According to the latest figures from market research firm NPD, video game and hardware sales hit $925.5 million in July, a 37% increase over the same period in 2006, despite being one of the slower months for the video game industry.

The charts were once again led by Nintendo, with 425,000 and 405,000 units sold of its Wii and DS game platforms, respectively. This was followed by the PlayStation 2, which sold 222,000 units, while the PSP moved 214,000 units. Despite the much-publicized Xbox 360 overheating issues and a $100 price cut for the PlayStation 3, Sony’s next-gen console still didn’t manage to outsell the 360, which sold 170,000 units versus 159,000 PS3 units. Nonetheless, Sony seemed pleased to see that PS3 sales increased 61% over June numbers.

Overall, the game industry is on the rise in almost every front. Hardware sales surged 77% compared to the same period last year, while accessories were up 51%. Software sales rose 11% to $419.9 million. The portable market was slightly down in both hardware and software, though, experiencing a 1% drop to $95 million and a 1.5% decrease to $313.2 million respectively.