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The State of The Next-Gen Video Game Console

With the release Monday of Wii Fit, the exercise game that some video game analysts have predicted could become one of the best-selling titles of all time, it was Nintendo's turn to dominate headlines related to the so-called next generation of consoles.

The "next-gen" era began in November 2005 when Microsoft launched its Xbox 360 and then really kicked into gear a year later when Sony and Nintendo pulled back the wraps on the PlayStation 3 and Wii, respectively.

Sony's PlayStation 3 was expected to be the next-gen winner, especially with a built-in Blu-ray player and incredible graphics courtesy of its Cell processor. Yet, the PS3 is generally seen as next-gen's loser, due to high prices, the resulting lackluster sales, and the perception of a paucity of killer games for the platform.
Pezman - contributor
Published: 579 days 15 hours ago | News | PlayStation 3 | Xbox 360 | Wii | PlayStation 2
 
 

Showing: 1 - 15 of 15 Comments
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Superfragilistic - 579 days 17 hours ago
1 -
The article is an interesting read although I firmly disagree with their analyst's numbers of 40million 360's, 107million Wii's & 107million PS3's by 2012. I just can't see the console market getting to a 250million+ size. Plus if we factor another years sales based on Sony's own predictions to factor in the 360's head start, the 360 & PS3 are tied at around 20million consoles each whilst the Wii hangs out at 25million.

In terms of price cuts the Wii has the most to lose and the PS3 most to gain just given their starting price points, but given the recent financial reports of Sony and Microsoft we have Sony losing $260 per console (once you factor in the massive PS2 and PSP profits) and Microsoft are only just breaking even. If Sony cuts the price of the PS3, MS will just follow as it has more financial room to move and counter at present. But with a lower price for a game console + bluray, Sony may be able to counter this financial advantage.

As for the Wii, it's already at a mass market friendly point and has sold at a significant profit since it's release. So Nintendo could certainly respond to any price competition and still know it has the most untapped potential due to short supplies.

In my view Nintendo will continue to outstrip the other two consoles whilst Sony and Microsoft continue to wage a war of attrition on one another, largely to Nintendo's benefit. Nintendo will get close to 100+ million, but unless there's any kind of significant shift in the current landscape the PS3 and 360 will essentially fight out a closely contested second place somewhere in the region of 60-80million consoles each by 2012.
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Mu5afir - 579 days 16 hours ago
1.1 - Sweet spot,
Let's take into consideration that the Wii is selling below the sweet spot of $299 (now at $249) and the Xbox 360 lowest model (Core / Arcade) are selling at $249 too. While the Ps3 lowest model is still priced at $399, and it's highest model is priced at $499.

The Ps3 hasn't reached the "sweet spot", so there is a HUGE potential of growth for it. While the Xbox 360 has reached, and passed below the target price range. Also keep in mind the Xbox 360 sales have actually DROOPED, while Wii & Ps3 sales have increase year over year.
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Monchichi025 - 579 days 14 hours ago
1.2 - HIGHLY DISAGEE
This article is predicting that the PS3 will once again go over 100 Mill. HUH??? We all know that the 360 and the Wii especially have cut into Sony's previous market with the PS2. Although Sony will still do great in the future with the Blu-Ray, it will not have the success it once had. Too much strong competition this generation.
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ericnellie - 579 days 14 hours ago
1.3 - @ Monchichi025
I agree with you -- I think the 360 will sell more than 40 million while the other two systems go on to sell over 100 million. I think that this time around the 360 has a lot more 3rd party support (which is major) than they had last generation.

The fact still remains, this is a guessing game! There's no telling what the future holds but I think that all 3 companies are doing very positive things to please customers and that's the only thing that matters to me.
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Real Gambler - 579 days 13 hours ago
1.4 - There's room for 250 millions consoles, not single owners...
I don't see any problems with selling that many consoles! Bring down the price of the Wii below $200, and get some supply on the shelf, and and almost everybody who has a 360 or a PS3 will have a Wii beside it...

Now, there was over 100 millions hardcore gamers before this generation. Those hardcore gamers are quite likely to buy either a 360 or a PS3 (Break down does not matter). Now, if they also all buy a Wii, that's 200 millions consoles total. Add to this 50 millions casual gamers who will buy only a Wii, or maybe even some casual Wii player buying a 360 or PS3 and here we go, 250 millions consoles sold.

And sure enough you have those guys who have to own them all. Remember, as the price goes down, it will be quite tempting for a 360 owner to buy a PS3 for some of the exclusives and Bluray player, and it will be also tempting for a PS3 owner to buy a 360 once the price goes down, good choice of games and reliability of the newer model is proven.

Only reason why we would not reach 250millions consoles with this generation, is if one of those big guys drop the ball and get into the next gen in the next 2-3 years. I can see the 720 or the HDWii coming out quickly...
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desolationstorm - 579 days 12 hours ago
1.5 -
I dont know where you get that there are 100 million hardcore gamers. I really dont see Sony selling 100 million ps3. Its all assumption but they lost a lot of exclusives and Im sure they lost part of that huge chunk of sport gamers. The fact of the matter is that they should do fine in Japan there isnt any competition from the 360 there and if they want a HD gaming system they will go with what they know. I still just dont see them doing over 100 million again. Should be able to do 75 million but then again Im sure they will acheive sales for being a cheap well made blueray player on the market.

So who knows what the hell will happen, but its gonna take some drastic changes and failures for the ps3 to catch up to the wii and surpass it. With wii fit in america now its gonna sell really well and Im sure they will have hardware sales in may simular to that of april.

As for the 360 consideing its next to dead in japan its doing really well. Microsoft wanted a piece of Sony and they clearly got it. I dotn know how many of the gamers they got outside of america from sony but clearly they have gotten some of them.

Who ever mentioned about owning multiple systems is right. There are a lot of reasons to and so its not easy to predict numbers. Though I think a lot of poeple are more likely to have a ps3/wii or 360/wii then a 360/ps3 or all three. Thats just my assumption though so its not based on anything.
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Superfragilistic - 577 days 22 hours ago
1.6 - Just wanted to add this little finding
The analyst who made these, in my opinion ridiculous, predictions has an accuracy rating on past predictions of just 25%, and in the case of sales predictions 0%. To put that into perspective the well known but often derided analyst Michael Pachter is right 60% of the time.

http://kotaku.com/358091/an...

Other than justifying that these figures are complete bollocks it also apparently confirms that it pays to be wrong more than you're right!
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callahan09 - 579 days 15 hours ago
2 -
I think he's right on the money with his 2008-2009 estimates. PS3 still will be in last by the end of this year, but next year, we'll see God of War 3 & Final Fantasy XIII, which will both be immensely popular, and then there's a humongous list of exclusives coming to the PS3 over the course of time from now til the beginning of 2010, far far bigger than the lineup coming to 360 and Wii (well, if you don't count all the complete garbage that is inevitable for the Wii that is). And then there's the looming price drop which is sure to hit before holiday 2009, and I think you're looking at a large migration to the PS3 by 2010, surpassing the 360 and starting to get really close to the Wii.
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edonus - 579 days 14 hours ago
3 - These numbers are rediculous....
This market is going to balance out for each console for specific reasons. The Wii will sell a bunch of consoles but it will not have an affect on the video games industry, because 3rd parties titles and advanced big budget games will more than likely flop, so Nintendo will get payed but thats it. The 360 will reach as many gamers that willing to listen, those that buy 360s will be converts and gaming enthusiast so as long as MS keeps delivering good content they will buy and buy alot. The Ps3 will continue to thrive off of name brand they will consistently creep up in sales but their software market will never be optimized. I've said it before Sony has a programmed buyer if the games released arent part of the program no matter how good it will not reach success. They all will have their limitations and be successful in their own right.
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kewlkat007 - 579 days 14 hours ago
4 - The things that are always wrong with these articles is that
they never state any other contributing factors that might effect the gaming industry sales.

Especially the Economic ones, facing us right now. The gaming Industry is not like the Housing Market.
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princejb134 - 579 days 14 hours ago
5 -
even dou i cant really agree with everything here especially the numbers
it was a very interesting
it will be surprising if the writers prediction becomes true
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kingme71 - 579 days 13 hours ago
6 -
I don't think the 360 will last until 2012. It might last alongside of a 720 like the PS2 does alongside the PS3 today and if that is the case, the price would drop substantially.

If indeed the 360 is still going strong in 2012, I don't think the numbers will tail off like that graph shows though.

I think you'll find alot more multi console owners this generation than last. Alot of hardcore gamers that have a Wii have either a PS3 or 360.
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vega75 - 579 days 13 hours ago
7 -
i have to disagree. i know in the past the ps brand sold over 100min units. but this time around it has stiff competition from ninty and MS. plus sony market share are not what they once where. the only system i see selling over 100 min units is the wii. i see the ps3 selling like 60 to 70 mil and the 360 with 50 to 55 mil by 2012.
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Expy - 579 days 13 hours ago
8 -
No matter what people say, Sony made a good move introducing the Blu-Ray disc player in the console. That alone will push a lot of units not to forget the gaming aspect of the system as well.
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witchking - 579 days 11 hours ago
9 - The Games Will Drive It
Look, the games are going to tell the tale. In the last generation, Sony had a headstart, and it had an exclusive on GTA III. Those two facts coupled with astounding support from third parties WW made the PS2 the most attractive console.

This generation, well, for reasons that still boggle my mind, the Wii is going to take a large lead... and will likely win, provided Nintendo can keep it at least modestly interesting to the casual gamer through 2012. I have one, but other than playing bowling with my kids, the only action it gets is from the children. I think everyone either has one or wants one, despite how much (little) play time the thing gets.

So between 2009-2012, the big question is: what is THE game that will help push either the 360 or the PS3? The problem with the 360 is that it definitely has a brand image of being for an older audience. Its hits -- Halo, Gears of War, Fable, even GTA IV -- are all rated M. The 360, if it's going to get up to the 75m or more mark, needs an E or T game that is simply the must-have title of this generation. Had they acted swiftly enough to buy Harmonix, they could have had an exclusive with Rock Band, but they didn't do that. I suspect that the 360 is going to do better than the original Xbox, but the question to MSFT, when they find themselves struggling, is whether they will have done well enough in this generation to go ahead and launch another generation with a new Xbox in 2011/2012.

The PS3 has some momentum, and LBP may very well be THE game that helps push that system, but only when the PS3 comes down in price -- significantly -- will it generate the kinds of sales we're seeing from the Wii right now. As much as MGS4 is a system seller, so was Halo, and again, it's a hardcore audience playing a mature game. It's not going to be the be-all and end-all that helps push PS3 over the hump. Something mainstream will need to do that.

Both the 360 and the PS3 have great lineups and great franchises to bank on. But they missed the boat. The success of games like Guitar Hero, Rock Band and the Wii show that people want more interactive entertainment... had either Microsoft or Sony been able to gain exclusivity over the Guitar Hero franchise, for instance, then we might have seen one of them simply push forward at a phenomenal rate. Now each of them will be looking for elusive title that simply every single person will want... and will shell out the dollars for the console to play.
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