December U.S. video game sales met expectations, largely because of the continued dominance of Nintendo Co.'s (NTDOY) Wii and its portable DS consoles, according to a new report from NPD Group.

Nintendo's motion-controlled Wii and the DS made up nearly two-thirds of all consoles sold in the month, NPD reported. "We had a record-breaking sales month," said Nintendo of North America President Reggie Fils-Aime.

Video game console sales overall in December rose a total of 2% to $1.9 billion from a year ago, according to NPD. While dominated by Nintendo, the 1.44 million Xboxes sold in December marked the biggest month ever for Microsoft Corp.'s (MSFT) game console, a Microsoft spokesman said.

Video game sales for the month rose 9% to $5.28 billion, with the top 10 dominated by titles that are, in video game terms, rather ancient. It's more proof that video game buyers looking to make their entertainment dollar stretch further are drawn to more established titles.

Both console and game sales met expectations.

For the year, video game sales rose 19% to a record $21.3 billion, while console sales rose 11%, according to NPD. But not everyone fared equally. Most notably, Electronic Arts Inc. (ERTS), the game publisher, said in December it would layoff 10% of its workforce amid slower than expected holiday sales.

"This is not a case of the rising tide lifting all boats," NPD analyst Anita Frazier said. "The increases are not being enjoyed equally by all manufacturers and publishers."

-By Ben Charny; Dow Jones Newswires; 415-765-8230; ben.charny@dowjones.com

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