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Hardware sales were the biggest drag on sales. They were down 23 percent year-over-year from $378.2 million to $292.2 million. Not only did Nintendo not launch a revised 3DS, but Sony and Microsoft have both cut the price of their home consoles.

“The main cause of the decrease was portable hardware, which dropped by 58 percent, or $48 million, due to a difficult comparison to the launch of Nintendo’s new 3DS in February 2015,” said Callahan. “Console hardware sales suffered due to the dramatic drop off of 23 percent as both [current- and last-generation] consoles experienced declines.”

Xbox 360, PlayStation 3, and Wii sales dropped by 77 percent. PlayStation 4, Xbox One, and Wii U, meanwhile, dropped by 6 percent.