Toys R Us: Video Games Part Of 'Weakest' Holiday Sales Category

In announcing domestic sales growth of just over five percent for the 2010 holiday season, Toys R Us revealed today that the entertainment category, made primarily of video game hardware and software, was the company's weakest sales performer during the period. Unspecified year-over-year sales declines for the category during November and December follow two straight fiscal quarters which also saw declining video game sales dragging down sales increases in other sectors of the company. Entertainment category revenues for Toys R Us were down nearly 15 percent year-over-year through the third fiscal quarter, according to SEC filings, a number which seems unlikely to improve given the weak holiday performance. Data from the NPD Group shows overall new retail sales in the game industry down nearly 5 percent through November, though sales in November itself were up almost 10 percent from the same month the year before. In 2008, strong sales for the Wii were key to increasing video game sales and overall profits for Toys R Us, which operates over 2,000 stores around the world.