NPD: U.S. Hardware Sales Continue Decline, Xbox Holds Strong

It was another depressing month for the video game industry in the United States, as hardware sales dropped across the board, with the Wii, PSP and PlayStation 3 seeing the biggest year-over-year declines.

While Nintendo managed to dominate on the portable front—the Nintendo DS and DSi sold 538,900 units combined according to the NPD Group—the Wii didn't have a great July. It sold a little more than a quarter million units last month, less than half of what it did in July of 2008.

PSP and PlayStation 3 sales tell a similar story. Sony's handheld platform sold 122,800 in July, with its PS3 lagging just behind with 121,800 units sold. A stark change from last year, when the PlayStation 3 was enjoying better sales than the Xbox 360 during the summer.

Here's how the hardware race went down in July, according to the NPD Group.

  • Nintendo DS - 538,900
  • Wii - 252,200
  • Xbox 360 - 202,900
  • PSP - 122,800
  • PlayStation 3 - 121,800
  • PlayStation 2 - 108,000

All told, U.S. consumers snapped up $US280.94 million worth of video game hardware in July. That's a 37% drop from the year prior, likely ensuring that the industry won't come close to matching its record breaking revenue in 2008.

"Hardware sales have slowed considerably on nearly every platform," NPD analyst Anita Frazier points out. "The Xbox 360 is the only console system showing a unit sales increase year-to-date, while the NDS has the highest sales of all hardware platforms both for the month, and year-to-date."


    Year of the PS3?

    That Slim can't come soon enough.

    Assuming, of course, it comes with a much slimmer price. But that's a huge assumption.

    It'd be interesting to see how many of those 360 sales are Arcade vs Pro.

    "Year of the PS3", lol.
    Wasnt that last year too? And the year before?
    And I imagine as we near the years end it it will be announced 2010 will be the year of the PS3.

    Surely a run out of PS3 Stock has slowed up the sales a bit. On top of that announcements regarding the slim and price drops must be making people hold off on purchases. I know I am.... DAMMIT.

    MasterCyl, just out of interest, at what point would you buy the PS3 Slim?

    I'm thinking they're definitely going to have to hit AUD$599 in order to be even remotely interesting.

    Of course, $499 would be even better, but I cannot see that happening.

    If Sony try to do the usual thing and charge a high price, but bundle a bunch of games with it, that will fail badly. People aren't interested in bundles if the price is still high.

    I bought my 80GB at $700, but I regret it. I got my 360 Pro at $400 with Gears2, and, for the money, the 360 has been much better value for me.

    I won't be recommending my mates get a PS3 Slim until it's about 500, given the other options available.

      Sorry for the slow reply, the below link contains my requested price point. Sealed in Kotaku's immortal comments.

    Lol, Love these Xbots that pretend to have a PS3 and play the regret card.

    Also why is it cool to bad mouth a console that has clearly provided and expanded a very immature industry? if it weren't for competition we'd be stuck with a Wii and only a Wii, could you imagine that?

    With that said, I don't own any console and I have never felt the urge to get an xbox despite all that hype, tried Gears2 and thought it was mediocre at best.

      plmko said,
      "Lol, Love these Xbots that pretend to have a PS3 and play the regret card."

      Yeah that's right, if the opinion isn't from the sony propoganda manual he's an xbot hey?

      Maybe, just maybe, he believes what he wrote, wthout anyone from Sony pissing in his ear.

      The only fanboi around here seems to be you plmko.

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