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The gaming industry took a major blow in May, as console sales plunged by 30% from May 2008, while game sales fell 17% during that same time period.

Consumers continue to think of needed items, and the gaming industry is suffering along with the other industries, as total combined sales of consoles and games for May 2009 dropped to $863 million, the first month since August 2007 combined sales fell below $1 billion, according to NPD Group Inc.

Game console sales dipped to $302.5 million in May, down big time from the $433 million in sales for May 2008. Even Nintendo’s Wii sales were slashed by over half.

On the gaming side, the 17% fall brought sales down to $448.9 million.

The concern is, as console sales go, so goes gaming sales. If there’s a lag factor, that could mean gaming sales could fall even more. Of course existing systems could still play more games if they are able to with their existing specs.

For the big three makers of consoles, Nintendo sold 289,500 Wiis, while Microsoft Corp. sold 175,000 Xbox 360s and Sony Corp. sold 131,000 PlayStation 3 units.

There’s a slight hope that the high-potential games coming out in June will help things rebound, but most say that even with games like Transformers, Red Faction, Sims 3, Prototype and Tiger Woods, things will probably remain grim for the industry for some time.

One ongoing cat and mouse game could determine what happens as well, with consumers being socialized into believing there will be a price cut, and companies holding off on cutting prices so losses in sales won’t result from the predictability of the timing of these cuts.

If losses continue to mount, there’ll be pressure from the game publishers for the consoles to drop in price so their games can be sold. But that probably won’t be enough, as the other factors like profits and losses play a part in the overall scheme of things, as shareholders look on anxiously to see what decisions will be made.

In other words, the gaming industry is in trouble right now, and it’ll continue to be in trouble until the overall economy starts to rebound. That could be a long wait.

Nintendo wii Console with Wii Fit and Sports Pack

Gaming Trends

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