Newer Consoles…Fewer Game Sales!
The popularity of Microsoft’s new Xbox 360 has been a mixed blessing for retailers and the $25 billion video game industry in general.
The consoles have all been snatched up and the short supply has prompted consumers to wait to buy games until more of the consoles are available next year, the Wall Street Journal reported Sunday.
Furthermore, gamers are holding off buying titles for their existing systems out of fear they could become obsolete, the Journal said.
NPD Group Inc., which tracks consumer electronics sales, says videogame sales plunged 18 percent below last year’s figure when the Xbox 360 hit hit U.S. store shelves in November.
The drop prompted both Electronic Arts Inc. and Activision Inc. to warn they will miss financial forecasts for the current and upcoming quarters.
The Journal predicted the down trend to continue into 2006 as Sony and Nintendo roll out their latest consoles.