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NPD: BioWare Wrong; PC Games Down 14%

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4:30 PM - January 21, 2009 by Marcus Yam

With the ever growing popularity of the console market, especially those connected online, PC gaming’s always been under some sort of doom-and-gloom cloud. Numbers released last week by the NPD Group won’t do much to make things any better -- but are they telling the real story?

According to GameDaily, PC sales in 2008 totaled $701 million, which is down 14 percent from 2007. Before anyone is quick to declare the decreased sales figure as just another nail in the PC gaming coffin, NPD Group tracks retail sales, and even then, not all retailers.

Even copies of retail games sold through online merchants such as Amazon aren’t counted in that $701 million total. Furthermore, games sold digitally through online services such as Valve’s Steam are also neglected in the figure. This means that we’re missing a big part of the PC game sales picture.

Of course, it’s worth noting that console game sales revenue saw growth during time of PC’s downward trend, which does indicate that, at least on the retail side, PC games are slipping.

The hardcore PC gamer, however, is much different than the mainsteam console gamer. First of all, the console gamer is limited to fewer options when purchasing a new game -- it’s either through an online retailer or from a games shop, and even then, the games shop is best for instant gratification. The PC gamer has those two options, but with the addition of digital downloads, which can provide even more immediate instant gratification. Games can often “pre-load” and download to a user’s hard drive and be unlocked for play before stores even open for business on the day of release.

Games bought online also don’t rely on keeping track of physical media, or in some cases, even serial keys. With PC gamers almost required to have a broadband internet connection, the convenience of purchasing through new, non-retail channels is increasingly more attractive.

So while NPD’s numbers showing that PC gaming sales are down are true in one regard, but don’t show that the growth on the online side. Let’s not even get started on the money generated by the World of Warcraft.

Source : Tom's Hardware US

Talkback
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yoda8232 01/21/2009 11:02 PM
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-10+

Honestly I HATE why the NPD doesn't count online sales on a PC. As Tom's says "Let’s not even get started on the money generated by the World of Warcraft."

LordPie 01/21/2009 11:17 PM
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-5+

seriously. the decrease in retail sales is greatly surpassed by the increase in digital sales from places like d2d and steam. why do all the "pc gaming is dying" articles NEVER consider this??

rmicro1 01/21/2009 11:28 PM
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-4+

Personally I haven't bought a single PC game retail in over a year but just in the last 4 months, I've gotten around 8 games through steam, not just old cheap ones either.

LATTEH 01/22/2009 12:08 PM
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PC GAME SALES ARE DOWN?!?! TIME TO GO TO GAME STOP AND DO MY PART

eklipz330 01/22/2009 12:19 PM
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-3+

i've bought my games, i buy all awesome single player games for pc, and some pc bound multiplayer games like tf2... single player games like deadspace or mass effect are just better on pc, i have my wired 360 controller, and great graphics, ima get myself a 7.1 headset, and im set. i don't really care much for these numbers, the company knows when they're selling well, im sure of it

yoda8232 01/22/2009 12:26 PM
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--2+

We should like attack NPD headquarters, like a fucking protest right in front of the entrance so they can't continue doing this. This is like brain washing people who no nothing about the real PC gaming state.

tipmen 01/22/2009 12:31 PM
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-3+

I use steam to buy all my games because i know i will always have it. When i do a whole computer upgrade or formatting i have no worries of finding the discs or having that dumb securom limitation for installs or that software to begin with... Worst thing EA ever did... Just 2 weeks ago i bought 3 games when steam have that big sale. Anyways, i guess its soon going to be pointless to buy a nice computer for games seeing how alot of games are just poorly made ports or just not going to be made for the PC sorry crytek i like Crysis graphics wish to see them more in other games.

ricin 01/22/2009 1:07 AM
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-2+

I'm sorry, but saying that BioWare is wrong is flat out blasphemy.

DJ898 01/22/2009 3:12 AM
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+1 ricin

MDillenbeck 01/22/2009 3:23 AM
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-2+

So lets take their biased research for what it is - an indication that PC game sales are decreasing overall at the retail locations they currently monitor.

However, any conclusion that PC game sales is declining is obviously wrong. They are taking the data gathered and generalizing to a population much bigger than what they sampled.

One conclusion is that PC gaming is collapsing. However, there are alternate conclusions that one can conjecture. Perhaps MMOs are eating up traditional game sales with monthly fees. ($120+/year plus the initial cost of the game and possible expansion packs equals a PC gamer who purchases 3-6 new games a year!) Perhaps digital downloads are taking a bite - such as Steam. Perhaps people are pirating the games instead.

However, without further data on these alternative forms of game purchases, any of the above conclusions are just speculation and nothing more.

Statistics - such a wonderful quagmire. Especially when combined with the modern media, which so often provides insufficient details on how and what data was collected for the numbers spewed to have any real meaning.

rta 01/22/2009 3:23 AM
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"The hardcore PC gamer, however, is much different than the mainsteam console gamer."

Couldn't have written it better myself.

anarchy4sale 01/22/2009 5:38 AM
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I bought 3 games last year thought digital download... these numbers are greatly skewed for simple reasons they mentioned above. I rarely buy games anymore at the store if possible.

I bought 2 WoW expansions, 1 Eq2 Expansion, all 3 of these online, and I bought C&C 3 at bestbuy.

invlem 01/22/2009 6:28 AM
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Last few games I've purchased in recent months, no specific order: Left 4 Dead, fallout 3, assassin's creed, sins of a solar empire. I believe sins is the only game i had to go out and buy retail.

My next purchase will be Dawn of war 2, you guessed it, steam again, I mean why not, they gave me a free pre-release multiplayer trial for my last 2 games, same thing is happening with dawn of war. The retail stores can't compete with that, heck I even get it tax free, thats 15% off the sticker price right there for us Ontarians.

NPD really needs to update their metrics and get with the times.

jtabler 01/22/2009 1:32 PM
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I buy all my games through amazon. I like free shipping and no tax.

Dave K 01/22/2009 2:51 PM
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I believe that many of the hottest releases of 2008 were available for direct download. For me at least, if I can get it on Steam... I do.

I also suspect that they're not tracking MMOG revenue... which is probably the biggest PC gaming segment by a wide margin these days.

Single player gaming might be seeing some loss of ground relative to console gaming - but PC gaming as a whole is still making plenty of money. I also wonder if part of the decrease in SP gaming is more because game makers aren't releasing as many titles for the pc (Fable 2 for example, used to be PC, now 360 exclusive), which forces you to get the console version. I know I'd have bought the PC version of Fable 2 if it was available.

elbert 01/22/2009 2:54 PM
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NPD's estimates may spell some trouble for for some gaming companys but in no way should they say pc gaming is down. NPD's $701 is only a little more than half what blizzard's WOW makes on subscriptions a year. Currently WOW has 11.5 million subscription at last count. I would estimate thats about $1.2 billion a year. Here is a URL to explain the subscription charges and a run down at 10 million subscriptions.

PC gaming is making way more than $701 million so the NPD is wrong.

Pei-chen 01/22/2009 3:10 PM
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This report is akin to saying the personal computer market is down because desktop sales are dropping.

falchard 01/22/2009 4:16 PM
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Don't forget the significant decline in PC games being developed last year.

Obadiah Teleo 01/22/2009 4:28 PM
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Okay, let's look at it this way, $700 million in counted sales plus extrapolated sales of $350 million equals just over $1 billion in PC game sales. While this may represent a drop in sales over the previous year, it still remains that no company is going turn their nose up at a $1 billion PC game market!

Moreover, there are likely very logical reasons for a dip in PC game sales.

Most households have PCs and one or more game console. Those household gaming dollars are spread thinner.

There are many new households with gaming consoles. The Wii has expanded to many, many households that would have never otherwise purchased a game console. These households are buying Wii Fit and such. They are also trying other games for their new Wii. It remains to be seen if these households will continue to support the gaming console market.

I will say this anecdotally, I do think console gamers have much shorter attention spans than do PC gamers. That is, console gamers buy a game, play it for a short while, and are quickly bored with that game and then look for another "thrill me" new game fix. On the other hand, I think PC gamers are much more likely to thoroughly play a game and get involved with it, with WoW being just one example.

The point is, just flashing out some half-baked sales numbers doesn't really tell the whole story.

zenmaster 01/22/2009 5:49 PM
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-1+

The numbers are just not very good.

I can tell you my wife buys Lots of Y! games, but they count.
I buy lots of full games on-line that I download.

Why would I actually drive to the store when I can have it in my hand in less time. Add to that, I already have an ISO or other install media in electronic format I can backup. I would rather not be forced to use Physical Media. That is so yesteryear.

JeanLuc 01/22/2009 5:53 PM
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falchard :
Don't forget the significant decline in PC games being developed last year.



There is no "significant decline" in PC games being developed, in fact I would say there are too many new games out on the PC at the moment and there simply aren't enough hours in the day to try them all.

I quite honestly can't work out why NPD reports these numbers since by there own admission it doesn't include data from big name retailers like Amazon let alone Digital downloads and subscriptions etc so as far as I'm concerned this data is about as useful as glass hammer.

azxcvbnm321 01/23/2009 12:02 PM
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--2+

Lol, sure everything is fine, don't worry, be happy. There are still a huge number of people without broadband and who aren't going to sit for days to download a game.

Why are retail sales down? Does anyone see the elephant in the room, namely PIRATING? Meanwhile, console games continue to grow. Thanks pirates, you've killed off yet another industry.

aethm 01/23/2009 2:30 AM
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-1+

Pirating games for the Xbox 360 is only marginally harder than on the PC. It's actually easier once you've done the initial legwork. People like to blame pirates for everything but I don't see ANY industry actually suffering. Lets also not forget that we are in midst of a major recession. Every other sector is down in numbers. Why are people surprised that games aren't selling as well as they did a year ago?

demonhorde665 01/23/2009 2:08 PM
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-0+

NDP, just another group of idiots with another batch of half baked statistics. hmm let me see

retail games bought last year (07 , 09 really hasnt ahrdly started yet)

1. tomb raider - legend
2. tomb raider - anniversary
3. Stalker - shadows of chernobyl
4. turok
5. UT3
6. Transformers the game
7. NWN2 expansion - mask of the betrayer
oops those dont count i obught them off amazon

hmm digital down laods from last year (07 09 really asht started hardly)

1. prey (D2D)
2. Test drive unlimited (D2D)
3. Dark star one (D2D)
4. Resident Evil 3 (digital river , yeah i know old game but i never got to play it)

retail games i bought this year (08)

1. NWN 2 exapnsion 2 - Storm of Zehir (walmart)
2. Tombraider - underworld (walmart)
3. Fallout 3 collectors edition (amazon)
4. carmagedon 2 (amazon, yeah i know really old game , but lost the first copyui bought this was to repalce it)


Digital downlaod i bought this year (08)


1. Vampire the masquerade blodlines (steam , replacment for broken disk)
2. Left 4 Dead (steam)
3. Mass Effect (steam to avoid securom)


games i will likely buy in 09

dead space (steam to avoid securom)
Mass effect 2 (steam to avoid securom)Note game will release late 09
spore (maybe ,and then only from steam)
maybe some older titles either from amazon or steam
Duke nuke em forever ,(retail or amazon , assuming 3d realms finnally gets this oen finished in 09 ???)






radguy 01/23/2009 3:04 PM
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-0+

While it sucks that this study doesn't include the online sales you can't disclude retail from the picture either. I find some of the best deals on pc games in retail. Steam is pretty good and has some great deals but not many can beat target when they decide to stop carrying a game and put it on clearence. (
An alternative note is that I went to buy farcry 2 from bestbuy the day it was released. (I had a giftcard and didn't know how big of a mistake buying that game was going to be. No offence but I didn't care for it.) They had all the xbox 360 copies out on display and I asked them if they had the pc version. The guy spent 10 minutes looking up the release date to see if he could sell me a copy and then spent another 10 minutes in the back looking for it. I think it shows the retail state of pc games.

pochacco007 01/23/2009 8:54 PM
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-0+

pc gaming is and isn't dead. it is dying because no one plays it on a computer but it is alive because it's shifting to somewhere else. where is it going? to the consoles. pc gaming got dumbed down.

1-you no longer have to worry about requirements [hardware and software] as what people had to worry about in the past.

2-controls got simpler as you now don't have to use majority of the keyboards to play a game. keyboard and mouse is the pc domain, but as long as the controller is useable then it's okay. to use dual analog to play first person shooters is crazy but it works.

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