Another Down Month Expected for NPD

Wedbush Morgan Securities predicts disappointing game sales data, with software dropping 4% since June, 2005

Software sales are expected to come in at $370 million, a drop of 4 percent compared to June 2005. $120 million of that is forecasted to come from Xbox 360, PSP and DS, a year-over-year growth of $76 million.

Current generation software sales will continue their decline, dropping 27 percent to $250 million.

WMS anticipates strong sales from Kingdom Hearts II, New Super Mario Bros., Grand Theft Auto: Liberty City Stories for PS2 and Cars.

As for the Xbox 360, NPD Group reported US hardware sales of 1.7 million units through May. WMS expects June to bring in Xbox 360 hardware sales of 250,000 units, with monthly sales of 250,000 to 300,000 until the holiday season ramps up.

The firm also recommended that investors accumulate shares in Activision, EA and THQ at their current levels.

WMS believes July and August sales will be flat, with positive growth in September being “likely.”

NPD Group’s data is slated to release after market close on July 13.

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