Microsoft Xbox 360 Maintains Leadership in Video Game Console Market, says NPD

Despite competition, Microsoft’s (News - Alert) video game console Xbox 360 is gaining ground. As of March 31, 2011, over 53.6 million Xbox 360 consoles have been sold worldwide. And the video console continues to maintain leadership position in the U.S, while gaining momentum in Japan.

According to market research firm NPD Group’s (News - Alert) latest data, Microsoft sold 270,000 Xbox 360s in the U.S. in May, up 39 percent over the same month last year. In the U.S., the NPD data reveals that the Microsoft console now holds top slot, ahead of Sony’s PlayStation 3 and Nintendo’s Wii. In fact, as per the study, Xbox 360 has maintained the leadership position for last eleven months.

The NPD analyst attributes this growth to the Microsoft Kinect motion sensor that has infused new life into the Xbox 360. Consequently, the Xbox 360 has realized nearly a year and a half of month-over-month unit sales increases, notes NPD.

Also, helping the Microsoft Xbox is the online gaming with Xbox Live, which is further extending the life span of the product. Market data gathered by NPD shows that Xbox 360 is also leading in sales of online playable games and online game cards since its release in 2006.

NPD research shows that retailers have sold almost four times as many Xbox 360 digital points cards than PS3 in 2010 and both systems easily toppled the Wii. However, according to Yahoo! News, these numbers don’t take into account the number of digital points gamers buy on the consoles themselves.

Meanwhile, downloading games via digital distribution is becoming a trend in this market, wrote Yahoo! News. Hence, digital gamers who download games are playing a big role in this market, as per this report.

According to NPD, digital gamers acquire an average of 5.9 games every three months as compared to a Core gamer’s 5.4. In addition, they also log 16 hours a week, right behind Core gamers’ 18.

NPD study shows that Core gamers account for about 23 percent of the total market, followed by family and kid gamers at 22 percent. While avid and PC gamers each occupying 15 percent, digital gamers are still far behind with a small fraction of the market. Also, as a note, the market analyst brings to our attention the cost of a digital game, which is often substantially lower than a physical game.