Video game industry generated $9.9 bln in 2004

Sales for video game hardware, software and accessories were $9.9 bln in 2004, down 1% from $10 bln a year earlier, according to NPD Group. Video-game sales managed to top US movie box-office receipts, which came in at $9.4 bln for 2004, according to Exhibitor Relations. The decline was due mainly to a 17% decline in hardware sales to $2.4 bln as a result of price cuts. But video-game software sales showed a healthy increase, growing 8% to $6.2 bln. Given that the current generation of video consoles are now nearly 5 years old, many industry observers expected the entire industry to decline in 2004.