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Software industry

Video Game Industry Hopes 3D and Motion-Sensing Controllers Will Revive Sales

Strategic Insights

— 1 min read

As the video game industry gathers for its annual E3 trade show in Los Angeles this week, it is looking to 3D and new motion-sensing controllers to pull it out of a sales slump. Microsoft has launched a marketing campaign for its motion-detecting "Project Natal" controller, while Sony will showcase games that exploit the capabilities of its Move motion controller. Meanwhile, Nintendo is expected to unveil a 3D version of its DS handheld console. The current generation of consoles, launched at E3 five years ago, has seen sales decline in recent months, with April marking the fourth worst month on record for video game sales in the US.

Key Takeaways:

  • The video game industry is facing a sales slump, with console sales falling by 37% and software sales by 22% in April compared to the same period last year.
  • Hard-core gamers are not buying new titles, instead spending more time in multiplayer online battles using existing games such as Call of Duty: Modern Warfare 2.
  • Microsoft's "Project Natal" motion-detecting controller uses a motorised camera housing microphones and sensors to scan and capture players, allowing them to appear in games as themselves or as avatars.
  • Sony's Move motion controller features a wand-like design with glowing tips that a camera recognises, giving more precision while playing games.
  • Nintendo's 3D version of the DS handheld console does not require special glasses, offering a unique selling point in the market.
  • The industry is looking to 3D and motion-sensing controllers to revive sales, with Microsoft and Sony hoping to emulate the success of the Nintendo Wii.
  • Ubisoft is developing several games for Microsoft's "Project Natal" accessory, with CEO Yves Guillemot describing it as a "revolution" in gaming.

Statistics:

  • Console sales declined by 37% in April 2010 compared to the same month last year.
  • Software sales declined by 22% in April 2010 compared to the same month last year.
  • The Nintendo Wii has sold 70 million units worldwide, with revenues surpassing the PlayStation 3 and Xbox 360.
  • The PlayStation 3 has sold 30 million units worldwide.
  • The Xbox 360 has sold 40 million units worldwide.

Sources:

  • NPD research firm
  • Wedbush Morgan Securities
  • Gartner research firm

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