0.6% decrease in consumer electronics sales in 2009

Consumer Electronics Association is forecasting a drop in full-year factory sales to dealers for the first time in recent history, a 0.6% decrease to $170.9 bln for 2009. Digital TV continues to be the largest industry category, representing 15% of total industry shipment dollars. As the transition to digital television nears, unit shipments of DTVs will approach 35 mln in 2009, an increase of nearly 6% over 2008 shipments. LCD displays remain the top choice among consumers, representing 77% of total DTV units. Blu-ray players are expected to see major growth in 2009. With more content, new products and lower prices, Blu-ray revenues are projected to surpass $1.2 bln. The overall video game market should grow 11%, generating nearly $22 bln in revenue 2008, a new high mark for the category. Software continues to drive the gaming market, helped by a growing installed base of next-generation consoles. Gaming software revenues are expected to grow 18% to nearly $15 bln.