NPD: Game Industry Sales Up 31% in June, Up 43% for First Half
Another month, same old story. The Nintendo DS creamed the competition selling through almost 562,000 units in the U.S. The PS3 was up somewhat, but still couldn't break the 100K mark in the U.S. in June. [Update: NPD's Anita Frazier tells us this will be the "biggest year ever for the video games industry"]
GameDaily BIZ has received the latest NPD video game sales data, which reveals total sales of $1.1 billion, a 31 percent increase year-over-year in the U.S. during June. Year-to-date, for the first half the game industry is already at an impressive $6.1 billion, tracking ahead of last year's sales by 43 percent.
Console hardware in particular has seen the most growth. Console hardware grew 69 percent in June to $268 million and it grew 98 percent to $1.7 billion for the first half. Portable game hardware was actually down 6 percent in June, but that didn't stop the Nintendo DS from absolutely running away with the top spot once again. Nintendo's handheld sold 561.9K units compared to the PSP's 230.1K. The top selling console was the Wii with 381.8K, followed by the 360 with 198.4K and the PS3 with 98.5K.
Video game software in general grew 22 percent in June, totaling $543 million. For the first half software sales were up 24 percent to $2.9 billion. Console software in June was up 28 percent to $393.9 million and portable software grew 10 percent to $149.1 million. For the first half, however, portable software actually fared better, growing 35 percent to $802.8 million compared to 21 percent growth for console software to $2.1 billion.
For June in particular, the best selling game was Nintendo's Mario Party 8 for Wii, which sold through 426.2K units in the U.S. We've provided the top 20 best selling games for June 2007 and the top 10 titles for the first half of this year below.
[UPDATE] Following the release of the latest data, GameDaily BIZ caught up with NPD industry analyst Anita Frazier. Looking at the trends in the industry for June, Frazier admitted that she was "a little surprised" by the slight decline in portable hardware sales.
That said, "When you take into account lower retail prices, particularly on the PSP, then it makes more sense, and in fact, unit sales of portable hardware are down versus June 2005 only 4% [in terms of unit sales]," she added. "Since many in the industry have become accustomed now to robust increases month after month across all categories, this might worry some, but I don't read anything at all into it. The portable segment of the market has done great business this year, as has the rest of the industry."
When asked which part of the market is really driving sales, Frazier responded, "When you see such growth across the board, it's really hard to say what is driving the market - unless of course you go back to content! It continues to be the games that drive the industry, because content drives hardware acquisition, and great content is what keeps people coming back for more gaming entertainment. So the heart & soul of the industry remains the games, and the hardware is the vehicle that delivers the experience."
Ultimately, though, Frazier continues to be impressed by the continual growth this industry has seen, especially this year. "The biggest trend really is just the consistent month after month performance of the industry and I would expect us to see this continue for the remainder of 2007, resulting in the biggest year ever for the video games industry," she remarked.