Why video-game sales have plummeted: 4 theories

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The video game industry "got a harsh slap in the face Monday," says Chris Morris at _Yahoo! Games_. According to new data released by tracking firm NPD, games sales in May dropped


to $375.8 million, a 19 percent drop from May 2010. That makes May 2011 the industry's worst month since October 2006. The steep decline surprised analysts who'd forecasted at


least "relatively flat" sales thanks to a price cut for Nintendo's Wii console. Here, four possible culprits behind the unexpected flop: 1. A "PALTRY" LINEUP OF NEW


RELEASES The May disappointment "really is about a light new release schedule as compared to last year," says NPD analyst Anita Frazier, as quoted by _CNBC_. Just 42 new titles


were released last month, compared to 58 in May 2010, and 72 in May 2009. SUBSCRIBE TO THE WEEK Escape your echo chamber. Get the facts behind the news, plus analysis from multiple


perspectives. SUBSCRIBE & SAVE SIGN UP FOR THE WEEK'S FREE NEWSLETTERS From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly


to your inbox. From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox. 2. NO _RED DEAD REDEMPTION_ Last year's May


sales numbers would have been hard to match, because they reflected the release of _Red Dead Redemption_, which sold 1.5 million copies that month, and went on to be named Game of the Year.


The newly released L.A. Noire was the top-selling game last month, but it only came out mid-month, and its 900,000 sales fell "short of the lofty expectations for the highly anticipated


and well-reviewed title," says Christine Lusey at _SodaHead_. The rest of the short list of new choices "failed to entice consumers," says Ian Sherr of _Dow Jones_. 3. AGING,


PRICEY GAMING CONSOLES Sales growth for games "will remain elusive" until sales of consoles get a boost, says analyst Michael Pachter of Wedbush Securities, as quoted by _CNBC_.


Nintendo's new 3DS handheld system has had a "weak debut," and the new lower price for Wii didn't help either. A true industry rebound would require that "Microsoft


and Sony cut the price of their consoles," too. 4. INCOMPLETE DATA Online video game sales are growing rapidly, but the NPD data "only represent physical sales, not digital


downloads," says Lusey at _SodaHead_. For example, the downloadable release of a new map pack for _Call of Duty: Black Ops_ isn't reflected in the totals. That add-on


"undoubtedly" drew "some dollars that might have been spent on new physical content" from stores, says NPD's Frazier, as quoted by _VentureBeat_.