Wedbush Morgan Securities (WMS) is
adding some fuel to the fire when it comes to the next-generation
console battle. According to WMS, the battle at the top for supremacy
between the PlayStation 3 and Xbox 360 won't be a matter of who has
the best games, but rather who will be the winner in the
next-generation DVD format wars.
Just as the PlayStation 2 served as a
competent DVD player during the rise of that format for movies, WMS
sees Blu-ray as being a pivotal lynch pin for Sony -- much more so
than the games that the PS3 will play. WMS predicts that though 2007,
the Xbox 360 will hold 42% marketshare in the next generation console
race in the United States and Europe. Sony's PS3 and Nintendo's Wii
are expected to garner 39% and 19% respectively. Things swing much
more favorably for Sony and Nintendo in Japan where WMS expects for
the two Japanese giants to capture 65% and 25% respectively through
2010.
In the end, WMS feels that the PS3's
native support for Blu-ray (Microsoft plans to introduce an HD-DVD
add-on for the Xbox 360 in the future), its dominance in Japan and its
overall strength worldwide will make the Blu-ray format the big
winner in the next generation HD format wars. Sony's push for the PS3
doesn't come from the viewpoint of it being a great console; it
mainly serves to get Sony's foot in the door in the minds of
consumers for Blu-ray content. From Next Generation:
Of course, the PS3 will be the only
console capable of playing high-definition movies (Blu-ray) out of
the box, although Microsoft is expecting to release an HD DVD add-on
for the Xbox 360 later this year. Nintendo chose to forgo
high-definition capabilities for its Wii altogether. Clearly, if
high-definition video playback is the key to the console war, Sony
has a definite advantage.