Best Buy Q2 Entertainment Sales Decline 18%23 Aug, 2016 By: Erik Gruenwedel
Best Buy Aug. 23 reported an 18% decline in same-store entertainment sales in the second quarter, ended July 30. That compared with a 2% dip during the previous-year period. Domestic entertainment revenue topped $394 million, compared with $473 million a year ago.
The entertainment category includes packaged-media Blu-ray Disc and DVD movies, TV shows, music CDs and video games. Best Buy attributed the decline in part to ongoing softness in the video game market.
Indeed, sales of new video games in June dropped 26% to $652 million, from $879 million during the previous-year period, according to The NPD Group. The main cause appears to be consumer interest in new-edition video game consoles, which dropped 42% to $181.5 million.
As a result, Sony next month will reportedly launch two new versions of the PlayStation 4. Sony has sold 43.5 million PS4 units since its debut in 2013, according to The NPD Group.
Meanwhile, Microsoft, which launched the new Xbox One S earlier this month, is coming off a rare win against Sony. Sales of Xbox One topped PS4 in July — driven in part by the cheaper S model.
“Following its release last week, the 2TB launch edition of Xbox One S sold out in the U.K. and is nearly sold out in the U.S.,” Mike Nichols, head of global marketing for Xbox, said earlier this month.