Nintendo just announced that sales of its Wii game console had reached 30 million units in the US, and had reached that level faster than any other console in history.

The celebration was short-lived. Sales of the Microsoft (NASDAQ: MSFT) Xbox 360 passed those of both the Wii and Sony (NYSE: SNE) PS3 in the US last month.

Sales of the Xbox 360 more than doubled to 443,500 units, according to NPD Group. The Wii sold 253,900 units–about the same as in July 2009.  Sales of the PS3 gained 76% to 214,500 units. According to Bloomberg, the Xbox 360 regained the top spot for the first time since September 2007.  Overall game hardware sales moved up 12% while sales of video software were down 8% year-over-year in July.

The problem with the Wii is that it has gotten old. It was designed for casual gamers unlike the more complex-to-operate Xbox 360 and PS3. But the two other consoles have added controllers that make games easier to play. They have also cut retail prices and added new features including internet connections, Wi-Fi, and Blu-ray players. Nintendo will probably have to completely overhaul the Wii soon to try to regain the huge lead it once had over its rivals.

Among hand-held games ales of Nintendo’s DS portable player fell 26% to 398,400 in July. Sony’s PlayStation Portable sold 84,000 units, a 32% fall-off from July 2009.

The best-selling game in July was “NCAA Football 11” from Electronic Arts Inc., which sold 368,000 copies for the Xbox and 298,800 copies for PS3, NPD reported.

Douglas A. McIntyre

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