Throughout the course of the economic recession, the video game sector was one of the few bright spots in retail. High-profile titles such as Call of Duty and Halo repeatedly smashed sales records year after year and many analysts deemed the category "recession-proof."

But according to new data from the NPD Group, video game sales are slowing down and merchants who have traditionally relied on this product type may want to rethink store operations. Video game hardware, software and accessory sales fell 42 percent year-over-year in April, one month after a 25 percent drop-off in March.

However, analysts are optimistic that once new high-profile games and next generation hardware, such as Nintendo's Wii U, hit the market, prospects will turn around.

"I think it's a simple as that, because when we see compelling content come into the market, the games are still selling as well as ever," Anita Frazier, an NPD analyst, explained. "We just saw a lot less of this in April as compared to last year."

With many retailers already beginning to plan their holiday offerings, they may want to consider the impact of the wavering video game sector as they make purchase decisions.

This entry was posted by Retail Pro on Monday, May 21st, 2012 at 11:56 am .