The gaming industry had its worst August in the US since 1996 this year, but Microsoft has much to be proud of, with both the best-selling hardware and software. That's not to say the PlayStation 3 is in bad shape, as NPD Analyst Anita Frazier points the PS3 "has now enjoyed 13 consecutive months of year-over year hardware sales increases and that momentum is reflected in the content and accessories categories as well."

Let's take a look at the hardware sales:

Data source: NPD Group