Video game software sales for July decline at least 20%?

NPD's latest monthly figures for the U.S. video game industry have revealed some alarming trends, as sales for hardware, software and accessories plummeted double-digit percentage rates from the same month last year.

According to NPD's estimates for May, sales of video game software declined to $449 million, compared to $540 million in May 2008 -- a drop of 17%. Accessories declined 25%, and video game hardware declined 30%, although the portable hardware category showed strong sales thanks to Nintendo's newer DSi and DS Lite models. 

Clearly, the theory that video games are a cheap form of entertainment and are thus relatively shielded from the recession is being tested in the current economic environment. While NPD noted that some new titles are coming out in June, including a new Sims title, Tiger Woods and Transformers, it's far from certain that they will be enough to stop the downward slide in gaming software sales, especially as people put off buying the hardware necessary to play new titles. 

Prediction: July 2008 game software sales for the U.S. market were $591.1 million, a rise of 41 percent over the previous year, according to NPD. This prediction states that July 2009 game software sales will be $473 million or lower, representing a drop of at least 20%. NPD figures for July (which will probably be released in early or mid August) will be used to judge the prediction.