The latest research report from analyst Edward S. Williams of BMO Capital Markets Corp. says that the industry maintains a rating of "outperform," despite a lackluster performance in the month of June. Williams is basing some of his opinions on the latest numbers from NPD Group, who reported that the industry suffered a 15 percent year-over-year decline during the month.
Retail video game software sales declined 10 percent in June, and total video games sales dipped 15 percent. These declines were mostly driven by "persisting weak industry trends" and the industry's expectations of a lucrative next-generation holiday season. PS3 software sales jumped 37 percent thanks to the launch of The Last of Us (it represented 20 percent of total video game software sales and generated sales that equaled that of the next nine titles combined), while Xbox 360 software sales declined 60 percent. Combined Nintendo console software sales were down 42 percent as Wii U software sales slightly offset the 56 percent decline in Wii software sales.
NPD estimated that digital sales represented 63 percent of new content sales of $858 million, indicating that the strong trend toward digital distribution sales continues to grow.
BMO says that it expects software sales in 2013 to be under "significant pressure until later this fall, starting with the release of Take-Two’s Grand Theft Auto V on September 17." It also expects the new cycle of consoles from Sony and Microsoft to be a "significant catalyst for the interactive entertainment sector."
You can read the research report here.