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Video Game Sales Lowest Since October 2006 Reveals Report

July was the worst month in terms of video game hardware and software sales in the United States market, a new report has revealed.

The report by market research firm NPD has informed that US sales of video game hardware and software was at $707.7 million, a drop of 26 percent and lowest since October 2006.

The company blamed the poor sales on a sharp drop in demand for gaming consoles like the Sony PlayStation 3.

According to NPD, the sale of video game hardware, which includes consoles like the Wii, Xbox 360, PlayStation 3 and 3DS, was at $223 million in July, a drop of 29 percent from last year.

Meanwhile, the sale of video game software fell by 17 percent to $336.2 million, worse than what some analysts had predicted. Video game accessories also registered a dropped of about 8 percent equivalent to $127.8 million.

“There is no getting around the fact that video game sales in the new physical retail channel suffered its lowest month since October 2006," said NPD analyst Anita Frazier.

“Although there was a decrease in each video game category contributing to the whole, the category with the greatest dollar decline versus last year was console hardware, which was caused by a decrease in unit sales as the average selling price for console hardware was essentially flat to last year.” she added.