After a slight reprieve in September, U.S. video game retail sales slumped again in October, unable to escape the economic turmoil that’s cutting into consumer spending and swelling the ranks of unemployed.
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Market researcher NPD Group said Thursday total sales of video game hardware, software and accessories fell 19 percent in October from the same month last year, to $1.07 billion. Year-to-date sales were down 13 percent at $11.43 billion. It is unlikely that the industry will be able to match last year’s record sales, which topped $21 billion.
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But for a business that makes most of its money during the holidays, things may not be as bleak as they seem. Industry analysts expect November sales to pick up again.
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Based on typical industry seasonality, the industry is on track to generate full-year revenues in the range of ($20 billion to $21 billion) in the U.S., which would put it just a bit below last year’s sales, said NPD analyst Anita Frazier.
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Not included in the October sales figures is Activision Blizzard Inc.’s Call of Duty: Modern Warfare 2, which went on sale Tuesday and broke entertainment records on its first day in stores. According to its publisher, it raked in an estimated $310 million in North America and the United Kingdom in 24 hours.
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With that game, and others such as Ubisoft’s Assassin’s Creed 2 and Nintendo’s New Super Mario Bros., November is poised to be a strong month for the industry.
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Reggie Fils-Aime, president of Nintendo of America, said Thursday his company expects a strong holiday season.
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October sales of gaming hardware fell by nearly a quarter to $380.7 million.
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The Wii from Nintendo Co. was the month’s best-selling gaming system, followed by the handheld DS, also from Nintendo. Sony’s PlayStation 3 was in third place.
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All three of the gaming console makers — Sony, Microsoft Corp….