Video Games are Red Hot

Video games are hot. Red hot.

At least, that’s what the latest data from data tracker NPD shows: the firm reports that video game software sales grew jumped 61.6% in November versus last year. Apparently, everyone is getting Guitar Hero for Christmas.

As UBS analyst Benhamin Schahcter points out in a note this morning, that compares to 15% growth in the same month last year. The numbers are stunning. Microsoft (MSFT) Xbox 360 software grew 141%. Nintendo Wii software was up 504%; software for the Sony (SNE) Playstation 3 increased 941%. There was also good growth in the handheld category, with software up 72% for the Nintendo DS, and 12% for the Sony PSP. Year-to-date, software sales were up 33% year-over-year on a year-to-date basis.

As for hardware, the Wii sold 973,000 units, the highest ever. The DS sold 1.52 million units, with 768,000 Xbox 360s, 566,000 PSPS and 490,000 Playstation 2s, which actually outsold the PS3 at 465,000 units.

Among the software companies, Activision (ATVI) saw sales grow 175%, Electronic Arts (ERTS) gained 65% and Take Two (TTWO) was up 19%. THQ (THQI) suffered a 7% decline.

The top five selling games in the month:

• Call of Duty 4, from Activision (Xbox 360)
• Super Mario Galaxy, from Nintendo (Wii)
• Assassin’s Creed, from Ubisoft (Xbox 360)
• Guitar Hero III w/guitar, from Activision (PS2)
• Wii Play, from Nintendo (Wii).