Both hardware and software video game sales were down by a great deal in January, according to the latest report from NPD. Both categories dropped 38% year over year in the US, and video games sales in total dropped from $1.14 billion in January of 2011 to $750 million this past month. NPD's Liam Callahan attributes the drops to a lack of new launches: Last January, Microsoft's Kinect propped up hardware sales, and Dead Space 2, LittleBigPlanet 2, and DC Universe Online did the same for software, but there weren't equivalent launches in the market this year.

The full list of the top ten titles is after the break. Just Dance 3 held down the number two spot, again landing in front of the very popular Elder Scrolls V: Skyrim. Zumba Fitness 2 also made it into the top ten, but Activision's Skylanders: Spyro's Adventure is likely the most important game for January.

In addition to landing on the list at 8th, Skylanders is seeing huge sales in the accessories category, making up 22% of total accessory sales overall. The game's single character pack was also the best selling accessory during the month of January, and these numbers should bode well for the series and its future iterations.

Finally, despite that big drop in hardware sales, Microsoft's Aaron Greenberg points out that the Xbox 360 has remained the highest-selling console on the market, selling 270,000 units with a 49% market share.