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Video Game Sales Down 2% In 2011 According To NPD Analysis

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Posted January 12, 2012 - By Leah Jackson

Console Wars: Developers Already Working On Next Gen Xbox and PlayStation Consoles -- Will They Come Out In 2012?

According to the NPD Analysis group, video game sales in 2011 were down 2% compared to 2010. The total amount consumers spent on gaming content, via all monetization methods, including new physical video and PC games, used games, game rentals, subscriptions, digital full-game downloads, social network games, downloadable content, and mobile games, is between $16.3 to $16.6 billion.

Based on their data, physical content still accounts for most of the money spent on games. "U.S. retail sales of new physical video game content, which includes portable, console and PC game software, generated revenues of $9.3 billion." Yet even though this is a massive figure, it's still an 8% decline over the $10.1 billion generated in 2010, according to NPD.

“Overall industry results are not entirely surprising given that we are on the back end of the current console lifecycle, combined with the continued digital evolution of gaming.  Core gamers continue to be engaged and spend on established franchises across both the digital and physical format using multiple devices for different gaming occasions,” said Anita Frazier, industry analyst, The NPD Group. 

Frazer goes on to say that one bright spot comes from the HD console systems. She says, "Sales across all categories for the Xbox 360 and the PS3 were up 5% for 2011.  Combined, the two platforms picked up 9 share points in total sales versus 2010.”

What do you think about the current state of video game sales? Are you surprised that sales were down in 2011 even though so many good games came out? Let us know in the comments section.

Video Game Sales Down 2% In 2011 According To NPD Analysis
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