Ahead of the Bell: June game sales likely fell

NEW YORK - For the fourth month in a row, analysts expect video game sales to show a decline when The NPD Group releases its U.S. retail sales figures for June after the closing bell Thursday.

Part of this is because of the weak economy. While game companies are touting video games as cheap entertainment, consumers are still cutting back on spending. Mike Hickey, an analyst with Janco Partners, expects total game sales (hardware and software) to decline 30 percent from the same month a year earlier.

There have also been fewer hit game launches in recent months than in the corresponding period in 2008. Wedbush Morgan analyst Michael Pachter expects game software sales do show a decline of 23 percent, to $670 million.

"There were several other solid June launches in 2008, and comparatively fewer this year," the analyst wrote in a note to investors. He added that year-to-date sales are down 8 percent, hurt by the weak economy, the release schedules of big games and weak hardware sales from consumers' "price fatigue."

Pachter said he thinks console makers — Sony Corp., Microsoft Corp. and Nintendo Co. — will be forced to consider price cuts before the end of the year.

Games like Activision Blizzard Inc.'s "Prototype," Electronic Arts Inc.'s "Fight Night Round 4" and Atari's "Ghostbusters" likely led game sales for the month, according to Pachter. NPD does not include PC games in its monthly video game sales data — so "Sims 3," which went on sale June 3, is not included in the figures.

He also expects ongoing strong sales of fitness games, Nintendo's "Wii Fit" and Electronic Arts' "EA Sports Active."

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