Video Game Sales Down 3.4% Through August

Video game sales dropped 3.4% during the first eight months of this year compared with 2002, largely because of aggressive price cuts on consoles and games, market research firm NPD Group said. Sales of games -- which drive the industry’s profits -- were up 5.7% in dollar terms and 18.5% in unit terms.

Console owners spent an average of eight hours a week playing games, NPD reported, compared with 30 hours watching TV, according to Nielsen Media Research.

Despite the downturn, NPD analysts expect game sales to be brisk this holiday season, fueled in part by mass-market consumers attracted to the lower prices.

-- Alex Pham