U.S. video games sales plunge 23 pct in May -NPD

Thu Jun 11, 2009 11:58pm BST
 
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* U.S. game sales below $1 bln in May, first time in 2 yrs

* May a weak month typically

LOS ANGELES, June 11 (Reuters) - U.S. sales of video games dived 23 percent to $863 million in May, research group NPD said on Thursday, dipping below the $1 billion threshold for the first time since August 2007 as consumer spending weakened.

In the year to May, video games sales -- considered by NPD to include hardware, software, and accessories -- slipped 7 percent from a year earlier to $6.1 billion.

"May is typically one of the lowest revenue-generating months in any given year for the industry in general," said NPD analyst Anita Frazier.

Analysts think the video games sector will remain relatively resilient in an economic downturn, as cash-strapped consumers look for cheaper sources of entertainment at home.

Last month, Activision Blizzard Inc (ATVI.O) posted better-than-expected quarterly results and raised its 2009 outlook for earnings per share, citing a strong pipeline of games. [ID:nN07365351] (Reporting by Edwin Chan; Editing by Christian Wiessner)

 

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