NPDFUNWORLD^SM REPORTS U.S. VIDEO GAME INDUSTRY AHEAD OF ITS GAME DESPITE RECESSION

Year 2001 Could Be a Record Breaker

PORT WASHINGTON, NEW YORK, November 19, 2001 - Despite a weakening economy, retail dollar sales of U.S. video game hardware, software and accessories increased 33 percent year-to-date (January-September) 2001, compared to the same time last year, according to leading marketing information provider, NPDFunworld^SM. Unit sales of video game hardware, software and accessories also rose 12 percent from January to September 2001, compared to the same time last year.

Transition year 2000 made way for a profitable 2001, driven in part by strong sales of next-generation console Sony PlayStation 2 and the launch of the new portable Nintendo Game Boy Advance. According to NPDFunworld, the total U.S. video game industry generated over $4.3 billion in revenue during the first nine months of this year, while sales during the same time period last year were just over $3.2 billion.

"When we consider that the fourth quarter typically makes up 50 percent or more of the annual dollar sales volume for the video games industry, and then add in the launch of two new console hardware systems, the Microsoft Xbox and Nintendo GameCube, a new record for the video game industry looks likely," said Richard Ow, NPDFunworld senior account executive.

"While most of retail struggled in September, the video game industry not only survived, but thrived," said Ow. "Due to recent national events, Americans may be spending more time at home, which bodes well for video game sales this holiday. Kids and adults undoubtedly will drive video game sales as one of their top choices of entertainment at home."

Source: NPDFunworld^SM

Source: NPDFunworld^SM