The video game industry is going through a tough situation this month, with its revenues falling steeply. The sales have dropped down about 10% than last year and the revenue has climbed down by 5% to $823.5 million, compared with $865.7 million, a year ago.

The industry is still facing the remarks of economic depression and striving to come out of it. The assistance was provided by software sales, which were up by 4% to $466.3 million in the May. Taken together, 1.5 million units of Xbox 360 and PlayStation versions were sold. Super Mario Galaxy 2 also sold 563,900 units in May.

Hardware sales, on the other hand, have plunged to 20% to $241.5 million from $303 million, a year ago. This was caused due to the lesser prices of hardwares.

Microsoft is among the top winners, but Sony is also doing well in this industry.

Portable Hardware category contributed the most to this fall. There was a 40% fall in the Nintendo’s sales, from 633,500 to 383,700 DS units than the last year. The sale of Sony’s portable PSP devices also had a 41% decline this month.

But, there is a ray of hope for the industry, with the coming up of Microsoft’s Kinect and Sony’s PlayStation Move, which will initiate a new cycle of relief in hardware segment.