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PS2 showing no signs of slowing down despite being in its silver years
Mass market not ready for high-def gaming, says analysts

Before the two new console launches in November 2006, it was popular belief that supplies of the Nintendo Wii would be ample and consumers would be able to secure one without much hassle or worry. Today, a full five months following launch, Wiis are still hard to find, and those who do find them can resell them for a greater profit than the retailer.

According to one analyst’s opinion noted by Home Media Magazine, the demand for the Wii could outstrip supply all the way to 2009. “I believe the Wii will continue strong growth although supply continues to be a problem,” said Billy Pidgeon, video game analyst, IDC. “I’d like to see Wii hardware shipping in larger quantities or mass market consumers may cool on it. Having said that, I don’t believe supply will meet demand for the Wii until 2009.”

“Xbox 360 and PS3 need system-selling games ASAP. Halo 3 will help, as will Lair and Heavenly Sword, but that leaves a hole in Q2 which will be filled by Wii, DS and PSP hardware and software. We’ll also see more PC and PS2 software picking up the slack,” added Pidgeon.

Apparently he isn’t the only analyst who feels that the mass market isn’t quickly taking to high-definition gaming. Michael Pachter at Wedbush Morgan Securities thinks that the PlayStation 2 will remain a strong seller thanks to movie license games such as Spider-Man 3 and Harry Potter and the Order of the Phoenix.

“It still seems to be the year of the PS2,” said Pachter. “Notwithstanding all of the other choices, consumers keep buying PS2 games, with barely any drop off. Virtually all of the year-over-year growth is attributable to a slower than expected decline in PS2 software sales.”

These analyst comments came immediately following the release of March video game hardware and software sales figures from NPD, with a particularly strong showing for Nintendo DS and PlayStation 2.

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RE: So this is good for Nintendo
By jpeyton on 4/25/2007 5:09:16 PM , Rating: 3
More than just a great job. The scope of Nintendo's turnaround is astounding.

What they have absolutely perfected is timed delivery of their product. They know exactly how much to deliver to sell out, generate buzz, and keep supplies limited while still preventing consumers from becoming disinterested.

RE: So this is good for Nintendo
By Verran on 4/26/2007 9:44:26 AM , Rating: 2
You're absolutely right. If anything, I think the supply shortage is HELPING Nintendo. People want a Wii for lots of reasons, but one of them is that they're hard to get. Getting one is impressive because you can't just walk into a store whenever you feel like it and buy one. This is just more encouragement for people to seek them out, and snag them quickly if they're in stock. That's why Nintendo will continue to sell basically every Wii they ship for a long time.

It's just hilarious to see the aftermath of the launch. After hard-cores tore the Wii up and pointed out all the bells and whistles it didn't have. And now we see the success and I just have to laugh. Here Sony and M$ are in this dead-locked blood-match fighting over the relatively small market of gamers willing to spend $400 plus on a base console, and Nintendo waltzes in and picks all the low hanging fruit in the world of casual gamers who really haven't been represented in the market for a long time. I think it's genius.

RE: So this is good for Nintendo
By mars777 on 4/27/2007 10:14:00 PM , Rating: 2
Hmm, that may be correct for the US, but here in Croatia you can buy lots of Wii while the PS3 can't be found :(

I think its something concerning the 'mentality' of people, or the supply chain?

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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