Getting into the Game

Video game console and game sales are through the roof again this year

When it comes to holiday gifts, video games have been at the top of many people’s wish lists since Pac-Man first started gobbling power pellets in the early 1980s. As gaming technology has grown, so has the demand for the systems, games and add-ons that it takes to keep gamers happily mashing buttons (until the batteries run out).

According to the Entertainment Software Association, video game hardware, software and peripheral sales climbed to $22 billion in 2008, a 22.9% jump over the previous year. And that record was primarily set by the strength of video game sales in December of 2008, which came to $5.3 billion. That’s somewhat staggering when you consider that as recently as 1997, the industry generated only $5.1 billion over the entire year.

Without a doubt, sales are bound to be huge again this month, as shoppers clamor to make sure they’ve got the latest and greatest under the tree come December 25. And these are the items that are likely to be on gamers’ wish lists this holiday season:

Consoles
PlayStation 3 – With a recent $100 price drop and a sleek, new design, PlayStation 3 is suddenly on the tip of everyone’s tongue again. In fact, in September, PlayStation 3 outsold the Nintendo Wii for the first time ever, which indicates that the changes in price and form has had a huge impact among consumers. Throw in the fact that the PS3 has a blu-ray player, and suddenly movie buffs are turning their heads toward Sony’s console, too.

Nintendo Wii – Though the Wii’s been around for a few years now and the bloom is slightly off the rose, the demand for that rose is still quite high. A recent $50 cut in the price of the console should help shore up demand this holiday season, and the Wii’s family-friendly appeal means that many moms and dads will want to thrill their kids with one this season.

Xbox 360 – Always a favorite, Microsoft’s stalwart gaming console is on schedule to be a crowd-pleaser yet again this holiday season. Popular games that are specific only to Xbox, as well as a vibrant online community, make the console extremely appealing to several levels of gamers.

PSP GO – Sony’s recently released handheld is smaller than the original PSP, and is absolutely turning heads among gamers on the go.

Nintendo DSi – With bigger screens, two cameras and fun downloadable games, the DSi was a huge seller over Black Friday weekend and is poised to repeat that triumph when it comes to holiday sales.

Games
While video games are popular all year long, there are a handful that are expected be huge sellers this holiday season, such as:

• Rock Band: The Beatles (PS3, Xbox 360 and Wii)
• Batman: Arkham Asylum (PS3 and Xbox 360)
• Grand Theft Auto: Episodes From Liberty City (Xbox 360)
• Assassin’s Creed 2 (PS3 and Xbox 360)
• Uncharted 2: Among Thieves (PS3)
• New Super Mario Brothers (Wii)
• Call of Duty: Modern Warware 2: (PS3 and Xbox 360)
• Borderlands (PS3 and Xbox 360)
• Forza Motorsport 3 (Xbox 360)
• DJ Hero (PS3, Xbox 360 and Wii)
• Halo 3 ODST (Xbox 360)

The demand for video games and consoles is stronger than ever, and it looks like a few new sales records will be set by the end of the year, which is good news for game sellers and players alike. This holiday season, it’s going to be “game on” for consumers!

— Noah Belson, Content Quality Analyst