Gaming software sales were down in June, although hardware saw a boost...

It is unusual for software sales to drop while hardware sales increase, said Pietro Macchiarella, an analyst with Parks Associates. "That discrepancy tells us this is not because of the recession," he told the E-Commerce Times. "Otherwise, they both would be moving in the same direction -- down."

Rather, the drop in software sales is due in large part to other trends in the gaming sector, said Macchiarella. These include a trend toward games that have become more complex and involved, and that take longer to play -- which means consumers are inclined to buy fewer of them. That, coupled with fewer releases, accounts for much of the drop in sales, he said.

Also, the hardware figures might have been goosed by new consoles coming to market. Last month, for example, Microsoft released an updated Xbox with a larger hard drive, Macchiarella noted.

Total industry sales for the year through the end of June reached $6.66 billion -- a 9 percent drop compared with the same six-month period last year, according to NPD. However, the year could close out having posted some $20 billion in sales, the research firm projects -- an assessment with which Macchiarella agrees. "This is a seasonal industry, so I think the second half of the year will definitely see some improvement," he said, adding that new product releases such as PlayStation Move and Microsoft Kinect will attract more sales.

From the article, "Gaming Industry Likely to Pick Up Following Weak June" by Erika Morphy
 

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