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Video Game Outlook Dour as Sales Tank

Video game sales tank 13% in January.

NEW YORK (

TheStreet

) -- Video games tumbled 13% in January, following disappointing outlooks from video-game makers.

The NPD Group said sales for the month fell to $1.17 billion, as consumers cut back after the holiday season.

Video game software sank 12% to $597 million, while consoles plunged 21% to $353 million. There was a significant drop off in sales of

Nintendo's

Wii, but

Microsoft's

(MSFT) - Get Report

Xbox 360 and

Sony's

(SNE) - Get Report

PlayStation 3 did better than the year prior.

Both

Electronic Arts

(ERTS)

and

TheStreet Recommends

Activision Blizzard

(ATVI) - Get Report

provided dour guidance earlier this week.

And

GameStop

(GME) - Get Report

was

downgraded to neutral

by Credit Suisse, saying the company is in a "value trap" and does not expect much multiple expansion.

-- Reported by Jeanine Poggi in New York.

RELATED STORIES:

>>GameStop Stuck in 'Value Trap'

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