Video Games, Entertainment Purchases Slowed In '10

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Like many other forms of entertainment, the traditional video game business growth has slowed down. One report says the money is shifting to less obvious places -- like dining, and cell-phone-related entertainment.

Nielsen's 360 Gaming report says overall video gaming sales decreased slightly in 2010 versus 2009. Also, its share of a typical monthly household's recreational budget -- who regularly makes video game purchases -- dropped to 8.5% from 9.3%.

At the same time, leisure activities like dining out and shopping grew to 25.1% from 20.4% -- the biggest category in these homes. Also, cell-phone-related entertainment grew 7.4% from 5.3%.

But share declines were not limited to just video games. Other media/ entertainment purchases sank in 2010: Theatrical movie purchases dropped from 5.9% to 4.7% from 5.9%; DVD rentals declined 4.3% to 3.5%; subscription/premium TV purchases sank to 3.2% from 3.7%; CD sales dropped from 3.8% to 2.6% and magazines/newspaper buys decreased from 3.4% to 2.2%.

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This isn't necessarily bad news for the overall economy. Nielsen says this is "likely a barometer of improving overall consumer confidence" and "may reflect a broader shift toward mobile in how consumers invest their media and entertainment dollars."

The good news from the video game business is that video game buyer homes represent 26% of U.S. homes, roughly even with 24% in 2009 -- and its share in video game homes is still the second-largest of all categories.

 

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