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U.S. video game sales increased 28 percent in July from a year ago, with continued solid demand for Nintendo's Wii console, research firm NPD said.

Sales of video game hardware, software and accessories reached $1.19 billion in July, with software sales increasing 41 percent and hardware sales growing 17 percent.

Aided by a number of popular titles, the video game industry has remained strong during a sluggish economy that has affected other industries.  A Nintendo spokesperson said the company has not seen an impact from less consumer spending.

Sony's PlayStation 3 outsold Microsoft's Xbox 360 game console in July, selling 224,900 PS3s compared to 204,000 Xbox 360 consoles. The Wii sold more than both systems combined, totaling 555,000 units sold during the month.

Among portables, Nintendo's DS sold 608,400 units in July, while Sony's PlayStation Portable sold 221,700 units.

The most popular game in July was Electronic Art's "NCAA Football 09," which was released during the month. It sold close to 400,000 units in the United States.

Nintendo's "Wii Fit" exercise game was close behind, selling 369,600 units.

Activision Blizzard's "Guitar Hero" game for the Nintendo DS, Nintendo's "Wii Play" and EA's "NCAA Football 09" for the PS3 were in the top five of best selling games.