The popularity of the new BioShock 2 game may have been behind Microsoft's sales of 422,000 Xbox 360s in February, an eight percent increase from a year earlier, according to NPD Group. Nintendo sold 397,900 Wiis and Sony sold 360,100 PlayStation 3 consoles in February.

The BioShock 2 game for the Xbox 360 and PlayStation 3 was released on Feb. 10 and sold 750,000 units. Of those, 75 percent, or 562,900, were for the Xbox 360.

"We're excited about the biggest February in Xbox 360 history," said Dennis Durkin, COO of Microsoft's interactive entertainment business, in an e-mail. "We know consumers are hungry for our 2010 portfolio of exclusive blockbuster games, industry-leading online experiences over Xbox LIVE, and for the holiday release of Project Natal for Xbox 360."

A Sense of Excitement

While BioShock 2 has created a buzz among gamers, so have sensing controllers. Microsoft's Project Natal system will let Xbox players use body motions to control the game instead of pressing buttons or waving a controller.

Microsoft wasted no time in getting celebrities to praise Project Natal's potential. Boxer Sugar Ray Leonard called the technology "amazing"; former NFL quarterback Willie Gault said it was one of the "most realistic game experiences" he has had; and pro beach volleyball player Misty-May Treanor said it's great for someone who, like her, is in physical therapy.

This week, Sony revealed additional information about its own new motion-control sensor. Dubbed the PlayStation Move, Sony first provided details last June. The controller allows PS3 gamers to use an Eye web camera and a wand to detect motion.

The controller will be packaged as a starter kit with a PlayStation Eye, a PlayStation Move controller, and a demonstration disc. The black controller is similar to the Wii wand, developed in 2006, and will be priced below $100, according to Sony.

Nintendo Falls Behind in U.S.

Microsoft executives may be beaming with their new position in the gaming market, but Nintendo still leads worldwide. Nintendo has sold more than 67.5 million Wii consoles worldwide, compared with more than 39 million Xbox 360s and 33 million PS3s, according to NPD.

But that success does not come without challenges. Last month the U.S. gaming industry saw a 15 percent drop in revenue to $1.26 billion, according to NPD. The drop was a result of a 15 percent decrease in sales of gaming software and a bad month for Nintendo.

December was a record-breaker for Nintendo with 3.81 billion units sold. When that was followed by a 31 percent decrease in sales in January, analysts speculated Nintendo didn't have enough inventory to meet demand. That was confirmed by Nintendo America President Reggie Fils-Aimé.