Ahead of the release of its official figures next week, Famitsu publisher Enterbrain is predicting a significant decline in the value of the Japanese video games market in 2008.

Enterbrain states that in 2007 the market was worth YEN 687.95 billion, whereas it expects the 2008 figure to be around YEN 582.61 billion – a decline of over YEN 100 billion. Of that, hardware takes the biggest knock, dropping YEN 80 billion, whilst software sales fell by YEN 30 billion.

The Nintendo DS is expected to be the hardware success story of year, having shifted an estimated four million units. The PSP will not be far behind, with over 3.5 million machines having been sold in the year. Wii sales are predicted to be just shy of three million, the PS3 990,000 and the Xbox 360 318,000.

Capcom’s smash hit PSP title Monster Hunter Portable 2nd G is likely to emerge as the best selling software title, with strong performances also expected from Pokemon platinum, Wii Fit, Mario Kart Wii and Super Smash Bros Brawl.