Video Game Retail Stores See Profits Drop In January

Video game retailers may have sold a record number of gaming consoles, game titles and accessories in December, but as soon as the holidays came to a close it went right back to business as usual. The release of Microsoft’s new gaming accessory the Kinect helped retailers to reel in consumers that were not planning on making any purchases. ‘Call of Duty: Black Ops,’ was the single best selling video game title of 2010, but now many gamers are more focused on finding out more about upcoming titles before buying them.

A few new video games are being released by developers such as Ubisoft and EA, but they are depending on controversy to increase their sales. Ubisoft made headline news when they released thousands of red balloons in San Francisco to announce their newest title, ‘Homefront.’ Although the game maker certainly got a lot of attention their publicity stunt may not have been big enough to make an impression on cash strapped gamers.

Besides game titles, video game console sales also took a big hit. Microsoft, Nintendo and Sony were not able to sell as many consoles in January as they were able to in previous months. On the other hand, game accessory sales increased slightly. Sony has continued to lag behind the other major gaming console manufacturers. In late 2011 the PSP 2 will be released, however, the hand held gaming device will be competing directly with the Nintendo DS. Video game retailers may have to wait until the next holiday season to see an increase in revenue.

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