U.S. videogame sales fell 23% in April, which is worse than some had expected, while game console sales stumbled, NPD Group reported Thursday.

The poor performance was due to the slowing economy, few blockbuster releases during the month and a tough comparison with a year-ago period that featured several breakaway hit games. Sales of Nintendo Co. Ltd.'s (NTDOY) new DSi handheld, and the Easter holiday that generates an uptick in game and console sales kept things from being worse.

NPD reported that U.S. spending on videogames fell to $510 million in April, which is worse than the 17% drop expected by Wedbush Morgan analyst Michael Pachter, but in line with the expectations of Lazard Capital Markets' Colin Sebastian.

Videogame console sales were driven largely by Nintendo's new handheld, the DSi, which Nintendo said sold about 800,000 units during the month, and represented nearly a third of all console sales. But sales of Nintendo' Wii were off about 52%, and Sony Corp. (SNE) PS3 sales fell by nearly a third. Sales of Xbox 360s from Microsoft Corp. (MSFT) held up a little better, but it still sold fewer units than last April, NPD reported.

While the recession is taking its toll, a major challenge for the videogame industry continues to be the difficult comparison with the previous year. Sales this April are being compared with a month in which Take-Two Interactive Software Inc.'s (TTWO) "Grand Theft Auto IV" and a "Mario" game for Nintendo's Wii were introduced and went on to sell millions of copies in the month. The games generated large sales of consoles as well.

"There was nothing similar from a new title standpoint to drive growth over those numbers," said Reggie Fils-Aime, president of Nintendo of America.

This is the second consecutive month that videogame sales have disappointed. Wall Street analysts had expected sales to remain flat in March, but games and console sales fell around 17% each.

Regardless of the month-to-month softness, NPD analyst Anita Frazier said the industry is showing a recession resilience and things should be brighter in May. "While the continued difficult economic environment is a factor to consider, video games is the category that consumers tell us they're least likely to cut their spending on in coming months," she said.

In Thursday's trading, Sony shares added 1.6% to $26.26, Microsoft added 1.6% to $20.06.

-By Ben Charny, Dow Jones Newswires; 415-765-8230; ben.charny@dowjones.com