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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: Price matters
By BladeVenom on 4/25/2007 8:07:30 PM , Rating: 2
The attach ratio would have to be less than .33 movies per console. They've sold almost 3 million consoles, but they've only sold one million Blu-ray discs. You'd also need to subtract how many discs went to owners of stand alone players, but I don't know how many that would be.

While some Sony fans might want to justify the high the cost of the PS3 because it is also a Blu-ray player, it looks like most PS3 owners don't care much about Blu-ray so far since most don't own a single movie for it.


RE: Price matters
By Alpha4 on 4/25/2007 10:32:44 PM , Rating: 2
I agree with your assessment and am scratching my head as to why it was modded down. Perhaps it'd be possible to determine the attach-rate of Blu-Ray movies to PS3's if they had each PS3 with an internet connection anonymously report each instance a unique Blu-Ray movie is played at least two weeks apart (to rule out any rentals). That would account for a purchase, wouldn't it?


RE: Price matters
By Lakku on 4/25/2007 10:52:04 PM , Rating: 2
It was probably voted down because, last time I checked, the majority of people rent movies rather then buy them. It makes sense, since games tend to have more 'replay' or added value, especially if they have multiplayer. You can't just say most people with a PS3 don't care about BD (you imply it by saying they justify the high cost of PS3 because it plays BD movies) by sales of movies, because as I said, most people rent movies, rather then buy them. This is especially true with Netflix and Blockbuster online nowadays. I know plenty of people unfortunately, that use these services to rent movies cheap, burn them, send back for more, and burn some more. Hard to do that with games. Anyway, that last bit is just some speculation as to why people tend to rent movies rather than buy.


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