Year Ends With a Bang

According to The NPD Group, the video game industry had a banner year in 1997, growing 51 percent from 1996. Driving the boom were the PlayStation and Nintendo 64, which in total sold over 10 million units during '97. The installed base of next-generation video game systems grew from making up 66 percent of the market to making up almost 90 percent in 1997.

NPD projected that 48 million next-generation software units were sold in the US during 1997, and the market doesn't seem to be slowing.

"Sales for video game products, especially software, should be strong in 1998 as consumers look to satisfy their desire for exciting gameplay," according to Ed Roth, president of NPD's Leisure Activities Tracking Services. "Although growth rates experienced in 1997 are not likely to be sustained in 1998, the industry could possibly exceed $6 billion in total US retail sales, with 1998 probably being the peak sales year for the current generation of video game products."