August Game Sales Drop 16 Percent

tssz|newsConsole Horserace for Second Place

The domestic video game industry has slowed for a sixth straight month.

The latest NPD data for August shows a 16 decline in overall sales from last August.  Overall console sales were off a staggering 25 percent year over year, with software sales down 15 percent.

Nintendo’s Wii remains the top selling home console, selling over 277,000 units in August.  The Nintendo DS is the top console overall, as the portable sold over half a million for the month.

A combination of a reworked console and a series of price cut had yielded a battle for second place in the console race.  Microsoft’s XBOX 360 series has still edged out the title with 215,400 units sold in August.  But the PS3 slim–and a $299 price point–has significantly helped Sony.  NPD reports 210,000 units sold for August, and you may have read various PR touts about a 300% increase in PS3 sales–no doubt a result of this perfect sales storm.

On the software side, the Nintendo Wii is beginning to lose its grip on the market.  The next generation editions of Madden NFL 10 took the #1 (360) and #2 (PS3) spots.  Still, Wii Fit and Mario Kart Wii retain spots in the top 10.

The future doesn’t look so rosy for games.  Analysts expect growth to slow through the end of the year, with the Holiday shopping season becoming a very critical point for all the big console and software makers.

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