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NPD: Behind the Numbers, January 2009
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NPD: Behind the Numbers, January 2009

February 15, 2009 Article Start Previous Page 3 of 6 Next

Shifting Revenue

As Nintendo's platforms have continued to perform well, the company has been more generous with illuminating data points in its monthly NPD-related press releases.

In this month's press release, the company revealed that January revenue due to Nintendo platforms was up $300 million year-on-year while the industry as a whole was up only $150 million.

The implication is clear: the industry grew some only because Nintendo grew more.

Combined revenue on systems from the other two platform holders, Microsoft and Sony, must be down.

Last year, the distribution of revenue in January 2008, looking over the major players in the U.S. video game industry, looked something like this:

Jan 2008 Industry Revenue by Platform Holder

That is a picture of an industry with three robust competitors, each with a sizable piece of the market. Note that Sony's piece of the pie comes from three systems (PS2, PS3, PSP) while Nintendo's comes from essentially two (Wii and Nintendo DS) with only trace amounts from the Game Boy Advance. Microsoft's part comes from primarily the Xbox 360 and some tiny percent from sales for the original Xbox.

While we don't have individual figures for Sony and Microsoft in January 2009, we do have the figures for Nintendo, and those are sufficient to show a shift.

Jan 2009 Industry Revenue by Platform Holder

Revenue due to Nintendo's platforms has grown from 33% of the market to 52% in just a year's time. In last month's industry overview, we saw that sales of hardware, software, and accessories for Nintendo's platforms accounted for 48% of all videogame revenue in all of 2008.

The figures for January 2009 are consistent with that fraction, and suggest more Nintendo dominance going forward.

Article Start Previous Page 3 of 6 Next

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