New Xbox 360 Is Killing It, As The Rest Of The Gaming Industry Sags

kinect xbox

Photo: Gizmodo

The NPD Group has released its game sales data for the month of June, and as was forecast by most analysts, it wasn’t so pretty.Total sales fell 6% to $1.1 billion, while software dipped 15% to $531.3 million. Hardware sales actually grew 5% to $401.7 million, in part because of the newly redesigned Xbox 360 slim model. Accessories were also up 6% to $169.6 million; this was driven by the Xbox Live 1600 points card, which was the top selling accessory for the fourth month in a row.

Year-to-date, the total industry is now down 9% compared to 2009.

“Unfortunately, the industry realised a decline versus the same time period last year, driven by decreases in sales of portable hardware and console and portable software. A bright spot was sales of console hardware, which increased 35-per cent in unit sales over last June, driven by significant increases in Xbox 360 and PS3 sales,” noted NPD analyst Anita Frazier.

“Hardware sales saw a notable uptick from May on an average sales per week basis, and all three current gen console systems saw unit sales increases over last year; in particular, the Xbox 360 and the PS3. The Xbox 360 experienced its second largest non-holiday month after September ’07 when Halo 3 launched, and the PS3 has now garnered 11 consecutive months of year-over-year unit sales increases.”

Even with the declines, Frazier is confident that 2010 will be a solid year in the end.  “Looking at historical seasonality for the industry, total year U.S. revenues (of new physical sales) could come in anywhere between $18 and $21 billion,” she said. “Given the strong slate of content still to come, and the release of the Move and Kinect controllers, which I believe will spark additional interest in gaming, I think we could see the total year new physical retail sales come in at $20B. We’ll also be reporting consumer reported sales of digitally distributed, rental and used games content to provide insight into those non-POS sources of game sales.”

Digging deeper into the data, we see that the Xbox 360 was the top selling console with 451.7K units sold. This was followed by Wii at 422.5K units sold and PS3 at 304.8K units. The DS, however, led all hardware with 510.7K units sold. PSP languished as usual, with 121K units.

On the software side, the same games from May dominated the charts. Rockstar’s Red Dead Redemption posted nearly another million units in sales on the Xbox 360 and PS3 while Super Mario Galaxy 2 sold another 548K units. There were only two games from June in the top 10, as you can see in the full chart below.

NPD figures, June 2010

Photo: NPD

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