Total revenue made from retail games, consoles and accessories across the US contracted by 20 per cent in July, according to analyst firm NPD.
Sales of games goods at retail came in at $548 million; down considerably from the $686 million made in the same period last year.
The poor results mark the eight consecutive year-on-year monthly downturn.
Console sales fell the furthest when compared to July last year, down by about 32 per cent to $151million. The same year-on-year calculations suggested that software income decreased by 23 per cent to $260 million, while game accessories bucked trends and climbed by eight per cent.
Unit sales across all consoles were down, NPD said, with the exception of the Nintendo 3DS.
The figures come as the traditional games business enters the nadir of a downturn in the console cycle. The launch of the Nintendo Wii U, as well as the PlayStation 4 and so-called Xbox 720, is hoped will slowly stimulate the market over the next eighteen months.
NPD's results do not include digital games, smartphone or social games, nor do they track money generated by pre-owned business, DLC, microtransactions or subscription deals. The group believes that new packaged games, accessories and consoles together account for about half of all games sales.
"Looking forward to August, the launch of the 3DS XL coupled with New Super Mario Bros. 2 should bring a nice boost to the performance of the new physical retail channel," said NPD analyst Anita Frazier.
Software Top 10
- NCAA Football 13 (360, PS3)
- Lego Batman 2: DC Super Heroes (Wii, 360, DS, PS3, 3DS, Vita, PC)
- The Amazing Spider-Man (360, PS3, 3DS, DS, Wii)
- Just Dance 3 (Wii, 360, PS3)
- Batman Arkham City (360, PS3, PC)
- Call of Duty: Black Ops (360, PS3, DS, Wii, PC)
- Assassin's Creed: Revelations (360, PS3, PC)
- NBA 2K12 (360, PS3, Wii, PSP, PS2, PC)
- Call of Duty: Modern Warfare 3 (360, PS3, Wii, PC)
- Dead Island (360, PS3, PC)