The videogame industry in the United States fell by 21 percent in December. Analysts say that this is due to aging console lineup as well as the unanticipated slowdown in software sales. It is a sign of a weak consumer spending during the holiday season. Another reason given by observers is the increasing influence of smartphones and social networking sites that lured consumers away from traditional console games.
The toy industry is a volatile market that tends to increase and decrease in single digit increments but it is relatively stable compared to other industries. The double digit decline of the videogame industry is due to the gamers move towards portable and free game platforms.
Toys R Us posted a 1.2 percent increase, which included videogame sales. But it didn’t give out the details of its sales. It would be good to find out how much the toy chain made from traditional toys. The toy industry should also look at mobile devices because they compete for consumer money.
However, it should be noted that the December sales was better than that of the previous month. For 2011, total videogame sales hit $17.02 billion. This is down 8 percent from $18.59 billion in 2010. This included software, hardware and accessories.
