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The video-game industry is one of the few bright spots in an otherwise grim economic environment. According to figures compiled by market research firm NPD Group, sales of games and hardware were 10 percent higher in February compared to a year before, bringing in a robust $1.47 billion in revenue.

That good news follows a similar increase in January, when U.S. retailers reported a 13 percent rise. Altogether, the industry has generated nearly $3 billion in sales in the first two months of this year.

In an e-mail to media late Thursday, NPD Group analyst Anita Frazier said that despite the tough economy, "the U.S. video-game industry continues to post strong year-over-year comps. Unit sales increased even more than dollar sales did, reflecting a slightly lower average retail price for all categories as compared to last year."

Wii Remains Ahead

The leader of the pack in the game-console battle once again was Nintendo, which sold a remarkable 753,000 Wiis in February alone. The company was also strong in the handheld market, selling 588,000 DS devices.

Microsoft finished in second place for the month, moving 391,000 Xbox 360 units, while Sony once again brought up the rear with 276,000 PlayStation 3 sales.

Taken together, hardware sales increased slightly more than the video-game sector as a whole, rising 11 percent over the same period last year.

Sony's solid position at the back of the console pack has lent credibility to rumors that the company is planning a price reduction (estimated to be $100 off the PS3's $399 price) to regain market share. News on whether the company will go through with a price drop and how much it will be is expected at the end of next week.

America Getting in Shape?

Nintendo also took top honors in the software segment -- the Wii Fit with Balance Board sold 644,000... Tags: games, microsoft, research, software, video

AP - Like so many American creations — baseball, comic books, rock 'n' roll — the video game is a mongrel art form. Literature, music, art and film all get jumbled together in this relatively new medium, but even that isn't enough: Designers have to figure out how to make the whole package interactive as well.

Tags: design, games, music, video

Santa Monica-based Activision Publishing, a publisher of video games, announced this morning that it has acquired Budcat Creations, a video game developer based in Iowa City, Iowa. Financial details of the buy were not disclosed. Budcat Creations develops Wii and Nintendo DS titles for the home video game market. Activision said that it has worked with Budcat Creations for the development of multiple games in its Guitar Hero franchise. Budcat Creations will become a wholly owned subsidiary of Activision Publishing, with Budcat's management team also signing multi-year employment contracts. Budcat will remain in Iowa City. READ MORE>> Tags: development, games, video