“The continued economic turmoil, and in particular the troubling unemployment rate, is undoubtedly impacting industry sales,” said NPD analyst Anita Frazier. “Our latest Economy Tracker indicated that although consumers’ general opinion about the economy is improving, their outlook on their own personal situation is worsening. If consumers’ personal outlook continues to erode, they could very well be much more conservative with their holiday shopping this year.”

A somber warning for the videogame industry. Even recent price cuts on game consoles have done little to spur demand.

“Year to date, the hardware category has experienced the sharpest decline in the industry, with unit sales down 10 percent compared to the same time period last year,” Frazier wrote. “Recent price cuts helped spur a one- to two-month increase in unit sales, and this month’s Wii sales reflect that boost, but the other platforms have not sustained the sales momentum after price reduction.”

The videogame industry may be recession-resistant, but it is clearly not recession-proof, as some once believed. Sales data, below.

U.S. Hardware Sales, October 2009

1. Wii 506.9K
2. Nintendo DS 457.6K
3. PlayStation 3 320.6K
4. Xbox 360 249.7K
5. PSP 174.6K
6. PlayStation 2 117.8K

U.S. Top Ten Software Sales, October 2009

1. Uncharted 2: Among Thieves (PS3, Sony) 537,000
2. Wii Fit Plus (Wii, Nintendo) 441,000
3. Borderlands (360, Take 2) 418,000
4. Wii Sports Resort (Wii, Nintendo) 314,000
5. NBA 2K10 (360, Take 2) 311,000
6. Halo 3: ODST (360, Microsoft) 271,000
7. NBA 2K10 (PS3, Take 2) 213,000
8. Forza Motorsport 3 (360, Microsoft) 175,000
9. Kingdom Hearts 358/2 Days (DS, Square Enix) 169,000
10. FIFA Soccer 10 (360, Electronic Arts) 156,000

Good news for Microsoft (MSFT). Clearly, Bing’s traffic is not yet leveling out. That said, it should be noted that according to comScore (SCOR), whose search data are most highly regarded by Wall Street, Bing never lost search market share in the U.S.

Third-quarter chip sales totaled $61.9 billion, down 10.1 percent from the same quarter last year, but up nearly 20 percent from the second quarter of 2009. No doubt about it, the market for chips is improving (see chart below; click to enlarge).

“Global semiconductor sales in the third quarter were above expectations,” SIA President George Scalise said in a statement. “September sales were in line with historical patterns, reflecting increased demand from end-users as they began the build for the holiday season.”

“Amid signs that we are in the early stages of recovery in the global economy,” Scalise added, “semiconductor sales continue to reflect normal seasonal patterns. Sales are running well ahead of the worst-case scenarios projected early in the year, and we are optimistic that total sales for 2009 will be better than our mid-year forecast.”

Sales are running well ahead of the worst-case scenarios? Well, I suppose any reassurance is a good one when your industry is down 10 percent year-over-year.

Troubling news for Microsoft (MSFT). Hitwise’s latest numbers are the second set of metrics from a Web analytics firm showing Bing’s market share in decline. Last week, StatCounter claimed Bing’s share of the U.S. search market in September had slipped to 8.5 percent from 9.6 percent in August.

As I noted then, while a month of slight decline might herald the beginning of a trend, it certainly doesn’t guarantee one–especially in search, where surges and lulls in market share are quite common. That said, this is the second set of data suggesting that Bing’s traffic may be leveling out. Whether this reflects the end of the big Bing marketing campaign or falling consumer interest remains to be seen.

Incidentally, Microsoft’s new search partner, Yahoo (YHOO), also saw its search share slip for the month, according to Hitwise. Yahoo claimed 16.96 percent in August. In September, it claimed 16.38 percent. Meanwhile, Google (GOOG) took 71.08 percent share for the month, up from 70.24 percent in August.

New metrics from Web analytics firm StatCounter show Bing’s share of the U.S. search market in September falling to 8.5 percent from 9.6 percent in August. Its share of the global market declined as well, slipping to 3.25 percent from 3.58 percent.

Microsoft’s (MSFT) new search partner, Yahoo (YHOO), also suffered a decline. Its market share fell to 9.4 percent from 10.50 percent in the U.S. and to 4.37 percent from 4.84 abroad. Meanwhile, Google’s (GOOG) September share rose to 80 percent from 77.8 percent in the U.S. and to 90.54 percent from 90 percent globally. (See chart below; click to enlarge.)

“The trend has been downwards for Bing since mid August,” StatCounter CEO Aodhan Cullen said in a statement. “The wheels haven’t fallen off but the underlying trend must be a little worrying for Microsoft.”

Mmm, I doubt it. While a month of slight decline might herald the beginning of a trend, it certainly doesn’t guarantee one, especially in search, where surges and declines in market share are quite common. Furthermore, we haven’t yet seen search metrics from Nielsen, comScore (SCOR), and Hitwise. And all three showed Bing gaining share in August, a month that Statcounter claimed shows the beginning of a downward trend.

According to the research outfit, Mac sales for July and August are up seven percent year-over-year. If this proves true, Apple (AAPL) should sell somewhere around 2.75 and 2.8 million Macs in the quarter, which would match or slightly exceed Wall Street consensus estimates. IPod sales should meet estimates as well, though NPD reports that year-over-year sales during July and August were down 16 percent.

Munster figures Apple will sell 9.5 million to 10.5 million iPods for the quarter. The Street is looking for 10 million, and with the launch of the newest nano, Apple will likely meet this goal.

“We are expecting reacceleration in the final month of the quarter given the new iPod nanos that shipped on 9/9,” Munster explained. “Also, iPod international is growing faster than domestic. In other words, we believe the actual reported numbers for iPod will be slightly better than NPD would suggest.”

Starting today and through next week, BoomTown is headed south down California’s lovely Highway 1 for as much of a vacation as I can possibly take.

Which is to say, just a week off from posting (if one does pop up, forgive me, but it was probably already baked).

In other words: iLike twins, Wenda, Owen, play nice! Yahoos, please hold onto your internal memos. And I hope Apple’s iTablet is not delivered from on high this week while I relax beachside (it won’t be).

This summer has been unusually news-laden for the digital sector–the Yahoo (YHOO) deal with Microsoft (MSFT); all the machinations at News Corp.’s (NWS) MySpace, Facebook and Time Warner (TWX) online unit AOL; various and sundry Google (GOOG) battles; some tasty Amazon (AMZN) follies; Palm (PALM) Pre-ambulations; and, of course, more Apple (AAPL) hijinks than you can count.

Oh yeah, and whatever Twitter fill-in-the-blank-you-like.

But I digress, and will now return to my annual scheduled programming–a blog-free week with some really interactive time with the kids and family in Santa Monica.

This week is a particularly good time to take time–a big birthday celebration for my Twitter-bashing mother and also a 10th wedding anniversary (an inexplicable event, except to say–given it is me we’re talking about–that I obviously married a saint).

For all that and more, see you in September. (Actually, August 31, but who’s counting?)

And, until then, here is a cool video of someone playing a 45 of that great song by the Happenings on an old turntable:

[CORRECTION: My assertion about NPD's unit sales data below is incorrect: The tracking service counts 12 digital download singles as the equivalent of one CD. That makes Apple's share of the market that much more impressive, since singles make up the majority of iTunes sales.]

Ready to toss dirt on the old, unloved CD? You’re going to have to wait a while. Compact discs are increasingly hard to find (at least in physical stores), but someone out there keeps buying them: The ancient format still makes up the majority of music sales in the U.S.

Here are the data for the first half of the year, via the NPD Group consumer-tracking outfit: CDs made up 65 percent of the music market, while paid digital downloads accounted for 35 percent. The digital share has increased from 20 percent two years ago, and Apple’s iTunes (AAPL) alone makes up 25 percent of overall sales*, so you’re going to hear lots of proclamations about Steve Jobs’s ascent to the to top of the music industry.

But hold off on that, just a bit. Because those numbers are skewed even more in favor of the CD than they appear at first glance: They’re measuring unit sales, not dollars. And given that the majority of digital sales are in the single format (i.e., a dollar or so a pop), that means CDs (at $10 or so a pop) still account for the vast majority of music revenue.

Which is why the industry is still tied to CDs, even though no one you know buys them anymore. And it explains why the industry is working on two separate digital formats (dubbed “Cocktail” when sold by Apple, and CMX when sold by anyone else) designed to induce buyers to pay for CD-like bundles.

It won’t work. At best, they’ll convince some digital album buyers to upgrade, but the music business is once again a singles business, and it’s going to remain that way. But you can’t blame the industry for trying.

By the way, there are decent odds you’ll hear about Cocktail at Apple’s September event, which Digital Daily’s John Paczkowski says is scheduled for Sept. 9. Mark your calendar.

*If you’re keeping track: Wal-Mart (WMT) and Target (TGT) trail Apple in the overall market. And iTunes still dominates the digital download market with a 69 percent share, while Amazon (AMZN) is a distant second with eight percent.

CEO Chuck Townsend said as much in a memo yesterday announcing that he’d hired McKinsey to figure out how to survive “in an emerging economy that is now predicted to be painfully slow in recovering.”

But when you see Condé’s projected numbers for its fall issues, which are traditionally bulging with ads, it’s even more startling. Particularly when you realize that the economy had already been slowing down a year ago (Disclosure: I do some free-lance work for Condé title Vanity Fair).

Take a look for yourself in the table below (click to enlarge): The numbers in the middle (faintly highlighted in blue) represent the year-over-year decline in ad pages, if you factor out the publisher’s special “Fashion Rocks” issues, which it gave up on last year. The more brutal numbers on the right are the “real” numbers. All of them are unpleasant.

Using the more favorable set of numbers, Teen Vogue is Condé’s relative star, down a mere 17 percent. And if Vogue was a publicly traded stock, it would have beaten expectations, since it came in above 400 pages–which is still down 29.7 percent (or more).

Not included the above chart: Totals for The New Yorker, Golf World, Modern Bride or Elegant Bride, since they aren’t monthlies and don’t have comparable September issues.

And here’s a trailer for “The September Issue,” a much-buzzed about documentary about Vogue’s effort to put out…well, you can figure it out.

And that makes perfect sense really. A touch with an integrated camera and mic is more an inevitability than anything else at this point. And the rumored September launch jibes with the timing of Apple’s (AAPL) iPod announcements for the past several years.

So, if the rumor proves true, we’ll soon see the touch transform from a media-player to a media-creator and VoIP device as well. Outfitted with Skype or a similar application, the touch would make a slick home phone–and give a nice little sting to AT&T (T).

[Image Credit: TechAu]

And that makes perfect sense really. A touch with an integrated camera and mic is more an inevitability than anything else at this point. And the rumored September launch jibes with the timing of Apple’s (AAPL) iPod announcements for the past several years.

So, if the rumor proves true, we’ll soon see the touch transform from a media-player to a media-creator and VoIP device as well. Outfitted with Skype or a similar application, the touch would make a slick home phone–and give a nice little sting to AT&T (T).

[Image Credit: TechAu]

In your review of the new iPhone 3GS, you said that AT&T had changed its upgrade policy so some buyers of the previous model could get the new-customer price earlier than planned. Can you explain this in more detail?

Almost all cellphones in the U.S. are subsidized by the carriers to bring down prices. Typically, existing customers—who have already benefited from a subsidy—can’t upgrade at the lower new-customer price (in this case $199) until they reach a point in their contracts where this subsidy has been recovered. These dates vary, based on a formula that takes into account things like the customer’s monthly spending rate.

When some early adopters of the 2008 iPhone model, the 3G, discovered they wouldn’t immediately qualify for this $199 “standard upgrade” price—the same as the new-customer price—they got angry. So AT&T made a concession, but only a partial one. It declared that any customer who had been told he or she couldn’t get the $199 price until sometime in July, August or September of 2009 would in fact now be able to qualify for that lower price starting on the first day of availability.

This concession doesn’t apply at all to owners of the original 2007 iPhone, or even every owner of the 2008 3G model. And it isn’t based on when you bought your 3G, but when the system told you that you could buy the new model at the “standard” upgrade price of $199. You can check the price AT&T or Apple will charge you for an upgrade by going to www.att.com/iPhone and clicking on “Check upgrade eligibility.”

I’ve recently heard that the new Palm Pre smart phone is unable to import data from the old Palm Desktop program. In other words, if you have Palm Desktop filled with data from a previous Palm model, you’ll be unable to get that data into your new Palm Pre. Is this true?

No. While the Pre isn’t designed to repeatedly sync with the old Palm Desktop software, Palm does offer a program, for Windows and Mac, that will perform a one-time import of your old data from Palm Desktop. It can also do a one-time import of data from certain other desktop programs as well, including Microsoft Outlook on Windows, and iCal and Address Book on the Mac. This program will help you move your data to one of the online services, such as Google, with which the Pre is designed to sync continuously. The software is called the Palm Data Transfer Assistant and is free at http://bit.ly/3lIaZ.

I am contemplating purchasing the 17” MacBook Pro rather than the 13” or 15” models because the antiglare matte screen is offered only with the 17”. How bad is the glare on the smaller screens and how cumbersome do you find the larger 17” MacBook Pro?

For a laptop of its size, the 17” MacBook Pro is remarkably thin and light. But I did find it cumbersome to use in coach seats on airplanes and to cram into small briefcases. As for the glossy screens, which are now the most common option on many laptops, they bothered me at first, but I don’t notice the glare now. However, both of these are personal issues. So my suggestion is to go to a store and see for yourself.

You can find Mossberg’s Mailbox, and my other columns, online for free at the All Things Digital Web site, http://walt.allthingsd.com.

It seems that morbid interest in the stock market’s decline is driving up Yahoo (YHOO) video streams, as well. The much diminished Internet major claimed 265 million video streams in September, a 56 percent increase over the 169 million it claimed in August. And that puts it in the No. 2 spot on Nielsen Online’s monthly VideoCensus. Impressive, no? Presumably, October will be even better, given the upcoming presidential election.

That said, as in search, Google (GOOG) is the one to beat in Web video. The company’s YouTube property served up an astonishing 5.3 billion streams.

PREVIOUSLY:

• Yahoo Search Market Share Apparently Inversely Related to Yahoo Share Price

It seems that morbid interest in the stock market’s decline is driving up Yahoo (YHOO) video streams, as well. The much diminished Internet major claimed 265 million video streams in September, a 56 percent increase over the 169 million it claimed in August. And that puts it in the No. 2 spot on Nielsen Online’s monthly VideoCensus. Impressive, no? Presumably, October will be even better, given the upcoming presidential election.

That said, as in search, Google (GOOG) is the one to beat in Web video. The company’s YouTube property served up an astonishing 5.3 billion streams.

PREVIOUSLY:

• Yahoo Search Market Share Apparently Inversely Related to Yahoo Share Price

Today, Mac OS X runs on 8.23 percent of the machines accessing the 40,000 sites monitored by Net Applications. Two years ago it was running on a little over 5 percent. That’s a 58 percent gain. Quite an achievement, though at 8.23 percent, Apple’s (AAPL) share of the OS market is still dwarfed by the 90.29 percent held by Microsoft and its Windows OS. That said Windows’s market share does appear to be slipping. It dropped 0.4 percent from August to September.