Almost reaching the point of saturation, the Nintendo Wii saw its lowest sales since November 2006, falling 12 percent to just 244,300 units sold for the month.
The perennial hardware leader, the Nintendo DS line, fell 38 percent to 342,700 units sold. DS sales have now fallen in each month since April.
Dead-in-the-water handheld PSP sales dove 43 percent, with Sony selling just 79,400 units for the month.
Microsoft's Xbox 360 rose to the top, seeing 66 percent growth thanks to the release of their updated, slimmed down console. Microsoft sold 356,700 units for the month. The Sony PlayStation 3 saw 7.6 percent growth YoY, selling 226,000 units for the month.
Says Anita Frazier, senior analyst for NPD: "This month reflected the lowest sales for August since 2006. While all categories are down in both dollars and units, the portable portion of the industry is down to a greater extent."