Nintendo Co. Ltd.'s (7974.OK) motion-controlled Wii continued to dominate the video game industry in February, the NPD Group reported Thursday.

February U.S. video game console revenue increased 11% to $532 million, which beat expectations and once again proved the industry's recession resilience. A 74% annual increase in Wiis sold, paired with Microsoft Corp. (MSFT) Xbox 360's biggest-ever February, off-set a disappointing February for the Sony Corp. (SNE) PlayStation 3, NPD Group reported.

"The U.S. video game industry continues to post strong comps despite the tough economy," said NPD analyst Anita Frazier. "March should be another great month."

U.S. video game revenue grew 9% annually, with Nintendo games making up half the Top 10 best sellers. Activision Blizzard Inc. (ATVI) and Capcom USA each scored two top 10 hits.

"We did quite well despite this soft economy," a Nintendo spokeswoman said.

Results slightly exceed BofA/Citi analyst Justin Post's expectations. Post sees the NPD results pressuring Sony to lower the price of its PlayStation 3, which is more expensive than the Wii. NPD reported PlayStation 3 sales declined 1% last month.

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