The gaming industry may seem like a flashy entity full of button mashing, high-definition graphics, and fast-paced action, but at its heart it's competitive business where numbers speak louder than frags. This was more than clear this week, as digits dominated the headlines.

　　We'll start with the largest number of the bunch--12.5 billion. That was the number of dollars the industry generated in 2006 in the US according to NPD Group, which keeps tabs on the sales of the gaming business. It was another record-setting year financially for the industry, as this year's tally crushed the previous record of $10.5 billion the prior year. December alone generated $3.7 billion, thanks to the launch of the Wii and PlayStation 3, as well as the continued success of the Xbox 360 and Nintendo DS. The $12.5 billion accounts only for sales of hardware and software in the console and handheld sectors; PC game sales have not yet been tabulated.

　　The number of Wiis sold in the US through December 31 was 1.1 million, according to NPD. That figure makes the Wii's launch the clear victor in the race between the Xbox 360, PS3, and Wii to have the best debut on the market. According to NPD, the PlayStation 3 sold 687,300 units from its November 17 launch to December 31 in 2006, and in 2005, the Xbox 360 sold 607,000 from its November 22 launch to the end of the year. However, all three systems were a hit in retail and were hard to find, with ample supply being the main difference between the Wii's success and the PS3 and 360's performance.

　　At this year's CES, Sony announced that it had shipped 1 million PS3s to North America, though at the expense of its home country. It's likely the electronics giant did not reach its shipment target of 2 million PS3s worldwide by the end of the year, as it has been reported that Sony only sold 466,716 units in Japan.

　　Microsoft used CES to announce that it had reached its own sales projections and sold 10.4 million Xbox 360s worldwide through December 31. The company also revealed a new iteration of the Xbox 360 with IPTV capabilities.

　　Switching the focus from hardware to software, the PlayStation 2 version of Madden NFL 07 sold 2.8 million copies in the US. It was the top-selling game of the year, outdistancing its nearest competitor by 800,000, according to NPD. Second place went to New Super Mario Bros. with 2 million copies sold, followed by Gears of War with 1.8 million units moved.

　　World of Warcraft continued its dominance of the massively multiplayer online role-playing game market, boasting yet another milestone. The Blizzard game has eclipsed the 8 million subscriber mark and looks to get even more crowded when the game's first expansion pack, The Burning Crusade, is released next week.

　　Speaking of getting crowded, the handheld gaming market is going to find itself one competitor richer. Microsoft vice president Peter Moore confirmed that his company's multimedia player, the Zune, would run games within 18 months.

　　Perhaps it was Microsoft's future entry into portable gaming that prompted company chairman Bill Gates to single out the current handheld leader as his biggest competition. "We see Nintendo as our toughest competition," Gates told Tokyo TV. It's unclear whether Gates was lauding Nintendo or slighting Sony--likely a little of both.

　　In a lightning-quick wrap up of game news, Midway touted shipments of 1.8 million and 1 million to the critically panned Happy Feet and Mortal Kombat: Armageddon, respectively, Dead Rising shipped 1 million for Capcom, a PS3 version of Saints Row was spotted, and Bungie blew out details on its new Mongoose ATV.

　　SUNDAY

　　CES 07: 360 hits 10.4 million, IPTV coming

　　CES 07: 1m PS3s shipped in NA in '06

　　MONDAY

　　Analysts bet on 360 price cut

　　Thompson offers olive branch to ESA, ESRB

　　GameStop exec says PS3 in stock

　　SOE prepping six for PS3 store

　　Analyst expects 15 percent growth in December

　　TUESDAY

　　Moore: Zune will game by '08

　　Report: Wii outsells PS3 in Japan

　　Symphony of the Night tunes up on 360

　　Guitar Hero II Xbox 360 exclusive tracks revealed

　　Sony shares rise 6 percent

　　WEDNESDAY

　　Dead Rising hits milestone, exec hints at sequel(s)

　　CES 07: Sony retracts Sixaxis Emmy claims

　　Big Three sued over controllers

　　Gates: Nintendo our "toughest" foe

　　Nintendo raises profit forecast

　　THURSDAY

　　2006 UK game sales break records

　　NPD: Game industry reaches $12.5 billion in '06

　　WOW: 8 million served

　　Madden hoists 2006 sales trophy

　　Wii tops new console launches

　　FRIDAY

　　Retail Radar: Saints Row poppin' caps on PS3

　　Terry Donovan leaves Rockstar

　　Final Fantasy XII dated for Europe

　　Stray Bullet's first game chambered

　　Euro MGS: Portable Ops getting exclusive content

　　RUMORS OF THE WEEK

　　Microsoft (not) buying Capcom?

　　Heavy Weapon shooting XBLA next week?

　　RELEASES

　　Shippin' Out January 8-12: Lost Planet, Arthur and the Invisibles

　　CHARTS

　　Aussie game charts: January 1-7

　　UK game charts: December 31-January 6