I have a slightly different view of the console market.
Wii is cheap and instant gratification, so (as it should) is selling well.
Xbox30 is the cost effective HD options
PS3 is the technology lead, but currently at a price that stops it selling in volume.
Going forward the ain revenue for the console manufacturers is license revenue.
I expect a lot of people will be perfectly happy with a very limited number of fun games on the Wii and so through the life of the overall revenue per console will be less than the other two.
Xbox360 – solid performer – some top notch games, solid business in America and Europe, but Japan is a non-started. So, will do well and will sell a lot of games per console.
PS3 – I believe it currently suits Sony to not sell a large volume of consoles at the moment. They are expensive to manufacture, so Sony is losing a lot of money on each console sold. Also, there are very few top notch games at present. Later this year early next year the PS3 star games are expected. At the same time expect a dramatic increase in the sales of PS3s and also the games. Giving the PS3 a strong position going forward.
My expectation is that Nintendo will do more than enough to be back in the fight after the Gamecube fiasco. Microsoft will gain more traction but will continue to perform badly in Japan. Sony will struggle for about 6 months and then assuming great games and a proper price drop will make a serious showing and challenge on revenue through 2008 and on units in 2009.
For disclosure – I do not own any of these consoles. I am waiting for the price drops, not only on the consoles but also on 40” LCD HD TVs.
Financials...
I have a slightly different view of the console market.
Wii is cheap and instant gratification, so (as it should) is selling well.
Xbox30 is the cost effective HD options
PS3 is the technology lead, but currently at a price that stops it selling in volume.
Going forward the ain revenue for the console manufacturers is license revenue.
I expect a lot of people will be perfectly happy with a very limited number of fun games on the Wii and so through the life of the overall revenue per console will be less than the other two.
Xbox360 – solid performer – some top notch games, solid business in America and Europe, but Japan is a non-started. So, will do well and will sell a lot of games per console.
PS3 – I believe it currently suits Sony to not sell a large volume of consoles at the moment. They are expensive to manufacture, so Sony is losing a lot of money on each console sold. Also, there are very few top notch games at present. Later this year early next year the PS3 star games are expected. At the same time expect a dramatic increase in the sales of PS3s and also the games. Giving the PS3 a strong position going forward.
My expectation is that Nintendo will do more than enough to be back in the fight after the Gamecube fiasco. Microsoft will gain more traction but will continue to perform badly in Japan. Sony will struggle for about 6 months and then assuming great games and a proper price drop will make a serious showing and challenge on revenue through 2008 and on units in 2009.
For disclosure – I do not own any of these consoles. I am waiting for the price drops, not only on the consoles but also on 40” LCD HD TVs.