I just changed the title of this post (thus the different url for you nitpickers out there) for one simple reason: After thinking about the new NPD data for a little while, that strikes me as the real story.
Despite the ongoing recession, the videogame industry had a grew 19% in 2008, a figure most any other industry, especially every other sector of media, would envy.
But there's no denying that figure is being hurt by the recession. In October, the biz grew 18%; November, 10%; December, just 9%. Just a year ago, in December of 2007, the U.S. videogame biz grew an astonishing 28%. It's looking very likely that industry is looking at single digit growth in 2009.
Almost every major company is feeling the pain of the economic downturn to one extent or another. All the big publishers have admitted in recent investor calls that they are retail traffic and ordering grow more conservative. Electronic Arts, the nation's biggest publisher, had to warn it wouldn't hit earnings targets.
And then there's Sony. The latest NPD data is just plain dismal for the Playstation maker and explains why it's likely on the verge of major layoffs. Forget slowing growth -- sales for the PS3 and PSP actually declined in December compared to a year ago, the second month in a row that happened. All those great reviews for "LittleBigPlanet" and the victory of Blu-ray and the "Ratchet and Clank" PSP entertainment pack just didn't make a difference. Though total PS3 sales did grow a healthy 40% from the terrible 2007 figures, the console remains mired far behind 360 and Wii with virtually no chance of catching up (here's one theory why).
So with all those problems, how is the industry even doing as well as it is? One word: Nintendo. Wii sales boomed 62% this year, breaking NPD's all-time record by selling more than 10 million units. DS grew 17%, coming in just a hair behind the Wii with 9.95 million. Both figures are more than the 360 and PS3 combined.
The story's the same in games. Five of the top ten games of the year were for DS and Wii and all five were published by Nintendo itself. And things are only getting better. Six of the top ten in December were for those platforms with five published by the "Mario" maker itself.
For those of us interested in the wide variety of innovative, interesting games released on all five consoles (and PC!), it's important to keep this fact in mind: In a year that featured new releaes like "Dead Space," "LittleBigPlanet," "Fallout 3," "Far Cry 2," and "Metal Gear Solid 4," none of those games sold more than 1.65 million units domestically (in a single sku, anyway) and made the top ten.
Particularly notable is the staying power of Nintendo's games (as I noted last month, it really does have the best legs in the videogame biz). While every game from competing publishers in December's top 10 chart was released in October or November, Nintendo had two games release in the spring, one in 2007, and another -- the astonishing "Mario Kart" DS -- came out in November of 2005.
Microsoft remains right in the middle. 360 sales grew 2% in 2008. It continued to boast strong sales for its biggest franchises -- "Gears of War 2" sold over 2.3 million units -- and very strong third party sales, with three of the top ten games third party titles for the 360. It may be losing that advantage, though, as the Wii ended up with the most third party third party games sold in December for the second month in a row.
More thoughts coming soon, no doubt. Meanwhile, here's the data to ponder yourselves:
Game Console Publisher Units sold in Dec. Release date
Wii Play Wii Nintendo 1.46 million Feb 12, 2007
Call of Duty 5 360 Activision 1.33 million Nov. 10
Wii Fit Wii Nintendo 999,000 May 19
Mario Kart Wii Nintendo 979,000 April 27
Guitar Hero: WT Wii Activision 850,000 Oct. 28
Gears of War 2 360 Microsoft 745,000 Nov. 7
Left 4 Dead 360 EA/Valve 629,000 Nov. 18
Mario Kart DS Nintendo 540,000 Nov. 14, 2005
Call of Duty 5 PS3 EA 533,000 Nov. 10
Animal Crossing... Wii Nintendo 497,000 Nov. 16
Game Console Publisher Units sold in 2008 Release date
Wii Play Wii Nintendo 5.28
million Feb 12, 2007
Mario Kart Wii
Nintendo 5 million April 27
Wii Fit
Wii Nintendo 4.53 million May
19
Smash Bros... Wii Nintendo 4.17 million
Mar. 9
GTA IV 360 Rockstar 3.29 million Apr. 29
Call of Duty 5 360 Activision 2.75 million Nov. 10
Gears of War 2 360 Microsoft 2.31 million Nov. 7
GTA IV PS3 Rockstar 1.89 million Apr. 29
Madden NFL '09 360 EA 1.87 million Aug. 12
Mario Kart DS Nintendo 1.65 million Nov. 14, 2005
Console Dec. unit sales Growth 2008 units sales Growth Lifetime-to-date
DS 3.04 million 23% 9.95 million 17% 26.6 million
Wii 2.15 million 59% 10.17 million 62% 16.6 million
360 1.44 million 14% 4.7 million 2% 13.9 million
PSP 1 million -4% 3.8 million 0% 14.2 million
PS3 726,000 -9% 3.5 million 40% 6.8 million
Category Dec. revenue Change 2008 revenue Change
Total industry $5.29 billion 9% $21.33 billion 19%
Hardware $1.88 billion 2% $7.81 billion 11%
Software $2.75 billion 15% $10.96 billion 26%
Accessories $662 million 8% $2.57 billion 14%
(Thanks to Justin Kroll for help compiling data. And apologies if the charts don't look good on your browser. I did my best!)
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