E3, the Video Game trade show, is taking place this week in Los Angeles. It is occurring in the face of a steady decline in video game sales. The drop off appears to be more than some cyclical development but rather a full retreat from the highs of just a few years ago.
Last month, Nintendo reported its first losing year in company history. And they are not alone, “Market tracker NPD Group says U.S. retail sales of video game hardware, software and accessories fell 25 percent in March from a year earlier to $1.1 billion.” That according to the Associated Press in an article entitled “How the video games industry is faring.”
The drop in sales is part of a long term trend. Based upon NPD figures, sales were off 6 percent in 2011; 5 percent in 2010 and 10 percent in 2009.
Isn’t it time that the video game industry considered joining with traditional toy companies in developing new and creative ways to entertain and make money. I think that the time is right for
some top to top meetings between video game and traditional toy companies. The resulting synergies would be good for both industries; each of which could use a lift.
If you are in the video game industry, let us know your thoughts on a meeting of the minds between these two industries. If you don’t want to go public, feel free to contact me at email@example.com.