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Non-gaming software sales in the United States declined 2 percent to $2.9 billion, according to The NPD Group.
The drop was primarily attributed to a fall off in sales of operating systems and finance software, while these were somewhat offset by increases in business and system utility software. The latter two rose by 10 percent and 3 percent, respectively.
"The steep decline in retail operating system sales in 2006 was due primarily to the fact that most consumers that needed to upgrade older desktops and laptops to Microsoft XP have already done so," said Chris Swenson, NPD's software industry analysis director.
Swenson expects the release of Microsoft Vista on Jan. 30 to significantly alter the software retail landscape in 2007 and help boost dollars sales for the year.
Security suite software was the big winner in 2006, posting a 19 percent increase in dollar sales, while finance software sales declined for the first time since 2000. Swenson pointed to falling sales of tax preparation software as the main culprit as consumers have chosen to use online services offered by the major tax preparation companies.2006 Top 10 PC Software Titles
|1||MS Office 2003 Student/Teacher Ed||Microsoft||Oct 03||$136.91|
|2||TurboTax 2005 Deluxe With State||Intuit||Nov 05||$38.41|
|3||Norton Internet Security 2006||Symantec||Sep 05||$65.39|
|4||Quickbooks 2006 Pro||Intuit||Nov 05||$171.22|
|5||MS Office 2004 Student/Teacher Ed||Microsoft||Mar 04||$147.73|
|6||Norton Antivirus 2006||Symantec||Sep 05||$34.89|
|7||Spy Sweeper||Webroot||Apr 03||$16.90|
|8||TurboTax 2005 Premier With State||Intuit||Nov 05||$67.59|
|9||MS Windows XP Home Ed. Upgrade||Microsoft||Oct 01||$93.34|
|10||Norton Internet Security 2006/System Works 2006 Upgr Bundle||Symantec||Nov 05||$59.21|
|Source: The NPD Group/Retail Tracking Service ©TWICE 2007|
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.