NPD: Sales up 25 percent in June, 4 percent in 2006

By Tor Thorsen, GameSpotPosted Jul 14, 2006 10:47 am PT

[UPDATE] White-hot DS, resurgent Xbox 360 help pull industry out of months-long funk; $844.5 million monthly tally far exceeds analysts' estimates; year-to-date figures now back in black.

All year, publishers, developers, and stockholders have waited with dread for the midmonth game-sales reports from industry-research group NPD Funworld. The sustained decline during the last five months of 2005 continued in the first three months of 2006, with total game sales down 11 percent year-on-year in January, 13 percent in February, and 16 percent in March. April's 16 percent spike provided a brief reprieve, but May's 10 percent decline prompted analysts to warn of summer doldrums for the game industry.

But while often accurate, analysts' predictions remain informed prognostication. And this week, they were proven wrong in a very big way. NPD has reported $844.5 million in combined sales of hardware and software for June 2006--a whopping 25 percent increase when compared to June 2005.

The month saw $444 million in US console software sales, an increase of 15 percent versus the same period in 2005. The number was far above respected Wedbush Morgan analyst Michael Pachter's $370 million estimate. "The upside reflects stronger than expected sales of both current and next-generation software," wrote Pachter in a note. "Current-generation software sales declined $56 million, $37 million better than we expected. Next-generation software sales increased by $113 million, $38 million better than our estimate." (NOTE: Pachter considers the Xbox 360, PlayStation Portable, and Nintendo DS as "next-generation" machines.)

On the hardware front, June 2006 saw $297.8 million in sales, far above the $200.7 million in sales in June 2005. The Xbox 360 came back from its May slump, with monthly sales increasing 26 percent to reach 277,000 units. But while the 360 shortages are now a thing of the past, the PlayStation 2 remained the best-selling console for the month--it sold over 311,900 units at $129.99 a pop. Overall, console hardware sales climbed 85 percent year-on-year, reaching $158.7 million. Accessories for both consoles and portables rang up $102.4 million in sales--a figure not tallied in the hardware total.

Speaking of portables, June 11 just happened to be the launch date for the DS Lite, the sleek new edition of Nintendo's increasingly popular handheld. According to NPD, 600,000 DSs were sold during the 19 days after the Lite went on sale--a 426 percent increase for the platform over 2005. The DS Lite launch also helped lead to a 264 percent rise in DS software sales, which in turn boosted overall June portable software sales to $135.5 million.

NPD analyst Anita Frazier was quick to credit the DS Lite launch as a key factor for the June turnaround. "When you have a month with a hardware introduction or a marquee title introduction, that can affect industry results," she told GameSpot. "We had contributions from the successful introduction of the DS Lite, New Super Mario Bros. rang up stellar sales, and nontraditional fare from Nintendo such as Brain Age and Big Brain Academy contributed."

Frazier also said the June rise was due to gift-giving occasions, such as Father's Day and college graduation, and higher-than-expected sales of THQ's multiplatform Pixar-film tie-in Cars. A full breakdown of the top 10 console and PC bestsellers for the month is below.

TOP 10 CONSOLE GAMES, JUNE 2006
1) New Super Mario Bros. (DS, Nintendo)
2) Grand Theft Auto: Liberty City Stories (PS2, Rockstar/Take-Two)
3) Brain Age: Train Your Brain in Minutes a Day (DS, Nintendo)
4) Cars (PS2, THQ)
5) Hitman: Blood Money (Xbox 360, Eidos)
6) Cars (Game Boy Advance, THQ)
7) FIFA World Cup 2006 (PS2, Electronic Arts)
8) Big Brain Academy (DS, Nintendo)
9) Hitman: Blood Money (PS2, Eidos)
10) Cars (GameCube, THQ)

TOP 10 PC GAMES, JUNE 2006
1) World of Warcraft (Blizzard/Vivendi)
2) The Elder Scrolls IV: Oblivion (2K Games/Take-Two)
3) Guild Wars Factions (NCsoft)
4) The Sims 2 (EA)
5) Heroes of Might & Magic V (Ubisoft)
6) The Sims 2: Open for Business Expansion (EA)
7) Age of Empires III (Microsoft)
8) Rise of Nations: Rise of Legends (Microsoft)
9) Star Wars: Empire at War (LucasArts)
10) Civilization IV (2K Games/Take-Two)

Besides the impressive June numbers, NPD also released sales stats for the first six months of 2006. As of June 30, the total non-PC game industry had done $4.3 billion worth of business, four percent more than in the first half of 2005.

The biggest sector increase was in Xbox 360-boosted console hardware, which saw $854 million in sales, a 44 percent year-on-year increase. However, the same period only saw $1.73 billion in console-software sales--a four percent slump. Portable software fared better, rising nine percent to over $596.1 million. Total portable hardware sales for the year so far are an impressive $516.8 million.

As for the rest of the year, most analysts are becoming more bullish about the game industry. Lazard Capital's Colin Sebastian put it this way: "We believe the prevailing negative sentiment on the interactive entertainment sector is likely to become more difficult to defend in the near term, given very solid June NPD data, a stronger second half of 2006 software release schedule, easing year-over-year sales comparisons, improving Xbox 360 sales, and the fall launches of next-generation PS3 and Wii video-game consoles."

114 Comments

  • SMaster27

    Posted Jul 21, 2006 3:40 am PT

    I think Wii might do better than PS3. Considering the major price difference and innovation it has to offer, not to mentions the playability of ur favorite old skool games and free online, PS3's got some serious trouble. but looking past the price tag, sony has a great fanbase and i think alot of people fork over $500 for a next-gen system/blu-ray player. and i cant rule out the fact that alot of gamers might be afraid of taking that "innovative step" with nintendo. i myself am willing to buy the Wii.i already have $200 saved just for the system. i have been a fan of nintendo since the NES and have owned every system since then, but i have to admit my heart stopped when i saw the "wii-mote".Well, whether the sales r good or not, im taking that step with nintendo, and might buy the PS3 (if the price drops)


    P.S.-if sony copied nintendo b4(analog stick), imagine if they did it again? it would be a sad, sad day if if sony came out with the PS Th-wii !

  • dragonx500

    Posted Jul 20, 2006 8:25 am PT

    im on my first ps2. ive had it for 4 years. if you dont want your PS2 to break, dont smash it with a hammer.

  • soulknight63133

    Posted Jul 20, 2006 6:10 am PT

    though pie is GOOD. I prefer cheesecake with strawberries on top...lol

  • lgoldberg

    Posted Jul 19, 2006 10:53 am PT

    Part of the reason people buy PS2 games is that a lot of people arn't willing to pay 400 dollars for 360 that will break in three months. Don't get me wrong though, I'm not a blind PS fanboy. You just have to realize the facts. Also, people are holding out and not buying a 360 so they can buy wii.

  • insanechild92

    Posted Jul 19, 2006 8:53 am PT

    lol i kno why ps2 sales are up.... it cuz the fanboys keep buyin em for no reason, i kno a ps2 fanboy who bought about 5 ps2s for himself... and then i punched him in the gut and told him to return em and get a 360

  • perfect_chao

    Posted Jul 19, 2006 5:43 am PT

    lol the ps2 only getting sales still cos ppl dont know about the 360, or the fanboys dont wanna admit the sweet next gen graphics it has which are compareable or better than ps3.

  • FoxHoundADAM

    Posted Jul 18, 2006 12:58 pm PT

    Just goes to prove than analysist don't know jack. They get paid to sit in a room and much up what they think might happened based on what their buddy at Wal-Mart told them last week.

  • mr_squibble

    Posted Jul 18, 2006 11:47 am PT

    Nice to see actual NPD sales figures and not just Best Buy sales figures.

    Oh, and I'm still on my original ugly PS2. It was an open box item and still works just fine.

  • smoothn00dle

    Posted Jul 18, 2006 8:14 am PT

    rob3nelson, the equation: Good game equal good Console hardware sold. It is not always true. Especially, when other consoles have good games too. Xbox360 was first come out. It needs a strong start but I don't think M$ got it. The next console war is going to be long race for M$, M$ has two issues. First, it lack of consistancy to push itself to innovate where I think innovation will be deciding factor. Who want to play the same game over and over again? Second, the new management in Redmond, worries me. The exodus of well known executive one after another, looks like someone is abandoning ship.

  • godovivel

    Posted Jul 18, 2006 8:13 am PT

    1

  • Igiss

    Posted Jul 18, 2006 2:40 am PT

    Nintendo are good at portables, but what will happen to Wii? I'm still afraid it might go terribly wrong.

  • rob3nelson

    Posted Jul 18, 2006 12:33 am PT

    This just shows you the demand is there, there just aren't many new good games! I love my 360, but lately there has only been about one new decent game a month since launch. There have only been a couple of decent XBox game in months. Where are the games? Once the games come out, people will buy them. The're just waiting for the games!

  • godovivel

    Posted Jul 16, 2006 9:55 pm PT

    Beebo79 good point

  • Superfreak8

    Posted Jul 16, 2006 5:02 pm PT

    Man I have had the same PS2 since 2001. You just have to treat them right plus they probably made them with cheaper parts in the later versions.

  • Aslanpower86

    Posted Jul 16, 2006 3:48 pm PT

    Yeah, if you think these numbers are good wait until the fall.

  • JaMeS4418

    Posted Jul 16, 2006 3:11 pm PT

    Okay

  • smoothn00dle

    Posted Jul 16, 2006 8:32 am PT

    Don't know why ppl so up to the arms about PS2 outsold xbox360? Many Household now have more then one TV, instead of buying a DVD player accompnay each TV set, just buy a PS2. That explain why 100 millian PS2 hardware doesn't equal to the ratio of the software sold? Because one household will only buy one game share between multiple PS2 in the same house. Other explanation are piracy, second hard market, thief and share between friends(Thief). I doubt PS2 replacement issues can make up that much number on month to month basis. We are talking 200,000 to 300,000 units per month for 4 years straight in just US not include other markets like Europe and Aisa. If the same logic apply, PS2 outsold xbox360 10 to 1 in Japan.. Does that mean Japanese replace their PS2 cause breakdown every month

  • cesarotromundo

    Posted Jul 15, 2006 9:13 pm PT

    and i care why?

  • Beebo79

    Posted Jul 15, 2006 7:45 pm PT

    Seems that everyone complains about being on their third or fifth or whatever PS2 system. But did you ever stop to think about why you keep going out to buy a replacement? You have to be pretty satisfied with a product to be willing to replace it 4-6 times in a 5 year span, otherwise you would have just given up after the first one broke.

  • zash

    Posted Jul 15, 2006 5:49 pm PT

    megaunit
    UM P.S. Maybe people are replacing their fat PS2's and just getting the slim because its much better DIRRRRRRRRR, so you can probably stop with all the PS2 is being replaces because its broken crap.
    -------------------------------------------------------------------------------------------------------
    Uh no because I m on what my 6th PS2.

Cars Quick Links

Summary | Reviews | News | Images | Answers | Hints & Cheats | Forum | Check Prices

Check Prices: $12.95 – 17.99

GameStop $14.99 SHOP ›
Best Buy $17.99 SHOP ›
eBay $12.95 SHOP ›
advertisement
advertisement
Click Here
Cars Boxshot Enlarge the boxshot
Cars

Game Stats

Full Game Details »Close
Also on

Games you may like…

Users who looked at content for this game also looked at these games.

See More Similar Games