NEW YORK — The video-game industry is expected to post
another weak month when sales data for October are released Thursday, as
publishers face difficult comparisons as well as weaker-than-expected sales of
some key game titles.
The NPD Group will release sales data for October late
Thursday afternoon. Analysts on average are expecting sales to decline about 11
percent from the same month last year, according to a tabulation of estimates
by MarketWatch.
Investors have put pressure on the video-game sector since
the industry reported disappointing sales numbers for September, which was
supposed to be the first month of recovery following a six-month decline. Sales
showed a slight gain for the month, but came in well below Wall Street’s
estimates.
Most game publishers have seen their market values slide
over the last month since that report, as investors have worried about the
outlook for the crucial holiday shopping season.
“Last October featured the launches of ‘Guitar Hero:
World Tour,’ ‘Fable 2,’ and ‘Fallout 3,’ making for a challenging comp this
year, given a release slate featuring more new IP (intellectual property) than
established franchise hits,” Doug Creutz of Cowen & Co. wrote in a
note to clients on Monday.
By comparison, this October saw the release of new games
such as “Brutal Legend” from Electronic Arts Inc., “DJ
Hero” from Activision Blizzard Inc. and “Borderlands” from
Take-Two Interactive Software Inc.
Among known game franchises, the biggest release was
“WWE SmackDown vs. Raw 2010” from THQ Inc.
One potential boost for the sector may come from price cuts
on the game consoles. The PlayStation 3, Microsoft’s Xbox 360 and Nintendo Wii
all saw their prices cut back in September. This caused a jump in console sales
for that month.
Sony Corp.’s PS3 may get a boost from the release of
exclusive game titles “Uncharted 2: Among Thieves” and “Ratchet
& Clank: A Crack in Time.” “Uncharted 2” has garnered a
Metacritic score of 96 — the second highest rating for any game title on the
PS3 console.
Justin Post of Bank of America says the October sales data
will likely reflect “a weak casual consumer market (making fewer repeat
purchases, especially on Wii), a still sluggish hardware market (not seeing
full benefit from price cuts), and a cautious retail environment (retailers
carrying less inventory).”
Via McClatchy-Tribune News Service.
