'll find the biggest threat to western economies at present is deflation.

NickgamertagO1's picture

There is? I wasn't aware of such a thing, please enlighten me. Give me some links to what infaltion is, cause I'm taking my money out of my bank today as soon as I find out.

Indrema's picture

This is exactly why we need Hunk's Hovel.

There could be a whole article about turning your Mom's allowance into gold bars & hiding your savings in the house foundation to protect it from infaltion!

By the way, Dreamhunk, there aren't many publicly traded development houses. To whom do you keep refering to as shareholders?

dreamhunk's picture

here is a really good article
http://www.cnbc.com/id/31331241
that is if there will be any new consoles if ever ahahahahaha

Indrema's picture

Agreed, Nick,

Instead of all this mismash Edge needs to start producing Hunk's Hovel; a weekly web article detailing all the bizaro-garble that's been circulating in the Dreamhunk universe, (AT&T call center, his Mom's basement, the pornagraphy section of the local video store, etc).

It would be a safe, closed enviornment where we could all argue the Hunkster's non-points in a well-organized & easy to read format.

Barla Von's picture

There's some fair points here. But the fact is, consoles only offer a baseline experience. Whereas on the PC the game is the best it can be.

I've got my PC hooked up to my LCD TV via HDMI to DVI cable with the GPU set to the native resolution of the TV (1080p or 720p). Also, for console type games i've got a 360 pad to play them...so it's all good.

There's a reason many prefer PC gaming as opposed to consoles. In my own experience i couldn't go back to the console versions of titles like: Bioshock, Mass Effect, Oblivion, Left 4 Dead, Devil May Cry 4, Lost Planet, The Orange Box, Grid, Dead Space, Call of Duty 4, FarCry 2, and Fallout 3 (to name a few) after playing the PC versions...why would i.

Then there's PC only games like: Crysis (which is so over rated IMO), Dawn of War 2, Empire: Total War, The Witcher, Guild Wars, Titan Quest,etc, plus there's doujin games like SUGURI, GUNDEMONIUM to play also.

It's nothing to do with elitism or such, it's just that PC gamers want the best. And it doesn't need to cost an arm and a leg to get a good performance from those games mentioned above.

You can get a 8800GT GPU (w/ 512mb memory) for £50 on Ebay or £90 rrp . It's an excellent, modest card, that puts the 360/PS3 to shame. An example:

Bioshock: 1680x1050 with settings at full w/ Dx 10 settings on.

Dead Space: at 1680x1050 with settings at full.

Race Driver-Grid: at 1680x1050 with 4x Anti-Aliasing (game runs at 60fps).

The Orange Box: 1680x1050 with settings at full.

Left 4 Dead: 1680x1050 with settings at full.

Devil May Cry 4: 1440x900, 2x Anti-Aliasing, rest of the settings at High (game runs at 60fps).

Lost Planet: 1680x1050 with settings at full.

Crysis: 1280x800, 2x Anti-Aliasing, with the rest of the settings at Medium. (game runs at between 30/40fps).

Again, another bullshit conception that you need the best card in the world to play games at a decent rate.

Whatever rocks yer boat....but for me it's the PC. It's a great platform.

Jack_'s picture

For shooters, yeah, obviously. But a brawler like Devil May Cry? That's the realm of consoles, my friend; at least, it needs a controller. I couldn't imagine playing God of War with a rumble-less mouse and keyboard. It'd be so impersonal.

Barla Von's picture


But a brawler like Devil May Cry? That's the realm of consoles, my friend; at least, it needs a controller

Didn't you read the part where i said i use a 360 pad for console type games?


I couldn't imagine playing God of War with a rumble-less mouse and keyboard.

Well...obviously. The game mechanics of that title are centred around a controller!

MrCarltio's picture

OK so what your telling me is I'd have spent money on my comp then buy new parts and then buy a game and then have eventually rinse and repeat? Hmm I think its more cost effective to have a console.

JungleMunquay's picture

"what the cost of a ps3 $499 right well I can get a pc that plays crysis for $500 just penny more"

You mean a UK penny is now worth a US dollar, or are you having a fit whilst typing again??

Hope it's the former...

Indrema's picture

Dreamhunk...Oh...My...God!

You are one of a kind. I don't know which post to respond to. Have you tried to actually purchase a $300 PC? That gets you a net-top without a video card. Play games? It doesn't even run the Vista operating system. You can say it's bloated, but it takes less resources than any game. My mother has one. My daughter was struggling to play Nancy Drew on it.

And look for a job? What's next? PC's are better because you can check stocks & weather? I'm a PC gamer. My video card cost $50 more than the original PS3!

What kind of computer do you have? How much did it cost?

Oh, last question. I'm going to believe you when you say companies lose money on consoles. That would mean, by your logic, selling less - as happened, would mean console companies have lost less money; not more.

dreamhunk's picture

what the cost of a ps3 $499 right well I can get a pc that plays crysis for $500 just penny more

http://www.maximumpc.com/article/features/build_a_500_pc_play_crysis_40f...

Indrema's picture

That is a great PC

For the same price as a PS3, you get a slower processor than the 360 & the PS3 (3.2 GHz 3xCore+Hyper Threading/7 Core Cell vs. 2xCore). You also get the minimum ram required just to run a new Windows operating system - which you don't get, by the way. Topped off with a video card that's about the same as the consoles, but they are being dragged down by tasks related to a PC in general.

Not considering GPU slowdown, & assuming I'm getting Linux for free - which removes 90% of the games library; spec for spec, this system is still lower than the current generations of consoles. Still priced at the level of the PS3.

Am I missing anything?

andyfour's picture

Yeah, at a crappy res with everything turned down to nearly the minimum, and that game is how old now?
Crysis isn't crysis unless it looks realy purrrdddy, Mainly cause you need something to distract you from how drab the gameplay is.
On another note, it does annoy me how much cheaper the HW appears to be in the US! Grrr!

dreamhunk's picture

So a pc is still better than them consoles. You get better AAA games. You get a much bigger linbraray and your pc is much more powerful. If you wait between boxing dayand jjanuary youcan get a even cheaper pc.

Jack_'s picture

Let's just have a hypothetical situation where a person wants a handful of console-only games more than any games that are on PC. Metal Gear Solid 4, Infamous, Uncharted, Gears of War, all that stuff. In their perspective, the better option is to buy a console.

Most people care about what games they get more than how much ejaculatory fluid they eject when they set their system up.

JungleMunquay's picture

"Let's just have a hypothetical situation where a person wants a handful of console-only games more than any games that are on PC. Metal Gear Solid 4, Infamous, Uncharted, Gears of War, all that stuff. In their perspective, the better option is to buy a console."

No shit!! I thought it would be better to buy a microwave rather than buy a console to play console-only games!!

andyfour's picture

-lol-
Logic won't work on this one I'm afraid, look at history.

dreamhunk's picture

So how much you paying for game these days in a recsssion $100 lol yea history has huge list of dead console makers both hardware and software. Yet it's the pc that is still around.

StealthBadger's picture

Also, it's not like the PC is still around primarily as a gaming concern, is it? It happens that PC's are used for EVERYTHING, so they're hardly going to disappear totally, are they?

On a totally seperate note, where on earth did you get that appalling screen-name from? I mean, mine clearly means absolutely nothing, but "dreamhunk"? It sounds like an inflatable doll?

StealthBadger's picture

Well, that's true in the same way that "it's still the playstation that's around", or "the nintendo is still around". I mean a current gaming pc doesn't much resemble the gaming pc's out at the time of the NES, does it?

The only difference is that the PCs improve gradually, where the consoles go in steps, every 5 years or so.

Indrema's picture

I found the list:

*Apple Lisa
*TRS-80
*Atari ST line
*Amiga line
*Windows ME
*OS/2
*PC-Jr.

When you say PC gaming, you make a broad generalization of a "box/keyboard/monitor" combo. When you get specific, it equals out to be the same.

andyfour's picture

On which format?
I live in the UK, so I don't pay any $, but at current exchange rate, at £35 it's about $58 for a new release on console.
If I buy a PC game, £29.99 generally which is $47.98.
I buy both, because I enjoy playing games and have PC and consoles because then I can enjoy anything that looks good.
Right now I really am going home, it's been a busy week at work!

Jack_'s picture

What the hell video card do you have? :O

I'm getting a gaming pc this week sometime (though I'm promising myself I won't play games on it, it's for audio work only). Here's the basic specs:

http://i168.photobucket.com/albums/u196/talontheater/untitled-11.jpg

+an Nvidia Geforce 9800gt and a 450W power supply. That's $924 for the whole thing.