Video game sales give recession the finger

The video game market in the U.S. saw a healthy 18 percent expansion in October and remains on track for a record year, despite consumer cutbacks on general electronics purchases.

Video game sales give recession the finger

Wii had another record month in Oct.

Sales of game consoles and portables were up 5 percent compared to October 2007, at US$495 million, while software sales jumped 35 percent to $697 million, according to figures from NPD Group. Sales of video game accessories, such as extra controllers, fell 8 percent to $120 million.

The strong rise in software sales was helped by some popular titles for the Xbox 360 and Wii consoles.

Overall the entire video game market in the U.S. was worth $1.3 billion in October, up 18 percent from the same month last year. Year-to-date the market stands at $13.1 billion, up 25 percent compared to the first 10 months of 2007.

The figures will be welcome news for the gaming industry. Conventional wisdom has industries like gaming holding up well during recessions because people spend more time at home, but some analysts have questioned whether this still holds true given the many competing home entertainment options that are now available, from multichannel TV and video-on-demand to the Internet.

It also contrasts with the dire conditions that consumer electronics companies are seeing in other markets such as flat-screen TVs and cameras. In recent weeks several major manufacturers including Sony have downgraded their financial outlooks on weak sales.

The best-selling game in October was Microsoft's "Fable II" for its Xbox 360 console, which sold 790,000 units, according to NPD. In second place was Nintendo's "Wii Fit," which sold 487,000 units. "Fallout 3" from Bethesda Software for the Xbox 360 came in third at 375,000 units, followed by "Mario Kart Wii" and "Wii Play" to round out the top five.

The highest-ranking game for Sony's PlayStation 3 was "Socom: U.S. Navy Seals Confrontation," which came in seventh place with sales of 231,000 units.

In hardware, Nintendo's Wii outsold its nearest competitor by more than two-to-one with sales of 803,000 units. That made October the console's third-best-selling month yet, after November and December last year.

The Xbox 360 sold 371,000 units and the PlayStation 3 sold 190,000 units. While the PlayStation 3 remains in third place, the sales increase it achieved over October 2007 was 57 percent, significantly higher than the gains recorded by the other consoles.

Sony's older PlayStation 2 managed sales of 136,000 units. The console is still popular because of its low price and the wide variety of software available for it.

In the portable market, Nintendo's DS sold 491,000 units to easily beat the PlayStation Portable's 193,000 units.

"The console portion of the market made significant gains at 26 percent across hardware, software and accessories, while the portable side of the market stalled, declining 14 percent," NPD said. "Year-to-date the portable segment of the market is still up 7 percent."

Top Ten best-selling games in the U.S. in October were, according to NPD Group:

1) Fable II, Xbox 360, 790,000 units
2) Wii Fit, Wii, 487,000 units
3) Fallout 3, Xbox 360, 375,000 units
4) Mario Kart, Wii, 290,000 units
5) Wii Play, Wii, 282,000 units
6) Saints Row 2, Xbox 360, 270,000 units
7) Socom: U.S. Navy Seals Confrontation, PlayStation 3, 231,000 units
8) Little Big Planet, PlayStation 3, 215,000 units
9) NBA 2K9, Xbox 360, 202,000 units
10) Dead Space, Xbox 360, 193,000 units

Comments [21]

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JPThunder01

Lets see, we got Wii Fit with the balance board, Mario Kart with the wheel, Wii Play with the remote, and Socom with the bluetooth headset. Wanna sell games? Throw something else in with it.

goldberg_evan

Well I'm pretty sure that the reason why games still sell strong during the recession is because most of the gamers are young and not truly affected by it. Even for adult gamers, and those affected by the recession, I'm sure they will still be more than glad to fork over $60 for the games coming out.

Toneman

We're in the "sweet spot" of this generation of consoles... (except maybe Wii)... lots of AAA games being released almost weekly... and if people can't afford the games, they use a little thing called a credit card. Just because the country's economy is going down the drain doesn't mean we can't play Gears2, Resistance2, LBP, Fallout3 etc... :)

slickjames

This is what makes me mad here you have all these high numbers and records in sales yet companies like Nintendo and Epic are complaining that they're getting screwed by gamers buying used games and they want to make every game a download to make more money.
Greed is what ruins companies and industries wake up Cliffy B if your getting screwed for money why do you drive a $200,000 sports car while the rest of us don't. Anyway I think games sell more because they're just a better deal why would I waste $60 on 3 movies which would take about 6 hours to watch and then I'll probably never see again when I can get a copy of Fallout 3 and have like a 50 hour game which I can play all the time.

Toneman

Hey SlickJames... I'm 50 hours into Fallout3, and I'm just about halfway through the main quest... so you can take that 50 hours and easily double it. Guess it depends how thorough you wanna be. But yeah, videogames are a better value than movies, some more than others :)

Fat_bot

The games might be beating the recession, but the companies' stocks sure aren't.

ChokaDaChicken

Hell yeah games are killing , with the lack of good television shows , life changed from high gas and kick ass online game lineups screw a damn big three bailout !!!!

Cherokee44

Woow, I was shocked to see LBP so far at the bottom of the list, but then I remembered that it came toward the end of the month. It's looking more and more likely that the PS3 will finish in last place for this gen of consoles.

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