NPD: UFC Grapples Software, But Industry Sales Drop 23% in May
Hardware:
Software:
Hardware:
- NDS - 633.5K
- Wii - 289.5K
- 360 - 175K
- PS3 - 131K
- PS2 - 117K
- PSP - 100.4K
Software:
- 360 - UFC 2009 Undisputed - 679.6K
- Wii Fit - 352.8K
- Wii - EA Sports Active - 345.8K
- PS3 - UFC 2009 Undisputed - 334.4K
- PS3 - inFamous - 175.9K
- NDS - Pokemon Platinum - 168.9K
- Wii - Mario kart - 158.3K
- Wii - Punch Out!! - 156.9K
- 360 - X-Men Origins: Wolverine - 120.7K
- Wii Play - 109.8K
"I was expecting the numbers to be soft, but I was surprised by how soft they actually were," NPD industry analyst Anita Frazier commented to IndustryGamers. " I think we've all become accustomed to sales months +1B at the total industry level. But May is one of the lowest sales months each year."
"Hardware sales are certainly soft, except for the DS. The primary driver of hardware sales is compelling content and as you can see from the software numbers, the aggregate of content is just not generating the same level of sales as we saw last year. So the lull in software sales is having a ripple effect across the other categories including hardware and then accessories. I'm sure the economy is playing a part as well but the primary factor is content."
"While there were some very strong new releases this month along with continued strong sales of evergreen games, this month's top 10 games sold 2.6 million units combined, whereas last year the top 10 sold 3.7 million units. Again this illustrates how tough the comparisons are to last year."
Despite the continued decline in the industry over the last few months, Frazier remains optimistic about 2009 breaking records. "The back half of the year typically makes up roughly 65% of total year sales, so an increase in the back half will have a greater effect in reversing the year-to-date decline. The slate of content looks pretty strong for later in the year," she told us.
And she's already more optimistic for June, considering the content on the way. "Looking ahead to June, there are some promising games coming out this month between Sims 3 (PC), Prototype, Red Faction, Virtua Tennis, Ghostbusters, Transformers and Tiger Woods just to name a few," she said. " At E3, it was notable how many games were targeted to the tween girl demographic, and this June will see a number of games introduced for girls as well. June comparisons are still likely to be tough, but the wide variety of new content could help reinvigorate things somewhat."
We also asked her if it was finally time for Nintendo to cut the Wii price due to slowing demand. She responded, "There seems to be adequate Wii inventory in the channel now, so consumers who want one can readily get one. While the hardware sales for the last two months certainly haven't been what we've become accustomed to, it's still the best-selling of the console systems. I think it's really too soon after just two months to start talking about the need for a price cut. The Wii has reached 20 million in install base in the U.S. in 31 months and has achieved that milestone faster than any other console system, so I think that speaks volumes about its performance and viability."
And she's already more optimistic for June, considering the content on the way. "Looking ahead to June, there are some promising games coming out this month between Sims 3 (PC), Prototype, Red Faction, Virtua Tennis, Ghostbusters, Transformers and Tiger Woods just to name a few," she said. " At E3, it was notable how many games were targeted to the tween girl demographic, and this June will see a number of games introduced for girls as well. June comparisons are still likely to be tough, but the wide variety of new content could help reinvigorate things somewhat."
We also asked her if it was finally time for Nintendo to cut the Wii price due to slowing demand. She responded, "There seems to be adequate Wii inventory in the channel now, so consumers who want one can readily get one. While the hardware sales for the last two months certainly haven't been what we've become accustomed to, it's still the best-selling of the console systems. I think it's really too soon after just two months to start talking about the need for a price cut. The Wii has reached 20 million in install base in the U.S. in 31 months and has achieved that milestone faster than any other console system, so I think that speaks volumes about its performance and viability."
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