The NPD Group Reports Console Video Games Industry Sales Fall Slightly in First Quarter 2004 Over Same Period Last Year

Despite Significant Declines in Retail Sales of Console Hardware and Portable Game Software, All Other Categories Showed Sizeable Growth

PORT WASHINGTON, NY, April 20, 2004 - According to leading marketing information provider, The NPD Group, total U.S. retail sales for the console and portable game industry in first quarter (January - March) 2004 were over $1.8 billion, a 1 percent decrease over last year's $1.9 billion.  Though U.S. console video games sales fell slightly, overall unit sales grew 5 percent.

The console hardware and portable game software categories contributed to the industry's decline in revenue with losses in sales of 25 percent and 6 percent, respectively.  Consoles topped $336 million in Q1 2004, compared to $445 million during the same period last year, while portable game software reached $157 million, compared to the previous year's $167 million.

Console software, console accessories, portable game hardware and portable game accessories saw significant dollar sales increases of 7 percent, 10 percent, 8 percent and 8 percent, respectively.

"The sales results for the first quarter exemplify the next-generation console's coming of age," said Richard Ow, senior video games analyst, The NPD Group.  "Most of the consumers in this industry have had their video game hardware for some time now, so a slight decrease in sales is to be expected.  What will keep consumers coming back for more is the continued development of top-notch software titles, as well as accessories designed to enhance game play.  This, combined with advancements in the industry such as online game play, will help drive sales well into the future."

^*Release Date = Month the game was first introduced in retail.
^**ARP = Average retail price

About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive sales and marketing information for a wide range of industries. NPD provides critical knowledge on what is selling, where, to whom and why to help our clients make more successful, fact-based business decisions. Today more than 1,300 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business and positively impact sales and revenues. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, cellular, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys and video games. For more information visit www.npd.com.

About NPD Funworld^®
NPD Funworld a division of The NPD Group, provides sales and marketing information for manufacturers and retailers in the toy and video game industries. NPD Funworld provides the most accurate market intelligence available, including what is selling, where, to whom and why. All of this information is delivered online in a secure, Web-based environment by easy-to-use tools that make information accessible and actionable to a wide range of users from executives to sales and marketing to research. Today a host of market-leading companies in the industry rely on NPD Funworld for the knowledge they need to drive better, more fact-based decision making.

For more information:
David M. Riley
david_riley@npd.com
516-625-2277