Gaming Sales Finally Decline

by Taylor Flatt on April 16th, 2009 at 7:06 pm EDT - 515 views

The gaming industry has finally seen a decrease in sales for the first time in the economic situation. While hardware sales dropped 18%, video game sales dropped 17% from $1.72 billion to $1.43 billion and software sales dropped 17% as well. This decrease is reported by the NPD while conducting their monthly studies in March. Although the situation has effected all other industries, it is no surprise that the gaming industry is one of the last to suffer. Offering recreation and infinite possibilities, it makes only sense that this would be one of the last to find their brick wall.

A NDP analyst, Anita Fraizer, had this to say about the situation,

While it might be tempting to jump to the conclusion that the sky is starting to fall on the video games industry given this month’s results, it’s important to remember that two very big things are different this year than last. First, Easter fell in March last year whereas it fell in April this year, and last March included the release of Super

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Sony PS3 Production Price Drops

by Joel Borhart on December 30th, 2008 at 11:14 am EDT - 190 views

As time progresses, technology costs usually go down.  Supply and demand, as the amount of the product goes up, the price goes down, and new technology lowers the price of older goods or makes them obsolete.  These factors have lowered the production price of Sony’s PS3.

New models of the console reduce prices with each new release.  The newest integration of hardware in the PS3 has reduced the number of components to about 2,820 from 4,048.  The new cost of each PS3 for Sony is now only $448.73, compared to $690.23 of the first model.

For those who have a PS3 or want one, you will notice they cost around $400 for consumers.  This means Sony has been selling them at a loss, hoping to make the money up in games and royalties.  Because of this reduction of price for Sony, this may bring on more game development or more advances in the ability of the console.

Source: WSJ