Following the announcement of the latest NPD figures, Microsoft Xbox boss Aaron Greenberg claims that Sony's PS3 is "haemorrhaging at retail," with a 2 percent year-on-year drop in PS3 hardware sales.

The latest US retail data shows that Wii sold 750,000 units sold in the US last month, while the 360 and PS3 sold 400,000 and 300,000 units respectively.

"You can't underestimate that we're half the price of the PS3 at a time when consumers were looking for great value," Xbox's Greenberg informed Gamasutra.

"The PS3 was down in February two percent even with the launch of Killzone 2 -- that's months of year-over-year declines. Xbox continues to head north while the PS3 is heading south. We're gaining share."

PS2 owners buying Xbox 360

"It's not just PS3, it's also PS2 down 62 percent year over year," Greenberg added.

"With that business declining, and with the PS3 business declining, it's been described to me as haemorrhaging at retail right now, and it just keeps getting worse."

"What we're finding in our research is that a large portion of the volume we're driving with Xbox 360 purchasers is actually PS2 owners choosing Xbox for the next generation. We're switching people from the PlayStation brand over to the Xbox brand."

"The Xbox 360 realized its biggest non-holiday sales month, save for September 2007, when the Halo 3 release brought in a large group of new owners," said NPD analyst Anita Frazier.