Bloomberg News

Video-Game Sales Increased 25 Percent During June

July 14, 2006

Sales of video-game players and software rose 25 percent during June, researcher NPD Group said in a report, spurring gains in the shares of several gamemakers.

Sales jumped to $844.5 million from $674.5 million in June 2005, Anita Frazier, an NPD analyst, said today in an interview. Shares of publishers THQ Inc. (THQI:US), Take-Two Interactive Software Inc. (TTWO:US) and Electronic Arts Inc. (EA:US) all rose.

A larger supply of Microsoft Corp.'s Xbox 360 players and new game titles helped spur the gain, Frazier said. Improved sales eased concern the industry wouldn't revive until Sony Corp.'s new PlayStation 3 appears in stores in November, she said.

``I don't think this was a blip that's going to go away,'' she said. ``The performance was based on factors that are sustainable, not necessarily at that level, but I think the base of the industry is healthy.'''

Console sales rose 85 percent to $158.7 million. Software for consoles rose 9.3 percent to $308.9 million. Industry sales also include accessories, portable games and portable players.

Shares of Electronic Arts, the largest maker of video games, rose $1.79, or 4 percent, to $45.31 at 4:30 p.m. New York time in Nasdaq Stock Market composite trading. Activision Inc. shares gained 38 cents, or 3.5 percent, to $11.29.

THQ shares rose $1.11, or 5.5 percent, to $21.33 and Take- Two gained 36 cents, or 3.7 percent, to $10.20.

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net.

To contact the editor responsible for this story: Emma Moody at emoody@bloomberg.net.


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Companies Mentioned

  • TTWO
    (Take-Two Interactive Software Inc)
    • $27.66 USD
    • -0.50
    • -1.81%
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