sonycowboy
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Source: http://biz.gamedaily.com/features_new/pc_game_biz/
(also, the rest of the article)
(also, the rest of the article)
Console innovations cutting into sales
Posted 7/16/04
The PC game business has struggled as of late, dropping in 2003 to $1.2 billion in the U.S. according to NPD figures, versus a 2002 total of $1.4 billion. The segment also experienced double digit declines in unit sales in 2002 when compared to 2001, after posting year-over-year unit increases of 3.8 percent in 2001 and 8.0 percent in 2000.
The overall PC game category, from January through May of 2003, was $471.0 million in the U.S. according to NPD estimates. 2004 is well off of that figure already, according to The NPD Group's industry analyst Richard Ow, who put a dollar figure of $360.0 million for the January to May 2004 period. "We are tracking about a 23.0 percent decline here year-over-year, and that's very significant," he stated.
Certainly more people own computers now than in the past, so what's the deal? "There are a multitude of factors that are in-play here," Ow began. "One of them is the success of the console business, which has drawn not necessarily PC gamers in that direction, but has drawn some of the dollars. Console gaming has taken a lot of the attention and possibly, even a lot of the better brands that are out there."
"When you begin to see declines in the PC game business, you can also see the growth in the videogames business. They work against each other and there is friction between the two industries. I think a lot of it has to do with the consumer base actually sharing some of those dollars."
Still, Ow isn't ready to write off 2004. "I think 2004 is poised as a good year for PC games. There's still lots of sales ahead and major releases are pending, so there's still a wait and see factor."
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