Here’s something you don’t see every month – retail sales of video game software, hardware and accessories in the US actually rose by 1 percent in August, as opposed to the usual double-digit decline we’ve been seeing over the past few years. The new NPD figures are in, telling an interesting mixed tale of plummeting hardware sales and rising accessory sales.

With new consoles arriving in November, you’d expect hardware sales to be down sharply, and they are – dropping 40 percent over August 2012, down to only $90.8 million this year. NPD’s Liam Callahan provided some detail: “Nintendo’s 3DS continued to outsell other hardware platforms for the fourth month straight. The Xbox 360 was the top selling console for the month, which was the thirty-second consecutive month it has led console sales.”

Software was the bright spot for August, rising 23 percent over August 2012 to notch $293.4 million in sales (21 percent if you include PC game sales). This is due to the large number of new releases in August, as NPD points out. “This was driven by the shift of Madden into the August data month and other launches such as Saints Row IV, Disney Infinity and Tom Clancy’s Splinter Cell: Blacklist,” said Callahan. “In fact, eight of the top ten games this month were launched in August.”

The interesting part of the shift in sales is the role played by new releases. “Collectively, August 2013 launches made up an astounding 58 percent of overall dollar sales for the month and 41 percent of units sales, which compared to 24 percent of dollar sales and 15 percent of unit sales that August 2012 launches represented in that month,” said Callahan. “Due to a greater percentage of sales stemming from newer games at full price and have higher priced collector’s editions, overall software average pricing grew by 25 percent.”

The software accessories category grew by seven percent, part of which can be attributed to NPD’s decision to move toy-game hybrids like Skylanders and Disney Infinity to the accessories category starting this August. “August 2013 marked the anticipated launch of Disney Infinity and its set of Interactive Gaming Toys,” Callahan said. “Combined with sales of Skylanders accessories, one in every three accessories sold this month was an Interactive Gaming Toy.”

August 2013 Top 10 Games (New Physical Retail only; across all platforms incl. PC)

#1 Madden NFL 25 (360, PS3)
#2 Saints Row IV (360, PS3, PC)*
#3 Disney Infinity (360, WII, PS3, NWU, 3DS)
#4 Tom Clancy’s Splinter Cell: Blacklist (360, PS3, NWU, PC)*
#5 Minecraft (360)
#6 Mario & Luigi: Dream Team (3DS)
#7 NCAA Football 14 (360, PS3)
#8 Payday 2 (360, PS3)*
#9 Final Fantasy XIV Online: A Realm Reborn (PS3, PC)*
#10 Pikmin 3 (NWU)
*(includes CE, GOTY editions, bundles, etc. but not those bundled with hardware)

Among the items of note, Pikmin 3 is the only Wii U exclusive to make the list at the #10 position, showing the continued weakness of the Wii U platform. Meanwhile, the 3DS continues to do well with both hardware and software – the exclusive Mario & Luigi: Dream Team for the 3DS placed #6 in sales. It’s also worth noting the Minecraft for the Xbox 360 continues to sell well, clocking in at the #5 position. NPD is also careful to note that these retail sales figures only represented about 50 percent of the total consumer spending on games, with various forms of digital spending making up the rest.

These numbers show the value of new releases in generating sales, even as we head towards a new generation of consoles. Consumers appear to be holding off on hardware purchases, no doubt in anticipation of new consoles – but also because of the chance for reduced prices or special sales or bundles on existing consoles. There is still time for some additional pricing moves by console makers who might be getting worried about slower sales of older consoles.

Source: NPD