Sales of video games, hardware up 46 percent

By Scott Hillis

SAN FRANCISCO (Reuters) - U.S. sales of video games and hardware jumped 46 percent in August from a year earlier, with Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) seeing sales of its Xbox 360 console shoot up after a price cut.

The top game was Electronic Arts Inc's (ERTS.O: Quote, Profile, Research, Stock Buzz) "Madden NFL 08" for the Xbox 360, which sold 897,000 units, according to data from market research firm NPD released on Thursday.

Nintendo Co Ltd's (7974.OS: Quote, Profile, Research, Stock Buzz) Wii console held onto its title as the most popular piece of hardware, selling nearly 404,000 units, almost as much as the Xbox 360 and Sony Corp's (6758.T: Quote, Profile, Research, Stock Buzz) PlayStation 3 combined.

"It really goes back to our story of the different audience we are trying to pursue," said George Harrison, head of marketing for Nintendo of America. "While Microsoft and Sony are focusing on the hardcore gamer, we are trying to focus on what we call the expanded audience."

At $250, the Wii is the cheapest new console on the market, and its unique motion-sensing controller and emphasis on new kinds of games are attracting new players from outside the traditional young male audience.

However, Wii sales fell 5 percent from July and sales of Sony's PS3 also fell, by almost 18 percent, to 131,000 units.

Meanwhile, Microsoft sold almost 277,000 Xbox 360 units in August, up 63 percent from July. In early August, Microsoft cut prices on the Xbox line, knocking $50 off the most popular model, down to $350.

That followed a move the previous month by Sony to chop $100 off the price of the PS3, making that machine cost $500.