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NPD: US game sales slip 7 percent in Sept.

By Tor Thorsen, GameSpotPosted Oct 16, 2008 4:54 pm PT

Final summer month's $1.27 billion haul falls just short to Halo 3-boosted '07 sales; 360 sales up 78 percent postprice cut; Force Unleashed, Wii Fit, and Rock Band 2 top games.

September 2007 was a banner month for the US game industry. Halo 3 mania and brisk Wii sales helped boost total US game sales--which include hardware, software, and, accessories--to a massive $1.3 billion for that month, according to figures from industry-research firm The NPD Group.

One year later, the story is slightly different. During September 2008, the game industry didn't deliver quite the same punch as during the same period a year ago, bringing in $1.27 billion for the month.

"This is the first true monthly decline the industry has experienced since March of 2006," said NPD analyst Anita Frazier in a statement disavowing January's slightly skewed figures. "It's important to keep in mind, however, that this month's 7 percent decline is against a month that itself was up 75 percent from the prior September."

On the hardware front, Nintendo took home the gold and silver yet again, with the Wii placing first with 687,000 units sold and the DS second with 536,800 units sold. However, Microsoft's dramatic price reduction of the Xbox 360--the cheapest model is now just $199--paid off in the form of a 78 percent jump in sales volume. The console sold 347,200 units during September, up from just 195,000 in August. That was enough to put it past the PlayStation 3 (234,000 units) and its smaller sibling, the PSP (238,100 units). Xbox 360 sales may further increase once all three models of the 360 are bundled with games later this month.

However, despite the high sales volume, monthly hardware revenue was actually down 9 percent year over year, going from $545.7 million in September to $498.0 million. "Hardware unit sales were flat versus last year, so the decline in dollars is due to lower prices," said Frazier. "The average retail price of hardware across all platforms declined 8 percent from last September."

The lack of a Halo 3-level blockbuster also caused overall software revenues to decline six percent in September, sliding from $656.5 million to $616.1 million. As expected, the big software hit of the month was LucasArts' Star Wars: The Force Unleashed. Three versions of the mildly praised game made it into the top 10, with a total of 1.16 million units: The 360 edition came in first with 610,000 units, followed by the PS3 version (325,000 units) and the Wii iteration (223,000 units).

The only other top 10 newcomer was the 360 edition of Electronic Arts' Mercenaries 2: World in Flames, which came in sixth place with 297,000 copies sold. However, the marginally reviewed game's publisher was well-represented in the top 10, scoring two slots for the 360 (8th, 224,000 units) and PlayStation 2 (10th, 158,000) installments of Madden NFL 09. MTV Games' Rock Band 2, which EA distributes, had a solid debut in third place with 363,000 units. The rhythm-series sequel is due out on the PS3 this month, with PS2 and Wii editions to follow in December.

The rest of the September top 10 game chart belonged entirely to Nintendo. Wii Fit didn't sweat lukewarm reviews, coming in second with 518,000 units despite being on the market since May. One month prior, Mario Kart Wii pulled into stores, but that didn't stop it from a fourth-place finish in September with 353,000 units. Older still is Wii Play, which debuted in February 2007. Despite the fact that the package is simply a Wii Remote packed in with a rudimentary game, NPD still insists on classifying the product as software--software that had a seventh-place finish with 243,000 units sold.

Speaking of classification foibles, NPD continues to not count PC game sales in its monthly video game figures, instead lumping them in with general software figures. However, Frazier took the step of calling out two PC games that launched in September. "Spore realized sales of 406,000 units and Warhammer Online: Age of Reckoning sold 274,000, which would put them both in the top 10 list of combined console, portable, and PC games sales for the month," she noted. Unfortunately, NPD does not release such a combined top 10 list to the public.

US VIDEO GAMES INDUSTRY - SEPTEMBER 2008
Software: $616.1M (-6%)
Hardware: $498.0M (-9%)
Accessories: $152.6M (-3%)
Total Games: $1.27B (-7%)

TOP-SELLING HARDWARE - SEPTEMBER 2008
Wii--687,000
Nintendo DS--536,800
Xbox 360--347,200
PlayStation Portable--238,100
PlayStation 3--232,400
PlayStation 2--173,500

TOP-SELLING SOFTWARE - SEPTEMBER 2008
Title / Publisher / Units*
1) Star Wars: The Force Unleashed (Xbox 360) / LucasArts / 610,000
2) Wii Fit w/ Balance Board (WII) / Nintendo / 518,000
3) Rock Band 2 (Xbox 360) / MTV Games/Electronic Arts / 363,000
4) Mario Kart Wii w/ Wheel (WII) / Nintendo / 353,000
5) Star Wars: The Force Unleashed (PS3) / LucasArts / 325,000
6) Mercenaries 2: World in Flames (Xbox 360) / Electronic Arts / 297,000
7) Wii Play w/ Remote (WII) / Nintendo / 243,000
8) Madden NFL 09 (Xbox 360) / Electronic Arts / 224,000
9) Star Wars: The Force Unleashed (WII) / LucasArts / 223,000
10) Madden NFL 09 (PS2) / Electronic Arts / 158,000

* Figures include Collector's Editions and non-hardware bundles.

270 Comments

  • nintendokid

    Posted Oct 27, 2008 7:26 pm PT

    ...and so what if you paid $930 for your XBOX360? Let me ask you this: do you feel that it was worth the value of your money? All those intense matches with Halo and Gears over the years, late night with a six-pack poppin' off heads while drunk, smack talking, taking names, WAS IT WORTH ALL THAT MONEY YOU SPENT? That's all I want to know. Because if you truly did have a good time then there is value in your investment, regardless of repairs costs, girlfriends lost, and family events missed. However, if you regret everyday that you could have done something else with that $930, then stop buying video games! Stop coming on here and complaining about all the fun you have and why the world is not perfect and revolving around you! For God's sake!

  • nintendokid

    Posted Oct 27, 2008 7:15 pm PT

    darkride66: "Remember, the PS3 isn't for everyone, just like hi-def tv's aren't for everyone. Sony's always marketed the PS3 as more than a games console quite simply because it is. The extra features and Blu-Ray may price the PS3 beyond some people..."

    I am so sick and tired of your posts. First of all, the Elite 360 is $399. How much is the PS3? $399. How in the world do you figure that the 360 is a "budget" console? How is the PS3 a "hi-end" entertainment system when it does the same thing 360 does, vice versa? What, are you watching YouTube on PS3? Is that it?

    Explain to me what you mean when you say that the PS3 isn't for everyone. It's a game system, you power it up, put in a game, and play it. Does it require knowledge of C++? Must you be familiar with Linux? Do you have to know how to add RAM? NO! That is an absurd comment. Sure, it's got Blu-Ray player but that is a media player and it serves the same function as DVD player in a different format. What are the extra features that the PS3 offers because my friend must be doing a good job hiding it. I never see them when I go over to his house.

    Just who do you think you are? You would recommend a 360 to those who are on a budget?! If someone is on a tight budget you don't send them to Best Buy to get a "budget" console. You send them to Cub Foods to get some groceries! God help us all, PS3 is a high-class product only enjoyed by those who drive Mercedes and trade stocks.

  • hordaak

    Posted Oct 27, 2008 6:08 pm PT

    Regarding if the ps3 will catch up with the xbox360 in sales...um...it will be difficult. If the xbox has a 5 million system lead over the ps3, and the ps3 outsells the xbox by say 1 million a year, then it will take 5 years to catch up (2013). By then, the new systems will have been out and all the hardcore gamers will have switched over. A sony fanboy will tap someone on the shoulder and say "ahem...the ps3 has caught up in sales. What do you have to say about that?". And then an XBOT will say "Hey...I heard about that..it's great!!! um...when is HOME comming out?"

    XBOX 360...FIGHT THE RECESSION..BUY AMERICAN BABY!!!

    Brought to you by xbots_against_inflation.com

  • brosim1104

    Posted Oct 23, 2008 11:48 pm PT

    Is there any month that wii play did not finish in the top 10 games...?

  • Hekynn

    Posted Oct 22, 2008 1:14 pm PT

    Well ya fall/holiday season gaming sales is gonna go through the roof! Look at all the great games thats coming out for PC/PS3/360

  • Yajarobi

    Posted Oct 21, 2008 8:09 am PT

    lets not forget, Holiday season IS coming up. and Year after year, the holiday season gets more rough and rough what with gas prices and prices increasing in general. it may not be that consoles arent "doing there job" but simply that the economy(U.S) is changing. Wii is on top, well, the system may not be the "cheapest" but the hardware and games ARE the cheapest. $50 for well renown games as oppose to $60 on 360 / PS3.

  • ctg867

    Posted Oct 20, 2008 2:23 pm PT

    The 360 pulled in 347k units, a 152k boost from the price drop over August's 195k units (78% increase), though with all honesty I expected more. You finally have the important SKU down to $300 and you can't hit 400k? I'm a little surprised, but it's an improvement none the less over last months numbers. Props to Microsoft.

    Then the PS3 with 232k units, a 47k boost over August's 185k units (25% increase). There's no real reason why there should be an increase though. Star Wars came out and sold well, the first Mercs was big on PS2, and some Madden fans could of upgraded from PS2, though there's no standout system sellers. It could be the launch of the new 80GB SKU last month as well. In comparison, the 360 had them by a 1.50 to 1 ratio (115k unit difference), which is alright considering the lack of a PS3 price drop or timed exclusive like Rock Band 2.

    The PSP pulled 238k units, a small 15k slip over last August's 253k units (6% decrease). It's a minuscule amount, but it's probably related to last months Madden PSP bundle coming out and the drought of new games this month. It probably would of dropped more if it wasn't for Lego Batman and Star Wars. Next month expect an increase due to some more releases and the first PSP Brite SKUs coming out.

    As for software, Star Wars was expected to rake and it did. 360 had 610k units, PS3 had 325k units (1.88 to 1 ratio, 285k difference). This is partially good news for PS3 fans because the 2:1 ratio that was common for multiplatform software hasn't held close enough to be true for Force Unleashed in September. Then Rock Band 2 at 363k units, though I really did expect more with half a month on store shelves. Mercs 2 hit 297k units on 360, with more on PS3. That's good news for the series, hopefully we'll get a more polished sequel.

  • darkride66

    Posted Oct 19, 2008 6:54 pm PT

    drsnobby said "I know this is off topic,but if sony is smart they should bundle the darknight blueray movie with the ps3."

    Either that or Ironman would probably be another smart one to bundle.

  • darkride66

    Posted Oct 19, 2008 6:53 pm PT

    drsnobby asked "could you explain to me what seems to be the problem with the ps3 falling behind the 360 in U.S sales."

    Price cut. The 360's price cut caused it to recently spike and jump ahead of the PS3 in sales. Remember, the PS3 isn't for everyone, just like hi-def tv's aren't for everyone. Sony's always marketed the PS3 as more than a games console quite simply because it is. The extra features and Blu-Ray may price the PS3 beyond some people but that's a calculated risk on Sony's part. Just like they make hi end and low end televisions and stereo components they make hi-end and low end entertainment systems with the PS3 and the PS2. It certainly seems to be working for them as their computer entertainment division took an initial planned hit due to the PS3's pricing and r&d and now they're already back in black.

  • drsnobby

    Posted Oct 19, 2008 6:22 pm PT

    I know this is off topic,but if sony is smart they should bundle the darknight blueray movie with the ps3.that should bring thoses numbers up.hit me with some feedback if you agree or disagree

  • drsnobby

    Posted Oct 19, 2008 6:17 pm PT

    darkride66 the pulling the plug thing was a suggestion.sony is doing well in the european market and in japan but,could you explain to me what seems to be the problem with the ps3 falling behind the 360 in U.S sales

  • Yuck_Too

    Posted Oct 19, 2008 5:17 pm PT

    PS2 = $129
    360 = $199
    Wii = $250

    The tide is changing.

  • darkride66

    Posted Oct 19, 2008 5:10 pm PT

    drsnobby said "The question that everyone is asking is,where is HOME?"
    Sony said at the TGS that it would be out before the end of the year. Many are projecting Nov 14 - to build some good buzz before Christmas. "they need to pull the plug on the ps2."
    Are you crazy? They need to do no such thing. First off - Sony recently unveiled a new - more compact, cheaper PS2 to push into more Asian markets that simply don't have the disposable income necessary to buy PS3's. Even 8 years PS2 games still crack the top 10 in the US. Why would you kill the goose that laid the golden egg? No one is walking into stores looking for a PS3 and saying "Wait! PS2? And they're so inexpensive! I'm buying this!"
    No, the PS2 will be with us at least a couple more years, make no mistake about it.

  • drsnobby

    Posted Oct 19, 2008 2:09 pm PT

    The question that everyone is asking is,where is HOME? sony has to force the issue and push the Ps3 brand.they need to pull the plug on the ps2.it,s doing well but,the main focus needs to be on the ps3.the playstation fans must help push this brand and it will reflect in the NPD numbers

  • darkride66

    Posted Oct 19, 2008 7:57 am PT

    In addition to my last post, I just wanted to add. I've got nothing against the 360 - I've got one myself and think it's great. It's good at what it does, but I just feel the PS3 is much more well rounded. Doesn't mean I wouldn't recommend a 360 to those on a budget though. If you can't afford a PS3 I'd definitely recommend picking up a 360.

  • darkride66

    Posted Oct 19, 2008 7:55 am PT

    frazzle00 said "I guess what you don't get is the fact that the Xbox 360 provides all of what the PS3 does, for a much cheaper price and with a much better library of games."
    Really? Fantastic! When did the 360 add Blu-Ray, free wireless, internet, no-hassle divx playback, the ability to buy movies online without an expiration date, Dolby TrueHD support, free online play for everyone, medical research, news sources, standard harddrives, bring the noise of the console under 60 db, add a controller with a functional d-pad and made the hardware rock solid? I had not heard. They should really be promoting this.
    While Sony did have to lower their forecasts for the first year, the PS3 is certainly looking to hit their shipment expectations this year - and it's been releasing quality titles just as fast as the 360 did. Remember, the 360 had a pretty paltry lineup of games for the first year, then kicked it into gear year 2, just like the PS3 has done. Yeah the PS3 doesn't have the library the 360 does, but there's enough titles their with a metacritic score of 70+ to keep gamers busy for over 2 years. Unless you plan on going back and playing games from 2-3 years ago on your 360, there's really not much that separates the libraries at this point.

    If you're just a gamer, the 360 is your choice - obviously. If you're a gamer who doesn't mind spending a little bit more money to get more than just another games console, you want a hi-def heart to your home theater system while not having to worry about subscription fees to play 100% of your games as the developers intended them to be played or worry that your system is going to be the 1 in 1in10 consoles that's going to die on you in 6 months - the PS3 is your obvious system of choice. Bottom line.

  • wwonka666

    Posted Oct 18, 2008 10:51 pm PT

    Bottom line if you can have only one console(I have all three) you should get a 360. It's the true gamers system right now.

  • frazzle00

    Posted Oct 18, 2008 2:00 pm PT

    @darkride66

    I guess what you don't get is the fact that the Xbox 360 provides all of what the PS3 does, for a much cheaper price and with a much better library of games. Consumers have obviously gotten that point and this is reflected by the fact that Sony's marketshare is roughly a quarter of what it was last generation. You can spin it any way you like, but I honestly doubt that Sony are all that happy with the way the PS3 has performed.

  • jsmoke03

    Posted Oct 18, 2008 10:12 am PT

    i wonder if ps3 will start getting a lot more unit sales with resistance 2 and lbp? i think its going to be marginal. i think killzone 2 or a AAA exclusive rpg will pull ps3 up...congrats microsoft...

  • darkride66

    Posted Oct 18, 2008 9:53 am PT

    BlackDragon110 said "I think they were so intent on making it an "all-in-one media device", that they lost sight of the fact that it was main job was to play video games."

    I couldn't disagree more. I didn't want just another games console, I wanted a hi-def centerpiece for my home theater system that just happened to play kick ass games. That's what Sony delivered. They never once marketed the PS3 as just another game console, because it's not. Why are so many confused about that? And it obviously isn't hurting sales because sales are up 94% year over year in the US and they're just below 16 million consoles in far less time than it took the 360 to hit that mark with a less expensive system. Clearly consumers get it, even if the posters on Gamespot do not.

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