X-bit labs

Tuesday, May 3, 2005

PlayStation 2 Games Lead U.S. Sales in Q1 2005. Sales of Portable Consoles and Games Pick Up, Claims NPD

According to marketing information provider NPD Group, sales of video games in Q1 2005 rose significantly year-over-year. Additionally, games for portable game consoles became significantly more popular during the period.

The first quarter 2005 U.S. retail sales of video games, which include portable and console hardware, software and accessories, saw sales of over $2.2 billion – a 23% increase over the same period last year. Total unit sales increased 18% over first quarter 2004, selling nearly 63 million units.

“While we expected to see impressive sales in the portable categories, the fact that all categories saw positive sales in terms of both dollars and units is a real testament to the broadening appeal of video games as a form of entertainment,” said Anita Frazier, entertainment industry analyst, The NPD Group.

Five out of ten top titles were designed for Sony PlayStation 2 consoles, two were developed for Microsoft Xbox, one was intended for Nintendo GameCube and the rest were made for Nintendo’s portable platforms.

All but two video game categories tracked by NPD showed either double-digit or triple-digit growth in revenue for the quarter. Console hardware and console software saw the lowest percentage increases at 8% and 7%, respectively, but in terms of dollar sales, console software saw the largest revenue of all categories, generating over $1 billion. The category showing the most growth, portable game hardware, with dollar sales exceeding $293M, experienced respective dollar and unit growth of 162% and 72%.

All other categories, console accessories, portable game software and portable game accessories, saw dollar sales increases of 16%, 69%, and 23%, respectively.

“Manufacturers, developers, publishers and retailers continue to deliver quality products and services that attract a wide range of audiences, and consumers are responding positively,” Ms Frazier added.

• NPD Group Press Release: The NPD Group Reports on First Quarter 2005 U.S. Video Game Industry Retail Sales.