Consumer boxed software sales not dead just yet
TweetFollow Us on Twitter

Consumer boxed software sales not dead just yet

There is still life in the consumer boxed software market, despite reports of the demise of the industry, according to market research company the NPD Group (http://www.npd.com). Some reports of that demise are due to the success of the Mac App Store and Apple's reduction of space in its retail stores for boxed software.

But don't weep for the box just yet. According to NPD's Retail Tracking Service, total consumer retail software (excluding games) increased 1% in 2010, to US$2.42 billion. The slight growth comes after two years of steep declines of 8% in 2008 and 10% in 2009.

Sales of business products led the way with 14% revenue growth on the strength of Microsoft's launch of Office 2010. Imaging and graphics was also a strong category with a 10% increase in revenue, as product launches from Adobe and Apple bolstered sales in the high-end professional segments of the market. And, so far, products like Microsoft Office and Photoshop aren't available in the Mac App Store.

"While industry pundits and commentators continue to forecast the death of retail software, it remains a strong and viable channel for companies wishing to get their products in front of the maximum number of customers," says Stephen Baker vice president of industry analysis at NPD. "While there is no doubt that 2010 saw a number of changes in in-store product distribution that will impact future sales, NPD's research shows that retail storefronts grew faster than ecommerce in 2010."

Microsoft was the leading publisher at retail in 2010 accounting for more than one-third of all retail sales dollars. Sales of Office 2010 drove revenue in the office productivity suites category to its highest level in more than four years. Intuit, Apple, Adobe, and Symantec were the other top publishers at retail. Together those five companies accounted for 78 percent of sales, up three percentage points from 2009.

Among the other major categories both finance and system utilities sales declined in sales. Finance software fell as tax software continued to move online. Security software revenue took a hit as major retailers, in partnership with security software publishers, continued to see value in offering basic security products for low, or no cost, with the longer-term expectation that those can turn into more fully featured suite sales and subscription revenue.

"Much of this year's revenue increase came as a result of sales of premium products such as Final Cut, Aperture, CS5, and Office," says Baker. However, the lower unit volume potential of these products, even as they increase in revenue importance, remains a major threat to the ongoing maintenance of sufficient shelf space in retail to keep the category viable."

-- Dennis Sellers

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Combo Quest (Games)
Combo Quest 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Combo Quest is an epic, time tap role-playing adventure. In this unique masterpiece, you are a knight on a heroic quest to retrieve... | Read more »
Hero Emblems (Games)
Hero Emblems 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: ** 25% OFF for a limited time to celebrate the release ** ** Note for iPhone 6 user: If it doesn't run fullscreen on your device... | Read more »
Puzzle Blitz (Games)
Puzzle Blitz 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Puzzle Blitz is a frantic puzzle solving race against the clock! Solve as many puzzles as you can, before time runs out! You have... | Read more »
Sky Patrol (Games)
Sky Patrol 1.0.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.1 (iTunes) Description: 'Strategic Twist On The Classic Shooter Genre' - Indie Game Mag... | Read more »
The Princess Bride - The Official Game...
The Princess Bride - The Official Game 1.1 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1 (iTunes) Description: An epic game based on the beloved classic movie? Inconceivable! Play the world of The Princess Bride... | Read more »
Frozen Synapse (Games)
Frozen Synapse 1.0 Device: iOS iPhone Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Frozen Synapse is a multi-award-winning tactical game. (Full cross-play with desktop and tablet versions) 9/10 Edge 9/10 Eurogamer... | Read more »
Space Marshals (Games)
Space Marshals 1.0.1 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.1 (iTunes) Description: ### IMPORTANT ### Please note that iPhone 4 is not supported. Space Marshals is a Sci-fi Wild West adventure taking place... | Read more »
Battle Slimes (Games)
Battle Slimes 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: BATTLE SLIMES is a fun local multiplayer game. Control speedy & bouncy slime blobs as you compete with friends and family.... | Read more »
Spectrum - 3D Avenue (Games)
Spectrum - 3D Avenue 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: "Spectrum is a pretty cool take on twitchy/reaction-based gameplay with enough complexity and style to stand out from the... | Read more »
Drop Wizard (Games)
Drop Wizard 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Bring back the joy of arcade games! Drop Wizard is an action arcade game where you play as Teo, a wizard on a quest to save his... | Read more »

Price Scanner via MacPrices.net

Apple’s M4 Mac minis on sale for record-low p...
B&H Photo has M4 and M4 Pro Mac minis in stock and on sale right now for up to $150 off Apple’s MSRP, each including free 1-2 day shipping to most US addresses. Prices start at only $469: – M4... Read more
Deal Alert! Mac Studio with M4 Max CPU on sal...
B&H Photo has the standard-configuration Mac Studio model with Apple’s M4 Max CPU in stock today and on sale for $300 off MSRP, now $1699 (10-Core CPU and 32GB RAM/512GB SSD). B&H also... Read more

Jobs Board

All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.