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NPD: April Video Game Sales Decline 15%

12 May, 2016 By: Erik Gruenwedel

A decline in new-generation video game console sales and an underwhelming new-release slate contributed to a 15% revenue drop in April to $509.5 million, compared with $598.1 million in the previous-year period, according to new data from The NPD Group.

Video game hardware, which includes Xbox One and PlayStation 4, saw sales of $142.1 million, down 23% from $183.7 million.

“Compared to last year, dollar spending for eighth-generation consoles decreased by 15%, with over 70% decline in seventh-generation consoles. Portable devices also dropped by $11.3 million in sales over last April,” NPD analyst Liam Callahan said in a statement.

Software sales (excluding new physical releases) declined 21% to $203.9 million, from $256.7 million, while accessories increased slightly to $163.5 million, from $157.6 million. Total software sales (minus new physical releases) dropped 22% to $207.3 million, from $264.4 million.

“Despite some record-breaking new launches, there were poor comps to the [year-over-release] release of Mortal Kombat X. Its April 2015 sales exceeded that of the entirety of all April 2016 new launches by 18%,” Callahan said.

The analyst said that given the strength of the March release slate, he was surprised to see the slate’s sales drop 16% compared to sales of March launches in April 2015.

“New physical software sales declined due to a few factors: poor comparisons to last year’s new releases, and the poor performance of March launches in April compared to last year,” Callahan said.

About the Author: Erik Gruenwedel

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