PaulSpoerry.com

As hardcore gamers play existing video games, casual gamers are taking over the whole video game console market in the U.S. ahead of the summer season (my dad even has a Wii!). Recently released figures by NPD Group indicate not only increase in the general spending on video entertainment, but also overwhelming advantage of Nintendo gaming platform over the Microsoft Xbox and Sony PlayStation.

Raise Again

Spending on video games in the USA – including hardware and hardware sales – increased about 30% year-over-year to $1.12 billion in May ’08, which is a drop from April ‘08’s sales figures. Still, in terms of dollar sales end-users spent 34% more on video games consoles ($428.6 million), 41% more on software ($536.9 million) and 30% more on video game accessories ($150.8 million). In fact, the video game industry has already generated more revenue than

“The U.S. video games industry has generated $6.6 billion in sales so far this year which exceeds total 1997 annual revenues. The industry is on pace to achieve revenues in the $21 – $23 billion range for 2008,” said Anita Frazier, an analyst for NPD.

Sales of video game consoles in May in terms of unit seem to remain on about the same level as in April: 1.2137 thousand units, not counting Sony PlayStation 2, which is quite popular to say at least, but which sales NPD refuses to disclose from now on.

Wii and Nintendo: Leading the Pack

Nintendo Wii was acquired by about 675.1 thousand of gamers in May ’08, whereas its rivals Sony PlayStation 3 and Microsoft Xbox 360 only managed to attract 208.7 thousand and 186.6 thousand of gamers, respectively, across the U.S. This is not the first month when Sony’s PlayStation 3 outsells Microsoft’s Xbox 360 intangibly. According to a source with knowlegedge of NPD numbers more precisely, Nintendo Wii has outsold Microsoft X360, Sony PS2 and PS3 combined again “easily”.

The sales drop of Microsoft Xbox 360 game does not seem to be a result of shortages of the game system itself, but may be a result of the fact that the consumer market demands something that Microsoft cannot provide. However, the same could be true about Sony’s PlayStation 3 with sales that only barely exceed those of X360.

“The continued success of [Grand Theft Auto IV] is not translating into big hardware sales for either the PS3 or the X360, but there may yet to be a lift in June due to gift-giving for Father’s Day and Graduations,” said Ms. Frasier.

Blue Skies for Wii

According to NPD, at number 12 of the top-sellers list in May, there is We Ski from Namco, which utilizes the Wii Fit balance board. The title was able to captilize on Wii Fit’s cross-promotions in circulars and at retail, analysts say.

Despite of slow sales of Microsoft Xbox 360 and Sony PlayStation 3 machines, Grand Theft Auto IV title has now generated combined sales of 4.2 million units, making it the top-selling title of the year. Still, music-related titles generate loads of sales, according to NPD.

“A lot of folks are interested in the battle of the bands.  Year-to-date, Guitar Hero III has sold 2.5 million units compared to Rock Band’s 1.3 million which lands them both in the top 10 titles for the year so far,” Ms. Frazier said.

For the record, I’m not a Wii-fanboy. In our house we have a Wii, XBox, XBox360, PC’s, GameCube, several PSP’s, and a bunch of GameBoy’s.