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US retail PC game sales down $210 million in '08

By Tor Thorsen, Brendan Sinclair, GameSpotPosted Jan 28, 2009 11:46 am PT

NPD reports store-bought computer-game sales decreased 23 percent to $701 million; ESA plays up overall game-industry total of $22 billion.

The PC gaming market is currently in flux, with digital distribution and subscription-based gameplay making it harder and harder to judge exactly how big--and how healthy--it is. On one hand, World of Warcraft is among the most profitable PC games of all time, with nearly 12 million people shelling out each month to explore the massively multiplayer game's realms. Valve Software's Steam service is also on the rise, with its roster of download PC games past and present expanding daily.

On the other hand, sales of PC games at brick-and-mortar stores are down--way down, in fact. One week after announcing a recession-bucking $21.3 billion in non-PC game industry sales, the NPD Group revealed that US PC software sales had plummeted 23 percent to $701.1 million dollars at retail. The drop to 29.1 million units was pronounced, given the trend of the previous several years: In 2007, the figure was $911 million, down $59 million from 2006's $970 million haul, which was itself a 2 percent increase from the year prior. Thanks in large part to WOW's launch, US PC game sales hit an all-time high of $1.1 billion in 2004.

The selection of PC games may have had something to do with 2008's decline. Two of the year's highest-profile offerings were expansions: World of Warcraft: Wrath of the Lich King and Crysis Warhead. Lich King required players to own 2007's Burning Crusade expansion--which itself needed the original WOW to play. Crysis Warhead could be played as a stand-alone game, but its entire story is based on the events of the original Crysis, also released in 2007.

Will Wright's highly anticipated Spore also hit stores in 2008, although sales have thus far not measured up to the famed developer's previous phenomenon, The Sims. After racking up 1 million in worldwide sales during its first week on the market, the game went on to sell more than 2 million units worldwide. By year's end, the game had moved more than 720,000 units at US retailers.

Interestingly, the NPD Group did not issue its own year-end PC total, as it has in previous years. Instead, the information was disseminated via an Entertainment Software Association announcement touting 2008's combined game sales, which total $22 billion when PC revenues are included.

"Even in difficult economic times, the video game industry continues to support our country's local, state and national economies with record-breaking sales figures and rapid technological innovation," declared ESA president Michel Gallagher in a statement. "Our industry's exceptional creators, artists, and storytellers, coupled with a commitment to providing unparalleled entertainment, have fueled high-octane growth, turning video games into the most sought-after medium on the market today."

289 Comments

  • Mr_Versipellis

    Posted Feb 2, 2009 9:32 am PT

    Hold on... Why the frag is "Spore" the associated game!? Pah! This is an article about PC gaming, not Draconian DRM and simplification.
    I think there are two reasons for this decline...
    1) Intel, who put crappy integrated graphics chipsets in 70% of PCs;
    2) The inevitable -- piracy.
    3) Studios who put better-than console graphics in games so few peo[ple can run them well, if at all.
    BTW, how come the PS3's RSX, which is based on the 7800GTX, can run games like Fallout 3, whereas the 7800GTX can't?

  • snooker8th

    Posted Feb 1, 2009 11:16 am PT

    How can you say PC gaming is 'ahead of the curve'? That's nonsense its just mmorpg's and 1st person shooters. No innovation. Unless you're talking about Spore or the Sims.

    WoW has pretty much destroyed PC gaming.
    It is mainly the really cheap people I know who play it. Never having to upgrade their hardware these days means that the WoW subscription fee is simply a cheap way to fill in their bland lives. Along with the fact that no other decent PC games come out anymore, its just an easy way out for losers in my opinion.

  • ktseymour

    Posted Feb 1, 2009 10:46 am PT

    Rubbish! All the data over the years has pointed out the fact that PC gamer's are ahead of the curve with trends that usually don't hit consoles until years later. The fact that downloadable games have been available for years, ( I couldn't say how many, but long before Steam) and has been accounting for many of the PC game sales since it was introduced. As Precyse pointed out, the market is still quite lucrative and healthy. The PC game makers and hardware sellers need to get their S**T together and get some representation and standards, and list the revenue of the PC Game market as a whole.

  • birdgang_1

    Posted Jan 30, 2009 2:31 pm PT

    "it's not the fact of whether you want them or not. It's the fact that you will never have them on the PC."

    Which, once again, we will not care.

  • Precyse

    Posted Jan 30, 2009 2:29 pm PT

    According to the pcga http://www.dailygame.net/news/archives/008398.php pc games and hardware brought in over 10.7 billion in '07 more than half of all the consoles and their hardware in 07 so lets see what the figures are for '08 before we take in gamespots findings.

    jay summed it up best, good going man.

  • blackace

    Posted Jan 30, 2009 11:48 am PT

    birdgang_1 "Mario Galaxy, SSBB, Uncharted, MGSIV, GT5, God of War 3, Forza 3, Halo 3, Tales of Vesperia or Star Ocean IV on the PC?"

    As if we really wanted these games.
    ************************************************************
    It's not the fact of whether you want them or not. It's the fact that you will never have them on the PC. There are a lot of PC exclusive that no one would ever want to see on a game console as well. I wouldn't want Neverwinter Nights, Starcraft 2, Total War or The Sims on game consoles. Yet, developers will probably still try to get some of these game onto a game console in the future. Keep them on the PC. Of course none of this has anything to do with sales continuing to drop on the PC format. Steam is a cheap way to get older PC games for cheap. For games that cost $5-$10, it's a good deal. For full retail games, I want to be able to hold the product in my hands. Steam does absolutely nothing for people who want collector's edition of a PC game.

  • runstalker

    Posted Jan 30, 2009 9:44 am PT

    It's all about Steam. 90% of my PC games are Steam-based.
    Save gas, reduce the plastic footprint of one's game collection. You don't need stacks of PC game boxes to boost your ego these days. You just need a quality broadband connection and a big hard drive.

  • birdgang_1

    Posted Jan 30, 2009 9:12 am PT

    "Mario Galaxy, SSBB, Uncharted, MGSIV, GT5, God of War 3, Forza 3, Halo 3, Tales of Vesperia or Star Ocean IV on the PC?"

    As if we really wanted these games.

  • blackace

    Posted Jan 30, 2009 8:52 am PT

    I don't usually waste much time buying PC games. There are a few that I will play on the PC like StarCraft 2, WoW series, Spore (eventually), Dragon Age and several PC RPG games like Neverwinter Nights, etc.. The majority of my gaming is on the XBox 360, PS3 and Wii. That's all you need. There are tons of exclusives on all 3 systems that will never be on the PC. Will we ever see Mario Galaxy, SSBB, Uncharted, MGSIV, GT5, God of War 3, Forza 3, Halo 3, Tales of Vesperia or Star Ocean IV on the PC? I think not. Even with Digital Distribution sales, PC sales have been dropping since 2004. Even with DD sales added it would still be a decline in sales for the last 4 years.

  • Pilch_R_eD

    Posted Jan 30, 2009 3:25 am PT

    I bought some stuff retail last year. But I mostly bought my games through steam. I bought Mercs 2, Deadspace, Fallout 3, GTA4, Far Cry 2, CoD5, L4D, and some other stuff that wasnt even 08 release, like Witcher Enhanced, Garrys Mod 10, UT2004 on steam, so I always have it. Hell, even tho i coulda DL it free and DOS boxed it i Payed $5 USD to get the whole Commander Keen series on steam. Worth It !!! Yeah, this means jack all untill Digital Sales Records come in. Screw retail. It's not like Retail didn't screw us a long time ago......

  • AshBrahh

    Posted Jan 30, 2009 2:20 am PT

    Not that concerned. Stories like this always come up, nothing major ever really happens.

  • imprezawrx500

    Posted Jan 29, 2009 8:12 pm PT

    until they release steam sales this means nothing.

    about 2/3 of the games I buy are on steam and I reboughts some games on steam like mass effect since it avoids all the drm problems of retail games. until the drm is gone from retail game I wont but them unless they can be activated on steam. Any game that has securom activations in the retail version and has no activations on steam I wont but the retail version.

  • BloodMist

    Posted Jan 29, 2009 5:21 pm PT

    Well it's no secret PC gaming is going more and more towards digital download versions all the time.They should find some way to actually, y'know, report on it.PC sales figures are absolutely pointless to report on otherwise.

  • Jay

    Posted Jan 29, 2009 3:19 pm PT

    Let me preface this by stating that I too have a 65" 1080p HDTV, a XBOX Elite, Wii, PS2, oodles of peripherals, and other consoles dating back to my Atari 2600. That said, PC Gaming is *not* dying. The data in this article is poorly represented because PC Gaming's delivery method is changing due to many of those brick and mortar stores focusing more on Console games. Why? Several reasons: 1) Reselling used games. You can't resell a used PC game. You can resell a used Console game, and the profit on that resell goes entirely to the brick and mortar store. Developer doesn't get a dime. It's sickening and ingenious at the same time.

    2) Marketing. For whatever reason, Console games have a vastly larger marketing budget than PC games (see: Halo 3). Why they are treated so differently I couldn't tell you -- perhaps it has to do with the fact that Console games by and large are more easily labeled with a target demographic than most PC games.

    3) Supply/Overhead. The number and variety of PC games outstrips Console games by an order of magnitude. Everything from the insipid Barbie Adventure BS to the magnificent Fallout 3 all require space on the shelf and space in the stockroom. Per Gamestop managers I've asked directly, many brick and mortar stores don't want to deal with that kind of overhead on products whose profit margin is split with the publisher (see Reselling above). Whereas big box retailers like Best Buy and Fry's are able to more easily maintain that kind of supply. Note that if you want to buy from any 'brick and mortar' store *online* they always have it in stock and will ship it to you.

    4) Amazon and online retail. Amazon, in my opinion, beats the snot out of brick and mortar for price and availability. a) they'll charge you less than the brick and mortar, b) they typically have everything in stock, c) they'll ship it to your door earlier than the brick and mortar will get it. Brick and mortar have been glacially slow in adopting a business model to compete with Amazon, and it shows.

    5) Pirating. Digital delivery and DRM is a much better way of fighting piracy than a box on a shelf. And the whole entitlement BS attitude of, "Downloading 50 GB of pirated songs just makes me buy MORE albums than I otherwise would, so I'm doing the record companies a favor!" does the same damage to PC games.

    In short: Brick and mortar are behind the curve in marketing, distributing, stocking and selling PC games. Therefore, they're simply doing their best (albeit ignorantly) to make a buck given the situation they've put themselves in. The problem is that Digital Delivery is stepping into that niche, and it's only a matter of time before it nudges its way into consoles too.

    Don't blame PC games. They're doing just fine. There are still more PCs per household than consoles, and so long as that remains the case, PC gaming isn't going anywhere.

  • lamprey263

    Posted Jan 29, 2009 1:48 pm PT

    I myself have just about given up on PC gaming, I don't feel I have it in me anymore to keep upgrading my computer to keep playing the latest games. I'd much rather play consoles these days, which are much cheaper for gaming in the long run. Plus, I often find I much prefer a dual analog controller to play games over a mouse and keyboard.

    That's not to knock on PC gaming though, it's very very satisfying if you wanna pony up the cash, I just don't want to pony up the cash.

  • birdgang_1

    Posted Jan 29, 2009 1:43 pm PT

    Painkiller:
    Well, you did confuse me. To me, it doesn't sound like a bad idea but then I'm always up for an upgrade, it's fun to me.

    thingta42:
    You cannot read, nor do you do any research either. If what we PC gamers are trying to say is so hard for you to understand, I'll put it in terms which you will find pleasing. "u no ned 400 dullurs tu pluy gemez smuthly!". Again, another person who uses that as an excuse for their ignorance. We don't care what you say because everything you say is completely wrong. If that is what you say about needing "$400", you are NOT a PC gamer by heart.

  • Jose_Rizal

    Posted Jan 29, 2009 12:50 pm PT

    We seem to forget that majority of gamers are still young and doesn't have real disposable income. Mom and Dad won't understand why there is a need to shell out money to little Bob to upgrade his video card or anything about minimum system specs for games to play. But yet this same parents knows that Gamecube is now replaced with Wii and bought him a new one. All this technical jargon is what is slowly holding back PC gaming. Grandpa and Grandma who's planning to buy a game for Lil' Bob hasn't even heard about Steam and what the heck it does do. Goes to store and find a small line-up of PC games and not sure if it would even run in his grandsons computer when presented with the min requirements by salesman. He does see a Wii logo in one of the games in the shelf. Remembering Lil'Bob has a Wii, he is definitely sure it would play and picks it up. Less hassle. And Lil' Bob won't even care if its running less than 60 FPS. Parents happy. Grandparents happy. Lil' Bob happy.

    Now multiply this scenario a million times.

  • calanorn

    Posted Jan 29, 2009 12:44 pm PT

    Thingta42 - You say PC gaming is dying thats just not true focus on the PC has shifted true alot more low budget games are coming through these days look at mount and blade that games friggin sweet.

    and saying you dont care what anyone thinks because we are wrong and console gaming is where its at makes you sound like a childish fool whos oppinion is biased anyhow. maybe you should read over what you type in future.

    PC/Console i have both I love my pc i use it for gaming and work i also love my ps3 and 360 all have merits. it will be a long long time before we see the end of pc gaming.

  • lucky326

    Posted Jan 29, 2009 12:35 pm PT

    Well what is too be expected when retailers start removing the PC shelf space in favor of crap from DS/Wii such as the stuff Ubi makes for them.

    Besides the sales from places such as Gamersgate, D2Drive and Steam will more than make up for that drop. I myself moved to Gamersgate/Steam for more of my games than 07 and that number will increase no doubt this year.

  • thingta42 posted Jan 29, 2009 12:15 pm PT (does not meet display criteria. sign in to show)

    thingta42

    Posted Jan 29, 2009 12:15 pm PT (hide)

    damn pc fanboys trying to protect there pc gaming. Face it. PC gaming is dieing. theres too Many Pirates these days and other stuff happen that is destroying the market. I myself am a PC Gamer by heart but to get a Rig to run games smoothly at 400 or less is Impossible.

    I dont really care what you think because your wrong anyway. Console gaming is where it is at and its where the money is to be made these days.
    Sad but its a fact.

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