EA's calling out NPD's lack of digital sales tracking in its monthly report -- makes sense, since the company has seen increased revenue in the digital space. NPD, which changed its reporting practices late last year, doesn't track digital distribution channels including Steam, Xbox Live, PSN and the iTunes App store in the report we post every month, though the firm has created a separate report for just that. The accuracy and scope of this new report is unknown, since the press doesn't get to see it.
"Using NPD data for video game sales is like measuring music sales and ignoring something called iTunes," EA corporate communications exec Tiffany Steckler told CNN Money. "We see NPD's data as a misrepresentation of the entire industry." David Riley from the NPD countered in an email to the piece's author by saying EA's discrepancy is "being blown out of proportion."
With the increasing prevalence and revenue that comes from digital channels, EA certainly has a point, but it's not like it's NPD's choice -- the purveyors of these digital distribution platforms certainly aren't going to freely offer over all sales data. And for all of its hemming and hawing, the retail space is still one of the most crucial to a game's success and NPD is the industry standard for that information in North America.
Reader Comments (37)
Posted: Mar 15th 2011 12:10AM mguniverse said
Yeah, this is absolutely true. Most the games I buy these days, if not all of them, are digital.
Posted: Mar 15th 2011 2:18AM Tachyonic Cargo said
@mguniverse
You are correct, and incorrect all at once. Here's why.
Where the problem lies is not NPD, but Apple, and Sony, and Microsoft, and Nintendo, and Steam, and all the other digital companies who either refuse to allow NPD to have access to their sales data, or denies NPD the right to report those numbers publicly.
Yeah, you could blame NPD, but trust me, it is not by choice they do not track digital downloads. That is a situation that is being forced on them by the oligopoly of companies (the gatekeepers if you will), that control all access to, and all information flowing out of, the digital distribution domain. If EA wants to complain about the information their investors are getting, then maybe they should take their complaints up with Apple, and Sony, and Nintendo, and Microsoft, and Steam . . .
And as for the shrinking importance of physical sales being a misinterpretation of the industry, that statement is the most utter piece of bullshit that I have read in a very long time come out the mouth of an EA exec. I guess the 50 million people who own Xbox 360s, and the 41 million people who own PS3s, and the 86 million people who own Wiis, and the 67 million people who own PSPs, and then 150 million people who own some variant of the Nintendo DS, I guess all those people have already switched to buying 90% of all their full priced games via digital downloads . . . oh wait a minute, outside of the PSPGo and the Xbox 360, you CAN'T buy current-gen premium games on current-gen consoles and portables from digital downloads! And let's face reality, this is still where the bulk of all sales are for the simple technological reasons that the systems do not support the feature - and the two systems that do, offer extremely limited digital libraries when it comes to their available library of premium titles.
Not saying that people are not going to digital - they are, especially on mobile (where they no longer have a choice) and PC. And tons of people are certainly purchasing XBLA, PSN and WiiWare titles. But even the extreme few publishers who have been balls enough to actually publish their digital numbers for the XBLA/PSN/WiiWare titles, those numbers come no where near the number of premium titles sold on disc.
Collectively, even today with the rapid adoption of gamers to digital formats, you are lucky if you could make the statement that even 10% of all PREMIUM games sold (not counting those $1 iPhone games), were sold via digital download. Make no mistake, one day we will get to the point where 90% of all games are sold digitally, but we are no where near close to that today. And EA trying to insist that NPD reporting methods are a "misrepresentation", as if NPD were no longer valid, is one of the biggest lies I have heard come out of EA . . . well, since they stopped being the Evil Empire version of Electronic Arts.
Reply
You are correct, and incorrect all at once. Here's why.
Where the problem lies is not NPD, but Apple, and Sony, and Microsoft, and Nintendo, and Steam, and all the other digital companies who either refuse to allow NPD to have access to their sales data, or denies NPD the right to report those numbers publicly.
Yeah, you could blame NPD, but trust me, it is not by choice they do not track digital downloads. That is a situation that is being forced on them by the oligopoly of companies (the gatekeepers if you will), that control all access to, and all information flowing out of, the digital distribution domain. If EA wants to complain about the information their investors are getting, then maybe they should take their complaints up with Apple, and Sony, and Nintendo, and Microsoft, and Steam . . .
And as for the shrinking importance of physical sales being a misinterpretation of the industry, that statement is the most utter piece of bullshit that I have read in a very long time come out the mouth of an EA exec. I guess the 50 million people who own Xbox 360s, and the 41 million people who own PS3s, and the 86 million people who own Wiis, and the 67 million people who own PSPs, and then 150 million people who own some variant of the Nintendo DS, I guess all those people have already switched to buying 90% of all their full priced games via digital downloads . . . oh wait a minute, outside of the PSPGo and the Xbox 360, you CAN'T buy current-gen premium games on current-gen consoles and portables from digital downloads! And let's face reality, this is still where the bulk of all sales are for the simple technological reasons that the systems do not support the feature - and the two systems that do, offer extremely limited digital libraries when it comes to their available library of premium titles.
Not saying that people are not going to digital - they are, especially on mobile (where they no longer have a choice) and PC. And tons of people are certainly purchasing XBLA, PSN and WiiWare titles. But even the extreme few publishers who have been balls enough to actually publish their digital numbers for the XBLA/PSN/WiiWare titles, those numbers come no where near the number of premium titles sold on disc.
Collectively, even today with the rapid adoption of gamers to digital formats, you are lucky if you could make the statement that even 10% of all PREMIUM games sold (not counting those $1 iPhone games), were sold via digital download. Make no mistake, one day we will get to the point where 90% of all games are sold digitally, but we are no where near close to that today. And EA trying to insist that NPD reporting methods are a "misrepresentation", as if NPD were no longer valid, is one of the biggest lies I have heard come out of EA . . . well, since they stopped being the Evil Empire version of Electronic Arts.
Posted: Mar 15th 2011 12:16AM littlepunkryo said
He's actually right. I really can't figure out why they don't at least attempt to include digital sales numbers as well. It's going to be amusing when NPD makes ITSELF obsolete because it refuses to get with the times, so to speak.
Posted: Mar 15th 2011 12:32AM xiLeShadow said
@littlepunkryo
Tiffany Steckler is most likely a woman. =p
Reply
Tiffany Steckler is most likely a woman. =p
Posted: Mar 15th 2011 12:36AM littlepunkryo said
@xiLeShadow *facepalm* Yep, she is. In my own defense though, I've only known one Terry and he was a guy!
Reply
Posted: Mar 15th 2011 12:55AM sonicspike41 said
@littlepunkryo
What's even better is her name is Tiffany, not Terry.
Reply
What's even better is her name is Tiffany, not Terry.
Posted: Mar 15th 2011 12:56AM littlepunkryo said
@sonicspike41 Oh wow and I read it as Terry BOTH times. I need to go to bed.
Reply
Posted: Mar 15th 2011 2:36AM Xero Theory said
@littlepunkryo apparently you missed the part where it said most companies dont allow access to their digital sales figures....its not really the NPD its the major companies that dont allow them the data they need to make correct sales charts. If I were the NPD id rather not publish numbers when I dont have all the figures either.
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Posted: Mar 15th 2011 2:53AM littlepunkryo said
@Xero Theory But the post also says that they DO release digital sales figures that they have, just separately. So I don't get why they can't just combine the numbers into one single report?
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Posted: Mar 15th 2011 6:58AM Xero Theory said
@littlepunkryo "EA certainly has a point, but it's not like it's NPD's choice -- the purveyors of these digital distribution platforms certainly aren't going to freely offer over all sales data." I wouldnt put out a report without all the numbers either, there is no point, if you cant get an accurate number from anyone because they guard all their digital sales, f em. EA shouldnt be ripping NPD they should be complaining to the places that wont share the info.
Reply
Posted: Mar 15th 2011 12:16AM xiLeShadow said
95% of all the games I buy are digital. So according NPD, 95% of me doesn't count... =(
Posted: Mar 15th 2011 11:11AM airtoast said
@xiLeShadow
This is what counts:
Call of Duty: Black Ops in 1 of 8 U.S. Households
http://ps3.ign.com/articles/115/1155418p1.html
Wake me up when digital sales are there.
Reply
This is what counts:
Call of Duty: Black Ops in 1 of 8 U.S. Households
http://ps3.ign.com/articles/115/1155418p1.html
Wake me up when digital sales are there.
Posted: Mar 15th 2011 12:19AM Starcade said
Wouldn't EA know it's own digital distribution sales? Why would they call out the NPD on that portion of the business?
I can understand seeking the NPD data from third party retailers on whether or not their product sold, but doesn't EA get a cut every time a digital sale occurs?
I can understand seeking the NPD data from third party retailers on whether or not their product sold, but doesn't EA get a cut every time a digital sale occurs?
Posted: Mar 15th 2011 12:55AM CrashTunoku said
@Starcade They're talking about the numbers that analysts use for talking about the current health of the industry, which the NPD doesn't track.
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Posted: Mar 15th 2011 12:25AM Assmar said
Isn't it understood that NPDs never meant much in the first place? Now they just mean less.
Posted: Mar 15th 2011 12:33AM BoBsS said
@Assmar
No actually NDP is, and has always been, the one of the best ways for a company to trace product sales.
Any big publisher,developer,corporation that sells product has an account with NDP that reports sales for them in accordance to the industry.
For us as the normal population, it means little since we never get to see the internals of the sales industry other than some figures that we no longer even get.
otherwise, for businesses, its a good thing.
Reply
No actually NDP is, and has always been, the one of the best ways for a company to trace product sales.
Any big publisher,developer,corporation that sells product has an account with NDP that reports sales for them in accordance to the industry.
For us as the normal population, it means little since we never get to see the internals of the sales industry other than some figures that we no longer even get.
otherwise, for businesses, its a good thing.
Posted: Mar 15th 2011 1:02AM aussieCanuck said
haha who cares about any sales numbers they really only affect the company if a game i like sells like crap then no sequel who cares play a new game or go outside and do something productive
Posted: Mar 15th 2011 1:07AM Premature ejaculation man said
NPD tracks sales that are generally hard for companies such as EA to track product to consumer without some serious investment.
The thing about digital sales (which EA really seems to want to shout that they're participating in) is that you can instantly track when the product is in the consumers hand and even more than that, can track when they play and for how long.
So since the purpose of NPD is currently to track NA retail sales, then one can conclude that only retail sales are included...It would be up to EA (or the ditial platform holders) to provide the digital sales either through PR or to NPD for it to represent sales the way EA wants them to...
The thing about digital sales (which EA really seems to want to shout that they're participating in) is that you can instantly track when the product is in the consumers hand and even more than that, can track when they play and for how long.
So since the purpose of NPD is currently to track NA retail sales, then one can conclude that only retail sales are included...It would be up to EA (or the ditial platform holders) to provide the digital sales either through PR or to NPD for it to represent sales the way EA wants them to...
Posted: Mar 15th 2011 1:09AM (Unverified) said
Damn big post...I don't even care about sales numbers or how they should be represented.
My fingers seem to operate on their own accord.
Reply
My fingers seem to operate on their own accord.
Posted: Mar 15th 2011 1:09AM Premature ejaculation man said
Dang! Big post! Surprising for me since I don't actually care about sales or how they're represented.
My fingers seem to operate on their own accord.
Reply
My fingers seem to operate on their own accord.
Posted: Mar 15th 2011 1:23AM (Unverified) said
@Premature ejaculation man Are you saying that the words came out when you weren't expecting them too? Shouldn't you be used to that sort of thing?
Reply
Posted: Mar 15th 2011 1:21AM (Unverified) said
I get the feeling that if Steam sales figured into official unit sales numbers, it would put a stop to most of the "PC gaming is dying" chatter.
Posted: Mar 15th 2011 1:42AM AriesWarlock said
it's not a misrpresentation, but a partial representation.
Posted: Mar 15th 2011 1:49AM fid said
how 'bout companies try to improve their products relative to their own past performance instead of doing just enough to make sure they're ahead of the other guy?
want good examples of where companies are doing this? look at the market where sales numbers are most opaque; digital distribution.
draw your audience with quality, not a bigger marketing budget.
want good examples of where companies are doing this? look at the market where sales numbers are most opaque; digital distribution.
draw your audience with quality, not a bigger marketing budget.
Posted: Mar 15th 2011 5:14AM nawoa said
"Blown out of proportion"? It's not like EVERY game I've bought in the last 3 years has been on Steam... it's not like EVERYONE I know has Steam installed... It's not like Steam has upwards of 3 million people logged in simultaneously on a daily basis...
Steam IS the PC market - along with smaller ones like D2D, Impulse, etc, but Steam at the very least needs to be factored in. NPD's failure to do so is probably a big part of the perception that PC gaming is dying.
And of course, the anti-piracy people LOVE to cite things like "Crysis only sold 3 copies (at retail)!! Oh, 5 million total though, according to Crytek? Way above their forecasted sales? Made way more profit than they would've if they'd had to manufacture and ship all those units to stores? Let's not mention that...
I suppose I can see why they might not want to include the digital distribution platforms though - it would look odd if every few weeks a years-old game jumped to #1 in the charts because it was half-off on Steam.
Steam IS the PC market - along with smaller ones like D2D, Impulse, etc, but Steam at the very least needs to be factored in. NPD's failure to do so is probably a big part of the perception that PC gaming is dying.
And of course, the anti-piracy people LOVE to cite things like "Crysis only sold 3 copies (at retail)!! Oh, 5 million total though, according to Crytek? Way above their forecasted sales? Made way more profit than they would've if they'd had to manufacture and ship all those units to stores? Let's not mention that...
I suppose I can see why they might not want to include the digital distribution platforms though - it would look odd if every few weeks a years-old game jumped to #1 in the charts because it was half-off on Steam.
Posted: Mar 15th 2011 8:28AM (Unverified) said
@nawoa
That wouldn't be odd, that would be awesome!
Reply
That wouldn't be odd, that would be awesome!
Posted: Mar 15th 2011 8:44AM SirUrza said
"the retail space is still one of the most crucial to a game's success and NPD is the industry standard for that information in North America"
If this statement is so false it's funny. People keep saying PC is dead because they go into GameStop and don't see PC games. They don't see PC games in GameStop because GameStop can't sell PC games used. While BestBuy usually has a nice selection, it's tiny compared to the other individual console sections because BestBuy doesn't carry the shovelware and old PC titles (that people stop buying.)
Steam and Good Old Games play a critical role in PC gaming. You don't see PC sales and think it's dying because PC gamers matured a long time ago and switched to digital distribution. It's only a matter of time before consoles go that route and when it does, Gamestop will vanish (like Tower Records) which'll leave BestBuy and Walmart to sell games to little kids.
If this statement is so false it's funny. People keep saying PC is dead because they go into GameStop and don't see PC games. They don't see PC games in GameStop because GameStop can't sell PC games used. While BestBuy usually has a nice selection, it's tiny compared to the other individual console sections because BestBuy doesn't carry the shovelware and old PC titles (that people stop buying.)
Steam and Good Old Games play a critical role in PC gaming. You don't see PC sales and think it's dying because PC gamers matured a long time ago and switched to digital distribution. It's only a matter of time before consoles go that route and when it does, Gamestop will vanish (like Tower Records) which'll leave BestBuy and Walmart to sell games to little kids.
Posted: Mar 15th 2011 9:11AM txphisher said
In other news the sky is blue and the PC is still alive and kicking.
Posted: Mar 15th 2011 9:29AM Jack Kevorkian said
they need to also address how they lump in all consoles for each line of sales. it doesnt give a true picture of what is going on at all. NPD sucks I wish we had chart-track like the brits. its a better alternative.
Posted: Mar 15th 2011 9:31AM Gigglin Pig said
I haven't bought a boxed retail game since 2006. I rent from Gamefly and buy digital games for PC. So yeah what EA is saying is right on.
Posted: Mar 15th 2011 10:18AM (Unverified) said
NPDs figures have NEVER been accurate. As of 2008 (couldn't find any data more recent) Wal-Mart sold more games than any other retailer in the US -- and Wal-Mart has NEVER given any sales data to NPD. So how can NPDs numbers be even remotely accurate when they don't contain sales from the number 1 video game retailer in the country? NPD's numbers are just a useless as the Nielsen ratings are.
Posted: Mar 15th 2011 10:26AM (Unverified) said
Wow! I didn't realize things were so rosy for digital (distribution of) gaming, and on the PC, no less!
Since developers have no reason to expect the bulk of their games to sell on consoles, there's no reason for them to make games with consoles in mind thus dumbing them down for the PC, right?
Whew! Glad that controversy's over with.
Since developers have no reason to expect the bulk of their games to sell on consoles, there's no reason for them to make games with consoles in mind thus dumbing them down for the PC, right?
Whew! Glad that controversy's over with.
Posted: Mar 15th 2011 3:33PM SaintV said
All the games I buy these days are from digital downloads. The lastest being Rift off Steam and I also downloaded Torchlight and Borderlands from the 360.
Posted: Mar 17th 2011 4:04PM Vagrant Zero said
@kgoo867 I bet you live in the alternate universe where LA just got invaded by aliens.
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