LOS ANGELES (Reuters) - Sales of video game hardware, software and accessories rose 10 percent in 2002 to $10.3 billion, according to data released on Monday, even as revenue from game consoles actually declined. Market research service NPDFunworld, which tracks the video game industry, said 2002 eclipsed 2001"s $9.4 billion in sales on the strength of a 21 percent rise in software sales on a dollar basis, and a 15 percent rise on a unit basis.
Hardware sales -- covering Sony Corp."s 6758.T market-leading PlayStation 2 and earlier PlayStation, Microsoft Corp."s MSFT.O Xbox and Nintendo Co. Ltd."s 7974.OS GameCube and handheld devices -- fell 4 percent to $3.5 billion from $3.7 billion even as unit volume rose 10 percent. Sony, Microsoft and Nintendo all cut the prices on their consoles last May as a way to build their installed bases and drive sales of profitable software.
In a sign of things to come, NPD said 15 percent of the software revenue for advanced consoles from August through December was for games playable online. Sony took the PS2 online in August, followed by Nintendo in October and Microsoft in November. On the basis of units sold, Take-Two Interactive Software Inc. TTWO.O commanded the charts once again. Take-Two"s "Grand Theft Auto: Vice City" for the PS2 was the year"s top game, while its predecessor, "Grand Theft Auto 3," was No. 2 in 2002 after being No. 1 in 2001.
NPD also said that retail software sales for the personal computer, which includes software from operating systems to games, rose 3.1 percent to more than $5.7 billion in 2002 even as unit sales fell by 4.2 percent. Among the top-selling titles were several versions of TurboTax 2001 and Norton Antivirus 2002 as well as Microsoft"s Windows XP; The Sims: Vacation Expansion Pack; The Sims: Unleashed Expansion Pack; and Warcraft III: Reign of Chaos.