Video Game Sales Collapse as Holiday Shopping Begins

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By Trey Thoelcke Published
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Video game sales have collapsed just as retailers begin to rely on strong holiday sales. Industry research firm NPD reports that in October, U.S. video game retail revenue dropped 25% compared to the same period last year when sales were $1 billion. The sales of game consoles fell 37% to $296 million.

The companies that will be most badly damaged by the trend are the major console makers, which include Microsoft Corp. (NASDAQ: MSFT), Sony Corp. (NYSE: SNE) and Nintendo. They cannot follow the migration of games to smartphones and tablets because these new devices take the place of their console products.

There is a bit more hope for companies that make software — the games themselves. At the top of this list is Electronic Arts Inc. (NASDAQ: EA), the largest of the traditional game makers. It has begun to create games that can be played on new portable devices, which means EA has begun to undermine the hardware sales of its traditional partners like Sony. But EA and its long-time rivals may be unable to stay ahead of new companies that do nothing but program for the next generation of portable devices.

Douglas A. McIntyre

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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