Skip to main content

Videogame sales slump further in August, but Xbox 360 is king

Microsoft Xbox 360Video game hardware and software sales in US declined 10 percent in August, according to a report by market researcher NPD Group. Year-to-date numbers aren’t any better, with revenues dropping 8 percent compared to last year. The August numbers tell an interesting story: Sales of game software dove 14 percent, compared to the 5-percent slide for consoles and portables.

Falling 12 percent, August was the weakest month for the Nintendo Wii ever since its 2006 launch. The news doesn’t get better for Nintendo, which saw sales of its touch-screen Nintendo DS plummet 38 percent. The company is planning a successor model to the DS with a 3D screen, expected in March 2011. Despite declining sales, the Wii remains one of the best selling consoles of all time.

Recommended Videos

But it’s not all doom and gloom in the report. For the third month in a row, Microsoft’s Xbox 360 outsold Sony’s PlayStation 3, PSP, Nintendo DS, and the Wii. In fact, both PS3 and Xbox 360 sales have seen their sales volume go up while the Wii declined. Microsoft will likely continue to have strong sales in anticipation of its Kinect motion-sensing accessory with a free game, expected in November.

Sony’s Move controller, which strongly resembles the Wii’s wand, will go on sale this month and will probably impact Nintendo’s sales numbers even more.

Fahmida Y. Rashid
Former Digital Trends Contributor
Nintendo Switch lifetime sales beat PlayStation 4
Person holding Nintendo Switch, looking at the home screen.

The Nintendo Switch's versatility has made it the bestselling console for the last five years. It has sold so well, in fact, that it has surpassed the lifetime sales of the PS4, according to The NPD Group.

Mat Piscatella, executive director and gaming industry advisor for The NPD Group, tweeted the sales figures for the Switch on Friday. He points out that the Switch is now the fourth highest unit selling console in U.S, and the sixth highest selling console overall, coming behind just three other bestselling consoles of all time, the PS2, Xbox 360, and Wii, Nintendo's legacy console. He also said that the Switch sold more units than any other console last month and outpaced Xbox Series X/S year-to-date.

Read more
Nintendo’s eShop closures are a necessary, but messy move
A Nintendo Wii U gamepad flat on a table.

Nintendo last week announced its intentions to shut down the Wii U and 3DS eShops, the systems' digital storefronts, in March 2023. This decision was disappointing for hardcore fans who stuck with Nintendo during that rocky era and extremely worrying as many of the games available on the platforms won't be preserved.
More significant Wii U games and a handful of 3DS titles were ported to Switch, but many titles are still stuck on those systems and can’t be ported. Once the digital storefront shutdowns, digital-only titles will be gone forever, and physical copies of these titles will get more expensive and harder to experience. Fans and game preservationists have not been pleased by this decision, with the Video Game History Foundation giving the most candid response.
https://twitter.com/GameHistoryOrg/status/1494398068346654720
Following this announcement, Digital Trends spoke to an industry analyst and game preservationists to get a better idea of what exactly caused Nintendo to shut down these stores and to learn how it could do a better job at preserving its legacy.
Why is Nintendo shutting down the 3DS and Wii eShops?
Officially, Nintendo’s FAQ on the eShop closures says “this is part of the natural life cycle for any product line as it becomes less used by consumers over time." The answer doesn’t get into specifics and might confuse those still playing games on the system or fans of games only available on Wii U or 3DS. Omdia Principal Analyst Matthew Bailey explains Nintendo’s user base argument in more detail, highlighting the massive gap between the number of people playing the Switch as opposed to the Wii U.
“While Omdia expects the number of Switch consoles in active use to exceed 90 million on a global basis this year, the Wii U’s global active installed base will drop under one million in 2022,” he explains. “Even when you include the more enduring 3DS family of consoles into the equation, the Switch still comfortably accounts for over 90% of Nintendo’s total active console install base.”
If one is going off just the numbers, it’s sensible that Nintendo would want to focus on the majority of its players. Bailey admits that “Switch users are already reaping the benefits of Nintendo’s singular first-party development focus on one platform.” Still, one might argue that Nintendo should just let the eShops remain up even if it isn’t actively updating or maintaining them.

Unfortunately, Nintendo doesn’t see that as possible due to cost and security issues. Game Over Thrity, a Twitter user with over 20 years of experience working on IT projects and infrastructure, shed some light on what might have influenced Nintendo’s decision-making in a thread.
“As these systems age, they require patches, security, special contracts, updates, and personnel that know how they were built (and maintained),” his Twitter thread explains. “As time goes on, there are security holes, servers, code, infrastructure, etc., that can’t be brought up to modern standards. It becomes a constant struggle between maintaining legacy systems, paying people to do so, and trying to keep up with global regulations. It’s not cheap by any means. They can’t just ‘leave the lights on’ and stop supporting them. What if someone hacked the payment processor?”
With every passing year, the Wii U and 3DS eShops likely became more expensive to maintain and an increased security risk for the video game publisher. Instead of investing the time and resources into pleasing a smaller amount of players, the easier option is to turn everything off entirely. While he isn’t affiliated with Nintendo, Game Over Thirty’s assessment aligns with what we’ve heard from Nintendo and Omdia.
"The Wii U’s global active installed base will drop under one million in 2022."

Read more
No company should make a new game console until the chip shortage is over
PS5 and Xbox Series X next to each other.

We're just over a year into this console cycle and it's still nearly impossible for a normal person to get their hands on new hardware. The PlayStation 5 has been notoriously difficult to find since it launched, with the Xbox Series X also facing the same shortages. Even Nintendo is suffering now despite the Switch being on the market since 2017. We all hoped these shortages would start to resolve themselves by now, and yet reports are coming in saying these consoles are likely to be scarce through 2022.

While this is an issue for consumers and the console makers in the immediate sense, this extended scarcity has created a ripple effect in the market. This entire culture of carefully watching retailers for updates just to have a chance to buy a console has burned gamers. We're basically learning that if you don't throw down your money as fast and as early as possible, then you may not get that new console for a year -- or even two.

Read more