Major gaming hardware companies recently released their sales stats and most of them posted record breaking sales figures. However, apoplectic the exuberance in gaming console market does not extend to the software market, which is expected to face downward trend. According to the industry experts, 2011 is likely to be the consecutive third year for the industry to end with a declining sales volume.
Wedbush Securities reported that the industry is struggling with various problems including dipping retail prices and softer consumer demand. The report stated, “We currently estimate full year software sales will end down 4%, suggesting 2% growth for November and December sales with flat console unit sales and lower console dollar sales due to price cuts.”
Industry giants are likely to take even bigger hits. The report singled out Nintendo for its lack of hit titles in the recent past. Nintendo is also facing heat from its competitors. However, the company sold over 500,000 Wii consoles over the Black Friday weekend. Wedbush Securities expects Nintendo’s 3DS to perform well in e01e.
Among the gaming titles, the report made special mention of Battlefield 3 and Call of Duty for their outstanding sales performance. EA’s Battlefield has reported selling 8 million units since its release in late October. Activision Blizzard’s Call of Duty franchise is also going strong. The report also analyzed game merchants, saying, “We think that GameStop will fare well during the holidays, and we expect the company to generate sales and earnings within its guidance.”