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Industry analyst Michael Pachter believes May should have been the month in which the US video game industry showed dramatic growth, but a number of under performing titles meant expectations were not met.
“The May line-up was indeed stacked in favour of dramatic growth, with Red Dead Redemption, Super Mario Galaxy 2, Alan Wake, Prince of Persia, Lost Planet 2, Blur, SKATE 3, Iron Man 2, LEGO Harry Potter, UFC, and Shrek 4,” said Pachter in his May Industry Note. “Out of this stellar line-up, only Red Dead Redemption was a breakout hit, with Alan Wake, Prince of Persia, Blur, Shrek, Lost Planet, SKATE and Iron Man each selling fewer than 200,000 units. While UFC and Super Mario Galaxy performed well, each came in below our expectations, and each performed well below prior versions.”
He also noted that the introduction of a new Wii bundle did not kick the Wii fatigue, and its extra bundled game could in fact be the reason for the console’s declining software attach rate.
Pachter concluded: “We expect investors to remain spooked by the May results, as they are beginning to reinforce the notion that the video game industry is in a state of persistent secular decline.”
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