The lights are on
United States consumers have spent approximately $2.88 billion dollars in the second quarter of 2013, according to a new report by the NPD Group. The 2013 Games Market Dynamics: US report shows a drop of about three percent over the same quarter in 2012, but the data reinforces a more important trend.
Physical video game and PC software purchases are down, but nearly offset by a 27 percent jump in digital increase across both segments. This echoes what we've heard from Activision, EA, and Take Two on recent financial calls.
NPD attributes the overall decrease partly to a decline in new products year-over-year totaling 37 percent. NPD also attributes sales declines to consumers preparing for the upcoming November console transition.
Our TakeI expect that purchases will jump in the first quarter of 2014 once more people have next-generation systems (a combination of holiday gifts and the release of Infamous: Second Son and Titanfall). As more consumers acquire additional accessories, update their cross-generation titles, and generally get swept up in the next-gen excitement, sales are going to recover.