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U.S. consumers spend $4.5 billion on gaming in Q2

Consumer spending on the U.S. gaming industry was up slightly in the second quarter, research firm NPD reported today.

During the second quarter, U.S. consumers spent a total of $4.5 billion on gaming hardware, content, and accessories, representing a 1 percent gain over the second quarter of 2010. However, sequentially, things didn't go too well for the industry. In the first quarter of 2011, total consumer spending on video game hardware, content, and accessories hit $5.9 billion.

In the second quarter, total U.S. spending on physical game software for consoles, portables, and PCs, hit $… Read more

Android still hot but many eyeing Windows Phone 7

Android is still the No. 1 choice of current and future smartphone owners, but Windows Phone 7 has been kicking up more interest among prospective phone buyers, says a report released yesterday by NPD Group.

Among all smartphone operating systems, Android generated interest among 63 percent of consumers, more than any other mobile OS, according to NPD's Connected Intelligence (PDF), a service that analyzes connected devices, access, and content. As just a single example, one-third of BlackBerry smartphone owners are eyeing an Android phone as their next purchase.

And though Google's OS has accounted for almost half of … Read more

Mac sales surge, PC sales stay steady

Mac sales grew by 26 percent in the United States in July, a healthy surge, compared with PCs, which saw only a 4 percent rise in unit sales last month, according to new NPD data cited by Barclays Capital.

The 26 percent gain in Mac sales over July 2010 came on top of growth of only 7 percent in June but 21 percent in May. Analyzing the data in an investor report released Monday, Barclays Capital analyst Ben Reitzes attributed the surge to the launch of Mac OS X Lion, as well as to the July 20 launches of Apple'… Read more

3D success still coming into focus

As we move further past the one-year anniversary of the first 3D TV sets launched in the U.S., it's clear 3D hasn't leapt to the forefront of consumer technology market. But it hasn't fallen completely into the background, either.

The recent announcement by Nintendo that it would dramatically cut the price of the Nintendo 3DS could be seen as another tough break for 3D products. In fact, Nintendo's newest handheld gaming system overcame two of the most commonly cited objections for 3D--high prices for hardware and the need to wear glasses.

Indeed, the most recent results of NPD's 3D 360° Monitor indicate that the 3DS helped raise the profile of handheld video games to become one of the most recognized 3D product categories.

As is the case with stereoscopy itself, though, there may be more to this picture than meets the eye. For example, Nintendo has traditionally priced significantly below its primary competitor, Sony, in both the home- and portable-console markets. The news that the forthcoming PlayStation Vita would debut at the 3DS' launch price of around $250 might have caused Nintendo to rethink what it charged.

Furthermore, Nintendo continues to contend with increasing gaming activity on the iPhone and other smartphone platforms, as well as a on a host of powerful tablets now vying for consumers' game-playing time.

There are other instances where the impact of 3D is difficult to ascertain. The arrival of "passive 3D" systems from LG and Vizio competing with "active 3D" systems from Sony, Samsung, and Panasonic has set off dueling marketplace claims regarding technical superiority and customer preference. … Read more

Game sales hit lowest point since October 2006

The video game industry suffered a serious blow across the physical retail channel last month, NPD reported yesterday.

According to the research firm, industrywide sales on hardware, peripherals, and software hit $707.7 million in July, down 26 percent compared to the same month last year when the industry generated $961.3 million in sales.

Last month, the industry saw sales hit their lowest point since October 2006, NPD analyst Anita Frazier said in a statement.

Hardware revenue was especially disappointing last month, reaching only $223 million. That figure was down 29 percent compared to July 2010 when hardware companies … Read more

U.S. video game industry sales continue slide

The U.S. video game industry continued to show signs of weakness in June, research firm NPD Group reported today.

Total video game industry sales in the country, which includes hardware, software, and accessories, fell 10 percent to $995 million, compared to June 2010. Software sales fell steepest--12 percent--to $469.5 million. Sales of accessories dived 11 percent to $158.9 million, while hardware sales slid 9 percent to $366.6 million.

In May, NPD reported that total U.S. game industry sales fell 14 percent to $743.1 million, the worst month in nearly five years.

The two best-selling … Read more

Analyst: Game console sales plummeted in June

Wedbush analyst Michael Pachter today offered up a dismal estimate on June game industry sales.

The analyst said that Microsoft led the way in console sales last month, selling 355,000 Xbox 360 units in the U.S. However, that figure is down 21 percent compared to the same period last year. In Pachter's note to investors, he said that the Nintendo Wii scored the second spot in unit sales with 325,000 sold, representing a 23 percent decline compared to June 2010. Pachter believes Sony suffered a 21 percent drop in unit sales last month by selling 240,… Read more

Video game spending ticks up in 1st quarter, NPD says

FarmVille, virtual guns, and Angry Birds helped drive a slight increase in total video game spending in the first quarter, according to NPD Group.

The market researcher said today that gamers poured $5.9 billion into hardware, content, and accessories in the period, a 1.5 percent increase from a year ago. The main catalysts include digital game downloads, mobile games, downloadable content, and social network games.

The new forms of content accounted for $1.85 billion in the period, underscoring the growing importance of games on smartphones and social networks.

The increase comes as Wedbush Securities analyst Michael Pachter … Read more

Digital gamers nearing hard-core gamers in playing time

People who primarily download their games digitally are quickly becoming a key segment in the video games industry, a new study by The NPD Group has found.

Heavy gamers--or what NPD refers to as "core" gamers, who primarily play video games on consoles like the Xbox 360 or PlayStation 3--spend 18 hours per week playing video games. Digital gamers--that is, those who primarily download games as opposed to purchasing physical copies--aren't far behind, spending 16 hours per week playing games, according to NPD. Moreover, the research firm said that the core segment bought an average of 5.… Read more

How much value does cellular access give gadgets?

At E3 this year, Sony presented more details about its forthcoming handheld formerly known only as the NGP. Now revealed to be the PlayStation Vita, it continues the PSP (and PS3) tradition of inviting a new generation of games with a powerful combination of technologies. These range from a pair of cameras, an accelerometer, and gyroscopes now found in many handsets to a quad-core processor, 5-inch OLED display, and a touch-sensitive back panel to complement its touch screen.

It will also be the first handheld console from a major brand available with optional cellular access. Thus, the PlayStation Vita, priced at $249 for the Wi-Fi-only version and $299 for the cellular version, will provide another opportunity to study the impact of a premium for cellular access.

The Wi-Fi-only PlayStation Vita is priced almost perfectly between the Amazon Kindle at $139 ($114 with "special offers"), and the $499 entry-level iPad. The least expensive 3G iPad commands a $130 premium over its Wi-Fi-only counterpart whereas the cellular-equipped PlayStation Vita--like the 3G Kindle--is priced at a $50 premium. Looking at it in terms of percentages, the cellular premium breaks down as follows--Kindle: 36 percent, PlayStation Vita: 25 percent, iPad: 26 percent.

Of course, the price of the device is but one factor. The data-supping Kindle provides free cellular access, whereas the iPad monthly plan starts at about $15 per month. At this point, there's more to be revealed regarding how the Vita will use the cellular network or how that usage will be priced. The experience to date has been that the less expensive Wi-Fi-only versions of unsubsidized popular portable electronics outsell their cellular-equipped counterparts. … Read more