Daily Research News Online no. 5318 - Microsoft Console Not Tipped for Top Spot

Microsoft Console Not Tipped for Top Spot

March 22 2006

Recent research from US-based In-Stat suggests that despite Microsoft's earlier launch of its next-generation games console, Sony will continue its domination of the market through 2010. However, the report predicts healthy shares for both Microsoft and Nintendo.

In-Stat predicts stronger competition from the two chasing suppliers in this three horse race. The report says that through 2010, the Sony PS3 will account for just over 50% of the installed base of next-generation consoles, while the Microsoft Xbox 360 will have 28.6%, and the Nintendo Revolution will have 21.2%.

The Nintendo figure is higher than that predicted by some other analysts, and represents a good share of an enormous pie, for a company rumoured to be giving up on the market a couple of years ago in favour of its smaller handheld games. However, analyst Brian O'Rourke says Microsoft has certain advantages over Nintendo: 'its head start in launching, its strength in the North American market, and its appeal to older gamers, a demographic that seems to widen with each new generation of consoles'.

In-Stat also notes that:

The PS3 will also include Blu-Ray DVD playback, a high-definition format that is central to Sony's corporate strategy.
Central to Nintendo's console is a new type of controller that allows the user's arm movement to affect the movement of game characters.
Due to higher prices, the peak year for shipments of next-generation consoles is expected to be about the same as the peak year for current-generation consoles.
However, overall In-Stat does expect a greater number of next-generation console shipments than for current-generation consoles.

The report, Video Game Consoles 2006: Microsoft Launches Next Generation, Sony Dominates Current Generation, is part of In-Stat's Multimedia Entertainment Equipment service and covers the global market for line-powered video game consoles - it does not cover portables such as the Nintendo DS or Sony PSP. It also includes results from a survey of over 1,000 consumers on console ownership and purchase plans for next-generation machines.

The company, part of Reed Elsevier's Reed Business Information unit, is online at www.in-stat.com . It has offices in Arizona, California and Massachusetts in the US and in Singapore, China and the UK.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.