Handhelds Jolt U.S. Video Game Sales

A new NPD Group survey finds retail sales of video games in the U.S. increased 21 percent during the first six months of 2005, as surging popularity of handheld games offset declini

A new survey from the NPD Group found that U.S. retail sales of console and portable video game systems, accessories, and games increased 21 percent during the first half of 2005, accounting for more than $4.1 billion in sales, compared to $3.4 billion in the first half of 2004.

Overall, the industry saw an 11 percent increase in unit sales during the first half of the year, despite a six percent decline in the sales of ever-aging console systems (PlayStation 2, Xbox, GameCube) on the verge of being replaced with a new generation of systems. The net increase in sales was due to the strong popularity of portable gaming systems—such as Sony’s PlayStation Portable and the Nintendo DS—introduced during late 2004 and early 2005. Respondents also said they purchased larger screens for their console gaming, generally in the 40 to 46-inch range.

The NPD survey found the five top-selling video game titles for the first half of the year were Sony’s Gran Turismo 4, Nintendo’s Pokemon Emerald, EA’s MVP Baseball 2005, LucasArts Star Wars Episode III: Revenge of the Sith, and Take 2’s ever-controversial Grand Theft Auto San Andreas, now the subject of an FTC investigation.