Video game software sales in the U.s. have declined for the third straight quarter, according to industry analysts.
The report from market research firm IDC, released Monday, was released before the U’s biggest console launch in more than two decades, and ahead of the release of next-generation games for the PlayStation 4 and Xbox One.
The sales decline was largely driven by a drop in the price of games like Destiny, which has been a major draw for console gamers for years, as well as a drop from games like Call of Duty: Black Ops III, which saw the price drop nearly 20 percent.
“The U.N. Conference of Trade Unions released a report today, and they found that U. S. consumers were willing to pay more for video games compared to a year ago, which was very good news for game publishers,” said IDC analyst Craig Moffett in a statement.
“Consumers are now willing to spend more for their entertainment content in order to get more for that content.”
Game publishers have been trying to keep prices down, with some focusing on the use of premium content for more affordable titles.
While many of those premium titles have been released over the past year, IDC said that more recent titles have not shown a drop.
“While there is a big jump in quality in new titles, consumers are still willing to buy games with more of a premium look,” Moffett said.
“There are also more affordable games coming out this year that are also looking to offer more bang for the buck.”
This isn’t the first time the price for games has dropped in the United States.
In the United Kingdom, the price dropped more than 20 percent last year, but that was offset by strong sales for consoles like Sony’s PlayStation 4.
And in the rest of Europe, sales of games have been stagnant in recent years.
For the quarter ending in June, IDc said the Us. accounted for nearly 80 percent of the games sold.
However, it’s expected that sales of the console hardware will continue to rise in the coming months.
“We expect a similar trajectory of continued demand in the near term for consoles, with the majority of the revenue coming from the software and accessories,” Moffatt said.
While the drop in games sales is welcome news for console manufacturers, IDA said that while the U has continued to grow its market share in the past two years, the U is no longer the dominant market in the world for video game consoles.
The company has recently begun looking at other platforms, such as mobile and tablet devices, which could give the U a better shot at competing in the market.
“It is still the U of A that dominates the video game market, but we believe that the market will be shifting over to more mobile and digital platforms by 2020,” Moffitt said.