Nintendo displaced Sony as the leader of video game sales this past quarter said a new market report published on Tuesday.

According to iSuppli, combined game sales of both Wii and DS totaled US$1.2 billion dollars during the third quarter of 2007, up 31 percent from the second quarter of this year and more than double the amount sold a year prior.

By comparison, combined PS3, PS2, and PSP game sales totaled $1 billion for the same period while Microsoft reached $318 million in total Xbox 360 and Xbox 1 games sales.

The news marks the first time that Nintendo has accomplished the feat since first being displaced by Sony in the mid nineties with the release of the original and much more popular PlayStation 1 when compared to the Nintendo 64.

"Because Sony was slow to reduce the price of the PlayStation 3 and to produce compelling games, third- party game publishers are flocking to other platforms," says the report. "If the PlayStation 3 can't promote more game sales, developers may begin to feel working with Nintendo outweighs the benefits of working with Sony."