The sales of video games in the US during May were up 37% from the previous year, according to a new report.

Market research firm NPD claims that sales of hardware and software reached $1.12 billion in May, reports Reuters.

Take-Two Interactive's Grand Theft Auto 4 was named as the best selling game for the month, having already sold 4.2 million units in the US since it was released at the end of April.

NPD also says that the US video games industry could see a total revenue of $23 billion by the end of 2008.

Anita Frazier, NPD analyst, told the news agency: "The continued success of GTA 4 is not translating into big hardware sales for either the PS3 or the 360 but there may yet be a lift in June due to gift giving for Father's Day and graduations."

Grand Theft Auto 4 set all-time sales records for an entertainment release after 3.6 million units of the game were sold on its opening day, with a retail value of approximately $310 million.