NPD: Videogame Industry Retail Sales For July Lowest Since '06

Retail sales of new videogames, consoles and accessories in U.S. stores in July fell to their lowest levels since 2006 as consumers continued to pinch pennies.

Videogame industry sales fell to $707.7 million, a 26% drop from a year earlier, according to NPD Group. The industry tracker said a weak slate of new titles and seasonally lower sales contributed to the shortfall.

NPD analyst Anita Frazier said that annual comparisons were particularly tough because Microsoft Corp. (MSFT) had released a new model of its Xbox 360 around this time last year, invigorating sales.

The videogame industry's poor performance comes amid growing uncertainty about the strength of the economy. A debt fight in Washington, troubles abroad and slow growth in the jobs market have rekindled consumer concerns.

Electronic Arts Inc.'s (ERTS) "NCAA Football 12" was the best-selling game of the month. Frazier said the game might have gotten its 15% bump because the more popular "Madden" football game won't be released until Aug. 30.

The delay may also hurt August sales comparisons, Frazier said, as the game represented 28% of game sales for the month. When it is released, the game will likely also throw off September's numbers, she added.

NCAA Football was followed by Walt Disney Co.'s (DIS) "Cars 2" and Activision Blizzard Inc.'s (ATVI) "Call of Duty: Black Ops," which was released last November.

Across the industry, new game sales fell to $356.9 million, a 30% drop from last year.

Sales of videogame accessories, such as prepaid cards used to purchase digital content within games, fell 8% to $127.8 million.

-By Ian Sherr, Dow Jones Newswires; 415-439-6455; ian.sherr@dowjones.com

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