U.S. video game equipment and software sales fell 29 percent in July to $848.9 million, research group NPD said on Thursday, as the gaming industry limps through the economic downturn.

Hardware sales fell 37 percent from a year ago, while software sales slid 26 percent, NPD said. Sales of video game accessories declined 12 percent.

Nintendo's Wii was again the top-selling home console in July, though sales fell from last year. Microsoft's Xbox 360 was No. 2. NPD said it is the only console showing a unit sales increase year-to-date.

Sony's PlayStation 3 was in third place, followed by the PlayStation 2.

Electronic Arts NCAA Football 10 was the top selling game for the month, with combined sales of 689,000 units across all platforms, according to NPD.

(Reporting by Gabriel Madway. Editing by Robert MacMillan)