Over the weekend there was an article about the decrease in sales for games this year.  The article goes on to show some significant lose of revenue for June and July compared to last year.  The main reasons the article lists are a lack of innovation, lack of interest and the increased cost of gaming.  I think the reason the NPD numbers are down in June and July of last year is very simple: lack of good games.

 
When Microsoft launched the Xbox 360 at $400 and stated games would cost $60 many people were taken back by the price.  The consoles released in 2001 were $300 and games ran around $50 new.  Then Sony cam out and launched at $600 which was a monumental mistake.  Nintendo announced the Wii at $250 and took the market by storm.  What we are seeing now is that the prices of the game consoles have hindered some from buying systems but for the most part the systems have sold well with over a 100 millions consoles sold so far which lead to banner years in 2007 and 2008.

Since so many consoles have been sold it's hard to say people have lost interest in gaming.  I still see tons of people online playing games.  It's clear that people are still buying consoles but they may not be buying many new games.  I have noticed in my own purchasing I have been buying less new games because I'm buying new content for my old games.  One area that NPD doesn't track is online purchases from Xbox Live.  I've bought a couple expansion packs for Fallout 3, maps for Halo 3 and maps and an expansion for Gears of War 2.  I have also bought a some full retail games from Xbox Live as well.  Since these transactions are not tracked by the NPD Group it's hard to see know for sure how the industry is performing.

The argument for a lack of innovation is a valid one.  There are games like Tiger Woods, Madden and other sports games that really do not provide a lot of innovation.  This is not a new claim and holds some water but for the most part it's not something that can held against the industry as a whole.  The Wii has introduced several innovative games and the same can be said for the PS3 and Xbox 360.