The report released today is limited to trends that occur at physical retail locations, but from that vantage point, the Xbox 360 platform accounted for more than 40 percent of total industry sales. NPD analyst Anita Frazier reasoned the gains were driven by the successful launch of Microsoft’s Kinect, the Nintendo Wii-like motion detecting game accessory that works with the Xbox. The Kinect led Xbox 360 accessories to account for 60 percent of that category’s dollar sales.

Microsoft started selling Kinect halfway into November, and after only 15 days Microsoft said it had sold 2.5 million.

In general, NPD says the gains made last month, due to Microsoft’s successes and holiday discounts, were good enough to offset the majority of declines that occurred in 2010. “We expect a big jump in sales in November due to seasonality and the influence of holiday, but the change this November over October is bigger across most platforms than it was last November,” Fraizer said.

Last month, total game sales, including videogame hardware, like consoles and portables, plus software and accessories, were estimated to total nearly $3 billion, an 8 percent increase over November 2009. Now, sales for the year to date are only off last year’s $14.7 billion by 5 percent, providing hope that 2010 can end the year flat at $18.8 billion to $19.6 billion.

Other top performers included the Nintendo DS, which was boosted by new red and white designs, and Activision Blizzard’s Call of Duty: Black Ops game.

Photo Credit: Microsoft.

Sadly, the same cannot be said for demand abroad. According to Mobile Today, U.K. sales of the Pre have been disappointing. So much so that O2, Palm’s (PALM) carrier partner in the country, has begun sending sales specialists to its retail outlets in a bid to juice holiday sales. Seems the iPhone juggernaut is as formidable an opponent in the U.K. as in the U.S.

“We have sold 20 times more [iPhones than Palm Pre handsets],” one O2 retail manager told Mobile Today. “The iPhone is a more established brand and there has been more advertising. They are both good handsets but, with such a small price difference, customers take the view they might as well go for the iPhone.”

An unfortunate take on Palm’s prospects in the U.K. That said, it’s not the only one. In a research note issued this morning, UBS said its checks indicate that the Pre is doing “okay” internationally and that it expects webOS handset sales to track largely in line with expectations on a sell-in basis. Here’s hoping we find out if that’s the case when Palm reports second-quarter results next Thursday.

Chuck: Do we carry any Rush CD’s?

Morgan: No, but not to worry buddy! I have every Rush track on my Zune.

Chuck: Wait, you have a Zune!?

Morgan: Pfft! No, I’ll go get my iPod.”

– Some recent dialogue from NBC’s “Chuck” (see video below)

Microsoft is adapting its Zune digital music player to the “realities of the market”–those created by recent turmoil in the economy, as well as the harsher ones created by Apple’s (AAPL) iPod juggernaut. It’s slashing prices across the Zune line in the hopes of protecting holiday sales.

Once priced at $199, the 16GB Zune will now sell for $179. It’s 8GB counterpart will sell for $139, down from $149. And the 4GB Zune will sell for $99.

The price cuts come just two months after Microsoft (MSFT) introduced the third-generation Zune platform. “Hopefully we have a good holiday season,” Zune marketing director Adam Sohn told CNet’s News.com. “We’re trying to take into consideration what the realities of the market are.”

Those realities being as harsh as they are, is $10 to $20 off really going to be enough to trump financial concerns and temper long-running consumer disinterest in the device?

Chuck: Do we carry any Rush CD’s?

Morgan: No, but not to worry buddy! I have every Rush track on my Zune.

Chuck: Wait, you have a Zune!?

Morgan: Pfft! No, I’ll go get my iPod.”

– Some recent dialogue from NBC’s “Chuck” (see video below)

Microsoft is adapting its Zune digital music player to the “realities of the market”–those created by recent turmoil in the economy, as well as the harsher ones created by Apple’s (AAPL) iPod juggernaut. It’s slashing prices across the Zune line in the hopes of protecting holiday sales.

Once priced at $199, the 16GB Zune will now sell for $179. It’s 8GB counterpart will sell for $139, down from $149. And the 4GB Zune will sell for $99.

The price cuts come just two months after Microsoft (MSFT) introduced the third-generation Zune platform. “Hopefully we have a good holiday season,” Zune marketing director Adam Sohn told CNet’s News.com. “We’re trying to take into consideration what the realities of the market are.”

Those realities being as harsh as they are, is $10 to $20 off really going to be enough to trump financial concerns and temper long-running consumer disinterest in the device?