To: pham who wrote (8491 ) 11/6/1998 9:04:00 PM From: Jimmy Dell Respond to of 14266
The report below bodes well for THQI and this sector. BW1111 NOV 06,1998 6:29 PACIFIC 09:29 EASTERN ( BW)(NPD-GROUP) NPD Reports Video Game Sales Continue to Sizzle in 1998 Business Editors PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Nov. 6, 1998--Retail sales of video games in the U.S. through mid-October were up 32% versus the same period in 1997, reports leading marketing information provider The NPD Group. According to NPD's TRSTS(R) Video Game Services, sales were up every month in 1998 compared to year-earlier figures, with gains ranging from 16% to 52%. Sales are projected to reach $6.3 billion, breaking last year's record of $5.1 billion in industry sales. "The drivers behind the continued industry growth are the Sony PlayStation and Nintendo 64 systems," confirms Ed Roth, president of NPD's Leisure Activities Tracking Services. "With a number of key titles expected to hit the market in the fourth quarter, we see another strong holiday selling season for the video game industry." TRSTS(R) data show that going into the fourth quarter, there are now over 20 million PlayStation and Nintendo 64 machines in homes across the U.S. Console sales through mid-October alone have generated five million units, adding to a growing consumer thirst for software in the fourth quarter. With reasonable software prices, strong industry awareness and a huge console installation base in place, the video game industry is well positioned for continued growth. Growth Categories Detailed According to Roth, strong performance to date is the result of exceptional software sales for Next Generation machines. Total Next Generation console software dollar business is up 65% versus 1997. Although a smaller segment of the video game market, accessories are up 50% for total consoles and portable machines. Combined Nintendo 64 and PlayStation console sales have grown a very respectable 20% on a unit basis. However, lower retail prices have resulted in dollar sales growing at only 5%. Experiencing a resurgence in 1998 is the Portable Video Game Systems segment, which experienced double-digit growth, all due to Game Boy hardware and software sales. Top 15 Video Game Companies Although Sony and Nintendo are directly benefiting from the industry good news, many other publishers and accessory companies are also experiencing strong performances at retail. The top 15 video game companies based on retail dollars so far in 1998 are: 1 Nintendo 9. Capcom 2 Sony 10. Namco 3 Electronic Arts 11. Sega of America 4 Interact Accessories 12. Mad Catz 5 Acclaim Entertainment 13. Eidos Interactive 6 Midway Home Entertainment 14. Konami 7 989 Studios 15. Hasbro Interactive 8 THQ About The NPD Group The NPD Group is an international marketing information company headquartered in Port Washington, NY. Founded in 1953, the firm specializes in providing consumer and retail sales tracking and custom research for a wide range of industries and is the founder of Media Metrix, Inc. NPD TRSTS(R) Video Game Services track market trends through point-of-sale information collected from a panel of retailers across the U.S. NPD is the ninth largest market research firm in the U.S. based upon 1997 revenues, according to the American Marketing Association's Honomichl 50. NPD has offices and affiliations in 36 countries, covering North America, South America, Europe, Asia and Australia.npd.com