Canadian video game sales dip for the first time since 2002

Negative growth hits one of the hottest consumer categories of the century

TORONTO May 4, 2009 – According toleading market research firm The NPD Group, Canadian first quarter retail sales of video game hardware, software and accessories dipped nearly 8.5 per cent year-over-year.  The figures represent the first-ever decline in sales since NPD first began tracking the category in 2002.

The portable hardware and console hardware categories showed the strongest declines at 21 and 14.5 per cent respectively for the January 31 to March 31, 2009 period.  The portable software and console software categories saw more modest declines of 1.5 and 7.5 per cent, while the accessories category exhibited a slight growth of three per cent. 

“It may be tempting to attribute the decline in sales to the current state of the economy,” said Matthew Tattle, Group Manager, The NPD Group.  “However, on closer inspection, the first quarter of 2009 lacked the number of blockbuster titles that drove sales during the same period last year.  Guitar Hero and Rock Band experienced very strong sales in early 2008 while the release of Super Smash Bros. Brawl helped bolster overall first quarter sales for the category.”

Although the industry as a whole experienced a dip in numbers, the figures show promising growth in software sales for next generation consoles.  Sony’s PS3, and Nintendo’s Wii and DS console systems experienced double-digit software growth at 35, 24.5 and 17.5 per cent respectively.  Microsoft’s Xbox 360 also experienced positive software sales growth at six per cent.  Conversely, Sony’s PS2 and PSP, Nintendo’s Game Boy Advance and Game Cube and Microsoft’s Xbox all saw dramatic declines in software sales figures, signalling these consoles may be near their end of life.

About The NPD Group, Inc.
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