Despite what is expected to have been a dismal fourth quarter performance, U.S retail sales of video game hardware, software and accessories hit a new record anyway in 2005, according to research firm
NPD Group. Internet-enabled portable devices like the Sony PlayStation Portable and Nintendo's Game Boy Advance led the industry to a new sales high of $10.5 billion last year--$2 million more than
the previous record of $10.3 billion set in 2002. Portables were definitely the story for 2005, accounting for more than 10 percent of industry sales. Nintendo's GBA led the way, recording 52 percent
of the $1.4 billion brought in by portables last year. Meanwhile, the console market had numerous problems, including a hardware shortage over the crucial holiday season from Microsoft's new console
the Xbox 360. Microsoft expected to sell more than 1.5 million 360s, but due to manufacturing problems it was only able to sell 600,000 units. Console sales fell 3 percent from 2004, while software
and accessories sales fell harder, 12 and 8 percent respectively.
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