Research firm NPD Group are reporting that overall sales in the US video game market as sales of software are down 20% in August, falling to $515.6 million, down from $647.2 million from 2011.

The hardware sector has also felt the drop, seeing a decline of 39% year-over-year, now taking in just $150.6 million. The ageing consoles are hurting the market, as well as the huge surges in gamers going mobile with their smart phones and tablets. Social networking sites such as Facebook are also drying up the video game markets customers.

"Core gamers", who are the ones who purchase games for consoles, typically spend around 35% more than others. The 'average gamer' spent $48 on a physical game, and $16 on a digital title over the past three months. Core gamers spent $65 on physical games, on average.

These numbers should see a nice jump when new consoles hit us, which should also reinvigorate the PC market, too.