Video Game Sales Nearly $3 Billion In November

NEW YORK — Americans may be cutting back on holiday shopping, but they are still buying video games _ to the tune of nearly $3 billion in November, according to data from market researcher NPD Group.

U.S. retail sales of video game hardware, software and accessories jumped 10 percent last month from the year-ago period to $2.91 billion, boosted by strong sales of Nintendo Co.'s Wii, Microsoft Corp.'s Xbox 360 and the alien shooter game "Gears of War 2."

The availability of a broad range of games is one reason for the industry's ongoing solid performance, said NPD analyst Anita Frazier. Games also provide a relatively cheap form of stay-at-home entertainment.

The industry, Frazier said, is still on track to rack up $22 billion in U.S. sales this year.

November and December are crucial months for video game companies. Many of them make the bulk of their money during the holidays.

This week, Electronic Arts Inc., the publisher of the popular "Madden" football game series, warned that sales have been weak in North America and Europe. Without giving specific guidance, EA said its fiscal 2009 results will fall short of the forecast it gave in October. But EA's warning did not seem to signal a broader downturn for the industry.

Hardware sales, which include gaming consoles like the Wii as well as handheld systems like Sony Corp.'s PSP, jumped 10 percent to $1.21 billion.

Nintendo enjoyed perhaps the greatest success in November, with 2 million Wiis sold _ the most yet in a month, according to Denise Kaigler, vice president of corporate affairs. The Japanese company boosted production of the easy-to-master gaming system in July to keep up with seemingly insatiable demand. Nonetheless, on Thursday afternoon, both Best Buy's and Wal-Mart's Web sites were out of stock.

Microsoft's Xbox 360, meanwhile, sold 836,000 units. Spokesman David Dennis said the company's games business had "great momentum" heading into the final stretch of the holiday season. The PlayStation 3, from Sony, sold 378,000 units.

Sales of video game software grew 11 percent to $1.31 billion. Besides "Gears of War 2," which sold 1.6 million copies, "Call of Duty: World at War" by Activision Blizzard Inc. and Nintendo's "Wii Play" and "Wii Fit" also did well. Electronic Arts had just one title, the zombie horror game "Left 4 Dead," in the top 10.

Comments

[Tom95134]

The downide to this is that nearly 100% of the money from hardware sales goes off-shore. SOftware is another story, so keep your old game console and just buy some new games.

[dmsdzinr]

NO BIG SURPRISE here! In tough economic times the American people will seek escape in entertainment,
be it movies in theatres, DVDs, CDS and video games!

[djgonebad]

Escapism at it's finest!!

Do they have a simulation game on running the US government?

Maybe the remaining REPUG'S could practice on the game instead of the people.

[LeRoyHolt]

the new "opiate" for the masses

[Village]

I put $600 into video games in November, so I'm in that pot.

I'm a first timer.

[SirReal1]

How terribly sad!

There must be a lot of people who "still had a little left" on their Credit Cards.

They might have considered holding on to it for the food they'll need to survive the next six months.

[planetjeffy]

at least all the unemployed will have something to do for the next couple of years.

[munki]

WELL.... what other enjoyment do we have that is inexpensive and can be repeated...

[LeRoyHolt]

SEX!!!