Sat, Jan 08, 2011 | 17:13 GMT
Best Buy reports decline in holdiay software sales due to “decrease in gaming”
Best Buy has reported a 15.4 percent year-over-year decline in sales for the 2010 holiday period, citing a large drop in the software category due to a “decrease in gaming.”
The retailer also saw less-than-stellar sales in music and movies with a 5 percent sales decline for the period. Consumer electronics sales were also down 7.9 percent compared to December 2009, which Best Buy attributed to “a weakness in flat-screen TV sales”, reports Gamasutra.
Domestic sales for the company came in at $6.5 billion for December 2010 which is down 3.2 percent compared to December 2009.
Best Buy’s expectations for Q3 2010, which ended in November, saw a decline in software sales of 14 percent, year over year.
9 comments
#1
OrbitMonkey
08/01/11, 5:25 pm
A decrease in gaming? I’m sure I read somewhere that Black Ops & Kinnect has sold by the millions…
#2
Michael O’Connor
08/01/11, 5:40 pm
I don’t see how that proves that gaming sales are down. It’s a generally accepted fact that the industry isn’t making as much money as it was a few years back.
Recessions tend to do that.
#3
deathgaze
08/01/11, 6:47 pm
What Michael said.
Also, it’s worth mentioning that this story doesn’t exist in a vacuum. For example, how are digital sales affecting this statistic? http://www.vg247.com/2011/01/08/eas-riccitiello-no-question-that-digital-will-overtake-retail-this-year/
It looks like this is the kind of thing that they can put on an earnings statement that makes Best Buy look good instead of bad. If we go with Best Buy’s version of the narrative, they’re saying “Since *our* sales were down in markets X, Y and Z, that must represent a slump in those markets.” See what they did there? They implied that they’re big and smart enough to be the sole predictor of an entire market.
Riiiiight. Keep right on dreaming Best Buy.
#4
Gekidami
08/01/11, 6:52 pm
The Xmas releases just werent as good this year. Thats all.
#5
Stephany Nunneley
08/01/11, 7:54 pm
Honestly, the only time I have ever purchased a game at Best Buy was when I bought a couple Tycoon games. Other than that, I only buy cameras, hardware or peripherals from them when I need it now. Otherwise, I order online and wait for the FedEx/UPS man. I bought both our televisions at hhGregg because they had better deals than Best Buy. Plus, at the store closest to me, their store employees knowledge on the particular product you are looking for is sad. It’s mostly college kids working there for the discount.
#6
Hunam
08/01/11, 8:09 pm
They’re trying to launch in the UK now, though I’m not sure how much use they’ll be here as our games and electronics markets are cutthroat, run by small businesses that have probably a hand full of staff and next to no investors to please so they can have what ever margins they want.
#7
Grimrita
08/01/11, 8:25 pm
Its not down to a decrease in gaming, its probably down to the fact that games are becoming short, dull and generic. The industry had better pull itself out of this crap releasing rut otherwise it will find itself in a lot of trouble.
#8
The1stMJC
08/01/11, 8:49 pm
No it is probably a decrease in gaming. I mean look at how many casual fans bought a Wii and have probably just stopped using it. SO many parents and grandparents bought a Wii as a gimmick item and have probably moved on.
And since Wii software is on a decline with all those consoles out there of course Best Buy sales would be down.
#9
The_Deleted
09/01/11, 2:52 am
Or maybe everyone who wants / can afford a console this gen is decreasing year on year.