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NPD Reports U.S. Video Game Industry Shows Substantial Growth in First Half 2001

(July 26, 2001)
Retail sales of U.S. video game hardware, software and accessories increased 28% during the first half of 2001 (January-June), compared to the same time last year, according to leading marketing information provider, The NPD Group, Inc.

Unit sales of video game hardware, software and accessories also rose 11% during the first half of 2001 vs. first half 2000.

"The sales boost in the first six months of the year is great news for the video game industry considering video game sales for annual 2000 were down for the first time since 1997," said Richard Ow, account executive, NPD Interactive Entertainment. "We anticipate 2001 to be a very profitable year for the video game industry. This is especially true since 50% or more of the sales usually come during the fourth quarter. Even more importantly, two highly anticipated systems, GameCube and Xbox, will debut this November, " Ow added.

According to NPD, the continued sales growth was driven by many factors. These included the hardware sales of Sony PlayStation 2, the launch of Game Boy Advance and decreased price points of the Sega Dreamcast.

U.S. Video Game Industry Dollar and Unit Percent Changes

January - June 2001 vs. January - June 2000

Categories Dollar % Change Unit % Change

TOTAL 28% 11%

Consoles 180% 66%

32/64 Bit Console Software -33% -22%

32/64 Bit Console Accessories -25% -22%

Next Gen Console Software 237% 279%

Next Gen Console Accessories 294% 262%

Portable Video Hardware 17% 6%

Portable Video Software 21% 18%

Portable Video Accessories 31% 44%

Source: NPD Interactive Entertainment Service

Ow adds, "While PS2 and Game Boy Advance software is flying off the shelves, the older generation of software from the PlayStation, Nintendo 64 and Game Boy Color systems still comprise almost 75% of the year-to-date sales. The new systems will need consistent injections of high-quality, jaw-dropping games with unique content to drive sales of the newer, more expensive hardware systems. Super Mario Advance and Gran Turismo 3 A-Spec are two examples of unique first party software that are major drivers of hardware sales."

Top 10 Video Game Titles Ranked on Units Sold

January - June 2001

Rank Platform/Title Publisher Intro. Date

1 N64: Pokemon Nintendo of America March 2001

Stadium 2

2 GBC: Pokemon Silver Nintendo of America October 2000

3 GBC: Pokemon Gold Nintendo of America October 2000

4 PS2: Madden NFL 2001 Electronic Arts October 2000

5 GBA: Super Mario Advance Nintendo of America June 2001

6 PSX: Gran Turismo 2 Sony Computer December 1999


7 PS2: NBA Live 2001 Electronic Arts January 2001

8 N64 Paper Mario Nintendo of America February 2001

9 PS2: Onimusha Capcom USA March 2001


10 PSX: Tony Hawks Activision September 2000

Pro Skater 2

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