Videogame Industry Stumbles
A new study released by research firm NPD Group has reversed its projections for the industry in 2000, saying that video game software sales will actually fall 4% instead of rising 5.4%.
Published: January 1, 2001
The video game industry won't be as big of a winner as it expected to be this year. A new study released by research firm NPD Group has reversed its projections for the industry in 2000, saying that video game software sales will actually fall 4% instead of rising 5.4%.
The results follow sales through November and don't take into account the final Christmas gift-buying rush. However, they are significant enough to keep the business from topping last year's take of $7.4 billion. Among other figures that were corrected, NPD now says that software sales for Sony's first-generation PlayStation console fell 4%, a marked reversal of the 29% increase NPD noted earlier.
New York-based NPD produces a widely followed weekly report on retail sales of video games, collecting data from about 20 major retailers who account for 81% of vidgame sales in the U.S. According to project director Kristin Barnett-Von Korff, NPD discovered that one retailer, whose name was not disclosed, had provided faulty data for the entire year.
The reversal in sales figures is said to reflect consumers' decision to wait for the new video game machines expected next year from Nintendo and Microsoft. In addition, many consumers were told they would have to wait until after next March to buy Sony's new PlayStation 2, a belief that led many to hold off on buying the system's games.
The results follow sales through November and don't take into account the final Christmas gift-buying rush. However, they are significant enough to keep the business from topping last year's take of $7.4 billion. Among other figures that were corrected, NPD now says that software sales for Sony's first-generation PlayStation console fell 4%, a marked reversal of the 29% increase NPD noted earlier.
New York-based NPD produces a widely followed weekly report on retail sales of video games, collecting data from about 20 major retailers who account for 81% of vidgame sales in the U.S. According to project director Kristin Barnett-Von Korff, NPD discovered that one retailer, whose name was not disclosed, had provided faulty data for the entire year.
The reversal in sales figures is said to reflect consumers' decision to wait for the new video game machines expected next year from Nintendo and Microsoft. In addition, many consumers were told they would have to wait until after next March to buy Sony's new PlayStation 2, a belief that led many to hold off on buying the system's games.
