Video Game Industry Continues to Face Headwinds

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By Douglas A. McIntyre Updated Published
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Research firm NPD has released its monthly data for video game sales. The industry continues to face consumer preferences for using tablets and smartphones instead of consoles as platforms. And the number of inexpensive games that can be download from app stores has risen. Some of the most popular sources of these games are free.

This movement has pressured both console makers Microsoft Corp. (NASDAQ: MSFT) and Sony Corp. (NYSE: SNE) and has eroded revenue at game creators and marketers, particularly Electronic Arts Inc. (NASDAQ: EA).

According to Edge Online:

The software charts saw an overall year-on-year decline in unit sales of 30% compared to February 2012, though there were a similar number of new releases. Total video game software sales at retail amounted to $352 million in February 2013, compared to $484 million the previous year.

Shares of Electronic Arts closed yesterday at $19.34, in a 52-week range of $10.77 to $19.51.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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