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The NPD Group Reports on Retail Sales of US Video Games Industry for First Half 2004

July 22, 2004 11:01 AM US Eastern Timezone

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--July 22, 2004--

Console Software and Console Accessories Showed Growth While the Rest of the Industry Saw Moderate Declines in Sales


According to leading marketing information provider, The NPD Group, retail sales of U.S. console and portable video games hardware, software and accessories saw a decline of 2.5 percent during the first half of 2004 (January - June), compared to the same time last year. The video games industry saw sales figures fall to $3.4 billion in the first half of 2004 compared to $3.5 billion in the first half of 2003.

While dollar sales dropped slightly, overall unit sales of video games hardware, software and accessories were up 1 percent during the first half of 2004.

Console software and console accessories were the only categories to show growth during the first half of 2004, with software revenue increasing 4 percent and accessory revenue increasing 8 percent. Within accessory sales, Internet components and specialty controllers saw the most growth, with dollar sales increases of 120 percent and 184 percent, respectively. All other categories, which include console hardware, portable hardware and portable software saw dollar sales decreases of 17 percent, 10 percent, 12 percent, respectively.

"The reduced price points for Microsoft's Xbox and Sony's Playstation 2 helped to stabilize industry sales during the first half of the year," said Richard Ow, senior video games analyst, The NPD Group. "While the first quarter of 2004 was showing double-digit losses in console hardware unit sales, with the help of lower price points for the Xbox and PS2 during the second quarter of 2004, the industry actually saw double digit increases in unit sales for the entire second quarter of the year."

Code:
       U.S. Video Game Industry Dollar and Unit Percent Changes
              January - June 2004 vs. January - June 2003

Categories                      Dollar % Change      Unit % Change
----------------------------------------------------------------------
TOTAL                                 -3                   1
----------------------------------------------------------------------
Console Hardware                      -17                 -1
----------------------------------------------------------------------
Console Software                       4                   4
----------------------------------------------------------------------
Console Accessories                    8                   3
----------------------------------------------------------------------
Portable Hardware                     -10                 -18
----------------------------------------------------------------------
Portable Software                     -12                 -6
----------------------------------------------------------------------
Portable Accessories                  -1                  -8
----------------------------------------------------------------------
Source: The NPD Group / Point-of-Sale

               Top10 Video Game Titles, Sorted By Units
                          January - June 2004

RANK  TITLE                PLATFORM  PUBLISHER         RELEASE   ARP
                                                       DATE
----------------------------------------------------------------------
1     FIGHT NIGHT 2004     PS2       ELECTRONIC ARTS   APR'04   $49
----------------------------------------------------------------------
2     NBA BALLERS          PS2       MIDWAY            APR'04   $39
----------------------------------------------------------------------
3     MVP BASEBALL 2004    PS2       ELECTRONIC ARTS   MAR'04   $49
----------------------------------------------------------------------
4     FIGHT NIGHT 2004     XBX       ELECTRONIC ARTS   APR'04   $49
----------------------------------------------------------------------
5     POKEMON COLOSSEUM    GCN       NINTENDO OF       MAR'04   $49
                                      AMERICA
----------------------------------------------------------------------
6     HALO                 XBX       MICROSOFT         NOV'01   $29
----------------------------------------------------------------------
7     RED DEAD REVOLVER    PS2       TAKE 2 INT.       MAY'04   $47
----------------------------------------------------------------------
8     T. CLANCYS PANDORA   XBX       UBISOFT           MAR'04   $49
----------------------------------------------------------------------
9     SHREK 2              PS2       ACTIVISION        MAY'04   $46
----------------------------------------------------------------------
10    SPIDER-MAN:THE       PS2       ACTIVISION        JUN'04   $49
       MOVIE2
----------------------------------------------------------------------
Source: The NPD Group / Point-of-Sale
 
I wonder what those internet component accessories are that caused the overall accessories to have growth.

Xbox Live, the PS2 NA, & ???
 

cvxfreak

Member
Perhaps the LinkSys Wireless Adapters?

I'm surprised Pokemon Colosseum's only at #5. I don't remember the Fight Night games, especially the Xbox one getting near Colosseum's sales.
 

Mrbob

Member
Maybe they are using shipped numbers???

Pandora Tommorrow had a couple firesales after release. Perhaps because UBI overshipped?
 

Belfast

Member
Hardware sales are expected, what with price drops and it being so late in the generation and all.

I do get disappointed when I see these charts, though. Not that any of the games up there are necessarily bad games, but it proves what will sell and what won't and it only forces the industry into producing the same old thing (sports games, games with movie licenses, pokemon, etc.)
 

GhaleonEB

Member
6 HALO XBX MICROSOFT NOV'01 $29

Sticks out like a sore thumb. Does this game have the longest legs in console history, or what?
 

Lukas

Banned
so if they are using revenue ninja gaiden should still be up there, its sold 70,000 more copies than pandora tomorrow, and it cost 50 dollars when it came out and still costs 50 dollars
 

GhaleonEB

Member
teepo said:
nope, goldeneye and gta3.

Let me rephrase the question: Were those games a top-10 best seller 2 1/2 years after thier release? I'm not arguing, I really want to know. I don't recall their standing at the same point in their lifecycle.
 

Lukas

Banned
so no one has an explanation as to why ninja gaiden isnt up there?

it outsold halo for xbox, pandora tomorrow, and spider man 2 for ps2.......and i think shrek 2 for ps2
 
Lukas said:
so no one has an explanation as to why ninja gaiden isnt up there?

it outsold halo for xbox, pandora tomorrow, and spider man 2 for ps2.......and i think shrek 2 for ps2

Clearly, the list is incorrect. I believe that Bond & NFL Street should both be up there as well.
 

cja

Member
Lukas said:
so no one has an explanation as to why ninja gaiden isnt up there?
NPD have mistitled the chart. Its April-June, jence no Sonic Heroes and Ninja Gaiden and the reason for March releases such as Pokemon, MVP and Splinter Cell featuring lower on the chart than games they've outsold overall but not since their launch month such as Fight Night and Red Dead.
 
Sales of video game hardware and software dropped slightly in the first half of 2004, a new study has shown.

Industry dollar sales declined to $3.4 billion in the first two quarters of 2004, compared with $3.5 billion in the same period last year, according to figures released Thursday by the NPD Group. This represents a fall of 2.5 percent for hardware, software and accessories. However, overall unit sales went up by 1 percent, the market researcher said.

Cnet's take on this

gotta love that interpretation...
 
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