NEW YORK (
) -- 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.
Xbox 360 and
PlayStation 3 saw the most noteworthy increases year-over-year, according to NPD.
Take-Two Interactive Software's
Red Dead Redemption
, was once again the best-selling video game.
Wedbush analyst Michael Pachter said
and Take-Two exceeded his predictions, while
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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