Sales of video games dropped about 20 percent last month because of a lack of compelling titles and continued supply problems with Microsoft’s Xbox 360 video consoles, an analyst said Friday, and the market is expected to continue its gloomy sales trend for several more months.

While February isn’t traditionally a particularly good month for game sales, last month’s drop comes after poor sales over the holiday season, commonly the game industry’s best period.

The news isn’t good for the game industry in the short term, and Piper Jaffray’s Anthony Gikas said that for now the “industry remains in a holding pattern.” Mr. Gikas’ figures were based on estimates of sales results compiled with research outfit NPD.

While consumers are either unable or uninterested in buying the Xbox 360, the only next-generation console on the market, they are also cutting back on purchases of the current generation of consoles.

Microsoft’s Xbox 360 has had problems with its supply chain, and many interested gamers have been unable to purchase the device (see Xbox Shortage Dogs Microsoft). Mr. Gikas said he does not see Microsoft’s supply issue ending until at least April.

Meanwhile, Sony’s PlayStation 3 will likely be delayed by six to 12 months, from a former launch date of spring 2006, and Nintendo’s Revolution is estimated to arrive about the same time, at the end of this year (see Sony May Delay PlayStation 3).

That means despite the hype over the Xbox 360 last Christmas, gamers will have few next-generation choices for several months.

Mr. Gikas said that the console transition is combined with the fact that game publishers have not delivered many compelling games. He noted that 16 games were introduced in January and fewer than 15 games debuted in February. For the same two months in 2005, an additional 10 or so titles were introduced.

Game Growth

But despite the short-term concern, the $30-billion video game industry is the largest it has been in history. Video games are becoming a mass market, rivaling movies and television for the most popular media.

“Investors appear willing to overlook the near-term pause in growth, and focus on a 2008, 2009 opportunity,” said Mr. Gikas.

Though at the same time, that will be little relief to game publishers, who will face “an intense market share game” in the short term, Mr. Gikas said.