Sales for video games over all sank for the fifth consecutive month in July, according to research specialist NPD Group. Hardware and software sales suffered a 29 percent drop compared to the same period in 2008.
The biggest declines in software came from from the music-based games, which spells bad news for Guitar Hero parent Activision Blizzard and Harmonix’s Rock Band.
This could be because everyone already owns a plastic guitar and many are sick of paying $60 for an expansion pack with different character skins, as has been Activision’s strategy with Guitar Hero of late.
The biggest losses came from the sale of consoles and handhelds, which dropped 37 percent in the same month. Anticipation is high for the PSP-GO, which could be having many potential buyers holding off on immediate purchases.
The sales slump over the past six months comes from an industry that had been avoiding the mainstream malaise by reporting gains during last year’s holiday season, where most industries saw big drops from the 2007 holiday season.
Things should pick up for EA with the release of Madden 2010.
