Research firm NPD reports sales of video games in the US were down 16 percent in August to $908.7 million, the sixth consecutive monthly decline. Software sales dropped 15 percent, hardware sales slid 25 percent and video game accessories rose 2 percent.
Analysts believe the worst is behind us and that price cuts by Sony and Microsoft and new games will boost sales in the coming months.
Jesse Divnich, an analyst with industry research group Electronic Entertainment Design and Research, said August's sales figures came in about as expected.
"Certainly the worst is behind us...the month of September does have a game for every demographic and that does create a perfect storm for sales, and we expect that momentum to continue for the holiday season."