June Video Game Sales Suffer Steep Decline

Feeling the effects of the down economy, U.S. video game equipment and software sales declined 31 percent to $1.17 billion in June, the steepest fall since 2000, according to the NPD Group.

Hardware sales dropped 38 percent to $382.6 million, the research firm said, while sales of game software fell 29 percent to $625.8 million. Sales of accessories declined 22 percent.

Although the gaming industry is thought to have a loyal base of support, the recession has led to sharply reduced sales in the sector, NPD analyst Anita Frazier said in a statement, Reuters reported.

"This is one of the first months where I think the impact of the economy is clearly reflected in the sales numbers," Frazier said in the statement. "The size of the decline could also point to consumers deferring limited discretionary spending until a big event (must-have new title, hardware price cut) compels them to spend."

The NPD Group reported that video game sales declined 12 percent year-to-date. Part of the reason for the sales drop off may be the costs of video game consoles, Wedbush Morgan analyst Michael Pachter told Reuters.

"The consumer is just not buying hardware at these prices clearly the consumer is just waiting for price cuts," said Pachter.

In September, new, high-profile games are expected, which may lead to increased sales, Pachter added.

Overall video game sales are down 12 percent year-to-date, the NPD said.

The top-selling home console in June was Nintendo's Wii, with 360,000 units sold, a 45 percent drop in sales from drop in sales from the same month last year, Reuters said. The No. 2 home sales console was Microsoft's XBox 360, which saw a year-over-year unit increase, followed by Sony's PlayStation 3 and PlayStation 2.

The NPD Group said sales of the Nintendo DS family of handheld consoles totaled 767,000, more than the 164,000 recorded by the Sony PSP.

Selling the most game titles in June was Activision Blizzard's "Prototype," with 600,000 units purchased.