Video Games Lose Another Life in June

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

Xbox 360 and

Sony's

(SNE) - Get Report

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

Take-Two Interactive Software's

(TTWO) - Get Report

Red Dead Redemption

, was once again the best-selling video game.

Wedbush analyst Michael Pachter said

Activision Blizzard

(ATVI) - Get Report

,

Electronic Arts

(ERTS)

and Take-Two exceeded his predictions, while

Nintendo

,

THQ

(THQI)

and

Ubisoft

fell in-line.

More on Video Games The Best Video Games at E3 2010

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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