Video Game Sales Decline in June 2010

Following a weak May, video game sales continued their downward trend in June 2010, with a 6% year-over-year decline in overall sales to $1.1 billion, according to research firm NPD. This decrease aligns with analysts' expectations. Despite the decline, hardware sales inched up 5% year over year to $401.7 million, driven in part by Microsoft's release of a new Xbox 360 model with increased storage capacity at a lower price. Red Dead Redemption, a title from Take Two Interactive Software, remained the top seller for the month, followed closely by Super Mario Galaxy 2.

Key Takeaways:

• The video game industry experienced a seasonally weak quarter, with June sales declines matching analyst expectations.
• Software sales decreased 15% year over year to $531.3 million, surpassing the decline in overall sales due to weak results.
• Electronic Arts Inc. and Activision Blizzard Inc., major third-party publishers, did not release new titles in June, contributing to the sales slump.
• Take Two Interactive Software's Red Dead Redemption was the top-selling title of the month, followed by Nintendo's Super Mario Galaxy 2.
• Despite the decline in software sales, hardware sales increased 5% year over year to $401.7 million, driven by the release of a new Xbox 360 model.

Statistics:

• June 2010 overall sales declined by 6% year over year to $1.1 billion.
• Software sales decreased 15% year over year to $531.3 million.
• Hardware sales increased 5% year over year to $401.7 million.
• Red Dead Redemption sold over 963,000 units for the Xbox 360.
• Super Mario Galaxy 2 sold over 548,400 units for the Nintendo Wii.
• Two new games, Toy Story 3 and The Lego: Harry Potter: Years 1-4, made it to the Top 10 seller list for June.

Sources:

• Zacks.com
• NPD
• Electronic Arts Inc. (Nasdaq: ERTS)
• Activision Blizzard Inc. (Nasdaq: ATVI)
• Take Two Interactive Software Inc. (Nasdaq: TTWO)
• Microsoft Corp. (Nasdaq: MSFT)
• Walt Disney (NYSE: DIS)