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Video game sales continue their decline
June 26, 2009
As I have written in the past, it is my strong belief that video game sales in 2008 did more to hurt traditional toy sales than the recession. They were up 18% in the 4th quarter of last year so you can imagine how that contributed to the toy industry’s 3% decline.
Due to their impact on toy sales, I have been tracking video game sales this year. As we have been seeing for the last few months, video games sales have been steadily declining. The latest data shows that May sales were off by 23% year over year.
According to NPD Group, as reported in a June 12, 2009 New York Times article,
“Video Game Sales Continue to Decline:” “…May video game sales fell to $863 million, down by 23 percent from the same period a year ago… Sales of hardware (consoles and handheld devices) dropped by 30 percent, while sales of software fell by 17 percent, to $449 million. This, the third consecutive month of declining year-over-year sales.”
Keep your eye on this number. If it continues it could mean a stronger demand for the traditional toy industry during the fourth quarter.
Posted by Richard Gottlieb on June 26, 2009 | Comments (1)
