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March Game Sales Trend Downward

kukyfrope writes "This is the third consecutive month video game sales have declined from their marks in respective months from last year. March 2006 sales are down 18% from their marks in March 2005. Are gamers saving for expensive next-gen systems or are there a limited number of games worth buying?" From the article: "The estimate also reflects $122 million in sales contribution from new platforms (Xbox 360, PSP and DS) representing year-over-year growth of $58 million (the PSP and DS were available last March), which was unfortunately more than offset by a steeper decline in sales of current generation software (-33% or $157 million)."

49 of 62 comments (clear)

  1. You know why? by Vengeance · · Score: 4, Funny

    Probably because Wal Mart controls modern game design (or so I've read... somewhere).

    --
    It was a joke! When you give me that look it was a joke.
    1. Re:You know why? by ronfar · · Score: 1
      --
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  2. Im in the demographic that isnt buying by beyonddeath · · Score: 1

    From what Ive seen this year there has been a distinct lack of games, and the ones out there arent real good. Not to mention everyone i know that used to be hard core gamers no longer have time for it with the last years of university. I think the game developers need to focus on creating a quality game experience, which I hear the Elder scrolls provides, but I've yet to have the time to check it out, hence the problem. thats my .02c

    1. Re:Im in the demographic that isnt buying by IgLou · · Score: 1

      You're 2 cents is worth a quarter at least. I'm in a similar boat but for different reasons.

      I used to be in the "I-buy-the-latest-and-greatest"; however, I don't have that luxury anymore. I have mortgage payments and kids and I'm more career focused. I used to go through games like toilet paper. But I can't do that anymore. So now I'm more selective and really only buy games that I'm 90% certain will be worthwhile. For instance Half Life 2 was a great buy for me and I'll play online on it quite often. But then I bought Civ 4 and boy what a mistake! When I buy a game and it burns me like that then I'm less likely to buy any game again... unless I'm completely sure.

      Now, I'm assuming the game industry will do the usual "Piracy is killing us" line but give me a break. I think someone outside of the industry needs to take a look at who was driving the sale of video games years ago and see where that demographic is today. I guarantee this story is not unique at all.

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    2. Re:Im in the demographic that isnt buying by psocccer · · Score: 4, Insightful

      You know I'm in the "not buying lots of games anymore" dept too, but what I think people overlook as they enter that stage is that for every one of us that moving on to other things, there's someone who's getting their first job at McDonalds and having $50 to $100 a week of free cash, which means they're now buying 4 games a month and a lot of DVD's and CD's (instead of us).

      It's not like we were the last generation of people to ever have time to play games, there will always be someone to take our place. What is really indicated by this kind of article though is that either:

      • The next generation of kids with free-time does not like video games
      • or (more likely) the current crop of games just isn't that great because we're in a hardware transition cycle so people are waiting/saving more for next-gen (and developers are spending less on making good current-gen games too)

      Never fear, come next spring sales will be up again.

    3. Re:Im in the demographic that isnt buying by Physician · · Score: 2, Interesting

      Are you saying that you are the last generation in existence? Just because your generation is getting too busy with school doesn't mean there isn't another younger generation ready to take its place.

      --
      Does God treat us as servants or friends? Check my homepage.
  3. News just in... by Lewisham · · Score: 3, Insightful

    Dearth of games while developers switch all their production teams to the next generation of consoles that aren't out to much of the market yet.

    News at 11. ...seriously, this is exactly what happens during this time. I don't see how this is surprising.

    1. Re:News just in... by ClamIAm · · Score: 1

      Exactly. This article is like comparing November and December sales to January and February and saying "OMG game sales r teh d00med!!1". If they were comparing March '06 to other years that were "in-between" consoles, then I'd perhaps listen.

  4. TEH formula by revlayle · · Score: 1

    Start at affordable gaming prices (insert canned laughter here) + Inflation + Raising gas prices + Debts (increasingly a way of life!) + Raising prices in new game systems and game for said system include: + games that do not intrest me right now + waiting for games to go to the bargain/used bin anyways(well at least I DO... i RARELY buy brand new games) = SALES SLUMP!

  5. Sales down? by zephc · · Score: 4, Funny

    Shhh, busy playing Oblivion. Talk later.

    --
    "I would say that 99 per cent of what my father has written about his own life is false." - L. Ron Hubbard Jr.
  6. Monthly report by __aaitqo8496 · · Score: 1

    Didn't we just discuss this?

    I still partly attribute this trend to the MMO effect.

    1. Re:Monthly report by hackwrench · · Score: 1

      That was the preview, this is the wrapup.

    2. Re:Monthly report by ClamIAm · · Score: 1

      OK, so "the MMO effect" is basically you speculating that WoW is eating up game revenues in general? Let's see some evidence, please.

    3. Re:Monthly report by paullyjunge · · Score: 1

      Didn't we just discuss this?

      Yes we did, and I think the consensus then was that everyone is waiting for DS Lite, Revo, and PS3. Sorry 360, but if you jump the gun on the next generation, you should probably have enough consoles to fill demand.

    4. Re:Monthly report by __aaitqo8496 · · Score: 1

      If I had evidence, it would be a fact, not a theory.

    5. Re:Monthly report by rohlfinator · · Score: 1

      The number of MMO gamers in the US probably totals to around 3-4 million gamers. Even if we assume that each of those players has stopped buying other games, they still make up less than 5% of the total American market. That doesn't account for the 18% decrease.

    6. Re:Monthly report by Detritus · · Score: 1
      Without evidence, it would be a conjecture or hypothesis.

      Get thee unto a dictionary.

      --
      Mea navis aericumbens anguillis abundat
    7. Re:Monthly report by Pofy · · Score: 1

      Even without "evidence" it is not hard to guess that if more people start to pay a monthly fee to play some game, they will probably buy less other games since most people doesn't have unlimited budget for game purchases. If you allready pay half or one third of the price of some average game as subscription there is obviously less room for other new games, especially if you tend to buy less than a game every other month. In addition, you probably don't have any time left over for other games either since you allready are playing another....

    8. Re:Monthly report by Jarnis · · Score: 1

      You are underestimating the MMO playerbase. Also many MMO players play multiple games. What's meaningful here is 'how much gaming dollars are MMOs pulling'.

      My bet is on a serious chunk per month.

      I mean I personally spend about 50$ a month on MMO subs fees, and that's more than 75% of my monthly 'games budget' I spend (so I buy very few games, spending my time with MMOs).

      Let's take your 4 million MMO subscribers, and then note that many of them play multiple games and/or multiple accounts on single game. Let's assume they spend 30$ a month on MMOs on average (so average 2 accounts and/or 2 games played, at 14.95$ a month per account). 4 million subscribers, 30$ per person spent on MMOs, comes to 120 million USD per month going to MMO subscriptions.

      How much were the monthly game sales again? Original article does not say, but it refers to 445M as monthly consoles sales. 120M is a serious bite out of that, in fact, umm, over 20% of total console sales + my estimation of MMO subscription money spent.

      PC sales are not a huge bite of the market, so that 18% could be pretty much what goes to MMOs. Maybe there is a slight downward trend from other things (people waiting for worthwhile X360 purchases and/or PS3), but as long as this 'study' doesn't include subscription fees, it's worthless as a 'total game sales' indicator. And we get constant 'SKY IS FALLING!!111' spam from the clueless 'analysts'.

      I also doubt it counts Xbox live fees and online purchases, which are nibbling away the 'console $$$ spent' pie.

    9. Re:Monthly report by rohlfinator · · Score: 1
      "You are underestimating the MMO playerbase."
      Actually, I wouldn't be surprised if I overestimated it. AFAIK, the only MMO to surpass a million subscribers in the US is WoW. It's sold 6 million + worldwide, but around half of those accounts are in China and Europe.

      Apart from WoW, and the Lineage games (which sell mostly in Korea), only one or two MMOs have more than half a million subscribers worldwide. I don't have any recent numbers, but 4 million doesn't seem too far off, considering that beyond WoW, the MMO market is relatively small. Maybe 5 million in the US (3 million WoW players, 2 million in other games combined)? And I'm counting subscriptions, since companies can't really know who owns multiple accounts. So the "4 million subscribers * $30 a month" formula is a bit high, since it's more like 4-5 million subscriptions (at $10-15 a month).

      Regardless, I don't think pure dollar figures are the best indicator, either. If you weren't spending $50 a month on MMOs, would that money have actually gone to other games (in March, during a console transition)? And how many WoW subscribers even played videogames before? At least half of the players I know were extremely casual gamers before subscribing to WoW. Their "gaming budget" was more like $40 per year, so WoW is drawing from entirely new income. And regardless of the dollars spent, there are at least 100 million console gamers who aren't subscribed to MMOs. Clearly their buying habits have diminished, too.

      MMOs may have had an effect, but the majority of this downturn is due to the console transition. The analysts are completely right on this one (for once).
    10. Re:Monthly report by GmAz · · Score: 1

      Agreed. I would much rather pay $15 a month for a game that I find fun and exciting than spend $50 on a game that I will finish and never pick up again in about 2 weeks.

      World of Warcraft FTW!

      --
      Click Click Bloody Click PANCAKES!
    11. Re:Monthly report by ClamIAm · · Score: 1

      A logical assertion does not prove the validity of the assertion.

    12. Re:Monthly report by __aaitqo8496 · · Score: 1
  7. Christmas by chris_eineke · · Score: 1

    I guess since the commercialisation of Chri$tma$ people spend more for Chri$tma$ presents than they would spend in the follow-up months after Chri$tma$. You can only milk the Chri$tma$ cow so much.

    --
    "All you have to do is be fragile and grateful. So stay the underdog." Chuck Palahniuk, Choke
    1. Re:Christmas by Azarael · · Score: 1

      It's just a guess, but I'd say that dropping the few hundred down on a 360 in December probably contributed too. Last year they -could- have spent all of that money on games, especially if there were good releases(I can't remember).

    2. Re:Christmas by the_demiurge · · Score: 1

      But people thought that you could only milk the s -> $ humor so much too, but you proved them all wrong.

  8. Idiots are not counting MMO subs fees by Jarnis · · Score: 4, Interesting

    As long as the 'Game Sales' keep on counting just the amount of game boxes sold in stores, and do not include ;

    - MMO Subscription fees
    - Online game purchases via Steam, Direct2Drive etc digital downloads

    They will get continuous slide well into future, and lots of 'OMG! SKY IS FALLING!!!oneone!!1111' articles. Lies, Damn Lies and Statistics, as always. 5 Million people paying 15$ a month to Blizzard (in addition to all the other MMOs collecting subscription fees) must show somewhere - that's 75 million dollars a month, WoW alone - and there are plenty of others out there.

    Actual gaming dollars spent is not changing, however it's shifting towards online services & downloads. If you have stock in brick & mortar games retailer, you should dump it now. It's a deadend business destined to go only down.

    (Grossly overpriced 'next gen' console games are not helping either. XBox 360 looks fine, but 70 euros (inc VAT) per game for 'quick action' style title that you enjoy at best a few weeks = no FCKING way. Never)

    1. Re:Idiots are not counting MMO subs fees by CRiMSON · · Score: 1

      It's actually not $75M USD/month.

      As Chinese players don't pay $15/us, Korean players don't pay $15/month.

      So your number is slightly larger than what it should be.

      --
      oogly boogly!
  9. Re:Zoinks! What are we doing wrong here!? by scolby · · Score: 1

    Console gamer: "I like not having to upgrade my hardware every two years to play the newest games! F*ck the PC!"

  10. Release some quality games by eieken · · Score: 1

    No really, do it. Otherwise I'm taking my money and going home to play one of a billion other fun games I already have. Also, don't try to trick me into buying a game I already have by changing its name and packaging.

    --
    Meet new people, and kill them.
  11. No kidding by phorm · · Score: 1

    There were a lot of games that they had indicated *would* be around about now... but they've been put off until later.

    To name a few:
    - Half Life 2 expansion
    - Final Fantasy XII (that's 12, not X-2)
    - Zelda Twilight Princess

    At least those are the ones I might have bought. Haven't seen much else out to keep my interest.

  12. Re:Anyone have a list of March releases? by Jearil · · Score: 1

    The only other game worth a lick of salt that I noticed was Kingdom Hearts II for the PS2. As for other games off the top of my head:

    Daxter (PSP)
    GRAW (Xbox 360)
    Burnout Revenge (Xbox 360) - just a remake to be pretty on the 360.
    Oblivion (PC and 360)
    Kingdom Hearts II (PS2)

    Naturally there were others, but nothing else that really interested me. I think the PSP version of Katamari Damacy came out in march, but it could have been early April. I bought the japanese version in Feb so I didn't keep track of that one.

    For post-xmas game release months however, I'd say March was actually pretty decent.

  13. Likewise by realilskater · · Score: 1

    Now that there are bills to pay and school work to do I really can't spend as much time as I used to playing games. In highschool when the work was cake and I didn't have to work for a living I could spend as much time as I wanted playing games. On top of not having the time, cause I still find some, a lot of games comming out are just plain shit. While were on the topic of crappy video entertainment the movie industry is in the same boat. If the game of movie industries could make a quality product that people "need" to play/watch people will buy it.

  14. From a game company boardroom by Sir+Unimaginative · · Score: 2, Funny
    "Hey, look at what the MUSIC INDUSTRY'S doing!"

    "Dude, that's brilliant, blame PIRATES!"

    "But wait, we already have ridiculous goat-choking copy protection in games!"

    "But dude, PIRATES!"

    (assorted "Oh, yes, pirates!"; "Of COURSE!"; "Brilliant!")

    "But wait, couldn't it just be that our games all suck a-*THROTTLE* *CHOKE* *GAG*"

    --
    The problem with your idea is that it makes sense.
    1. Re:From a game company boardroom by idonthack · · Score: 2, Funny

      Yeah, I haven't seen a good pirate game in a while. Or a ninja game for that matter.

      --
      Why is it that when you believe something it's an opinion, but when I believe something it's a manifesto?
  15. Re:Zoinks! What are we doing wrong here!? by radish · · Score: 1

    Big brand game console developer 2: "We hyped about our new product for 2 years, released it quickly but weren't able to make enough to meet demans, seriously it's 4 months later and they're still scarce. We can't understand why people seem to think nobody is buying our new console and software titles"

    Fixed.

    --

    ---- Den ene knappen er powerknapp, den andre er Bender voice knapp "Bite My Shiny Metal Ass"

  16. Well, the obvious answer would be... by Tadrith · · Score: 1

    The games released so far SUCK! I don't know about anyone else, but I find that the kinds of games I buy are almost always the games that get rated 9.0+, or editor's choice, or something along those lines. Regardless of whether the review is fair or not, I'm not reading the review -- it's just that generally games that score in that zone coincide with games I've decided to buy and like. I'm not really interested in the "so/so" gaming experience. I also tend to hold out for the RPG genre, which has been in somewhat of a drought.

    Oblivion was the only thing that came out in March that fit the bill for me, and I'd been waiting for Oblivion since the day they announced it. I'm still playing Oblivion, for that matter, and probably will be for months to come. I applaud Bethesda for listening to the fans, and not placing any copy protection schemes on the game.

    Of course... there are the games that I refuse to buy because of Starforce. I check every game before I buy it now, because I absolutely refuse to install that crap on my computer, let alone purchase something so deliberately crippled. Unfortunately, that meant missing out on Prince of Persia: The Two Thrones... but so be it.

  17. Lots of kids in school by VGfort · · Score: 1

    I think gaming tends to go up in summer and christmas break, I think sales would usually be higher around that time as well. We're also on the verge of new consoles hitting the market. Usually games for the old consoles tend to wind down some and people may be hesitant to pay $50 for a new game on an old system if they need to save up $ for the new system.

  18. Are these overall figures, or just US sales? by atomicstrawberry · · Score: 1

    I may not be the typical gamer, but as far as PAL releases go, I've probably purchased as many games between January and March as I did all last year. Shadow of the Colossus, ICO re-release, We Love Katamari, Atelier Iris, Dragon Quest VIII... and we're supposed to be getting Guitar Hero some time soon. Plus there's even more in the pipeline. And that's just on the PS2. I suspect that while things might be declining in the US, they may not be in other territories. Then again, maybe no one's buying games but me. That might explain why Shadow of the Colossus and We Love Katamari have constantly been in the top-ten PS2 sellers in Australia since they released in Feb.

  19. A trend? by N-Bomb · · Score: 1

    "New music sucks" "New games sucks" "New xxxxx sucks" Is there a trend here? It can't just be because we're getting old and stodgy. :P

    1. Re:A trend? by the.Ceph · · Score: 1

      You might be old and stody but I'm still young and lively and I think most new things suck.

  20. So... by kn0tw0rk · · Score: 1

    when is there going to be a decent ninja's vs pirates game then?

    --
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  21. Sequelitis by vulgrin · · Score: 1

    I cut-n-paste for my site DailyGamingNews.net, and send out a daily email to subscribers. Basically, I find stories, previews, reviews that I think folks will find interesting and send them out in a daily newsletter.

    I cannot even begin to tell you how many game titles have a colon (:) in them. For example: "Hit Title : Yet Another Version". It makes me sick... I never noticed how bad and rampant it was until I started doing this daily site.

    The game industry needs to clone Wil Wright.

    --
    I sig, therefore I am.
    1. Re:Sequelitis by Retired+Replicant · · Score: 1

      Because, of course, there are no expansion packs or sequels to the Sims or anything like that.

  22. Re:Zoinks! What are we doing wrong here!? by KDR_11k · · Score: 1

    We can't understand why people seem to think nobody is buying our new console

    May have something to do with the fricking huge piles of unsold consoles I'm seeing 'round here. Seriously, some of these stacks are at least 20 XCircles and not even the Core version!

    --
    Justice is the sheep getting arrested while an impartial judge declares the vote void.
  23. I would buy more games, honest... by Glamdrlng · · Score: 1

    It's just every time I get ready to leave the house it occurs to me that I could play Oblivion til I get one more level and next thing I know it's 4 in the morning and all the stores are closed.

    --

    Yes, my only tool is a hammer. And you're starting to look like a nail.
  24. Lockout chip business model by tepples · · Score: 1

    Console gamer: "I like not having to upgrade my hardware every two years to play the newest games! F*ck the PC!"

    PC gamer: "I like playing casual type games developed by hobbyists and smaller firms. Sometimes I even like learning about what makes games tick, so I have even developed a couple simple games myself. F*ck consoles and the lockout chips they rode in on!"

  25. Sid Meier's Pirates! by tepples · · Score: 1

    Yeah, I haven't seen a good pirate game in a while

    Don't you think the fellow behind the Civilization series could produce a decent pirate game? Oh wait, he did.