Next Generation Consoles Needed to Save Slumping Game Sales

Paul Lilly

Decline In game sales just par for course.

Another month is in the books, and yet again, NPD Group noted a drop in overall game sales compared to the same period a year ago. No minor decline, total game related sales dropped 25 percent to $386.3 million from May of last year when hardwre, software, and accessories totaled $517 million, according to NPD Group's data. Breaking it down by category, software sales fell 31 percent to $175.1 million and system sales declined by the same percentage, raking in just $96 million.

"Softness in new physical entertainment software sales stemmed from a decline in the number of new launches, with over 30 percent fewer new SKUs, as well as poor performance of the new SKUs that were released," said NPD analyst Liam Callahan, according to USA Today .

The numbers were somehwat bolstered by consumer spending on digital sales, micro-transactions, and used game sales and rentals, all of which combined to drive total spending to around $787 million, but as impressive as that sounds, it too was the lowest of 2013.

Both Microsoft (Xbox One) and Sony (PlayStation 4) plan to launch new consoles in time for the holiday shopping season, and it's likely the new hardware, along with developer and consumer excitement, will reverse the recent trend in consumer game spending.

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