This overtook 2006 sales by 43 percent, according to the NPD group.
NPD analyst Anita Frazier stated, "While I wouldn't count on similar growth in 2008, I would expect to see 2008 increase over 2007, with more growth (proportionately) coming from software sales. While we will continue to see strong hardware sales, particularly if prices come down again, the spotlight now turns from hardware to software."
Total video game software sales were $8.64 billion for the year, which was a 34 percent increase from 2006.
The top-selling piece of software for 2007 was September 2007’s Halo 3 for Xbox 360, selling 4.82 million in the US alone. The Halo 3 juggernaut was followed closely by February 2007’s Wii Play w/ Remote, which sold 4.12 million.
The next in line for video games was the Xbox 360 version of November’s Call of Duty 4: Modern Warfare, which sold 3.04 million copies.
"Halo 3 captured the top-spot in single-game sales for the year selling 4.8 million units at retail. This performance certainly puts it among the elite in gaming history with performance similar to that of GTA: Vice City in 2002, and GTA: San Andreas and Halo 2 in 2004,” said Frazier.
According to Frazier, "Guitar Hero games sold over $820 million at U.S. retail, a record for any franchise in a single year."
The Nintendo DS and Wii led total 2007 hardware sales with 8.5 million and 6.29 million units sold. Wii has sold 7.38 million units life-to-date while DS has sold 17.65 million life-to-date in the US.
Xbox 360 followed, selling 4.62 million (9.15 million LTD), PS2 sold 3.97 million (41.12 million LTD), PSP sold 3.82 million (10.47 million LTD) and PS3 sold the least, with 2.56 million sold during the year (3.25 million LTD).
"Nintendo has certainly been the belle of the hardware ball this year, capturing the top two spots for hardware units sales for the year with the DS followed by the Wii,” Frazier added. “The DS has driven portable gaming to a new level, and for the second year in a row, the DS has been the top-selling hardware platform."
Top games of 2007 are listed below by unit sales:
360 Halo 3, Microsoft, Sept: 4.82 million
Wii Play w/ Remote, Nintendo, Feb: 4.12 million
360 Call of Duty 4, Activision, November: 3.04 million
PS2 Guitar Hero III: Legends of Rock, Activision, Oct: 2.72 milllion
Wii Super Mario Galaxy, Nintendo, Nov: 2.52 million
NDS Pokemon Diamond, Nintendo, Apr: 2.48 million
PS2 Madden NFL 08, EA, Aug: 1.9 million
PS2 Guitar Hero II, Activision, Nov: 1.89 million
360 Assassin’s Creed, Ubisoft, Nov: 1.87 million
Wii Mario Party 8, Nintendo, May: 1.82 million
Video game accessories were up 52 percent for the year, reaching $2.26 billion.
December rounded out what was already a stellar year. Total December videogame industry sales were up 28 percent to $4.82 billion.
Videogame software generated $2.37 billion, a 36 percent increase over December 2006.
The top-selling game of the month was the Xbox 360 version of November’s Call of Duty 4: Modern Warfare, which sold 1.47 million in December. Super Mario Galaxy followed close behind with 1.4 million sold, while Guitar Hero III: Legends of Rock for PS2 sold 1.25 million.
Nintendo DS and Wii led December hardware sales, selling 2.47 million units and 1.35 million units respectively.
Xbox 360 was a close third with 1.26 million units sold during the month. PS2 sold 1.1 million units, followed by PSP, which sold 1.06 million and PS3, which sold 797,600.
"Both the PS3 and the Xbox 360 realized strong month-over-month hardware sales increases,” said Frazier. “The 360 in particular seems to have benefitted from a killer slate of hardware-acqusiition-driving content including COD4, Assassin's Creed and Halo 3."
Annual game accessory sales were up 37 percent to $621,600.
Top-selling games for December 2007 are below:
1. 360 Call of Duty 4: Modern Warfare, Activision, Nov: 1.47 million
2. Wii Super Mario Galaxy, Nintendo, Nov: 1.4 million
3. PS2 Guitar Hero III: Legends of Rock, Activision, Oct: 1.25 million
4. Wii Play w/ Remote, Nintendo, Feb: 1.08 million
5. 360 Assassin’s Creed, Ubisoft, Nov: 893.7K
6. 360 Halo 3, Microsoft, Sept: 742.7K
7. NDS Brain Age 2, Nintendo, Aug: 659.5K
8. PS2 Madden NFL 08, EA, Aug: 655.2K
9. 360 Guitar Hero III: Legends of Rock, Activision, Oct: 624.6K
10. Wii Mario and Sonic at the Olympic Games, Sega, Nov: 613K
Source: Next-Gen