US Software sales continue to soar

The latest figures from NPD have once again shown a marked increase in US software sales, prompting industry analysts to reassess full-year forecasts with "a bias for upwards revision."

According to the latest results from NPD, total sales for July amounted to US$386 million, up 22 per cent on last year and thrashing previous forecasts of US$365 million. Although current gen sales declined US$45.5 million, the drop was more than offset by a rise of US$116 million for next-gen titles.

Wedbush Morgan Securities analyst Michael Pachter had predicted that sales will be relatively flat in July and August, speculating that continued declines in current gen titles would not be adequately offset by next-gen sales until around Autumn.

Pachter predicted that a stronger line-up for Microsoft's Xbox 360 later in the year and the launch of Nintendo Wii and PlayStation 3 would prompt a resurgence in North American software sales, but July's figures have prompted a revision in estimates for the remainder of the year.

"We think that there will be a positive market reaction to the robust July sales growth. We are pleasantly surprised that software sales through the summer months have been so strong, and now believe that the decline in current generation software will be largely offset by next generation software sales for the next several months," Pachter stated.

"We intend to reassess our full year forecast with a bias for upward revision," he added.

Xbox 360 titles including Chromehounds, Prey and EA's Lord of the Rings: The Battle for Middle Earth II contributed significantly to the overall sales, Nintendo's DS continuing to dominate the handheld market with a powerful line-up of persistently strong selling titles.