Video game sales shine in U.S. despite economic gloom
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U.S. video game sales were a bright spot on November’s bleak economic landscape, climbing to nearly three billion dollars, according to market research firm NPD. Video game sales so far in 2008 topped $16 billion at the end of November and are on pace to crest $22 billion for all of 2008, according to the industry tracking group.
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Sales in November were 10% higher than the same month last year, before a financial storm slammed the economy.
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“The video games industry continues to set a blistering sales pace,” NPD analyst Anita Frazier said, citing research that showed video games were “the category consumers are least likely to cut back on this holiday.”
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Video game sales are up 31% for the year, driven by demand for titles such as “Gears of War 2” and “Call of Duty: World at War,” according to NPD.
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Video games crafted for Nintendo’s coveted Wii consoles made up half the top 10 best selling titles.
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Wii sales in November were more than double those of Microsoft Xbox 360 consoles and more than five times those of Sony’s PlayStation 3 systems.
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Still, each of the rival video game console makers “had something to brag about” in the robust sales figures, Frazier said.
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Video game sales are being bolstered by an industry trend of expanding the audience beyond “hardcore gamers” by designing offerings for families, girls, seniors, and others aside from young-male fans of shooter titles.
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“Economic factors are also at play given that a video game is a relatively inexpensive form of entertainment for the hours of value it provides,” said Frazier.
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A freshly released “Fallout 3” game from Bethesda Softworks lets people immerse themselves in the roles of heroes or outlaws in a vivid post-apocalyptic Washington for scores of hours.
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At a price of $60 for a copy of the video game, the cost breaks down to less than a dollar an hour for entertainment as compared with five or so dollars an hour to go to a film.
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“It’s clear there can be more multiple victors this generation (of consoles),” Frazier said.
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“While price is certainly a strong factor, particularly as the current economic situation continues to prevail, the most important factor that will drive success in 2009 will be the line-up of compelling games that will keep consumers involved in the industry.”
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