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Bigger systems don't equal bigger sales
Video game industry shows 53 percent growth

Consumers continue to snatch up Nintendo’s new console at a torrid pace, keeping the Wii at the top of the sales chart, ahead of Microsoft’s Xbox 360 and Sony’s PlayStation 3. Market research firm NPD Group reports that consumers bought 335,000 Wii consoles, while Xbox 360 sold 228,000 units, followed by PlayStation 3 with 127,000.

The surprising success of the Wii is attributed to two main factors: mass-market appeal and affordable pricing. “You're getting non-traditional gamers who are more than willing to spend $300 to get a system and use it,” said Darrel Ryce, director of technology and entertainment for the NPD Group, to the Canadian Press. “I think that's the key difference here. The PlayStation 3, with its price point, is really geared towards the traditional gamer who has no problem spending that kind of money to get into a system.”

Sales of the three newest consoles dipped compared to January, when consumers bought 436,000 Wii, 294,000 Xbox 360, and 244,000 PS3.

“We're gratified that the explosive appeal of Wii, in terms of both new players and new ways to play, has created unprecedented demand, substantially beyond supply,” says Reggie Fils-Aime, president, Nintendo of America. “But we also understand that there are hundreds of thousands of consumers still waiting to get their hands on the system so we continue to both ship more units to retail every week and work non-stop to build capacity.”

The Nintendo DS is the only video game system to experience a sales boost over last month’s figures, selling 485,000 units -- up from 239,000 during January -- propelling it to be the top system for February.

The PlayStation 2 continues to be a strong seller, likely because of its price point and unbeatable library, with 295,000 units -- nearly the same as its previous month’s sales but down from the amazing 1.4 million during the holiday month. PSP also fell to 176,000 from 211,000.

While Microsoft’s console was not at the top for hardware, it lead the software list with five of the top 10 games best sellers. “The 360 is doing very well,” said Ryce. “They have some top titles in the market as well.”

 Crackdown was the number one seller for February with 427,000 units. Gears of War, MLB 2K7, Lost Planet: Extreme Condition and NBA Street Homecourt occupied the latter half of the top 10. With an apparent shortage of Wii controllers, Wii Remote-bundled Wii Play was the second best seller with 371,000 sold.

While gaming fanboys will trade flames to no end, Ryce believes that all three consoles are exhibiting healthy numbers. “All three new console systems are doing well, holding their own and definitely selling product,” he said.



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Hmmm...
By Furen on 3/16/2007 6:13:26 AM , Rating: 2
The PS3's numbers are rather anemic but I think price has a lot to do with that. I hope Sony has some master plan to stimulate demand, and I hope it puts that plan into action ASAP (a price drop would be great but I doubt that will happen any time soon). There are only ~1.1M systems out in the market, and the new hot console is being outsold by its main competitor 2:1 (not to mention that the xbox already has a 10:1 lead).

The Xbox360 is doing decently enough but I think its sales have become a bit stagnant. A price drop would help here too, and MS actually DOES have the headroom for one. I'm sure the Xbox360 is turning into quite the cash cow for MS ( considering the software and accessory attach rates, the insane amount of hype around its Live arcade, video marketplace and various microtransactions) so sacrificing part of the profit on console sales would hardly be a major sacrifice.

Nintendo's Wii sales dropped? Is that an indicator of waning interest or did Nintendo happen to produce and ship less units in February than it did in January? If supply is still tight maybe a price hike is in order (LOL). I wonder what Nintendo's production bottleneck is...




RE: Hmmm...
By Pjotr on 3/16/2007 7:08:09 AM , Rating: 2
To begin with, let Sony launch PS3 in Europe, which takes place next week. After European enthusiasts have opened up their wallets, expect price cuts a few months later.


RE: Hmmm...
By Samus on 3/16/2007 7:44:39 AM , Rating: 2
LOL. *COUGH* Did you say PRICE CUTS and PS3 in the same sentance!?

Try 2008, it aint dropping in price anytime this year.

Don't expect any of these systems to drop in price...although Nintendo 'could' drop to $200 and still make money, but they'd be retarded to do so considering the demand for it.

XBOX will likely release with a revision (those rumored HDMI models) but not a price cut, at least not until XMAS 2007, but even then, it'll be selling from Halo 3, just like it did last XMAS from Gears of War.

It's sad Microsoft depends on just a few exclusive titles to sell their system. Sadly, PS3 does much the same thing with Resistance, but I think most people are still buying it for its Bluray functionality over its console functionality, at least for now.


RE: Hmmm...
By FITCamaro on 3/16/2007 8:25:49 AM , Rating: 1
From what I hear Resistance wasn't that great a game. I think Final Fantasy and probably Warhawk are the only two things this year that might move the PS3 faster. If MGS4 comes to the 360 Sony will just cry. Personally I'm hoping it will because I want a 360 much more than a PS3. I'd like to play the new Final Fantasy game but I'm not going to buy a PS3 just to do it.

Sony's already lost GTA exclusivity. If Microsoft continues to sell double the number of consoles, Japanese developers and their share holders(sorry but largely they make the best games) are going to start taking notice. In the end the mighty dollar will win out and Microsoft might actually have a shot at the Japanese market then. There are far more American gamers than Japanese (due to our population) so they're going to want the biggest audience possible for their games.


RE: Hmmm...
By Natfly on 3/16/2007 9:34:31 AM , Rating: 2
quote:
It's sad Microsoft depends on just a few exclusive titles to sell their system.


I fail to see what makes it sad. The same can be said for all consoles. Its like saying "It's sad Nintendo depends on gimmicky hardware to sell their system." After all, what makes someone choose one platform over another? The only differences between them are games and hardware.


RE: Hmmm...
By FITCamaro on 3/16/2007 7:37:18 AM , Rating: 1
quote:
I hope Sony has some master plan to stimulate demand


Claim theres a shortage and say they'll work to solve it. The idea is kind of like the media after Katrina blowing shit with gas out of proportion so everyone rushed to buy it.

And to the guy above me, if you think Sony is going to drop the price in the next 2-3 months, I think you're going to be disappointed. Even if they did, they'd have to drop the price to $400 and $500 for the 20GB and 60GB respectively to generate any added interest which I doubt will happen.

Fact is more PS3s were available in February than January and their February sales were half of those in January. Sony, Playstation Home isn't going to save you. Only massive price cuts you can't afford and won't do can.


RE: Hmmm...
By drebo on 3/16/2007 9:20:15 AM , Rating: 2
Playstation Home looks kind of interesting, though it will never match up to Second Life, as hard as it tries. Basically, they're trying to copy Second Life and not doing a good job of it...now, if they'd actually built a Second Life version for the PS3...THAT would stimulate a LOT of demand.

Though, you're right, I don't think Playstation Home in and of itself is going to be the winner. As to the new Final Fantasy, I'm hoping Square will release it to PC as well, just like they did with FF7.


RE: Hmmm...
By bldckstark on 3/16/2007 11:23:19 AM , Rating: 2
Actually I thought Second Life copied Disney's Toontown, so really Sony copied a little kids game. This line of thought often causes explosive conversation whenever I mention it. So go ahead and explode.


RE: Hmmm...
By ElJefe69 on 3/16/2007 11:28:16 AM , Rating: 2
eh hm.... yeah, 2nd life for the ps3 would be huge of course.

however, you have to hang out with asians from asia, non americanized types. games like FF would blend super well with ps3 home thingie, so would a lot of games. raw computing power isnt so in vogue in japan as it is in the US. people who are avid gamers use the ps2 there or now, the new systems. PS3's very integrated home will probably take off well globally. It could easily become a 2nd life sort of thing or even much bigger/more expansive.


RE: Hmmm...
By encryptkeeper on 3/16/2007 3:35:29 PM , Rating: 2
Nintendo's Wii sales dropped? Is that an indicator of waning interest or did Nintendo happen to produce and ship less units in February than it did in January? If supply is still tight maybe a price hike is in order (LOL). I wonder what Nintendo's production bottleneck is...

This is probably not a sign of waning interests as it is supply. Also, electronics purchasing slows down in February anyway. There's a good chance there's a catch 22 going on inside Nintendo right now, as they probably don't want to pull people away from Wii production to plan how to increase Wii production, and they certainly don't want to pull people away from DS production.


RE: Hmmm...
By encryptkeeper on 3/16/2007 4:19:08 PM , Rating: 2
Xbox360 is doing decently enough but I think its sales have become a bit stagnant

This is a good point too, 10 million consoles sold is a good number for just over a year of market exposure. But right now, just about everyone who is willing to get a 360 at 399 probably already has one. Unfortunately, they'll probably stay that way until the PS3 comes down to that level of pricing (and that will take a while, especially since they aren't moving any they can't go through their supply of expensive PS3s so that they can start producing and selling cheaper PS3s). So, don't count on a drop on the Box until Sony at least gets close to their pricing.


RE: Hmmm...
By jadedeath on 3/18/2007 1:12:19 AM , Rating: 2
The evil Sony Master Plan to stimulate demand is Blu-Ray. {at least that's my theory} because it seems that lately people want more out of a machine than something with only one use. Why would they want just a Blu-Ray player, when they can have a Blu-Ray player that also plays games and has connections to something like Playstation-Live?

X360 is turning out to be quite the cashcow for M$ this is true, but that is mostly because of the games themselves and not the systems {I think Halo 3 will be all the proof anyone needs to prove that particular point the profit they make from that alone will probably cover M$'s costs for the next year at least}

Having said that I think the Wii is an excellent system and like all things {the PS3 and the X360 included} it'll take at least a few months for them to find their stride, and when they do it'll destroy the competition. I mean the numbers don't lie. People want the Wii and probably {if the sales keep up the way they are now} within a few months X360 will be in second place.

Logan


im sure the PS3's # are low because...
By kattanna on 3/16/2007 12:25:17 PM , Rating: 2
they are sooo hard to find on retail shelves

LOL !!




RE: im sure the PS3's # are low because...
By rykerabel on 3/16/2007 12:35:10 PM , Rating: 2
The Walmart, target, ebgames, etc. in my suburb of New Orleans is always sold out of ps3's


RE: im sure the PS3's # are low because...
By bldckstark on 3/16/2007 3:12:09 PM , Rating: 2
Heck, they are all over like gnats here in Indy.


By rykerabel on 3/19/2007 1:53:44 AM , Rating: 2
I checked again today: 2 Wii, 10+ x360, no ps3.

And no, i am not going to buy a wii and sell it to you :P LOL


By Hoser McMoose on 3/18/2007 3:57:54 AM , Rating: 2
I *still* have yet to see a single PS3 consoles on ANY store shelf in my city (Waterloo in Canada, a city of about 500,000 people). The "shortage" of the PS3 isn't so much a shortage as it is simply poorly distributed. I'm sure Sony's sales are being limited by lack of distribution in this area.

Of course, finding a Wii is even tougher. If I wanted one I could probably sign up to order a PS3 and get it within a week, while a Wii would probably take closer to a month to get.


Interesting Observation
By Legolias24 on 3/16/2007 11:58:58 AM , Rating: 2
While I agree the PS3 sales aren't as great as say Nintendo's or the 360, they still can't be thought of as horrible when you consider that the PS3 is only being sold in NA and Japan right now. I'm not saying that Europe/Australia (etc.) will necessarily be buying the console in droves, but you can probably expect an extra 50k to 60k being sold a month as a result of the larger consumer base (and I'm being conservative in my estimates due to the high price point). So really, the sales while not stellar, aren't bad.

And as for people bitching and moaning "Oh Sony just copied SL! Oh Sony's Home will suck worse than SL and or Xbox Live!" stick a cork in it until it's released will ya. I will be hard pressed to believe Sony's Home will suck any worse than SL (maybe Live but that remains to be seen). I've gone on SL and found it lagged like a 50 pound weight tied around a sprinter's neck! (hence why I'm no longer on it...that and I didn't see the whole point of it)

And guess what, much like any great evolution of technology, Sony has looked at something and said "what can we do to improve upon this idea/experience?" (please refrain from exploiting the blatantly obvious opening I've left where one could easily bash Sony and my post). Nintendo said: "What can we do to improve upon the game playing experience?". Microsoft looked at Sony's original attempt at the online experience with the PS2 and said "Oh hell ya we could do this better!" (I can't remember which came out first, Sony's attempt at consoles online or Mircosofts). But these companies were praised for their attempts to better an experience where as people seem really intent on dumping on Sony for doing the same thing.

I for one look forward to trying out "Home" and will bitch and moan if it's as laggy as SL. I also applaud Sony for their attempts at improving upon an existing idea.

-Legolias




RE: Interesting Observation
By Xavian on 3/16/2007 2:03:56 PM , Rating: 2
Indeed, but with the PS3 selling 20K per week in Japan (compared to Wii's 70K and DS Lites' staggering 140-150K) and selling this small amount in the US, I seriously doubt that Europe is gonna pull Sony out of this hole.

Europe as a whole is more interested in the Wii then the US is and quite frankly I just dont see how PS3 can outsell it there either.

The PS3 is the Nintendo 64 redux.


RE: Interesting Observation
By jadedeath on 3/18/2007 1:23:01 AM , Rating: 2
PS3 has outsold X360 in Japan.

After X360 being out for a year and PS3 only being out for a few months.

Not sure what that means but it's gotta be promising for a few Sony Execs who were worried about their heads.

Logan


Black 360