Trouble in Toyland: Video Game Sales Slide

The video game hardware and software industry has had a terrible 2012. As this set of charts shows, the industry has experienced double-digit sales declines every month this year.

video games decline

 

Smartphones have emerged as a rival gaming platform to more expensive consoles such as the Wii, Xbox and PlayStation series.

On top of that, in the wake of the Newtown shooting, violent video games have come under attack from the National Rifle Association and lawmakers for contributing to gun violence in the U.S. While the academic research still shows no conclusive link between youth violence and video games, the industry will faces a big public relations challenge heading into 2013.

The good news is that Nintendo (NTDOY) Microsoft (MSFT) and Sony (SNE) are rolling out new console games that may light a fire under sales. The new Wii U, priced at around $299, has done quite well this holiday season.

Even so, this industry faces some serious headwinds next year.

Chart: Statista

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  • DemonRoach

    Looks like we are on par with last year now and will continue to rise. Thank Nintendo for having crushing sales of it’s 3DS.