Video game spending triples in '07
EmptyDENVER -- It's a good time to be in the video game business. While spending on music fell 10% in 2007, according to new data from the NPD Group, video game spending tripled in the same period, and DVD sales were largely flat.
Retail sales of video games jumped 41% while retail CD sales fell 45%. In fact, an NPD survey finds that the reason teens spend less on CDs is because they're spending their money on video games instead.
However, the most hardcore gamer remains a prodigious consumer of nongamer entertainment. NPD says gamers who play several times a week spent most of their entertainment budgets on such no-gaming fare as DVD (58%) and CDs (46%) compared to new games (43%).
"We have this perception of hardcore gamers glued to their consoles and immersed in virtual worlds, when in fact they are still spending a lot of time with -- and money on -- music, movies and other pastimes," NPD analyst Russ Crupnick said. "To be a winner in the entertainment wars, companies need to make sure they lead at every consumer touch point -- from traditional retail to digital to wireless."
"New technologies, new devices and digital content delivery are changing the entertainment landscape in such a way that companies must keep tabs on the latest trends in competitive categories -- not just their own entertainment sectors," he added.