The NPD Group Reports Annual 2005 U.S. Video Game Industry Retail Sales
Video Game Industry Experiences Record-Breaking Year Thanks in Large Part to Significant Growth of Portable Market
PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Jan. 17, 2006--According to leading marketing information provider, The NPD Group, annual 2005 U.S. retail sales of video games, which includes console and portable hardware, software and accessories, saw sales of over $10.5 billion - a six percent increase over the $9.9 billion generated in 2004 and another industry record, exceeding the previous record-breaking $10.3 billion generated in 2002.
Sales set a new record thanks to the strong portable game market, which offset the declines in the console market. For the second year in a row, sales of portable software titles broke the $1 billion mark, generating $1.4 billion in the U.S. Portable game hardware, software and accessory categories saw respective dollar increases of 96 percent, 42 percent and 88 percent over 2004.
The console market did not fare as well, due in large part to hardware shortages, delays in the release of highly anticipated software titles and consumer anticipation of next-generation hardware. For 2005, console hardware, software and accessories saw respective dollar sales declines of three percent, 12 percent and eight percent compared to 2004.
While strong sales of hardware, software and accessories for the Nintendo DS and Sony PSP helped drive another record breaking year for the industry, the backbone of the portable market continues to be Nintendo's GBA. In 2005, GBA software represented 64 percent of total portable software units sold and 52 percent of total portable software dollar sales.
"The introduction of the Xbox 360 was a defining moment for the industry in 2005. However, it goes without saying that the full impact of next generation consoles on the consumer market won't unfold until later this year when Sony and Nintendo's video game consoles hit U.S. retail shelves," said Anita Frazier, industry analyst, The NPD Group. "The real story for 2005 was the incredible expansion of portable gaming. The GBA continued to realize stellar sales, and the introduction of the DS and PSP to the market brought older gamers to the portable format."
The NPD Group released a list of the top 10 games, ranked by units sold in the year 2005. Pokémon Emerald was the only Nintendo title to hit the list, ranking in second place behind the PS2 version of Madden 2006, and in front of Gran Turismo 4 and Madden Xbox.
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They had never used the term when the GBA launched so it's a "gamer" system because it was designed primarily with gamers in mind. The DS is a "non-gamer" system because from the very beginning Nintendo designed the DS with the idea of attracting people who currently don't play games.
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Originally posted by: Pale
Ian, over 4 million people bought Madden '06.
Who really cares if Nintendo isn't catering to them? blah.
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Nintendo cannot survive on Japans market alone. Europe is almost negligable(i think). Its needs the US, since we are the highest consumers of video game software.
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Originally posted by: Ian Sane
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Originally posted by: Infernal MonkeyQuote
Originally posted by: Ian Sane
On this particular point, I agree with Ian.
Seriously, who can argue with that?
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That's not what I meant though I can see why what I said could interpreted that way. "Getting games" isn't just understanding how to play or having the skills to do well. Part of it is finding it fun. I'm good at math but I don't enjoy it so I don't intentionally do anything involving math for fun. Nintendo thinks that people who don't game don't because they find it complicated or intimidating. I think they don't because they're just not interested in what's available. When you're really interested in something typically you make an effort to get into it.
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That makes sense and I think the GUI analogy is perfect. But I don't think motion control is easier. In fact I think it sounds harder. Waving a wand around is going to require more precision then just pushing a digital button. I see the remote more as a novelty to attract attention from people who don't game.
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I'm concerned that the remote will have similiar issues because who I think is a vertical sword strike might be interpreted differently by the computer. But if I just have to push B it's pretty much impossible for it to be interpreted incorrectly.
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