Video Game Market Saturated? Video Game Sales Take Huge Hit

The Microsoft Xbox 360, Nintendo Wii, and Sony PlayStation 3 consoles all saw a 24% drop in overall revenue for video game sales in July according to the NPD Group. NPD also said that the gaming console systems also saw a huge drop at a 37% decline when compared to the same time last year.

If you had to choose a winner out of the three during these declines it would definitely be Nintendo once again. The Wii led sales in the gaming market, selling 362,000 consoles while the Xbox 360 only sold 202,000 consoles and the PlayStation 3 even selling less at 121,000.

Maybe the market is saturated? Perhaps everyone that wants a console already has one?

Nintendo's Wii console has been a major hit ever since its release. It's held the top spot of sales for 22 consecutive months now.

Will the market turn as the holiday season approaches and new games are released for the new year? Perhaps, but I think consumers are going to be much more frugal this year than ever before which could hurt the video game industry even more. For a lot of consumers, Entertainment is one of the first things in the budget that gets whacked and until the economy recovers more so - I don't think we'll see huge profits in the gaming industry. Unless of course, something really innovative comes out in terms of hardware that really makes consumers want to upgrade and will put aside the frugal spending to do so.