Japan's game industry made 8 per cent less revenue in 2011 than the year before, according to Famitsu publisher Enterbrain.
Andriasang reports that, between December 27, 2010 and December 25, 2011, total game industry revenue was ¥454.3 billion (£3.8 billion). Hardware sales actually rose by 2.4 per cent to ¥179.7 billion (£1.5 billion), but that increase was wiped out by a 13.7 per cent slump in software. Revenue from game sales fell to ¥274.6 billion (£2.3 billion).
Despite its early struggles, 3DS was the best-selling hardware of the year, Nintendo's new handheld selling 4.1 million units during the year. PSP was in second place, with 1.96 million units sold, with PS3 in third with 1.46 million. Xbox 360 sold 114,075 units.
Mario Kart 7 topped the software chart for the year with sales of 1.08 million, one of only three games to sell a million units in Japan over the course of 2011 along with Super Mario 3D Land (1.04 million) and Monster Hunter Portable 3rd (1.02 million).