NPD REPORTS U.S. VIDEO GAME INDUSTRY CONTINUES TO SHOW SUBSTANTIAL GROWTH IN FIRST HALF 2001

PORT WASHINGTON, NEW YORK, July 26, 2001 – Retail sales of U.S. video game hardware, software and accessories increased 28% during the first half of 2001 (January–June), compared to the same time last year, according to leading marketing information provider, The NPD Group, Inc. Unit sales of video game hardware, software and accessories also rose 11% during the first half of 2001 vs. first half 2000.

"The sales boost in the first six months of the year is great news for the video game industry considering video game sales for annual 2000 were down for the first time since 1997," said Richard Ow, account executive, NPD Interactive Entertainment. "We anticipate 2001 to be a very profitable year for the video game industry. This is especially true since 50% or more of the sales usually come during the fourth quarter. Even more importantly, two highly anticipated systems, GameCube and Xbox, will debut this November, " Ow added.

According to NPD, the continued sales growth was driven by many factors. These included the hardware sales of Sony PlayStation 2, the launch of Game Boy Advance and decreased price points of the Sega Dreamcast.

Ow adds, "While PS2 and Game Boy Advance software is flying off the shelves, the older generation of software from the PlayStation, Nintendo 64 and Game Boy Color systems still comprise almost 75% of the year-to-date sales. The new systems will need consistent injections of high-quality, jaw-dropping games with unique content to drive sales of the newer, more expensive hardware systems. Super Mario Advance and Gran Turismo 3 A-Spec are two examples of unique first party software that are major drivers of hardware sales."

Source: NPD Interactive Entertainment Service