Third-quarter digital game sales couldn’t offset big drop in retail video games

The total amount that consumers spent on games in the third quarter was $4.2 billion, down 11 percent from the same period a year ago, according to market research NPD Group.

That number includes the money spent by consumers on hardware, content, and accessories. Sales of console and PC games purchased at retail stores amounted to $1.3 billion. Other game-related income categories  — including sales of used games, game rentals, online subscriptions, downloads of full digital games, social network games, downloadable add-on content and mobile games — added up to $1.64 billion.

“New physical retail sales had a rough third quarter,” said Anita Frazier, an analyst at NPD, in statement. “Increases in sales from some of these other monetization methods, and full game and add-on digital downloads in particular, only partially offset the decline seen in the new physical retail channel.”

She added, “We are already seeing some dynamic changes in the marketplace in Q4 and we are seeing interesting geographic differences from the expansion of our coverage in the UK, France and Germany. Q4 2012 results from both the U.S. and Europe will be issued in March, 2012.”

The quarterly report from NPD comes out later than its monthly U.S. game sales reports, but it has the added benefit of a fuller description of overall game sales because it includes digital game sales and used games and rentals. The third quarter was a particularly weak season for the release of new blockbuster video games for the consoles.

[image credit: ETF Trends]

Dean Takahashi

Dean Takahashi is editorial director for GamesBeat at VentureBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.