North American retail Video game sales slipped 4 percent in the month of March as consumers turned to digital downloads and online games for their entertainment needs - according to data released by NPD Group. Sales of computer and video games fell 16 percent to $735.4 million, compared to $875.7 million in the same period a year ago.
Nintendo's 3DS hand-held drove hardware sales up 12 percent to $494.5 million in March, but it wasn't enough to make up for the steep slide in software sales (the average gamer bought just one game with the $250 system). When combined with sales of game accessories - Microsoft's Kinect and Sony's Move - overall game industry sales were $1.53 billion last month, down 4 percent from $1.58 billion in March 2010.
The message coming out of March is that consumers seem to be shifting away from retail and to digital distribution channels.
Source: Home Media Magazine