Is the Video Game Sector Finally Slowing Down?

Is the video game sector hitting a wall?

That’s the obvious conclusion of the latest monthly sales data from research firm NPD Group.

According to data released late Thursday, video game industry overall sales fell 17 percent in March from a year ago, with hardware down 18 percent, software off 17 percent and accessories off 15 percent. For all of Q1, overall industry sales were flat, with hardware up one percent year over year, software down two percent, and accessories down three percent.

Wait, wait. How did this happen? NPD Group analyst Anita Frazier asserts that the steep fall off reflects two unusual factors. One, she explains, is that Easter last year fell in March, whereas this year it fell in April. And secondly, she notes that last March included the release of Super Smash Bros. Brawl, which she points out was the fourth-best selling game in 2008.

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