There are fewer stores than ever selling games, ERA and Chart-Track says.
Last year 6,644 stores sold games, down 1.7 per cent year-on-year. It means since 2007 there are now 1,000 fewer shops selling video games.
A reduction in entertainment specialists and electrical retailers are the main reason for the decline.
The number of general multiples and supermarkets selling games has actually increased. There are now 2,402 grocers that sell games, up 6.2 per cent year-on-year.
There was also a drop in the number of games released last year. 1,094 titles came out in 2011, down 3.5 per cent from 1,133 in 2010.