(18 October 2008 3:00 pm)

MUMBAI: Video games sales in US have dropped 7 per cent in September from the prior year period, according to a recent report from research firm NPD. However, the comparisons were skewed by Microsoft’s Halo 3, which accounted for more than a third of all game sales in the same month last year.

“This is the first true monthly decline the industry has experienced since March of 2006," said NPD analyst Anita Frazier in a statement. "It's important to keep in mind, however, that this month's 7 per cent decline is against a month that itself was up 75 per cent from the prior September."

The report also suggests that Nintendo's Wii console and the DS handheld were the two best-selling gaming systems with 687,000 and 537,000 units respectively. Boosted by a significant price cut, Microsoft's Xbox 360 also sold 347,200 units during the month, in third place and up 78 per cent from its August performance. Microsoft cut the price of the Xbox 360 at the beginning of September, with the cheapest version selling for $200, less expensive than the Wii, which retails for $250. Sony PSP also sold 238,000 units in the same month.

"This increase, despite the acceleration of economic turmoil during the month of September, is a solid indicator of the health of the industry heading into the holiday season," added Frazier.