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From http://gamespot.com/gamespot/stories /news/0,10870,2896032,00.html
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Xbox, GameCube scrap for second place
Sony will continue to dominate the video game business over the next few years, with Microsoft and Nintendo battling for second place, according to a InStat/MDR report.
Research company InStat/MDR today released a report that predicts that Sony will continue to lead with the biggest share of the console market, while Microsoft and Nintendo continue to vie for second place. According to the report, 31.8 million game consoles were sold worldwide in 2001, generating $7.1 billion, with substantial increases expected over the next few years.
Analyst Brian O'Rourke, the author of the report, said he couldn't share specific market share numbers, but the race is clearly for second place. Sony had shipped 40 million units of its PlayStation 2 as of last month, while Microsoft's Xbox and Nintendo's GameCube were each edging past the four million mark.
"It's going to be very, very close for number two between Nintendo and Microsoft," O'Rourke said. "It depends a lot on the region. Microsoft should have a clear advantage over Nintendo in North America, but the Xbox hasn’t sold as well in Europe, and it's had a really difficult time in Japan. Nintendo has done OK in all three markets."
The upcoming holiday season will be a critical test for Nintendo, O'Rourke said, because the Japanese game giant now has GameCube titles featuring franchise characters such as Mario and Zelda. "They sell machines based on the software much more than any other company," he said.
Advantages for Microsoft include the Xbox's appeal among consumers in their 20s and 30s, a group that's becoming increasingly important to the game industry. Nintendo's GameCube is more popular with younger gamers.
"The gaming demographic has really been skewing older and older each year," O'Rourke said. "It used to be that kids stopped playing video games at a certain age--now they're sticking with it into their late 20s and 30s."
The report also suggests support for the nascent market for online gaming via consoles, with half the consumers surveyed by InStat saying they'd be willing to pay $5 a month for such services, and a third saying they'd pony up $10 a month. Sony added online capabilities to the PlayStation 2 last month, while Microsoft's Xbox Live service is scheduled to debut in a few weeks.
O'Rourke cautioned, however, that interest in online gaming is not the same as willingness to do what it takes to extend an Internet connection to the living room.
"I think home networking and online console gaming are pretty closely tied," he said. "Unless customers want to run wiring through the house, that's going to play a big role in the success of online console gaming."
Seeing as Sony have had the market to themselves for 18 months, it doesn't exactly surprise me.
Anyway, MS and Nintendo are getting enough profits to stay healthy and keep producing games/innovations so that's good.
By the by, what's that about MS having an advantage by aiming itself at the older demographic?
Somehow, trying to take a market that Sony pretty much owns already isn't the best way to go about things.
Atleast Nintendo have a clear pocket of their own, offering a different type of experience (encouraging people to get it to compliment rather than have to replace the PS2 they already have).
*Bursts out laughing*
they are the best.
:-D
They are the best company.
:-D
>
> Sony will continue to dominate the video game business over the next
> few years, with Microsoft and Nintendo battling for second place
The way it was destined to be.
Go Sony, go Sony, go Sony ...
From http://gamespot.com/gamespot/stories /news/0,10870,2896032,00.html
(Remove 1 space)
-----
Xbox, GameCube scrap for second place
Sony will continue to dominate the video game business over the next few years, with Microsoft and Nintendo battling for second place, according to a InStat/MDR report.
Research company InStat/MDR today released a report that predicts that Sony will continue to lead with the biggest share of the console market, while Microsoft and Nintendo continue to vie for second place. According to the report, 31.8 million game consoles were sold worldwide in 2001, generating $7.1 billion, with substantial increases expected over the next few years.
Analyst Brian O'Rourke, the author of the report, said he couldn't share specific market share numbers, but the race is clearly for second place. Sony had shipped 40 million units of its PlayStation 2 as of last month, while Microsoft's Xbox and Nintendo's GameCube were each edging past the four million mark.
"It's going to be very, very close for number two between Nintendo and Microsoft," O'Rourke said. "It depends a lot on the region. Microsoft should have a clear advantage over Nintendo in North America, but the Xbox hasn’t sold as well in Europe, and it's had a really difficult time in Japan. Nintendo has done OK in all three markets."
The upcoming holiday season will be a critical test for Nintendo, O'Rourke said, because the Japanese game giant now has GameCube titles featuring franchise characters such as Mario and Zelda. "They sell machines based on the software much more than any other company," he said.
Advantages for Microsoft include the Xbox's appeal among consumers in their 20s and 30s, a group that's becoming increasingly important to the game industry. Nintendo's GameCube is more popular with younger gamers.
"The gaming demographic has really been skewing older and older each year," O'Rourke said. "It used to be that kids stopped playing video games at a certain age--now they're sticking with it into their late 20s and 30s."
The report also suggests support for the nascent market for online gaming via consoles, with half the consumers surveyed by InStat saying they'd be willing to pay $5 a month for such services, and a third saying they'd pony up $10 a month. Sony added online capabilities to the PlayStation 2 last month, while Microsoft's Xbox Live service is scheduled to debut in a few weeks.
O'Rourke cautioned, however, that interest in online gaming is not the same as willingness to do what it takes to extend an Internet connection to the living room.
"I think home networking and online console gaming are pretty closely tied," he said. "Unless customers want to run wiring through the house, that's going to play a big role in the success of online console gaming."