High food and fuel prices are putting a damper on consumer spending in the United States, but not all the money is going into the gas tank. A good chunk is going to the video game industry.

Americans spent $1.19 billion on video game software and hardware in July, up a whopping 28 percent from the prior year. And that doesn't include computer-based games, according to market research firm NPD Group, which tracked only sales of new consoles, software and accessories. For the year so far, video game hardware and software sales have soared 35 percent above the year-ago level, to $9.47 billion.

"While I can't say it's recession-proof, the performance [of the video game industry] in the last few years in light of difficult economic conditions speaks for itself," said NPD Group toys and video game industry analyst Anita Frazier. The industry is entering the "largest, most robust cycle in history,'' Lazard Capital Markets analyst Colin Sebastian wrote in a report to investment clients earlier this year.

Industry experts say there's no mystery why video games are doing so well during tougher economic times.

For one, they offer good mileage for the shrinking disposable budget.

They last longer than the one-time experience of going to the movies or eating out; some console models double as Blu-ray DVD players, the new industry standard; the Wii Fit is becoming part of many home fitness-workout centers; and with more homes equipped with high-definition and large screens, gaming is an engrossing experience people can't duplicate elsewhere.

"Probably more than any other medium, video games are the best value for the money," says Todd Eckert, head of the British game developer Eutechnyx's North American division, which plans to establish its U.S. studios in Pittsburgh.

He thinks such factors as the cost of gasoline and transportation are keeping people closer to home and looking for ways to stretch their recreational dollars. And with game prices averaging around $60, if a person spends around 50 or 60 hours playing the game, it's a better deal than going to a movie or even reading a book, he says.

In many ways, video games are akin to movies during the Depression, when people often spent their limited funds at the cinema, which offered an escape into a fantasy world that took them away from their harsh reality -- at least for a couple of hours. Only for this generation, it's video games and all that they bring that are offering escape.

"Computer and video games are a mainstream entertainment form, which captures the imagination of every segment of our society," says Michael Gallagher, chief executive officer of the Entertainment Software Association. In a survey of American households, his organization found 65 percent play computer and video games, 41 percent plan to buy one or more games this year and 38 percent have a video game console.

The quality of the games themselves is reeling people in, says Mr. Eckert, who made the career move from film producer to video game development. "You have games that are rivaling film, not only in sales but also in excitement for an art form. Games are now at a high level of photo-realism."

As games evolve from shooter adventures into complex mini-worlds with fully developed characters, he says, they can engage players on more levels.

The spike in game sales figures could be fueled by popular new Wii and Xbox 360 releases, says Leon Edelsack, owner of the now-closed gaming hangout Pittsburgh CyberConXion in Squirrel Hill.

Such releases as "Guitar Hero: Arrowsmith Edition" and "Mario Kart" for Wii have done well, he says, with new Wii versions of the popular Mario Bros. franchise keeping an old gamers' favorite in demand.

It's also a cost-effective entertainment option for the entire family, the way board games were for past generations, Mr. Edelsack says. "The Wii is family-oriented gaming They can make the investment and the whole family can share in the entertainment experience. If it was just an individual shooter game, it wouldn't have as much impact on the family entertainment dollar."

Also, there are fewer hardware shortages like those that occurred when the popular Wii was first introduced amid widespread shortages and long lines at retailers, he said. Nintendo has boosted Wii production in the past month, and now "there's much more supply of the product. It used to be very difficult to get and it's at a price point that's very attractive," Mr. Edelsack says.

Still, some buyers are finding it tough to find a particular console package on the shelves and ready to go at retailers.

But, in the middle of the video game boom, Mr. Edelsack's own gaming business -- CyberConXion, a public access console and PC gaming facility -- recently closed its doors.

He said the facility's large square footage created a high cost structure that was difficult to sustain. He still plans to stay in the business through off-site gaming events and private parties, where much of his market was shifting. "There was a decrease in the casual gamer," Mr. Edelsack said.

He noted that potential customers who were staying home to play games were tending to play online, a shift abetted by the latest computer technology and widespread use of high-speed Internet services. Console game players who did continued to patronize his business did so either because they didn't have a console at home or because they wanted to check out new games they didn't own.