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Report: Used game sales blamed for industry losses

News by Joe Anderson Contributor

Published on June 27, 2010

The games industry is suffering from declining sales again, and analyst group Cowen and Company is blaming pre-owned games.

Speaking in a note, Cowen and Company said software attach rate for PS3 and Xbox 360 is down compared to that enjoyed by PS2 and Xbox in 2003, with the growing trade in pre-owned being the driving factor.

The company said software sales for the latest machines are down 20 percent from that of the Xbox and PS2, standing at 106m (Xbox 360) and 85.5m (PS3).

Sales of titles in their second month of release have also fallen, dropping 62 percent since 2001.

Some analysts are suggesting the use of initiatives, such as EA's Online Pass, will help to curb used game sales.

Thanks, MCV.