The NPD Group has reported that first quarter Canadian videogame sales fell for the first time since the company began tracking the industry in 2002.

First quarter Canadian retail sales of hardware and software fell 8.5 percent compared to the same period last year.

Hardware sales saw the biggest decline, with portable system sales down 21 percent and home console sales down 14.5 percent, reports the Globe and Mail.

On the software front, portable and console game sales fell 1.5 and 7.5 percent respectively.

“It may be tempting to attribute the decline in sales to the current state of the economy,” said NPD group manager Matthew Tattle. “However, on closer inspection, the first quarter of 2009 lacked the number of blockbuster titles that drove sales during the same period last year. Guitar Hero and Rock Band experienced very strong sales in early 2008 while the release of Super Smash Bros. Brawl helped bolster overall first quarter sales for the category.”

Last week the US Trade Representative placed Canada on its “priority watch list” for failure to enforce effective intellectual property protection.