The Nintendo Wii is such a large percentage of total video game consoles sales that any drop in its numbers signficantly affects overall industry figures.
Wii sales in January were 30% lower than in the same month last year, according to research firm NPD Group. Wii unit US sales dropped fell 36% to 465,800. Sales of rivals Microsoft (MSDT) Xbox 360 and the Sony (SNE) PS3 actually rose, the Xbox by 7% to 332,800 and the PS3 by 36% to 276,900. The data show Wii has a huge lead even in a month when its sales are poor. The numbers also indicate how badly the PS3 is doing even in a month when its sales are up.
Total video consoles sales dropped 21% during January. Software sales were down less-only 12%. The popularity of “Mass Effect 2”, “Call of Duty: Modern Warfare 2”, and “New Super Mario Bros.” helped game publishers to have a moderately good month.
The figures show the impact of the economy on video game sales, but they may tell something beyond that. Video games have begun to migrate to the internet where many can be played on PCs rather than game consoles. This was the reason behind the $300 million buyout of social game company Playfish by Electronic Arts (NASDAQ:ERTS). The largest independent game publisher realizes that consumers are have begun to shift away from console-based products.
The economy may have damaged video game sales, but the internet is what is likely to decimate them
Douglas A. McIntyre
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