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Consumer electronics industry

US Retail Games Software Sales Reach $6.5bn, Xbox 360 Leads in Installed Base

Strategic Insights

— 1 min read

In 2006, the retail games software sales value in the US reached just under $6.5 billion, showing a six percent increase from 2005's value, excluding PC games. Nintendo DS software sales surged to $670 million, a 160 percent increase from the previous year. Meanwhile, PS2 software sales held firm at $2.3 billion, a nine percent decline from the previous year. Despite supply constraints, next-generation consoles like the Wii and PlayStation 3 struggled to meet company projections, while Microsoft's Xbox 360 saw a significant increase in its installed base, reaching 4.6 million by the end of 2006.

Key Takeaways:

  • Xbox 360 software sales value reached $1.1 billion in 2006, a significant increase from previous years.
  • Nintendo DS software sales jumped 160 percent to $670 million, exceeding all sales expectations for 2006.
  • PS2 software sales held surprisingly firm at $2.3 billion, despite a decline in sales value of nine percent from the previous year.
  • Supply constraints impacted next-generation consoles, including the Wii and PlayStation 3, which fell short of company projections despite high demand.
  • Xbox 360 had the largest installed base of 4.6 million by the end of 2006, with an additional 4 million units sold during the year.
  • Nintendo's DS outperformed all sales expectations for 2006, while PS2 sales were better than forecast due to increased footfall in stores and late Xbox consumer entrants diverting their cash to alternative systems.
  • Retail games software sales value in the US reached $6.5 billion, a six percent increase from 2005's value, excluding PC games.

Statistics:

  • US retail games software sales value: $6.5 billion ( excluding PC games)
  • Nintendo DS software sales value: $670 million (160% increase from previous year)
  • PS2 software sales value: $2.3 billion (nine percent decline from previous year)
  • Xbox 360 software sales value: $1.1 billion (significantly higher than previous years)
  • Xbox 360 installed base: 4.6 million (end of 2006), with an additional 4 million units sold during the year
  • Wii installed base: 1.1 million (end of 2006, below company projections)
  • PS3 installed base: 700,000 (end of 2006, below company projections)
  • Xbox 360 installed base increase: 4 million (year-over-year)

Sources:

  • NPD research
  • Screen Digest
  • Nintendo: Japan; +81/(075)662-9600
  • Sony: USA; +1/800-345-7669
  • Microsoft: UK; +44/0870 60 10 100

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