In contrast to shrinking annual hardware and software sales, peripheral makers say their market is flourishing, with $5 billion in worldwide revenues generated during 2009.

EEDAR analyst Jesse Divnich told Yahoo News: "Software sales and hardware sales were both down in 2009. Accessories sales in 2009 were on par with 2008.

"Typically, videogames have a 20 to 25 per cent margin for retailers," he added. "With accessories, you're looking at closer to 40 to 50 per cent margin."

One of the largest accessory makers, Madcatz, posted $122 million in earnings last year, up $25 million on 2008. Another, Nyko, enjoyed a similar increase in sales, according to Chris Arbogast, the firm’s director of marketing.

"The Wii and games like Guitar Hero have made it not only acceptable but commonplace to purchase multiple accessories and add-ons per person, per game," Arbogast said. "In previous generations accessories were seen as necessary tools in order to interact with the console itself. I feel like this generation's creative input devices have opened people's eyes to accessories ... as a means to broaden their interaction level with their entertainment. This adoption rate of accessories has enabled our industry to flourish this generation."