Sun, May 27, 2012, 1:17 PM EDT - U.S. Markets closed

How the video games industry is faring

A look at results from selected companies in the video games business

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A look at results from selected companies in the video games business:

April 12: Market tracker NPD Group says U.S. retail sales of video game hardware, software and accessories fell 25 percent in March from a year earlier to $1.1 billion. It marked the fourth month of decline as Sony Corp.'s new PS Vita handheld failed to spark a turnaround. Electronic Arts Inc.'s "Mass Effect 3" was the top seller in the month.

April 18: Video game maker THQ Inc. says its expects adjusted loss and revenue in the latest quarter will come in above Wall Street's expectations because of better-than-expected digital sales and strong sales of "Saints Row: The Third" and "UFC Undisputed 3."

April 19: Microsoft Corp. says revenue from Xbox 360 products and services fell 33 percent. Although it got more revenue from its Xbox Live subscription service, it sold about half the Xbox 360 consoles it did a year ago and fewer stand-alone Kinect motion-control sensors.

April 26: Nintendo Co. reports a $533 million loss for the fiscal year that just ended as weak sales of the Wii home console and the strong yen eroded earnings. Nintendo sold 9.8 million Wii machines during the fiscal year, fewer than the 15 million a year earlier and below its initial hopes of selling 13 million machines.

May 7: Electronic Arts Inc. forecast lower-than-expected revenue for the coming year, sending shares down. The company, maker of games such as "Madden NFL" and "The Sims," is trying to boost digital revenue as demand weakens for console video games. CEO John Riccitiello said EA in the coming year would "break away from the pack, with a very different profile than the traditional game companies and capabilities that none of our new digital competitors can match."

May 8: The Walt Disney Co. says revenue at its interactive media division rose 13 percent while the unit trimmed losses. The interactive unit is still on pace to be profitable by 2013 as the company prioritizes social and mobile games over expensive-to-produce games for video game consoles like the Xbox 360.

May 9: Activision Blizzard Inc. says net income declined because of lower revenue from its games, but its adjusted results beat Wall Street's expectations and the company's own forecasts. Activision publishes "Call of Duty" and "World of Warcraft."

Take-Two Interactive Software Inc. says it has delayed the release of "BioShock Infinite," an eagerly awaited shooter game set in 1912, to give creators more time. It will launch on Feb. 26, rather than in October as the company said previously. Take-Two's stock fell 6 percent.

May 10: Sony Corp. reports a decrease in its game business during the fiscal year that ended in March. That's because of lower revenue from PlayStation 3 because of a price cut and lower sales of the older, PlayStation 2 because of a platform migration.

NPD Group says U.S. retail sales of video game hardware, software and accessories fell 32 percent in April from a year ago, the fifth month of decline.

May 15: Video game publisher THQ Inc. posts a loss in the latest quarter as the company moved through its restructuring efforts. The company has significantly changed its business to focus on its core gaming business that includes its popular wrestling and action-adventure video games such as "WWE" and "Darksiders." After adjusting for business realignment and other special items, the company lost 12 cents per share, compared with a profit of 15 cents a year ago.

May 17: GameStop Corp., the world's largest video game retailer, reports a 10 percent decline in first-quarter profit. Its outlook disappointed Wall Street. The company says sales of used, mobile and digital products fell slightly, while sales of new games and systems dropped more than expected.

Tuesday: Take-Two Interactive Software Inc. says net loss in the latest quarter more than tripled as revenue fell and the video game maker failed to repeat the success of "Red Dead Redemption" from a year ago. Sales were slightly better than expected.

 

8 comments

  • Baby B.  •  23 days ago
    i have been in the gaming industry for 20+ years. i have never invested in a game company. why? they simply don't make money. even when a co. has a hit they have so many dead beat titles it's a wash most of the time.
  • BRINGBACKHUAC  •  1 month 6 days ago
    Respawn Entertainment will own the FPS shooter market soon...
  • consumer thought  •  1 month 8 days ago
    ATVI shares are still low. Video games don't seem like the future of entertainment. Consumers want $50 price tag games
    • MrK 26 days ago
      Actually, consumers want free games. It just costs a lot to make games for the $50 price point and retail space is limited. If a game doesn't hit, they pull it from the shelves, so the publishers and developers shoulder all the risk in the traditional packaged games business.
  • S.C.  •  3 months ago
    So if EA's sales are strong, why have their stocks dropped $5 since December?
    • Louis 3 months ago
      One reason is the NPD group doesn't count digital sales and also EA low-balled estimates for the coming quarter. Mass Effect 3 is going to be huge as well as the star wars mmo. Origin is growing at a pretty good rate and Kingdoms of Amalur is pleasant surprise for a new game ( not a sequel). Not to mention EA Sports and so many other projects. They've got their hands in everything now. Zacks rates them hold but I really think it is a strong buy. it's gonna be a record breaking quarter for them.
    • S.C. 3 months ago
      @Louis
      So their stocks are dropping because of a flawed method of gathering sales data?

      Why would investors in the gaming industry pay attention to those results if they're that skewed?
    • Louis 3 months ago
      Honestly have no idea. Just think it's a stock moving in the right directionand a bargain for under $18.
  • Think about it.  •  3 months ago
    It is the mobile & Wii games that got slaughtered. The ipad, iPhone, and Android games displaced the Nintendo DS and other such platforms.
  • NS  •  Reno, Nevada  •  3 months ago
    So, essentially, if you're not Microsoft, you're getting your backside handed to you. Wake up Sony and Nintendo! And as for Gamestop; why would I bother going to Gamestop when a lot of games are available by download? If they aren't, I'm having them shipped to me. I think Gamestop will soon go the way of Blockbuster as more games become downloaded directly to the console. Handheld gaming will go away even faster. There's too many games available on cell phones and tablets that parents and teens already own - and again, they're downloaded - not bought in a store.
    • A Yahoo! User 1 month 8 days ago
      I agree that Gamestop could be in big trouble if they don't figure out a may to expand their business model.
    • MrK 26 days ago
      People didn't go to Blockbuster to buy videos. Your analogy is flawed there. Think of packaged video games like you would first run movies and Gamestop is more of a movie theater in that respect.
  • UGLY KID  •  Toms River, New Jersey  •  4 months ago
    Give me an Atari 2600.......Pack-Man, Donkey Kong and I will be fine for a few days.....
  • UGLY KID  •  Toms River, New Jersey  •  4 months ago
    I would have thought the numbers would have been worse considering all those OWs Idiots were out all Fall and not in Dad's Basement Playing Video Games......
    • Dan 3 months ago
      yeah all those OW's idiots fighting for ripped off homeowners, fighting against Wall st. crooks and embezzelers, fighting to get our democracy back from the corporate lobbyists. yeah those idiots!
    • UGLY KID 3 months ago
      Then why not picket Corzine's Penthouse in NYC????
      Or Buffet's office since his rail company drives up the cost of fuel vs. the proposed pipeline.....
      Why is the UAW who took the biggest BAILOUT of ALL One of your biggest supporters????
    • A Yahoo! User 1 month 8 days ago
      Yeah all those OWS idiots with their rape free tents and public poop flinging.
 
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