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Microsoft and Activision had the best performing products in the US last month.
Xbox 360 was the top selling hardware for a sixth consecutive month, while Call of Duty: Modern Warfare 3 topped the best-selling games chart.
However, the Top 10 games did not sell well enough to prevent sales decline that saw the market drop year-on-year by almost $400m.
"While the lack of new launches was a major reason for software declines, games which launch in Q4 2011 also peformed poorly in January 2012, down 31 per cent in units compared to Q4 2012 launches in January 2011," said NPD analyst Liam Callahan.
"As shoppers were not drawn to stores due to new launch activity, this potentially impacted additional software purchases made on impulse."
Here’s the Top 10 best-selling games in the US for January 2012:
1. Call of Duty: Modern Warfare 3 (Activision)
2. Just Dance 3 (Ubisoft)
3. The Elder Scrolls V: Skyrim (Bethesda)
4. NBA 2K12 (2K Games)
5. Battlefield 3 (EA)
6. Madden NFL 12 (EA)
7. Mario Kart 7 (Nintendo)
8. Skylanders: Spyro’s Adventure (Activision)
9. Zumba Fitness 2 (Majesco)
10. Saints Row: The Third (THQ)
