Data compiled by research group NPD reveals that revenue from the US video-game sales plunged 31% to $1.17 billion in the month of June as compared with $1.7 billion in the last year.

A fall of 29% has been witnessed in the sales of game software, which dropped to $625.8 million. On the other hand, sales of hardware plunged 38% to $382.6 million. Sales of game-related accessories fell 22%.

On the whole sales of video games dropped 12% in the running year till date.

Unending economic recession and dearth of blockbuster games played a major role in bringing down the video-games' sales.

Michael Pachter, Wedbush Morgan analyst is of the thinking that high cost of video games has been keeping customers at an arm's length.

Speaking on the issue, Michael Pachter said, "The consumer is just not buying hardware at these prices ... clearly the consumer is just waiting for price cuts."

Nintendo's Wii sales plunged 45%, however it remained the top selling video game with 362,000 unit sales.

Microsoft's XBox 360 stood second in recording video game sales, followed by Sony Corp's PlayStation 3 and PlayStation 2, which dropped 59%.

However NPD also signifies that the decline in the sales may be due to companies' new trend of moving to online games.