Sales of video game hardware and software plunged 26% in April, industry tracker NPD said, one of the largest declines over the past decade.
The research group said sales in the United States, the world's largest market, fell to $766.2 million.
Software sales dropped 22%, while hardware sales tumbled 37%.
The overall decline was the fourth largest since September 2000, NPD said.
Nintendo's Wii was the top-selling home console in the April, although sales fell from a year ago.
Microsoft Corp's Xbox 360 was No. 2 in the month and Sony Corp's PlayStation 3 was No. 3, although both consoles posted year-over-year increases in units.
Ubisoft's "Tom Clancy's Splinter Cell: Conviction" was the best-selling game in April, with nearly 500,000 units sold.