Gaming industry hit hard despite CoD and Halo 4

Posted by David Konow

We’ve seen a lot of ups and downs in gaming throughout the years, and right now you’d think the market is really on the upswing.

Halo 4 earned $220 million, and Call of Duty Black Ops 2 hit a billion dollars in sales in record time. Yet this doesn’t mean that the gaming market still isn’t slogging through a down period.

In fact, according to Variety, gaming is currently down 11% in spite of the incredible success of Call of Duty, Halo 4, and Assassin’s Creed. The gaming industry made $2.55 billion in November, with new game software sales also down 11% to $1.4 billion, and hardware sales are down 13% to $839 million. (Variety quoted figures from the NPD Group, a research company.) 
 
Variety tells us that half the gaming revenue generated in November came from new software, hardware and accessory sales, and over $200 million came from used games and rentals. Meanwhile, downloads, game subscriptions and mobile app profits made $410 million. The launch of the Wii U also helped Nintendo’s bottom line by 21%. 
 
Then again, gaming sales have been down all year, with the Hollywood Reporter noting that less people were buying console games. But current speculation has it that a big turn around in the market could come within the first quarter of next year. 
 
Like Call of Duty and Halo 4, the big title that could help turn things around is Grand Theft Auto V, which could actually help boost the industry by 16 to 30%. Other speculation has it that by the first quarter of 2013 software sales could be up nearly 50%.

In any case, here’s to hoping that we’re seeing the "trend reversal" right now, and that it leads into a gaming being back bigger than ever before the summer.