BeLeMoiH

The US gaming industry ended 2007 with record retail sales of nearly $18 billion. This week, though, the NPD Group provided a sobering reminder that market growth is not guaranteed. Today, the industry-research firm released its US retail sales data for its January 2008 reporting period. While software sales for the month were up 11 percent to nearly $611 million for the month, hardware sales fell by a quarter to about $378 million. Combined with modestly declining accessory sales, the overall industry was down 6 percent for the month, posting $1.18 billion compared to January 2007’s $1.25 billion take.

Despite that, the month contained indications that the industry actually grew. That’s because NPD’s January 2007 reporting period was actually five weeks long as opposed to this January’s four-week span. NPD analyst Anita Frazier noted that the numbers are much rosier when that adjustment is taken into account. “At the top-line, on an average sales per week basis, January 2007 was actually up nearly 18 percent as compared to last year,” Frazier said. “And the big winner was console software which was up nearly 50 percent when compared on a level playing field to last year.” However, even on a week-by-week basis, hardware sales were still down 6 percent from last year. Frazier blamed that slide on price cuts made to the consoles, and speculated that hardware shortages in the wake of stellar December sales contributed to January’s slide. That assertion was backed up a statement from Microsoft saying the Xbox 360 was suffering from temporary shortages.

Source: Gamespot