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November 13, 2008 8:50 PM PST

Video game sales soar in October

Posted by Steven Musil
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Despite a slowing economy, sales of U.S. video games and hardware soared 18 percent from the same month a year ago, according to data released Thursday by market researcher NPD Group.

Hardware sales were up 5 percent to $494.7 million, led by Nintendo's Wii game console. Wii held onto the top spot by selling 803,000 units in October, up from 687,000 in September. The Wii, which has been plagued by shortages, has sold more than 13 million units since its release in November 2006.

Microsoft's Xbox 360 held onto the No. 2 spot by selling 371,000 units, a 7 percent increase over September following a price cut that month. Sony's PlayStation 3 came in third with 190,000 units sold, an 18.2 percent increase over the prior month.

Software sales were up 35 percent to $696.8 million, led by Microsoft's Fable II, which sold 790,000 units. Second place went to Nintendo's exercise game Wii Fit, which sold 487,000 copies.

Meanwhile, sales of portable video games were down 14 percent.

The video game industry faces a tough holiday shopping season, following a bankruptcy filing by retailer Circuit City and a revenue warning from rival Best Buy.

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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Add a Comment (Log in or register) 16 comments
by goodspeed8701 November 13, 2008 9:42 PM PST
PS3 is going down
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by pjhenry1216 November 14, 2008 8:19 AM PST
Why does one have to hope for the destruction of another console that they apparently don't prefer? I own the PS3, 360, and the Wii. The PS3's problem isn't that it isn't good, but there aren't any games. When Assassin's Creed came out, I played it on both systems to completion (aside from side quests). I was more pleased with the PS3 version than the 360 version. Both had bugs that required restarting the game though. The graphics were much nicer on the PS3. Also, a game like littlebigplanet most likely just isn't possible on the 360 due to the amount of hardware thats required to play it. Plus, i doubt you'll see a multi-disc PS3 game any time soon as they can be much bigger than a 360 disc (blu-ray vs. dvd).

PS3 has advantages over the 360. The 360 has advantages in a superior online gaming setup AND simply more games. There's no reason why someone has to like one and hate the other. There's enough room for both. No reason to be a hater.
by rwm72 November 13, 2008 10:06 PM PST
Not in the rest of the world. Microsoft may be strong at home base USA, but everywhere else the Sony is preferred by healthy margins. Wii is still whipping them both though... the Wii fad continues.
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by goodspeed8701 November 14, 2008 12:16 AM PST
Do you know what you are talking about? Xbox outsold PS3 in japan 2months ago and you are saying rest of the world, for you info i am not an american and i see alot more xboxes than ps 3.
by rwm72 November 16, 2008 4:28 PM PST
Over the last 2 months in Japan, sales are nearly 2 to 1 in favour of PS3. Europe is also favouring PS3 over 360. PS3 and 360 were close for the last 12 months in the US, but, since the price reductions, the US market has tipped in favour of 360, and will probably continue to do so, perhaps at a greater rate due to the economy.

You may be seeing a lot more 360s among your friends and people you know, but we cannot look inside every home around the world. We have to rely on figures and trust they are reasonably accurate. Figures show that the PS3, outside the US, is stronger... but, it still has to make up the deficit of being launched 12-18 months later than the 360 though, and this margin is only closing at a slow rate. It will take most of the life time of the console to make up.

Bottom line: All 3 consoles have a large install base now, so all 3 are successful. While it is too early to see if any of the 3 will approach the success of the PS2, the Wii is obviously the winner so far. However, in 2 years time it may be different. PS3 is not going down, neither is 360. Wii is still the champ though... for now. Pick the one you enjoy the games on the most, above who has got what. All 3 will be around for a while yet.
by smallvoice November 13, 2008 11:12 PM PST
I would like to ask the industry to stop producing games that are harmful to the children, and start making programs that will cultivate children's minds, such as math and science.
I believe there are ways to make the stuff fun and at the same time educating.
Reply to this comment
by NWLB November 14, 2008 7:35 AM PST
There are plenty of games that fit that need, and more by the year. The Leapfrog and other systems, both portable and otherwise, are really great. I have bought them for my young kids.

But games are like books, TV, movies, radio, music, and anything else. If you don't raise your kids well, anything can have a negative impact. Thus, it is not that games you know of have negative impacts, it is that too few people spend the time preparing kids to function as mature adults who can deal with them.
by PhaseDMA November 14, 2008 12:16 AM PST
This is no surprise. Video games are simply not effected by the economy, and sales always jump from the same time a year ago.

If anything people buy more games during hard times. Sure. Their more expensive then a movie ticket, but typically they provide more entertainment then if you bought 6 movie tickets at $10 a piece.

smallvoice - Apparently you have never heard of Brain Age.
Reply to this comment
by Lerianis November 14, 2008 2:01 AM PST
Yep, that's the reason that game sales VERY rarely go down: they provide more 'bang for the buck' even at 60 dollars a game..... though that 60 dollars a game is STILL too expensive, in my opinion.
by backslash27 November 14, 2008 12:17 AM PST
The majority of gamers are age 21+ , as many studies show. (http://en.wikipedia.org/wiki/Video_game_culture#Demographics)

The current game rating system (ESRB, http://www.esrb.org/ ) is very good and information is easily presented to adults buying games for children.

With some web searching, you can find many independent games suited for children. Sadly there isn't a huge demand for "edutainment", but hopefully more and more parents will promote game development in that area. Still, balance is everything and parents should probably severely limit their children's allotted time for video games. Games aren't really positive unless they can reference (metaphorically) something a person has experienced in life. That said, a lot of the positive side-effects gleamed from playing games are not aligned with current classifications of "education". Many games can bolster multi-tasking and heigten brain activity regardless of subject matter.
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by Lerianis November 14, 2008 2:02 AM PST
Edutainment doesn't work very well. I played 'Math Blaster' when I was young, and was learning nothing, because I was already at pre-Calculus level at 8 and they didn't have any edutainment games that had that level of math in them.
by backslash27 November 16, 2008 9:22 PM PST
I agree that the current "edutainment" doesn't work perfectly, but combined with the technology used in some of the newer "cutting edge" games, edutainment can only improve. I believe a big push in demand from parents would improve the overall edutainment market. It's likely that as gamers have children this market will grow overall.

More demand and an increased market interest will only increase competition in the edutainment market. Like any game genre, any new interest will only increase the chance that successful titles could be successfully released within a few years.
by zincmann November 14, 2008 5:44 AM PST
Buy used Games, I own both the PS3 AND the Xbox 360 and I picked up an ALmost NEW Game for the PS3, in fact could have passed as new, without the shrink wrap, for $10 plus shipping. So why spend $60 fo new, I agree those prices are outrageous.
Reply to this comment
by gbwells November 14, 2008 6:59 AM PST
you might want to look a little further into why this really happened. look at what games were released in October. gamers everywhere were lamenting that there just wasn't going to be enough time to play all of the new October releases. people have waited *years* for Fallout 3 to come out. plus there was CoD4, gears of war 2, left4dead, lich king for WoW, mirror's edge, endwar, red alert 3, tomb raider, sonic... you don't normally see that many games with that much buildup (CoD4 and Fallout 3 in particular) all at the same time.

penny arcade had a good strip on this.

http://www.penny-arcade.com/comic/2008/10/31/
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by mailbox001 November 14, 2008 10:24 AM PST
With games today costing $60 each, at first that is expensive considering most people finish the game within a few days or weeks. But it is worth it considering when the game has a great online multiplayer option. That extends the usefulness of the game to at least a few months to a year. Compare that to any other forms of entertainment that $60 eventually becomes only a few pennies a day.
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by findconsolegames December 1, 2008 12:58 PM PST
Come on, $60 is a lot, but the hours of enjoyment are well worth it - $20 for a DVD = 2 hours. Get more than 6 hours play on a game. Worth it

Dave

http://www.findconsolegames.com
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