Canadians spend over $780M on video games so far in 2008

A strong June featuring new titles and new controllers helped spur strong sales this year of video game hardware and software in both Canada and the United States, according to market researcher NPD.

The video game industry generated $783 million in sales in Canada during the first six months of 2008, according to NPD Canada, a 56 per cent increase from the same time frame the previous year. U.S. sales rose at a similar pace, jumping 53 per cent to $8.3 billion US.

In Canada the top-selling console was the handheld Nintendo DS, which sold over 68,000 units in June, a healthy increase over the 43,400 sold in May. Nintendo's Wii was the second-biggest seller in Canada, with about 64,500 units sold in June, while Sony Corp.'s Playstation 3 sold 39,000 units to take third place ahead of Sony's handheld PSP and Microsoft's Xbox 360.

The PS3 sales rose 67 per cent from the previous month in Canada, and was even more popular south of the border, enjoying a 94 per cent jump in sales.

Part of that jump is attributed to the expected annual rise in sales from May to June as students on vacation look for new forms of entertainment, said Darrel Ryce, the director of NPD Group Canada.

But another factor was the launch in June of Konami Corp.'s Metal Gear Solid 4, one of the first games made exclusively for PS3 to attract a wide audience.

The military adventure game Metal Gear Solid 4 was the top-selling game in the U.S. and the third-biggest seller in Canada.

"Exclusive content usually fuels hardware system purchases and PS3 sales certainly reflect the impact of Metal Gear Solid 4," NPD analyst Anita Frazer wrote in the U.S. report.

The results of the top-selling video games in Canada also showed an increasing interest in non-traditional games with their own unique controllers.

The Nintendo Wii had the top two selling games: Mario Kart, which comes with a driving wheel, and Wii Fit, the exercise video game that comes with a "balance board" players stand and jump on.

Activision's Guitar Hero, Electronic Arts's Rock Band and Nintendo's Play also come with their own special controllers.

"I think these accessories are something you are going to see more and more of, because they help attract a new audience beyond the typical gamer," said Ryce.