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NEW YORK ( TheStreet) -- Video game sales tumbled yet again in June, this time being hit by a bigger-than-expected drop in software demand. Total sales fell 6% to $1.1 billion, according to the NPD Group. Sales of software plunged 15% to $531.5 million, while hardware jumped 5% to $401.7 million. In May software sales rose and hardware was the big loser. Microsoft's ( MSFT) Xbox 360 and Sony's ( SNE) PlayStation 3 saw the most noteworthy increases year-over-year, according to NPD. Take-Two Interactive Software's ( TTWO) Red Dead Redemption, was once again the best-selling video game. Wedbush analyst Michael Pachter said Activision Blizzard ( ATVI), Electronic Arts ( ERTS) and Take-Two exceeded his predictions, while Nintendo, THQ ( THQI) and Ubisoft fell in-line.
Despite what has been lackluster sales, NPD analyst Anita Frazier still says video game sales can come in at $20 billion for the full year, given the upcoming launch of motion-based gaming like Sony's Move and Microsoft's Kinect. "We expect investors to stay on the sidelines until they see evidence of a sustainable rebound in sales, either through an increase in packaged product sales or through the monetization of online multiplayer gaming," Pachter wrote in a note. "The modest rebound in May was clearly not sustainable, and we do not expect share prices to begin to rebound until later this summer." -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.