The U.S. videogame industry eked out a return to growth in September, snapping six months of contraction as consumers responded to hardware price cuts and a slate of new music games.

Sales of videogame software and consoles rose 1% year-over-year to $1.28 billion in September, according to data-tracker NPD Group Inc. The monthly rise was the first since February.

The sales growth, which met expectations, came amid price cuts on the three major videogame consoles--Sony Corp.'s (SNE) PlayStation 3, Microsoft Corp.'s (MSFT) Xbox 360 and Nintendo Co. Ltd.'s (NTDOY, 7974.OK) Wii.

"All three console manufacturers enjoyed the impact of lower prices," NPD analyst Anita Frazier said. Growth during the month was also due to the launch of Electronic Arts Inc.'s (ERTS) "The Beatles: Rock Band" and Activision Blizzard Inc.'s (ATVI) "Guitar Hero 5."

The stronger numbers suggest consumer spending on home entertainment is picking up in time for the crucial holiday shopping season. The industry, previously believed to be recession-proof, was hit by a drop-off in consumer spending as layoffs picked up steam.

Cuts in console prices played a major role in jump-starting sales. In September, Sony cut the price tag by $100 on its PlayStation 3 to $299, pushing sales about 110% higher to 491,800 units, according to NPD.

"We envisioned the reaction would be positive, but it even exceeded our best expectations," said Jack Tretton, chief executive of Sony Computer Entertainment America. On the industry's growth, he added, "To return to growth preholiday is certainly good news."

Microsoft followed by trimming prices on its Xbox 360 Pro and Elite models by up to $100. For the month, Xbox sales increased 1% to 352,600 units, NPD said. Later in September, Nintendo shaved $50 off the price of its Wii console. "We anticipate increased momentum through the holidays," a Nintendo spokeswoman said.

As for software, Microsoft's "Halo 3" was the runaway top-selling game with sales of 1.52 million copies, while Nintendo's "Wii Sports Resort" followed with 442,000 in sales. "Madden NFL 10" for the Xbox 360 was third with 289,000 copies sold.

Among music videogames, Electronic Arts' "The Beatles: Rock Band" posted sales of 254,000 copies for the Xbox and ranked fifth, while a version for the Wii sold 208,600 copies and ranked 10th. Activision's "Guitar Hero 5" for the Xbox saw sales of 210,800 copies and ranked ninth.

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