NPD recently reported that video game sales in July rose 22 percent year over year, and hardware sales increased 46 percent, according to Reuters. The continued growth in the video game segment has largely been attributed to sales of the Nintendo DS and software. Essentially continuing the pattern established in June, the DS sold through an impressive 377,000 units compared to PSP sales of 162,000 consoles. PSP sales overall declined, indicating that perhaps Nintendo’s console is taking market share away from Sony, despite their protests to the contrary. Sony’s Playstation 2 again outsold the Xbox 360 for the month.

On the software side, EA’s cross-platform NCAA 2007 moved the most units, but Nintendo’s DS titles New Super Mario Bros., Brain Age, and Big Brain Academy followed close behind. Video games overall could decline in the next couple of months before the release of the Nintendo Wii and the Playstation 3, but signs point towards strong growth year over year.