Electronic Arts warns about falling videogame sales

Electronic Arts warns about falling videogame sales

The world’s largest publisher of videogames Electronic Arts has warned about the disappointing sales in the video gaming market as the shortage of new generation consoles in the market. Microsoft launched their next generation console Xbox 360 last month and has been unable to maintain a stable supply in the American market leading to a lot of disappointed gamers.

Market analysts claims that this leads to fall in videogame unit sales and this year has been the worst in the last 10 years. The industry saw a drop of around 18% in the sales figures last month and this month is not going to do any better. This report also comes just after video game giant EA reduced its sales and earnings forecasts for the third and fourth quarters as well as fiscal 2006.

EA is not alone. In fact, Activision has reported similar sales issues with their latest products. Microsoft has been very incapable of supply enough Xbox 360s to meet demand. As per market analysts, the software giant has only had enough inventories to sell roughly 500,000 units. Another reason for these falling sales is the lack of popular gaming titles on sale this year. Last year saw a boom in the form of GTA: San Andreas and other very popular titles.

Sony is due to launch their Playstation 3 gaming console sometime next year. This has also led to a situation when games are delaying their purchases waiting for these new consoles. Nintendo on their part are also due to come out with their Nintendo Revolution console.