According to Canadian news site CBC, December's NPD figures showed Canadians spent a record $2.09 billion on consoles last year.
Nintendo Wii dominated 44.1 percent of the market compared with Xbox 360's 25.5 percent and PlayStation 3's 21.7 percent.
"We believe the Wii has really hit a great price point in the market," said Matthew Tattle, account manager at NPD, to CBC News.
"It's really expanded the user base. It's gone beyond the traditional gamer market."
The top selling game was EAs Rockband which saw off the challenge of Rockstar's GTA IV. Mariokart Wii and Wii Fit came in third and fourth respectively.
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By Mike Bowden