U.S. video game sales jump 34 percent in Feb

By Scott Hillis

SAN FRANCISCO (Reuters) - U.S. sales of video game hardware and software hit $1.33 billion in February, up 34 percent from a year earlier, with Sony Corp's (6758.T: Quote, Profile, Research) PlayStation 3 topping Microsoft Corp's(MSFT.O: Quote, Profile, Research) Xbox 360 for the second month in a row.

Nintendo Co Ltd's (7974.OS: Quote, Profile, Research) Wii was still the best-selling console, moving 432,000 units and topping the 281,000 PlayStation 3s and 255,000 Xbox 360s, according to market research firm NPD.

"With several marquee titles still to come in the front half of the year, the industry is poised to achieve another year of record-breaking sales despite difficult economic conditions," NPD analyst Anita Frazier said in a statement.

Software sales in February were up 47 percent year-on-year while hardware sales rose 19 percent, NPD said.

Microsoft, which outsold Sony every month up until January, blamed its weak showing on inventory shortages caused by stronger-than-expected demand over the holidays.

"Our manufacturing team guesses five months out. They made their forecast and didn't have as high a forecast as they should have," said Microsoft spokesman David Dennis.

"We're doing everything we can, pulling all the levers" to boost output, he said.

Microsoft said it expects to have a healthy supply of Xbox 360s by April, when Take-Two Interactive Software Inc's (TTWO.O: Quote, Profile, Research) "Grand Theft Auto 4" hits shelves in what is widely expected to be the biggest game of the year.