As Luke pointed out early this morning, the report that U.S. games sales had surpassed DVD sales was bound to be misconstrued. And it was. In fact it's just plain wrong.
The folks over at Entertainment Merchants Association wrote to let us know that the $18 billion for "game sales" includes software, hardware and even accessories. While the DVD sales include, you got it, only the DVDs. The actual apples-to-apples comparison has DVD sales at $16 billion and video game sales clocking in at a meekly $8.64 billion. Even if you add that $503 million in sales the industry is no where near toppling DVD sales from its mighty high roost.
One day video games will be bigger business than music and hollywood, mark my words, but that day hasn't come yet.