WTF, I\'m posting in console forum?
U.S. July video game sales rise 4 percent-analysts
August 19, 2003 1:38:00 PM ET
LOS ANGELES, Aug 19 (Reuters) - Sales of video games in the United States rose 4 percent in July over the same month last year on the strength of two major new titles and handheld games in general, financial analysts said on Tuesday.
Citing research data from NPDFunworld, analysts said sales of current software for the newest game consoles rose 20 percent in July over a year earlier, while sales for legacy, or older, platforms fell 61 percent.
Key games in July that drove sales, Deutsche Bank Securities analyst Jeetil Patel said in a note, included Electronic Arts Inc.\'s (ERTS) "NCAA Football 2004" and LucasArts\' "Star Wars: Knights of the Old Republic."
Also strong in the month, the analysts said, was Nintendo\'s handheld Game Boy Advance, which had five of the top 10 games on a units-sold basis and four of the top 10 on a dollar-revenue basis.
EA\'s share of the game market on a dollar basis was 21.4 percent in July and stands at 16.9 percent for the year, according to Harris Nesbitt Gerard analyst Edward Williams. That places EA well ahead of other publishers.
Hardware sales continued to be sluggish, declining from a year earlier due to the impact of the major game players like Sony Corp.\'s PlayStation 2 not having as significant a price cut this summer as in 2002.
"July\'s hardware performance was lackluster, suggesting, in our opinion, that promotional activity, either through a bundle or a hardware price cut, will be necessary for Sony to achieve its targeted hardware unit sales," Williams wrote in a research note.
Sony made a bundling move on Tuesday by offering a free game with its $199 PlayStation 2 online pack.
The PS2 sold 311,000 units in July to bring its U.S. installed base to 18.4 million units, while Microsoft Corp.\'s (MSFT) Xbox sold 138,000 units to rise to 5.7 million installed, and Nintendo Co. Ltd.\'s GameCube sold 127,000 units to bring its base to 4.4 million. REUTERS