This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Video Game Mainstays Set to Disappear After CES

PORTLAND, Ore. ( TheStreet) -- The video game industry as you know it is coming to an end with a bit of help from the Consumer Electronics Show.

Yes, Nintendo already released its next-generation Wii U console. No, Sony (SNE) and Microsoft (MSFT) aren't going to announce successors to the PlayStation 3 and Xbox 360 until the Electronics Entertainment Expo at the earliest. No, Microsoft isn't even going to deliver a keynote at this year's event, and Nintendo isn't even attending.

That said, things are happening on the edges of CES that should give gamers a clue about where the industry is headed within the next few years. Consider it a welcome change, as everything in gaming that isn't playable on a smartphone or downloaded from an online store has been headed nowhere for at least the past year.

Despite the release of the Wii U and the $1 billion generated by Activision's (ATVI) Call of Duty: Black Ops II in its first 15 days of release, NPD Group says video game sales are still in decline. Total industry sales in November -- the last month for which data were available -- fell 11% from November 2011. New game sales also fell 11%, while console sales dropped 13% as the Wii U ate into other consoles' numbers and the lame-duck Wii quickened its slide into history.

That was the 12th-straight month of industry declines. While industry insiders note that November's drop was the smallest monthly decline during that span and that the industry's numbers are still double what they were the last time a generation of consoles was released in 2005, things admittedly don't look great.

Sales of consoles, physical games and accessories dropped 16% during the past quarter from the same period in 2011, according to NPD Group numbers. Meanwhile, sales of digital content such as downloaded game apps and add-ons jumped 22% over the same span. NPD Group research also finds that smartphones and their apps now account for roughly half of all game downloads. Last year the number of gamers playing on mobile devices just surpassed the number playing on dedicated consoles.

Looking into CES and beyond, here are a few pillars of the video game industry that should come crashing down after CES:

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs