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June 9, 2006

Videogame sales down in May

Posted by David Hunter at 1:59 PM ET.

David Ng at Forbes:

Video-game sales saw a decline in May after experiencing an upswing in April, according to reports from NPD Funworld and Cowen & Co.

Total U.S. console and handheld video-game sales decreased 10.2% year-over-year in May. Domestic console sales were down 4.5% while handheld sales were down 22.7% year-over-year.

Sales had decreased for nine consecutive months prior to an increase in April, according to Cowen.

Driving the May weakness were current-generation software sales, which fell steeply by 25.7%. Dollar sales of Microsoft (nasdaq: MSFT) Xbox 360 software accounted for 9.1% of console software unit sales for the month.

There’s more in the article including an expectation of continuing volatility as the major console vendors go through their transitions to the next generation, but this doesn’t sound like Microsoft is making much out of their lead time over Sony’s PS3 and Nintendo’s Wii.

Filed under Coopetition, Microsoft, Nintendo, Sony, Xbox

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