Data Points

Electronic Gaming Business, Nov 3, 2004

U.S. Game and Puzzle Sales (2003/2004)
         Jan-Aug '03  Jan-Aug '04
         $0           $0           Change %
Games    961,202      796,801      -17.10%
Puzzles  121,928      138,545      13.60%
Total    1,083,130    935,344      -13.60%
Source: NPD Group/NPD Funworld

It is not a good year for games outside of the video game arena, which is why you are seeing the major game makers, Hasbro and Mattel, move heavily into gadget-related toys like the new DVD games category that EGB will explore in our next issue. Drill within NPD's numbers, however, and there are some indications of where all game makers should be headed. While the adult game categories have been down as much as 40% so far this year, just about everything related to younger kids is up: children's puzzles ( 37.1%), children's games ( 23.1%), and preschool games ( 27.8%).

Both demographics (a recent baby boomlet) and the accelerated technical savvy of kids means that the pre-school and pre-10 category is about to explode in the PC and console segments. Learning games are getting new respect from educators and likely will do extremely well on PC, since they are among the easiest platforms for pre-schoolers to operate. As well, consoles are about to penetrate much more effectively into the pre-10 market.

According to anecdotal reports from game makers marketing into this segment, families with young kids are among the last to buy into the current generation of hardware, so the current wave of PS2 price cuts will make this platform especially viable for the kiddie segment, although the Gamecube also sells well. Moreover, this kiddie console segment will have long legs, since parents with young kids will retain and use the current generation of hardware into 2009, long after the older siblings have bought into next-gen hardware.

[Copyright 2004 PBI Media, LLC. All rights reserved.]