Analyst: New Releases Will Drive Console and Handheld Software Sales
The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.
We expect August U.S. retail video game software sales data to be released by the NPD Group after the market close on Thursday, September 12.
We expect console/handheld software sales of $280 million, up 18 percent compared to last year’s $238 million due to the timing of this year’s Madden release and a strong release slate. We expect sales to be up y-o-y for the first time since January, with the first month of true growth (same number of weeks for August and its comparison period) since November 2011. Positive growth should continue in September when Take-Two (NASDAQ:TTWO) releases Grand Theft Auto V, which should be among 2013’s best-sellers. The outlook for 2013 beyond September is more difficult to assess, however, as gamers continue to reallocate their budgets to the PS4 and Xbox One, and away from current-gen content. Although demand for the PS4 and Xbox One is already very strong “Sony (NYSE:SNE) recently announced over 1 million PS4 pre-orders”, we believe supply constraints from shorter manufacturing periods will result in demand greatly exceeding supply through at least the first few months of 2014.