So much for the notion that video game sales would turn around in August. Slumping sales pushed the slide for video game sales to six straight months. During August, 15% fewer games were sold than a year earlier, and the drop was more than industry analysts expected.
Just because the overall sales dropped, it doesn't mean that some companies didn't turn in a good month. Sony (NYSE: SNE) saw sales increase, thanks to the company's decision to slash the price of its wildly popular PlayStation 3.
Nevertheless, the gaming industry needs to be concerned. The main reason for the concern is that the extremely popular Electronic Arts (NASDAQ: ERTS) offering of the 2010 installment of the Madden franchise couldn't push sales higher. If the yearly offering from ERTS couldn't help, what can? Another Grand Theft Auto game? Not even the Wii Sports Resort could help the monthly sales ... it may be time to worry, gamers.
The other problem that the gaming industry faces is the price. Games are expensive, and discretionary spending money is lacking. In addition, game companies are looking to nickle and dime the customer by making "special packs" available for download on the internet -- for a fee. One of these is the AFL anniversary uniforms for the Madden 2010 game. This year is the 50th anniversary of the AFL, and original AFL teams are wearing special uniforms. You can have these uniforms for Madden, if you purchase the package over the internet and download it to your console.
I remember there was a time when all of these extras were included in the game's original price -- I guess that just isn't so anymore. Perhaps the coming Christmas season can help kickstart video game sales. If it can't, there could be some serious changes in the gaming realm, or at least in the pricing realm.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Reader Comments (Page 1 of 1)
9-11-2009 @ 9:02AM
ZeitgeistXIII said...
How about this summer was the summer of lowest quality games in quite awhile? People are not stupid a rehash of the same old junk"Madden" comes to mind can only go so far. Most companies have pushed fall releases for the big games. Halo ODST, Call of Duty Modernwarfare 2, MAG to name a few launches that have actual presales #s to back them up.
I would not spend 60.00 on a game that really doesnt offer anything new and that was this past summer.
9-11-2009 @ 1:35PM
Warren said...
Video games don't sell in the summer. This isn't news. Talk to me when xmas is over.