Video games sales rebound seen despite setback

* Video game publisher shares fall after weak NPD data

* Analysts see negative sales trend reversing

* Slate of popular games likely to reignite demand

By Franklin Paul

NEW YORK, April 17 (Reuters) - U.S. video game makers are expected to shake off slack sales later this year as top titles like "Harry Potter" return, but investors may stay on pause until signs show a clear win.

Shares of most game makers slipped on Friday after research firm NPD said total U.S. video game sales fell 17 percent in March, surprising most analysts who had expected little change from one year ago. [ID:nN16282796]

"We expect the negative sales trend to reverse by May, and continue to believe that the video game software sector remains highly recession-resistant," said Wedbush Morgan analyst Michael Pachter.

However, Pachter said there was a sobering quality to the numbers, which suggest that the retail belt-tightening that has hurt every consumer sector from gasoline to gadgets has finally stung the gaming business. Until now, the video game industry was expected to be resilient even as consumers "cocoon" or choose more frugal ways to spend leisure time during the recession.

Concerns about games sales weighed on stocks, led by Take-Two Interactive (TTWO.O), whose shares fell 4.77 percent to $9.39 on Nasdaq late Friday afternoon.