Videogame Hardware Soars while software keeps sliding

Despite the increasing demand for videogame consoles, certain issues about its software continue to disappoint  the market. It raised some questions regarding the industry’s strength in a crucial year.


U.S new games sales fell 10% to $240.8 million in April from $267. 8 million the same time a year ago based on surveys conducted  by market research firm NPD Group. Despite Microsoft and Sony’s strong sales, the drop continue to arise.


 According to videogame executives that primarily one of the reasons for the colapse is that customers no longer purchase many titles made for older consoles.


NPD analyst, Liam Callahan said that new game console sales is currently doing well, “but collectively not offsetting declines.”


For some game makers, they have an easier time than others . Blake Jorgensen of chief financial officer at Electronic Arts said that the trend is actually imroving for his company.



 “Sony and Microsoft sold more boxes than we thought they would, and our marketshare has been better than we thought it would be,” he said. Game executive expected sales to returen to normal by holidays.


As of the moment,  traditional PC and console games sold and delivered over the Internet reached up to 25% to $269.1 million from $214.4 million a year earlier, based on industry watcher SuperData Research.


Game publisher are now more focused on digital services such as private-held Valve’s Steam service which often brings better margins that selling through a brick and mortar store. “Publisher love it,” said Joost van Dreunen, head of SuperData.


 Smaller game publisher are also starting to flood digital download stores that catching customers’ attention. Instead of buying discs at stores, console gamers are now subcribing and downloading their games directly online.


SuperData announced the ranking for digital download and Sony’s superhero game “InFamous: Second Son” ranked first, followed by “Titanfall,” and “Call of Duty.”


For top mobile games, Supercells “Clash of Clans” remained the top mobile game next is King Digitals’ “Cany Crush Saga” and “Farm Heroes Saga.”  Eventually Supercell and King dominated the top rankings but SuperData noted that mobile game sales in general slowly decline especially during spring months.


“It’s been dropping $15 million every month” since the end of last year, Van Dreunen said, noting the drops despite a lot of attention from King’s recent IPO. He suggested perhaps seasonal changes that encouraged customers to go outside might be helping the slump to continue.