PC and console games sales fell 38 per cent between January and February but still remain 8 per cent up on figures for February 2000.
These results, recently released by analyst Inform, run against reports of a slump in consumer confidence brought on by the weak dollar.
New releases, including Namco's Moto GP for the PS2, Infogrames' Final Fantasy IX for the PSX and THQ's Croc 2 for Game Boy helped take the edge off February's slump, according to Inform's research manager, Phil Burnham.
"Some more familiar titles also managed to keep selling well after the Christmas hype, as Nintendo's Pokémon Gold and Silver held off all competition to remain the best-selling titles of any format for the fifth month running," he said.
Some market share poaching also took place with Sega, EA Games, Nintendo and SCEE all feeling the impact, while Infogrames came out a major winner.