Video Games Lose Another Life in June

Video game sales decline in June, this time hurt by software sales.
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) -- 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.


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Xbox 360 and


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PlayStation 3 saw the most noteworthy increases year-over-year, according to NPD.

Take-Two Interactive Software's

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Red Dead Redemption

, was once again the best-selling video game.

Wedbush analyst Michael Pachter said

Activision Blizzard

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Electronic Arts


and Take-Two exceeded his predictions, while







fell in-line.

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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.

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