There were several promising signs in the May U.S. videogame industry sales data released by NPD and the three console makers late last week, as well as in the initial sales results reported by Microsoft for the new Xbox 360 console SKU that shipped in June. Overall U.S. videogame industry sales continued to be down, but the 5 percent decline for May versus May 2009 was a significant improvement over the 26 percent drop seen in April versus April 2009.

Bondholders have given Blockbuster some breathing room, postponing a $42.1 million payment deadline as the struggling chain continues efforts to restructure its balance sheet.

Industry endorsed digital goods tax legislation introduced late Wednesday by House Communications Chairman Rick Boucher, D-Va. The bill (HR-5649) would set up “a uniform national framework for the taxation of digital goods and services,” Boucher said on the House floor late Wednesday. The bipartisan bill, co-sponsored by Rep. Lamar Smith, R-Texas, would cover digital music, movies and games, as well as the electronic delivery of professional, educational and health care services.

E-reader price cutting continued on Thursday as Amazon slashed the price of its Kindle DX by $110 to $379 while introducing a new, improved model that took the place of the existing $489 model. Amazon didn’t immediately respond to a request for comment about why it cut the pricing and whether the old DX model had been completely sold through.

Internet disabilities legislation in the House “is well-intentioned but would create enormous burdens on innovators seeking to introduce new products and features,” CEA President Gary Shapiro said after the House Communications Subcommittee approved an amended HR-3101 on Wednesday. Shapiro and HR-3101 sponsor Rep. Ed Markey, D-Mass., clashed over the bill at a hearing last month (CED June 11 p4).

A prototype set-top box chip capable of decoding two separate 3D 1080p streams simultaneously may be available this summer, but won’t likely find its way into products for about two years, Panasonic Chief Technology Officer Eisuke Tsuyuzaki told us at a New York media briefing Thursday.

Best Buy is halting expansion into new overseas markets as it focuses on an existing base in Canada, China, Europe, Mexico and Turkey, International Chief Financial Officer Dave Deno said Wednesday at the Oppenheimer Consumer, Gaming, Lodging and Leisure conference.

Sezmi, the hybrid over-the-air/broadband personal TV service that hopes to take a chunk from cable and satellite’s customer bases, is readying another round of markets for launch by year end. After its pilot debut in the Los Angeles metro area last November, Sezmi rolled out to 10 additional markets earlier this month, including Boston, Detroit, Fort Lauderdale, Houston, Kansas City, Miami, Orlando, Phoenix, Portland, Ore., and San Francisco. The service is selling through Best Buy stores in those markets and Sezmi also hopes to add more top-tier retailers and regional telcos to its distribution base, Travis Parsons, director of business development, told Consumer Electronics Daily.

A shake-out is rattling the e-reader market as companies try to find their footing in a rapidly growing category, industry executives said.

Hulu.com confirmed Wednesday that it would offer consumers paid access to an expanded offering of online content in addition to the free content it already provides. The new service, called Hulu Plus, will offer more than 120 seasons and 2,000 episodes of at least 33 television shows from Fox, NBC, ABC and other networks for $9.99 monthly. Significantly, Hulu Plus allows consumers to watch Hulu.com’s content on their wireless devices such as the Apple iPhone, iPad and iPod Touch.