By BARBARA ORTUTAY (AP)
NEW YORK — Squeezed by the economic downturn, U.S. retail sales of video games dropped sharply in June, the largest year-over-year decline the industry has seen in nearly nine years.
Market researcher NPD Group said Thursday that sales of game hardware, software and accessories plunged 31 percent from the same month last year, to $1.17 billion. It marked the biggest year-over-year decline since September 2000.
The drop "is certainly going to cause some pain and reflection in the industry," said NPD analyst Anita Frazier in a statement.
June was the fourth straight month to see a sales decline this year, even as video game companies continue to tout their products as a cheap form of entertainment. Recession-battered consumers are nonetheless cutting back on spending, and there have also been fewer hit game launches in recent months than in the corresponding period in 2008.
While retail sales have declined, the video game audience is continuing to expand. But many people are playing games online, for free. ...
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