Last month we reported on the rather bleak fortunes of the gaming industry , and it appears as though the trend that was identified in June has carried over to July. According to the NPD Group, July marks the fifth consecutive month of year-over-year video-game sales declines. Not only is the gaming industry no longer considered recession proof, but it managed to shed a staggering 29 percent compared to the same period last year. Sales of software and hardware for July 2009 were approximately $848.9 million, down from $1.1 billion in 2008.
NPD blames the summer tailspin on lackluster new game releases, and fewer hardware purchases. The industry on a whole is expected to pick up some steam in the traditionally strong Q4 period with several high profile launches expected. "This isn't the best time of year for video-game sales. In a down economy it makes it all that tougher said Michael Gartenberg, a vice president at Interpret. "Of course, there's nothing that's ultimately going to be recession-proof if the recession goes on long enough."
“Video games have large amounts of entertainment value beyond short-term enjoyment," Gartenberg said. "That's typically one of the reasons video games have done well." Would you agree?