Is Xbox 360 Still Dominating the Gaming Console Market?

Research firm NPD reported Microsoft (NASDAQ:MSFT) Xbox 360 dominated the slowing game-console market with 42% of the U.S. retail console sales for September.  According to Microsoft, this marks the seventh straight month they’ve provided over 40% of the console sales in the U.S.

Yet industry-wide sales of consoles and portables have dropped 9% this month: a disappointing outlook for the industry. However this is brighter than August’s sales which showed a 23% decline compared to those of August 2010.  NPD also announced that hardware, software, and accessory sales across the industry were 6% lower than in September of 2010.  One bright spot: software sales did increase 3% year-over-year in response to high demands for games such as Madden NFL 12 (NASDAQ:ERTS) and Gears of War 3 (NASDAQ:ATVI).

In a report for CNET News, columnist Don Reisinger wrote “it is worth noting, however, that NPD’s figures only include physical game sales. Revenue game companies derived from digital sources, such as downloads or mobile titles, is not included in the research firm’s report.”

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