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U.S. video games sales were down slightly in September, according to data from research firm NPD Group. Sales of hardware, software and accessories dropped 7 percent from the year-ago period to $1.27 billion. “This is the first true monthly decline the industry has experienced since March of 2006, said Anita Frazier, an NPD analyst.
Seven years ago, after the release of the Sony PlayStation 2 and the Microsoft Xbox, it seemed as though Nintendo, once a market leader, would never regain its No. 1 position. The GameCube, which sold a paltry 21.74 million units worldwide, had been a relative dud for the longtime gaming champion. However, undeterred by its third-place position, Nintendo had a plan for the next generation of gaming consoles.
Both Microsoft and Sony made news at the Tokyo Game Show Wednesday. Microsoft announced its New Xbox Experience offering, which includes game, TV and movie downloads, as well as a new virtual world for Xbox 360 owners. Sony, meanwhile, announced that Home, its much-delayed virtual world for the PlayStation 3, will be available before the end of the year.
In the take-no-prisoners environment of the video game console industry, Nintendo was not so long ago considered an also-ran. The video game console pioneer and one-time market leader had been outmaneuvered and outsold by video game juggernaut Sony and even upstart entrant Microsoft, as their respective PlayStation and Xbox platforms made Nintendo’s offerings look like children’s toys in comparison.
Take-Two Interactive Software, maker of the immensely popular “Grand Theft Auto” video game series, has decided to remain independent after resisting Electronic Arts’ persistent acquisition efforts. The New York-based company, which also has a popular line of sports titles such as “College Hoops 2K8,” “NBA 2K9″ and “NHL 2K9,” announced its decision to go it alone on Thursday.
Game publishers have been inserting advertisements into video games almost since games were first developed. But what began as static in-game product placements such as billboards advertising a publisher’s upcoming title in the 1970s has become a much more sophisticated marketing tactic — and a potentially lucrative revenue stream.
Cell phones may finally be up to the task of crashing cars, zapping bad guys and bowling a decent frame. Led by Apple’s iPhone 3G, which was released in July, phones hitting the market these days include faster processors and the increased memory that mobile-gaming software needs.
Rumors began bubbling up Tuesday that Google plans to acquire game maker Valve, developer of the “Half-Life” series and the Steam content distribution platform. The speculation began after a report cited “well-placed sources” claiming Google would very soon purchase Valve. The Internet search giant could be eying the game maker in order to get its hands on the Steam content distribution technology.
Katherine Graden doesn’t really like shoot-’em-up video games. She prefers games on her Wii system that test her fitness and agility — the ones her guy friends tease are her “sissy games.” “I’m like, ‘Fine! Go play your violent games. I’ll stick with mine,’” the high school freshman from Chicago says, chuckling.
The gains that have made 2008 a blockbuster year for the video game market continued in August; however, the rate of sales showed signs of slowing down for the month. Overall sales growth was held to single digits for the first time since 2006, according to numbers released Friday from market research firm NPD.
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