This morning, Blockbuster (BBI: sentiment, chart, options) announced plans to sell video games and game accessories and hardware in all U.S. stores the company owns. Furthermore, BBI is expanding its inventory of game hardware and rental titles and will be offering a variety of special consumer game offers, such as a Sony PS3 movie-and-game bundle.

The news comes as the video game sector continues to show stellar growth while the rest of the economy slows. Earlier this month, NPD Group reported that U.S. retail sales of video games jumped 57% to $1.7 billion in March. Video game software sales soared 63 % from March 2007 to $945.6 million. Hardware sales grew 46% to $551.3 million from $377.9 million.

From a technical perspective, the shares of BBI have been in a sharp downtrend from their peak of $30.25 in May 2002. Since that high, the security has shed 90% of its value. What's more, the stock has been stuck in a sideways channel between resistance at 3.40 and support in the 2.70 area since the beginning of 2008.

Meanwhile, Wall Street has not completely turned its back on the movie-rental retailer. According to Zacks, the stock has earned 1 "strong buy," 2 "buys," and 2 "holds."