Videogame sales decline expected through July – NPD

By Debabrata Nath, Monday, 13 May 2013 18:32 GMT

According to a note from analyst firm Cowen and Company, NPD sales are projected to face a sharp decline until the release of Madden NFL in July.

A strong release line-up in March (Gears of War: Judgement, God of War: Ascension, Bioshock: Infinite, and Tomb Raider) ensured that March’s NPD-reported retail videogame software sales were up by more than 2% year-over-year, but it looks like the market is headed for a sharp decline in the coming months thanks to the lack of blockbuster releases.

Cowen and Company analyst Doug Creutz sent a note to investors today where he predicts that NPD Group’s April video game software sales are likely to dip by over 13% compared to last year.  He cites the weak release slate for the month as being the reason, with only a single game, Injustice: Gods Among Us, expected to sell more than 250,000 units. He believes that it’s sold around 424,000 copies to date.

Creutz expects this trend of double-digit sales decline for the videogame industry in the US to continue till July. The retail industry is expected to receive a shot in the arm in August with the release of Madden NFL, a month earlier than its usual release window of September.

However, despite Madden releasing a month early, Creutz expects software sales growth to continue in September and October as two behemoths in the form of Grand Theft Auto V and Battlefield 4 will be releasing in September and October respectively.


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