Latest GFK Chart-Track figures suggest that the Xbox 360 is only 200,000 units short of overtaking the Wii's eight million sales, reports CVG.
Despite a significant drop in hardware and software sales in 2012, the Xbox 360 outsold its rival by four-to-one throughout the year.
A similar pattern has emerged in North America, where the Xbox 360 is also expected to overtake the Wii, despite Nintendo's dominance on a global scale.
The Xbox 360 is believed to have sold approximately 70 million units throughout the world, compared to the Wii's 97 million.
Microsoft recently claimed that the Xbox 360's improving fortunes highlights a changing of the guard.
"The success of Microsoft and the Xbox 360 during the past two years highlights a radical changing of the guard in the game industry," it said.
"Much has been made about a steady video game sales decline in the past three years. In reality the decline has mainly been due to the ageing console systems and more importantly because of Nintendo's collapse."
Big-selling franchises such as Call of Duty and FIFA, coupled with Microsoft's online service, have helped boost Xbox 360 sales.
Microsoft's device was voted the 'Best Gaming Platform' of 2012 by readers of Digital Spy.
The console won 33.% of the vote, edging ahead of Sony's PlayStation 3, which came second with 28.9%.
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Copyright: Microsoft Games