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Gaming Industry Falls Short in 2010; Xbox 360 and Kinect Skyrockets

Written on January 18, 2011 by Chris Martin

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Xbox 360 and Kinect sales skyrocketed as they inch closer to the perennial winner, the Nintendo Wii. But even as the Microsoft console goes up, the entire industry starts to falter.

reported last week that the video game industry didn’t do so well in 2010 despite huge hardware and software launches plus the emergence of extra-retail sources such as digital distribution and . and Kinect sales on the other hand have skyrocketed threatening ’s dominance, but wasn’t enough to compensate for the loss of the industry for the year.

From 2005 to 2008, the video game industry has received stable growth, but things changed during 2009 that seems to continue to 2010. If this keeps up in 2011, then it would be disastrous for the industry, overall.

Visit this link to read more about NPD’s report over at as they try to answer these essential questions that may change the course of over the years.

  • The launch of has changed the balance in the console market. What will we consider the new status quo a year hence? Where will Nintendo take the Wii as its sales pace slows?
  • Retail software sales have slowed significantly. Where is the contraction and where is the growth? What are the factors driving the decline?
  • The NPD Group estimates that total consumer spending on games in 2010 was essentially flat from 2009 – even when extra-retail sources like digital distribution and social games are considered. What do these new figures tell us?

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