Video game market finally dives in June

Many would say the worst is behind us where the recession is concerned but gaming giants Nintendo, Sony and Microsoft would probably disagree. An industry that stumped analysts and remained strong throughout the recent turbulent economic climate is finally beginning to feel the impact of the wave of reduced spending that has attacked most industries in recent history. Video game sales began declining slowly in March but NPD Group has just released June numbers that show a slightly more alarming drop than we’ve been seeing over the past few months. US sales in June dipped a substantial 29 percent YoY — a record drop — and consoles sales were down a whopping 38 percent. Long story short, an industry that held strong on the back of Nintendo’s Wii and DS/DSi is looking like it may finally be approaching relative saturation. The odds of another Wii-like breakthrough reaching market any time soon are slim to none but something better happen in the near future to woo gamers back into opening those wallets. Drops in console pricing are rumored but still not confirmed, though we have little faith that minor price adjustments would have the kind of impact the industry needs to rebound significantly.

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