As expected, 2008 was another record year for the U.S. games industry, which overall generated $21.33 billion, according to research firm NPD Group. Sales rose across the categories of hardware, software and accessories, although a tough comp and rough economy did dampen growth.

For the year gone by, the ongoing console war was one of the most closely-watched aspects. Microsoft's Xbox 360 and Sony's PS3 were virtually neck-and-neck throughout much of the year (until Microsoft's price cut), while Nintendo Wii--well, let's just see how the motion-controlled phenom performed in 2008:



The Wii pulled away month after month, held back only by supply, which Nintendo was able to improve dramatically as the year went on. PS3 had its own ray of brilliance in June when the PS3-exclusive Metal Gear Solid 4 arrived. Outside of December, which moved 726K PS3s, June was the PS3's best month in 2008, which speaks volumes about the continuing importance of hardware-driving exclusives.

The Xbox 360 would've likely been in the same boat sales-wise as PS3 in the second half of 2008, but a price cut in September brought the base model Xbox 360 Arcade to the sub-$200 price point, giving Microsoft an edge with cash-strapped consumers when sized up against a $399 PS3. Xbox 360 even managed to set a personal record for the Xbox brand with 1.44 million sold during December.

The below graph also shows the trends of the three home consoles throughout the year, again displaying just how dramatic Nintendo's success was in 2008 (and this doesn't include the equally-hot DS):



Having generated $7.81 billion in 2008, hardware rose 11 percent.