Video Game Outlook Dour as Sales Tank
NEW YORK (
) -- Video games tumbled 13% in January, following disappointing outlooks from video-game makers.
The NPD Group said sales for the month fell to $1.17 billion, as consumers cut back after the holiday season.
Video game software sank 12% to $597 million, while consoles plunged 21% to $353 million. There was a significant drop off in sales of
Nintendo's
Wii, but
Microsoft's
(MSFT) - Get Report
Xbox 360 and
Sony's
(SNE) - Get Report
PlayStation 3 did better than the year prior.
Both
Electronic Arts
(ERTS)
and
TheStreet Recommends
Activision Blizzard
(ATVI) - Get Report
provided dour guidance earlier this week.
And
GameStop
(GME) - Get Report
was
by Credit Suisse, saying the company is in a "value trap" and does not expect much multiple expansion.
-- Reported by Jeanine Poggi in New York.
RELATED STORIES:
>>GameStop Stuck in 'Value Trap'
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