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Varchild2008 (84.06)

is NPD GROUP misleading investors about Video Game Sales??

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November 16, 2009 – Comments (1) | RELATED TICKERS: ATVI , EA , TTWO

It has already been a beaten up topic about the fact that NPD GROUP's sales figures *never* cover DLC content..... And to not cover DLC means leaving out such things as:

A)  Smart Phone Video Game Market

B)  Unheard of Platforms like ZEEBO in Mexico...

C)  XBOX/PS3/Wii  downloads of video games and video game content.

D)  Used Video Games market through Amazon & E-bay & Gamestop.

Among other things.... All not covered in NPD GROUP sales figures....

But here's something on my nerves... That is much more troubling.

On October 27th, 2009.... Tekken 6 released for all platforms to HUGE sales fanfare.... In fact the C.E.O. that very weekend had to issue out a new batch of 2.5 million copies based on the immediate impact of sales on the title.

And just how many copies of Tekken 6 were sold in America?  In NPD GROUP's Sales Figures?

EXACTLY!!!!!!!!!!!!!!!!!!!!!!!!!!!

????????????????????????    I DO NOT KNOW!!!  And Apparently no one else does either!

Look at the WIKI for October NPD Group Sales Figures:

http://vgsales.wikia.com/wiki/NPD_October_2009

11.  Demon's Souls (PS3) / Atlus / ?
13.  FIFA Soccer 10 (PS3) / EA / ?
14.  Mario & Luigi: Bowser's Inside Story (NDS) / Nintendo / ?
15.  WWE Smackdown vs. RAW 2010 (360) / THQ / ?
16.  Tekken 6 (PS3) / Namco Bandai / ?
17.  Madden NFL 10 (360) / EA / ?
18.  Pokemon Mystery Dungeon: (NDS) / Nintendo / ?

All of the above SEVEN titles have QUESTION MARKs in regards to how many units sold in October.  That makes SEVEN unknown sales figures out of 20.

Noteworthy is that there are titles above and below many of these with actual numbers given....meaning that this isn't some sort of "too few in sales to bother to list" situation.  The 11th best selling video game is listed here with a Question Mark.

TEKKEN 6 (PS3)  and (XBOX 360).... speaking of which...There are FAR MORE XBOX 360s than PS3s... Why isn't the TEKKEN 6 (XBOX 360)  sales figures listed here????  why???  That is totally left out of the tally that is posted here....

There seems to be a lot more UNKNOWN about where NPD GROUP is getting their sales figures than known.  So, how can any investors out there actually claim the video game sector is Year over Year worse than last year?

Sure.... You can point to bad earnings reports coming from (ERTS), (TTWO), (THQ), etc....

But... hey.... there have been multiple video game company's with GOOD earnings reports in the last quarter...  Square/Enix reported good news last quarter for example.  ATVI reported good news for last quarter....

And.... I think we have more of a "Competition has increased dramatically because of the Smart Phones" situation than we have a bad video game sales year.

Investors need to realize that whatever video game stock you have in your portfolio better be one that is taking advantage of as many platforms and innovative ways to reach out to gamers as possible... Because 2009 could have been the BEST SALES YEAR YET for all we know...and we are none the wiser cause no one is telling us how many APP STORE titles were sold this year versus last.

Well.. at least NPD GROUP isn't.

1 Comments – Post Your Own

#1) On November 19, 2009 at 12:09 PM, BenS1985 (< 20) wrote:

NPD is a paid research company. They do not release the entirety of their research to the market for free. Some people have picked apart quotes for titles outside the Top-10 list to ensure that there are good listings for other companies. However, that is not the norm.

 NPD is working on tracking sales for DLC and other digital markets, however there is no timetable on when this will be made available. If your interested in those markets, however, there are companies out there like FADE LLC (fadellc.com) that are tracking some of the markets you mention. 

Furthermore, you could always use VGChartz.com tracking. It's not quite NPD, but it is certainly better than nothing.

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