That is why it is important to be aware that though retail sales have been soft for the toy industry as of late, the video game industry is really getting hit hard. According to a CNet article, “Game Console Sales Plummeted in June:” “…total U.S. game industry sales were $743.1 million in May, falling to their lowest point since October 2006.” As a percentage, “…hardware sales last month were down 21 percent.” Video game software sales were off as well, estimated at -6%, but nowhere as bad as console sales.
Obviously the video game industry is far more volatile than the toy industry where increases and decreases tend to run at + or – 2%. BMO toy industry analyst, Gerrick Johnson, is currently projecting a flat year for the toy industry, down from a projected 2% gain in 2010. It will be interesting to see if the decline in video game sales will benefit the toy industry and whether Gerrick’s original projection of a 2% gain may be more likely after all.