TOKYO--The latest report from CESA (Computer Entertainment Supplier's Association) has revealed that the video game market in Japan has continued to decline for the third year in a row. According to CESA, 2003 revenues driven by the video game industry dropped by 11 percent to 446.3 billion yen ($4.14 billion). Both hardware sales and software sales were off from 2002 figures. The size of the video game market in 2003 was about 60 percent of what it was back during its peak in 1997, reports CESA.

　　The hardware market was down by 16.7 percent, accounting for 137.2 billion yen ($1.3 billion) of the total video game market. Slumping hardware sales are attributed to slowing PlayStation 2 sales, according to CESA. While increased GameCube and GBA sales contributed to the overall hardware marketplace, those sales alone could not make up for the decline in PS2 sales.

　　Sales of game software accounted for the remaining 309.1 billion yen ($2.87 billion) in revenues, which was down 8.2 percent from the previous year. While the number of units sold in 2003 changed little, less expensive games (including budget reissues for the PS2) and lower-priced GBA games have taken over a good percentage of sales, driving the market's revenue figure down.

　　Total hardware and software shipments, including exports, in 2003 amounted to 1.134 trillion yen ($10.52 billion), a 10.1 percent decline from 2002.

　　CESA is an organization dedicated to promoting the game industry in Japan. The organization also produces the Tokyo Game Show.