The videogame industry has seen its sales slump for the past three months, but analysts widely expect a strong slate of holiday releases to help the sector bounce back later this year.

Late yesterday, the NPD Group reported that May sales of game software fell 17% from a year earlier. Hardware sales fared worse over the same time frame, sliding 30%, with a surprising decline in sales of Nintendo’s Wii. So far this year, total industry sales are lagging behind last year’s record-setting results. Year-to-date sales of game software and hardware have totaled $6.1 billion, about 7% below sales for the same period in 2008.

The weakness in sales for the past three months is widely blamed on tough comparisons. Last spring saw the release of the year’s best-selling game titles, including Mario Kart, Wii Fit, Super Smash Bros.: Brawl, and Grand Theft Auto IV. Big games usually help sell gaming hardware, especially when a game title is exclusive to a particular platform. This year’s biggest game titles are not slated to come out until fall. Call of Duty: Modern Warfare 2 from Activision is widely expected to be the year’s biggest seller, along with the company’s newest Tony Hawk skateboard game and BioShock 2 from Take-Two. Fall will also see the launch of big exclusive titles such as the multi-player shooter MAG for the PS3 and a new Super Mario Bros. for the Wii.

Source: Wall Street Journal