Sales of video games jumped in the U.S thanks to a strong holiday season new data reveals, with Nintendo dominating rivals through 2007.

The Nintendo Wii outsold competitors in December, coming in with sales of 1.35 million units for the month compared to 1.26 million units for the Xbox 360 and 797,600 units for the PlayStation 3 according to market data released by NPD.

The Wii finished the year as the top selling console, with nearly 6.3 million units sold in the US, compared to 4.62 million units for the Xbox 360.

Sony's Playstation 3 has seen a huge boost in sales over the last two months thanks to a sharp price reduction for the console, but failed to overtake rivals in terms of actual units sold. It ended up with

nearly 2.6 million units for the PS3 for the year.

Nintendo extended its reign into the handheld segment as well, with the Nintendo DS selling 8.5 million units through out the year compared to 3.8 million for the Sony PSP.

Strong Software Year

For game software, sales totaled more than $8.6 billion in the U.S. for the year, up 34% from the previous year.

Microsoft's Halo 3 title, which is exclusive to the firm's Xbox 360 console, was the best-selling game title with more than 4.8 million units moved in the U.S. Wii Play moved more than 4.1 million units for the year while Call of Duty 4 sold 3 million units.

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