Despite Competitors’ Gains, Sony to Lead Game Consoles Through 2010

In-Stat: Sony will continue its domination of the video console market through 2010, though its lead will likely shrink due to stronger competition from Microsoft and Nintendo. Through 2010, the Sony PS3 will account for just over 50% of the installed base of next-generation consoles, while the Microsoft Xbox 360 will have 28.6%, and the Nintendo Revolution will have 21.2%.

Microsoft will outship Nintendo in the next generation of consoles due to its head start in launching, its strength in the North American market, and its appeal to older gamers, a demographic that seems to widen with each new generation of consoles.

• The PS3 will also include Blu-Ray DVD playback, a high-definition format that is central to Sony’s corporate strategy.

• Central to Nintendo’s console is a new type of controller that allows the user’s arm movement to affect the movement of game characters.

• Due to higher prices, the peak year for shipments of next-generation consoles is expected to be about the same as the peak year for current-generation consoles. However, overall In-Stat does expect a greater number of next-generation console shipments than for current-generation consoles.

Video Game Consoles 2006: Microsoft Launches Next Generation, Sony Dominates Current Generation Publ 20060320