Alas, recessionary pressures have now even affected the gaming sector. Sales of video game merchandise slammed 31% lower in June to $1.17 billion, posting the worst year-over-year decline in nine years. And the slump hit all areas -- hardware (like the Wii or PlayStation), software (like game titles), and accessories (like the amped-up new guitar for Guitar Hero). Specifically, hardware sales were off 38% on a year-over-year basis to $382.6 million. Nintendo (OTC: NTDOY) Wii sales fell 45%, sales of the Sony Corp. (NYSE: SNE) PlayStation 3 dropped by a staggering 58%, and only Microsoft's Xbox 360 offering managed slight sales improvement.
Software companies such as Electronic Arts (NASDAQ: ERTS) and Take-Two Interactive Software (NASDAQ: TTWO) didn't have it much easier; game sales revenue dropped 29% to $625.7 million. The previous month, game sales dipped south of the $1 billion mark for the first time since 2007.
Not only have tough economic times made folks wary of discretionary spending, but there just weren't a lot of blockbuster game titles released of late, analysts say. Are gamers reverting to their old equipment and titles, taking a rest entirely or -- gasp! -- resorting to illegal downloads? It is likely a combination, and it's yet another sign that the economic tide is far from turning.
Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.
Not only have tough economic times made folks wary of discretionary spending, but there just weren't a lot of blockbuster game titles released of late, analysts say. Are gamers reverting to their old equipment and titles, taking a rest entirely or -- gasp! -- resorting to illegal downloads? It is likely a combination, and it's yet another sign that the economic tide is far from turning.
Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.
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