Thanks mostly in part to the stellar line up of DS games, Nintendo is still dominating the Japanese sales charts. According to Media Centre, Nintendo placed seven of the top 10 selling software titles in the land of video games. From the article: "Nintendo's Animal Crossing: Wild World at #2 sold a record 416,132 copies to bring its total to 1.17 million, while Mario Kart DS at #3 sold 302,742 copies for 667,799 units to date."
Square Enix's new debut Kingdom Hearts II graced the #1 spot with 727,591 copies sold. Other DS games featured in the top 10 included Pokemon Mysterious Dungeon, Brain Training for Adults, and Bandai's Tamagotchi. "Touching" apparently still sells well.