The Microsoft console outsold the Wii 443,500 units to 398,400 units and many are claiming the new slimline Xbox 360 may be the cause.
However, what's more alarming is how terribly the PlayStation Portable is selling.
The PSP ranked fifth in the hardware list with only 84,000 units sold. Next on the list is the hand held's younger, albeit beefier, brother the PlayStation 3 with 214,500 consoles sold in July.
The 130,500 unit difference is bad enough, but what's worse is Sony's hand held competitor, Nintendo DS, outsold the PSP by 314,400 units and was the second most sold console with 398,400 finding their way to gamer hands last month.
A pitiful display by the five-year-old hand held is awful news for Sony and is likely the result of its overpriced move with the PSP Go and continued popularity and success of the Nintendo DS, Nintendo DSi and Nintendo DSi XL.
The PSPGo's $250 price tag and wifi dependence has likely turned off gamers who are less accustomed to consoles without physical media - although the Apple iPad may be changing that philosophy. Older versions of the PSP retail cheaper, at $169.99, but that price point is near the Nintendo DSiXL for an older model of the console.
Nevertheless, it all comes down to games. Despite the success of "Metal Gear Sold: Peace Walker," the PSP game library is dwindling almost as quickly as the Nintendo Wii's. Like Nintendo, Sony has been forced to rely on first party titles to keep it afloat such as games from the "God of War" and "Little Big Planet" franchises.
It's time for the Sony PSP to reinvent itself in a different way than the overpriced PSP Go otherwise it will soon be PSP Gone.
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