Xbox 360, PS3 sales improve among wider video game downturn

Data released by NPD Group Thursday indicates that among a wider slump in the video game industry in June, Microsoft was able to move back into the top spot in console sales for the first time in months. Overall revenues were down six percent year-over-year to $1.1 billion.

Software itself saw a much wider drop, as sales were off some 15 percent to $531 million. It is not exactly clear why sales of video games themselves were much lower, although it could be a lack of blockbuster titles able to buoy the sector as a whole.

Hardware sales were up however by five percent to $401.7 million, with the Nintendo DS the most sold. In desktop consoles, the Xbox 360 edged out the Wii for the first time in months, and both consoles continued to sell considerably more than Sony's PlayStation 3.

It should be added that the DS did see the biggest drop in sales year-over-year, falling a third. Even so, the console still sold over a half-million units in June alone. The Xbox 360 sold 452,000, up 88 percent; the Wii 423,000, up 17 percent; and the PlayStation 3 305,000, up 85 percent.

NPD said it believed that the debut of the Xbox 360 Slim and its strong sales during the month had a lot to do with Microsoft's success in June. The PlayStation 3 also saw higher sales during the month as opposed to last year.

All is not lost, however. With both Sony and Microsoft working on motion sensing controllers for their respective consoles, there is a chance that the sector could make up lost ground in the second half of 2010.

Data showed that overall sales were down nine percent to $6.66 billion. With the new hardware as well as new blockbuster titles expected for the holiday season, the industry overall could still have a $20 billion year.

Take-Two's "Red Dead Redemption" remained the top selling game for the second month running, and now is the top selling title of the year, NPD said.