NPD Report Shows Video Games Outsold Computer Games in 1996;
Games for Consoles Accounted for 55% of all Entertainment Software
Sold in 1996
PR Newswire - February 18, 1997 09:55
PORT WASHINGTON, N.Y., Feb. 18 /PRNewswire/ -- Video game software
slightly outsold computer entertainment software during 1996, according to
leading market researcher The NPD Group, which provides retail point-of-sale
tracking for the interactive entertainment software industry. According to
NPD's Interactive Entertainment Software Service, video game software
accounted for 55% of the 90 million entertainment software units sold in the
U.S. in 1996. NPD monitors the interactive entertainment software industry
through information provided by a nationally representative sample of
retailers across the U.S.
Although video games and computer software were running neck and neck in
early 1996, a strong fourth quarter for video games widened the gap by year
end. The introduction of the Nintendo 64 system in late September and strong
software sales for the Sony PlayStation and Sega Saturn during the holidays
helped video games capture 60% of interactive entertainment software unit
sales during the fourth quarter.
"Even with the recent improvements in computer gaming hardware, such as 3D
graphics, faster processing and surround sound, consumers are still buying
more games for console machines than for computers," says NPD's Ryan Brock.
"Where the market is headed is yet to be determined," he points out.
"While it's clear that next generation systems are now coming into their own,
the holidays have traditionally meant very strong sales for the video game
industry, and there are a number of factors that will influence this ongoing
competition."
Top Interactive Entertainment Software Publishers
According to NPD, the top five interactive entertainment software
publishers ranked by units sold during 1996 were: Nintendo of America,
Electronic Arts, Sega of America, Acclaim and CUC International.
Many of the top entertainment software companies hedged their bets by
publishing titles for both computers and video game consoles in 1996. Sixteen
of the top 25 entertainment software manufacturers offered games for both
computers and consoles.
One of the more notable exceptions is the top entertainment software
publisher for 1996, Nintendo of America, which produces for video game
consoles only. However, Nintendo's two biggest video game competitors, Sony
and Sega of America, were active in the computer entertainment software
business.
As NPD's Brock explains, this trend towards publishing for both computers
and consoles is likely to continue. "In the event that either computer or
console gaming begins to dominate the total entertainment software industry, a
publisher producing for both will be in a better position to shift its
resources."
About the Interactive Entertainment Software Service
NPD tracks the interactive entertainment software industry through two
retail point-of-sale tracking services, TRSTS and SofTrends. TRSTS monitors
the video game industry, tracking retail sales of hardware, software,
accessories and portables. SofTrends provides retail point-of-sale tracking
for the computer software industry. SofTrends also conducts a biannual
Consumer Purchase Study, fielded in February and August to a panel of 15,000
PC owners, which provides information on industry trends, consumer
satisfaction and purchaser demographics.
About the NPD Group
The NPD Group is a privately held, international market research company
headquartered in Port Washington, N.Y. Founded in 1953, the firm specializes
in providing custom and syndicated market research and associated computer
software-based information management systems. NPD is the eighth largest
market research firm in the U.S. based upon 1995 revenues according to the
American Marketing Association's Honomichl 50. NPD has offices and
affiliations in 33 countries covering North America, South America, Europe,
Asia, and Australia.
SOURCE The NPD Group
CONTACT: Leslie Singer, 516-625-2302, leslie_singer@npd.com, or Ryan
Brock, 212-625-2828, ryan_brock@npd.com, both of The NPD Group, Inc. |
