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NPD: Game Industry Sales Total $1.18 Billion in January; PS3 Almost Ties Wii
Posted by Sam, 336 days ago Feb 15, 2008 07:04

Posted by James Brightman on Thursday, February 14, 2008 @ GameDaily

We’ve just received the latest NPD video game sales data covering the month of January. On a strictly year-over-year basis total industry sales were down six percent to $1.18 billion. However, it’s important to note that this year’s January reporting period for NPD covered four weeks (as opposed to five last Jan.), so purely on a weekly basis sales were actually up 18 percent – and that likely would have been reflected had there been a fifth week.

That said, even with the one-week discrepancy, software sales actually rose 11 percent to $610.6 million. NPD’s Anita Frazier commented, "Pricing again plays into the great performance of software. The average retail price of games is up 19% from last January and much of that can be attributed to Rock Band and Guitar Hero. In fact, 360 Rock Band was the top-selling game in dollar terms, bringing in $30 million in sales for the month."

Hardware sales were down 25 percent to $377.8 million and accessory sales were down four percent to $191 million. NPD said the best-selling single accessory for the month was the Wii Nunchuk Controller, which sold 375K units.

Interestingly, on the hardware front all the talk lately of the PS3 coming on strong seems to be true. The console sold 269K units for the month, just slightly behind the Wii which was the best selling system with 274K units. The PS2 also continues to do remarkably well, selling 264K units. As for Microsoft, the Xbox 360 sold 230K units, perhaps slightly hurt by the shortage problem the company has made everyone aware of. In terms of portables, Nintendo’s DS sold 251K units compared to 230K for the PSP.

 

"Based on this month’s results, software sales are off to a fantastic start [in ’08]. Accessories are also very hot, so the industry looks to be pretty healthy out the gate. "

 

The software chart was dominated by the usual suspects. Activision’s Call of Duty 4, which won Game of the Year at D.I.C.E. and took the top spot on NPD’s top 10 in both November and December, has for the third consecutive month earned a first place finish with 330.9K units. Wii Play, which has probably become an automatic purchase with every new Wii, took second place with 298.1K units. It’s also worth noting that after going toe-to-toe, vying for the top spot with Call of Duty in November and December, Nintendo’s Super Mario Galaxy has fallen to sixth place with 172K units.

Here are the top 10 games for January (ranked by units):

1. Call of Duty 4: Modern Warfare—Activision—Xbox 360—330.9K*
2. Wii Play w/ remote—Nintendo—Wii—298.1K
3. Guitar Hero III: Legends of Rock w/ guitar—Activision—Wii—239.6K
4. Rock Band special edition bundle—MTV/EA—Xbox 360—183.8K*
5. Guitar Hero III: Legends of Rock w/ guitar—Activision—Xbox 360—182.7K*
6. Super Mario Galaxy—Nintendo—Wii—172K
7. Burnout Paradise—EA—Xbox 360—144.1K
8. Call of Duty 4: Modern Warfare—Activision—PS3—140K
9. Mario Party—Nintendo—NDS—138.5K
10. Mario and Sonic: Olympic Games—Sega—NDS—133K

* denotes unbundled versions, bundled versions, and any special editions (e.g. collector’s editions)

Exclusive commentary from NPD analyst Anita Frazier

GameDaily BIZ caught up with NPD’s industry analyst Anita Frazier to get some further insight into the data.

BIZ: PS3 nearly tied Wii for monthly sales in January – the talk about PS3 gaining steam seems to be true. What do you think was driving PS3 sales in January? Do you think the Warner Bros. exclusive Blu-ray announcement was a big factor?

Frazier: The 40 GB model had big sales last month. Blu-ray may have had something to do with it, but it’s probably more to do with the wide-availability of the lower cost model. Normally you would expect to see a title drive an uptick in hardware sales. In the case of PS3 this month, I think it was a combination of a number of factors and not one primary catalyst.

BIZ: Call of Duty 4 continues to take top honors, while Super Mario Galaxy fell down to sixth. What do you think this says about the market? Is it just a more mature market? I would have thought Mario would keep up a better sales pace...

Frazier: But I would counter that you should look at those Wii Play, Guitar Hero and Rock Band numbers, not to mention the NDS games rounding out the top 10. Plenty of family-friendly fare in the tops list.

Also, Mario sold 2.7 million units in the U.S. life-to-date....I wouldn’t read too much into one month’s performance. Those are pretty big numbers. Puts it in the top 10 of all Mario games....I’d say that’s pretty solid!

BIZ: There’s been talk from MS and retailers about Xbox 360 shortages. Do you believe this was a problem? How much higher could 360 sales have been?

Frazier: Not speaking to any particular platform, I certainly think that coming off a red-hot December there could very well have been instances of hardware shortages and it probably affected more than one hardware platform. It’s not uncommon to have inventory balancing issues after the holidays. It’s always tricky - no, impossible - to forecast exactly what will happen and plan for the pipeline.

BIZ: PS2 continues to sell quite well. Who at this point is buying the system? Are these actually new gamers, or people replacing old, broken down units?

Frazier: Yes, the PS2 is humming along quite nicely, proving that it remains a strong viable system. It’s at a great price point now making it an easy purchase decision for those that may be new to gaming or less frequent gamers, but I’m sure some of the volume is coming from those replacing worn-out systems or buying an additional system for their home.

BIZ: Given January’s performance, what is your take on how 2007’s momentum will carry into this year? It’s a bit premature to ask, but can 2008 top last year?

Frazier: Yes, it’s pretty early to say what will happen, but I believe we’ll see growth this year. I’m keeping an eye on software - at this point in the console lifecycle, hardware sales certainly remain very important but the spotlight now shines more brightly on what the software sales tell us about the market. Based on this month’s results, software sales are off to a fantastic start. Accessories are also very hot, so the industry looks to be pretty healthy out the gate.

BIZ: Thanks Anita.

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