Falling PS2 game sales is to blame for a ten per cent decline in the software market in US and Europe last year, says Activision.
The firm's publishing boss Mike Griffith made the claim during Activision's conference call following its financial report – and added that he expects game sales of PS2, DS and PSP to decline significantly this year as well.
He adds that Activision remains largely unaffected by these declines due to the firm's 'lack of exposure' to the PS2 and handheld market.
However, Griffith feels that the overall software market will be flat in the US and Europe this year.
"In 2009, total retail software sales in the US and Europe were down ten per cent due mainly to steep declines in PS2 software sales, as publishers continue to lessen their exposure to the platform, and lower cache rates for the casual consumer, including declines in higher priced peripheral-based games," said Griffith.
"We expect that the PS2 segment will again decline significantly and that software for the DS and PSP handhelds will also be down this year.
"Overall, our exposure to the PS2 and handheld markets are minimal, as they are projected to be less than ten per cent of our revenues in 2010."