"Our NPD Preview report stated that the prediction market expected the Xbox 360 to outsell the PS3 1.7 to 1 in a closing gap; actual results were 1.58 to 1, a significant jump from November 2007's 1.8 to 1 sales ratio. For January, the prediction market expects Xbox 360 sales to ring in at 358,000 units compared to PS3 sales at 229,000 units, a 1.56 to 1 sales ratio," explained analyst Jesse Divnich.

While the Xbox 360 and PS3 numbers seems to be getting closer and closer, Nintendo is still expected to dominate January. The prediction market is forecasting sales of 541,000 DS units and 535,000 Wiis.

The simExchange expects video game software sales to total $569 million in January, which would represent a 13.6 percent increase year-over-year. It's also worth noting that January 2008 only has four weeks of sales compared to January 2007's five weeks. Activision's Call of Duty 4 on Xbox 360 is expected to drive sales once again with a forecasted 404,000 units, while Nintendo's Super Mario Galaxy will follow closely behind with 394,000 units. Meanwhile, EA's Burnout Paradise (PS3, Xbox 360) is predicted to sell 120,000 units for the month. Although it may be a bit early, simExchange also took a brief look at February. Overall software sales are expected to be $536 million, which would be an 18 percent year-over-year increase, driven by top titles such as Devil May Cry 4, Turok, and Lost Odyssey.

Divnich noted that with so many consumers still holding onto their PS2s, the growth potential for the new consoles among the casual crowd is enormous. "...there are still many consumers who have still not made up their mind as to which next-generation system to purchase. It is difficult to indicate what is holding back these consumers from purchasing a next generation system, but to win over this market, the console manufacturers must make 2008 one of their most aggressive years as 2008's momentum will likely indicate the 'true' console war winner."