Games and Gadgets

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Game Sales Go Soft

12/13/05 - 07:08 PM EST

Troy Wolverton

Updated from 6:15 p.m. EST

Video game-software sales plunged 18% in November, according to a new research report, marking the third straight month of weak sales.

Midtier players Take-Two Interactive (TTWO - Cramer's Take - Stockpickr) and THQ (THQI - Cramer's Take - Stockpickr), which saw their retail sales drop 63% and 32%, respectively, led the decline, according to data from NPD Group obtained by TheStreet.com Tuesday.

The drop in overall sales came despite solid growth posted by Electronic Arts (ERTS - Cramer's Take - Stockpickr) and Activision(ATVI - Cramer's Take - Stockpickr).

In the meantime, sales of two new game systems expected to be hits this holiday season also appeared to be light. Microsoft's (MSFT - Cramer's Take - Stockpickr) Xbox 360 and Sony's (SNE - Cramer's Take - Stockpickr)PlayStation Portable were each significantly outsold by older, rival game systems.

Coupled with other recent news from the industry, the new report, from industry research firm NPD Group, could portend a gloomy holiday season for the video game-software sector. Like most other consumer industries, video-game companies collect the lion's share of their sales in the holiday period.

Overall, retail video game-software sales in the U.S. fell from $849 million in November last year to $696 million last month, according to the confidential data from NPD, which was obtained by TheStreet.com.

EA maintained its position as the top-selling publisher, as its games garnered 20.6 of the retail sales market. Activision came in second with 14%.

Among public companies, the biggest percentage declines in sales were posted by Take-Two, THQ, Majesco (COOL - Cramer's Take - Stockpickr) and Atari (symbol - Cramer's Take - Stockpickr). However, none of those declines was particularly surprising.

Atari and Majesco have been floundering for months, beset by management turmoil and poorly received products. Majesco's sales fell 63% to $5 million, while Atari's dropped 24% to $19 million.

Meanwhile, both Take-Two and THQ faced tough comparisons with last year, when both companies' results were boosted by hit products. Take-Two, for instance, saw its sales fall $37 million, from the $100 million it posted last November, when its results were dominated by Grand Theft Auto: San Andreas.

Previous «
1 2 3

Games and Gadgets


12/08/05
No Holiday Cheer From Electronic Arts

The game maker says sales turned weaker in early December.


12/08/05
Electronic Arts to Buy Jamdat Mobile

The companies will combine in a $680 million deal.


11/22/05
No Quit in Xbox Rivals

Microsoft competitors Nintendo and Sony have the Revolution and PlayStation 3 on deck.



08/05/08
Three Internet Stocks That Could Double

These forgotten Internet stocks are being accumulated by hedge funds.


08/15/08
The Five Dumbest Things on Wall Street

Raspberries for Apple; You'll be sorry, UBS; Fortress or Fort Knox? Wholly unappetizing Foods; give Liberty AOL or give them...


08/15/08
McCain Fund-Raising Picks Up

The GOP presidential candidate raised $27 million in July.


08/15/08
Cash-Back Cards Aren't Money in the Bank

Some credit and debit cards give you some cash back on purchases. But you need to manage it well to benefit from it.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now. See All

  • Cramer's Daily Booyah!
  • Before the Bell

Premium Stock Ideas
Premium Products
GME was an Breakout Stocks pick on 2007-10-22