Video Game Sales Hit $18.2 Billion Last Year

Video game sales soared to a record $18.2 billion last year, but the days of strong growth are on pause as players await a new generation of consoles in 2005 and 2006, a new study showed.

Recent price cuts in Europe for Microsoft Corp.’s Xbox and Sony Corp.’s PlayStation 2 plus new releases in reliably selling franchises such as “Grand Theft Auto,” “Halo” and “Doom” are expected to boost sales in the second half of 2004.

But sales for the entire year are expected to be flat compared with 2003, at $18.2 billion, said London-based research group Screen Digest in its annual study.

Screen Digest pointed out that the slowdown had been long anticipated as it follows the typical trend for game consoles entering their third and fourth years on store shelves.