US Game Hardware Sales Down 30%

tssz|newsNintendo Still Dominates, but Not Like they Used To

It is becoming increasingly clear that the video game industry is not recession proof.  Even as some global markets are beginning to emerge from tough times, May’s North American game sales show the industry may be in for a prolonged rude awakening.

Last month’s NPD hardware rankings only show overall sales of $302.5 million, and overall sales were less than $1 billion.  Though that sounds like a lot of money, it’s the first time industry sales have dipped below the billion dollar mark since August of 2007.

Nintendo was on top again, with DS and DSi units combining to sell 633,500 units–down from April.  Wii sales were also down both compared to last and compared to May 2008, with only 289,500 units moving.  Microsoft’s XBOX 360 was flat with 175,000 consoles moving.  Sony’s Playstation 3 was the only console to see an uptick in sales, with 131,000 consoles sold–an increase from April of about 4,000 units.

Nintendo stock closed down yesterday on NASDAQ in light of the news, while Sony and Microsoft saw a slight uptick.

When the industry was a little more bullet proof, it was expected the current crop of consoles had at least three to five more years of life in them.  That could all change if this downward trend holds.  How do you see the console generation panning out long-term?  Share your thoughts in the comments section.

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