U.S. videogame software sales were up 5-10 percent for December, despite low consumer confidence and a difficult year-on-year comparison, Lazard analyst Colin Sebastian said on Wednesday, ahead of NPD data.

Noting that December 2007 saw a substantial 36 percent year-on-year jump, he added that 2008 annual software sales are expected to surpass $10 billion "for the first time."

Sebastian said Nintendo will unsurprisingly "dominate" the charts for another month. Analysts have estimated Nintendo sold over 3 million Wiis during December in the U.S.

"We also believe Xbox 360 sales benefited from the fall price reductions, particularly with the Arcade console now at a $199 value price point," he wrote in his research note.

"While the PS3 continues to lose market share, we note that publishers and retailers alike are anticipating a price reduction on the platform this year."

NPD is set to release sales data tomorrow evening.