Videogames on pace for another record year
Sales jumped 47% in April
By Susanne Ault -- Video Business, 5/16/2008
MAY 16 | The videogame industry is still on a roll in 2008, as both hardware and software notched gains in April over the same month last year, according to NPD.
Overall sales hiked 47% to $1.23 billion for the month. Hardware leapt 26% to $426.2 million, and software climbed 68% to $654.7 million.
The story is much the same for the four-month year-to-date frame, with total industry sales up 31% to $5.47 billion over the comparable 2007 period. At this rate, videogames should again break sales records in 2008.
Much of the momentum lies with Wii, which handily trounced its next-generation console rivals PlayStation 3 and Xbox 360. Wii sold 714,200 units in April, topping all consoles and portable systems. Xbox 360 and PS3 trailed far behind, selling 188,000 and 187,100 units respectively.
PS3 has definitely closed the once wide sales gap between itself and the Xbox 360. However, PS3 has a ways to go before catching Xbox 360's installation base. In their lifetimes, PS3 has sold 4.2 million units, and Xbox 360 has sold 10.1 million units in the U.S. The Wii, which launched at about the same time as PS3, has sold 9.5 million units, nearing Xbox 360's penetration.
Handhelds Nintendo DS and PlayStation Portable sold 414,800 units and 192,700 units, respectively, in the month of April.
“The industry continues to set a blistering sales pace and now shows a year-to-date increase of 31% over last year’s record-setting revenue,” NPD analyst Anita Frazier said.
Just launched Grand Theft Auto IV, available for both PS3 and Xbox 360, is fueling the market as well, she adds.
“GTA IV captured two of the top three game spots [No. 1 and No. 3], realizing an attach rate of 20% to the combined Xbox 360 and PS3 install bases,” Frazier said. “With only five days at retail during the reporting month, GTA IV is one of the fastest-selling titles in videogame history.”
Second place game title was Wii’s Mario Kart, which debuted two days before GTA IV.
Videogames show few signs of slowing down, as Frazier expects similarly big things out of upcoming Wii title launches of Wii Fit and Rock Band.
