NPD Reports Second Quarter Retail Drop Nearly Offset By Digital

by Mike Futter on Sep 05, 2013 at 05:07 AM

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 Take
I 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.