14 DAY TRIAL // With the NPD Group sales numbers for both hardware and software due to come out towards the end of the week, analysts who are watching the videogame industry have been presenting their estimates. Yesterday, we heard from one firm, which believes that the slowdown in sales could amount to as much as 20% year over year, with only Fight Night Round 4 from EA Sports selling more than 1 million units in June.
Now, Michael Pachter, who is an analyst for Wedbush Morgan, is saying that the decline in sales from June 2008 to June 2009 will be of 23%, with overall sales of videogames reaching 670 million dollars. This is because this year's releases lack the punch packed by games like Metal Gear Solid 4: Guns of the Patriots and Rock Band on the Wii, which account for the 61% growth seen in June last year.
Pachter is also saying that hardware sales will decline, with all gaming consoles moving less units, except for the Xbox 360 from Microsoft, which will see a 23% increase.
The analyst stated that “The Xbox 360 continues to appeal to consumers, likely due to a higher perceived value proposition. Wii hardware supply is no longer a concern, and we expect year-over-year sales of Wii hardware to be down for the next several months (down 5 percent so far in 2009). The recent PS2 price cut to $99 from $129 should prop up unit sales.”
Michael Pachter believes that the decline in handheld sales will probably stabilize by fall, with the price of the Nintendo DSi set to go down and with the release of the PlayStation Portable Go. Sales of the PlayStation 3 are also likely to shoot up if Sony reduces the price of the console in August, when Madden NFL 10 should be released.