Video Games retail / e-tail sales in U.S. November 2014

Overall retail sales across hardware, software, and accessories declined 11 percent this November versus November 2013. For the most part throughout 2014, we have seen software declines that were offset by year-over-year increases in hardware spending. This November, however, hardware declines totaled $294 million while software declined $17 million or 2 percent. Accessory sales increased by a modest $5 million.

Currently, year-to-date sales across hardware, software, and accessories through November 2014 are up 2%.

NPD Group's U.S. Games Industry Sales (New Physical Sales Channel*) - November 2014

4-week month; Reporting Period 11/02/14 through 11/29/14

Hardware

While the majority of the decrease in dollar sales of hardware stemmed from an expected drop of seventh generation console sales, eighth generation sales also decreased and represented 38 percent of the total declines in hardware sales from November 2013 to November 2014.

Despite a decline in dollar sales, hardware unit sales for eighth generation consoles increased by 3 percent over November 2013.

Hardware bundles were a major factor in the sales of hardware this November, with a number of new bundles ranking as the highest selling hardware bundles so far this year with one bundle ranking as the highest selling hardware bundle ever based on dollar sales.

Cumulative PS4 and Xbox One sales are now almost 80 percent higher than the combined total of PS3 and Xbox 360 sales after 13 months on the market.

Software

Software declines stemmed from losses from consoles software as portable software and PC Games software increased over November 2013. Portable software increased by 25 percent due to the combined performance Pokemon Alpha Sapphire, Pokemon Omega Ruby, and Super Smash Bros. for the 3DS. PC game sales increased by 34 percent over November 2013 due to The Sims 4 and the launch of World of Warcraft expansion, Warlords Of Draenor.

Seventh generation console sales combined to decrease by 49 percent or $361 million from November 2013. Eighth generation console software sales and portable software sales increased by $342 million and could not offset the losses stemming from seventh generation console.

Collectively, games that launched this month generated 14 percent more sales than the performance of new launches in November 2013. The decline in software sales stemmed mainly from the performance of October launches in November, which represented 69 percent of the overall decline in software dollar spending.

Interestingly, this month had three platform exclusives within the top ten games with Pokemon Alpha Sapphire, Pokemon Omega Ruby, and Halo: The Master Chief Collection while in November 2013 there were no platform exclusives ranked in the top ten games.

Grand Theft Auto V found renewed interest from consumers with the launch of enhanced versions of the game for the PS4 and Xbox One and ranked number 2 in software sales for November 2014.

Accessories

Accessory sales increased by 2 percent of $5 million over November 2014 due to increased sales of interactive gaming toys, and headsets/headphones.

The largest volumetric growth in the accessories category came from headsets/headphones, which increased by 36 percent or $12 million over November with Turtle Beach capturing the largest volume of sales, and Sony having the largest year-over-year growth.

Interactive gaming toy dollar sales grew by $8.4 million or 15 percent over November 2013, and were boosted by the launch of Nintendo's Amiibo.

Gamepad sales grew in unit sales over November 2013, but dropped 5 percent in dollar sales.