Video Games retail / e-tail sales in U.S. October 2013

These sales figures represent new physical retail sales of hardware, software and accessories, which account for roughly 50 percent of the total consumer spend on games. When taking into account our preliminary estimate for other physical format sales in October such as used and rentals at $89 million, and our estimate for digital format sales including full game and add-on content downloads including micro-transactions, subscriptions, mobile apps and the consumer spend on social network games at $491 million, the total consumer spend in October is just over $1.3 billion.

• NPDs final assessment of the consumer spend in these areas outside of new physical retail sales will be reported in February in its Q4 2013 Games Market Dynamics: U.S. report.

This is the third month in a row where overall video game retail sales increased, up 5% over October 2012 due to 10% software growth combined with a modest 1% growth of accessories, while portable hardware sales minimized decreases in overall video game hardware sales.

NPD Group's U.S. Games Industry Sales (New Physical Sales Channel*) - October 2013

4-week month; Reporting Period 10/6/13 through 11/2/13

Hardware

October 2013 marked the sixth consecutive month that the Nintendo 3DS led overall hardware sales. 3DS hardware sales were supported by the launch of Pokémon X and Pokémon Y, as well as from sales of the newest member of the 3DS family, the lower-priced 2DS.

The success of the 3DS helped lift portable hardware sales, which was the first time portable hardware sales increased since February 2012(1), when the PS Vita launched.

Portable hardware sales increases helped partly offset the decline of console hardware sales, leading to an eight percent reduction in overall hardware sales from October 2012, the smallest year-over-year decline so far this year (1).

The Xbox 360 moved back into the lead for consoles hardware sales this October after PS3 led sales in September 2013.

Software

This is the third consecutive month that total physical software sales increased versus the year-ago time period. For October, there was a 10% increase in total physical software sales driven by continued strong sales of Grand Theft Auto V and the launch of Pokémon X and Pokémon Y.

Growth in video game software sales over the last few months has reversed negative year-to-date trends caused by declines seen earlier in the year with video game software sales currently flat to last year. With the launch of the PS4 and Xbox One, we hope to see positive trends over November and December which would lead to an increase in software sales for the year.

While portable software made up the majority of the growth over last year, sales for console software increased as well, helping drive the 12% combined growth for video game software.

Grand Theft Auto V was the top selling game for the second month in a row, selling just fewer than 1.1 million units and representing 15% of dollar sales.

Strong sales of Pokémon X and Pokémon Y led to a high attach rate to the 3DS - better than attach rates to the Nintendo DS seen for earlier Pokémon titles.

New launches were the main driver of software sale increases, with a 9% increase of sales from October 2013 launches compared to October 2012 launches during their respective launch month.

Accessories

Accessory sales rose by a modest 1% due to an over 70% increase for sales of Interactive Gaming Toys(2) with combined sales of Disney Infinity and Skylanders items, including those from the new Swap Force, lifting sales from last year.

October 2013 was the highest selling October ever for Video Game Point and Subscription Cards with a 12% increase in average prices which indicates that consumers are becoming more comfortable purchasing higher denominations of point cards and that they are purchasing subscription cards for longer time periods.