It's a good time to be in the videogame business. While spending on music fell 10% in 2007, according to new data from the NPD Group, videogame spending tripled in the same period, and DVD sales were largely flat.

Retail sales of videogames jumped 41% while retail CD sales fell 45%. In fact, an NPD survey finds that the reason teens spend less on CDs is because they're spending their money on videogames instead.

However, the most hard-core gamer remains a prodigious consumer of non-gamer entertainment. NPD says gamers who play several times a week spent most of their entertainment budgets on such no-gaming fare as DVD (58%) and CDs (46%) compared to new games (43%).

"We have this perception of hard-core gamers glued to their consoles and immersed in virtual worlds, when in fact they are still spending a lot of time with-and money on-music, movies and other pastimes," said NPD analyst Russ Crupnick in a statement. "To be a winner in the entertainment wars, companies need to make sure they lead at every consumer touch point -- from traditional retail to digital to wireless."

"New technologies, new devices, and digital content delivery are changing the entertainment landscape in such a way that companies must keep tabs on the latest trends in competitive categories -- not just their own entertainment sectors," he added.