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US Video Game Sales Shrink 8 Percent in 2009

The NPD Group announced that U.S. retail sales of video games, which includes portable and console hardware, software and accessories, generated revenues of close to $19.66 billion, an 8% decline over the $21.4 billion generated in 2008.

According to the statement, retail sales in the PC game software industry also experienced declines, with revenues down 23%, generating $538 million in 2009. The total console, portable and PC game software industry generated $10.5 billion, an 11% decline vs. the $11.7 billion generated in 2008.

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Unedited press release follows:

2009 U.S. VIDEO GAME INDUSTRY AND PC GAME SOFTWARE RETAIL SALES REACH $20.2 BILLION

Software Sales Experienced 11 Percent Decline When Compared to 2008

PORT WASHINGTON, NY, January 14, 2010 – According to leading market research company, The NPD Group, U.S. retail sales of video games, which includes portable and console hardware, software and accessories, generated revenues of close to $19.66 billion, an 8 percent decline over the $21.4 billion generated in 2008.

Retail sales in the PC game software industry also experienced declines, with revenues down 23 percent, generating $538 million in 2009. The total console, portable and PC game software industry generated $10.5 billion, an 11 percent decline vs. the $11.7 billion generated in 2008.

“December sales broke all industry records and underscores the incredible value consumers find in computer and video games even in a down economy,” said Michael D. Gallagher, president and CEO of the Entertainment Software Association, the trade group which represents U.S. computer and video game publishers. “This is a very strong way to transition into 2010. I anticipate these solid sales numbers to continue upward through 2010 with a pipeline full of highly-anticipated titles.”

Aside from portable hardware which experienced a 6 percent increase in revenue in 2009, all video game categories experienced declines, with the largest decline coming from console hardware (-13 percent). Console software and portable software both experienced declines of 10 percent, while video game accessories experienced a 1 percent decline.

“When we started the last decade, video game industry sales, including PC games, totaled $7.98B in 2000,” said Anita Frazier, industry analyst, The NPD Group. “In ten years, the industry has changed dramatically in many ways, but most importantly it was grown over those years by more than 250 percent at retail alone.  Considering there are many new sources of revenue including subscriptions and digital distribution, industry growth is even more impressive.”

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,700 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us, visit http://www.npd.com/, or follow us Twitter at https://twitter.com/npdgroup.

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