The 67% increase in Xbox 360 sales did not save the company from reporting the 10.9% drop in net profits this last quarter, to only $4.3bn. The net revenue it self didn’t grow much either, less than 1% to $14.45bn. So the drop can’t only be blamed on the $1.42bn EU anti-trust fine.
That said, add to it the very slow growth Microsoft is getting in the online business, and to add insult to the injury, Gartner analyst have recently reported on the danger of Microsoft Windows collapsing due to it’s lack of competitiveness with the fast growing market. Come to think of it, really, for the leader in OS business, Microsoft haven’t been shaking things up at all. So maybe few years from know, Microsoft will receive door knocks by Yahoo for a buyout!
The January NPD data report on console and game sales in the US has been released, and PS3 sales have not only surpassed Xbox 360 with 269,000 units compared to 230,000, but it is also going Wii a real chase up with 6,000 units difference only! It’s true ofcourse, Xbox 360 has been in the market for quite some time, and Wii has been selling like candy all the time. On the other, considering the price difference between a PS3 and a Wii, for me this counts as PS3 is outselling right now.
Meanwhile, rumors are spreading of next generations of the Wii and Xbox 360 in 2010. With the delay Sony had in releasing PS3, I think the will have their own show in the next release, probably 2012. But then again, they might enjoy knowing their enemy tactics and countering them.
PS3’s main problem remains so far however, and that is lacking killer apps and exclusive games. Wii is fun for family, Xbox 360 has many exclusive games, and with strong internet multi-player support, while in PS3, and coming from Anti-Microsoft guy, still lacks the games that brings people to it. I am personally downloading many playable demos I find, and I hardly find ay worth of spending $60 on. Call of Duty? Well that’s not exclusive. MGS? Fans are still waiting! I know some people might be loving some games there but there isn’t just enough variety, and the lack of multi-player games there makes it less helpful in gatherings.
This Add-on device that will let PS3 users watch digital TV via their consoles might bring more value to it. There is a video demo of the device if you like. But for me, last week I knew I didn’t waste my money on the PS3 after I watch the first Blu Ray version episode of what I think is the best planet documentary ever made.
I came by the Google Trends and I was thinking of an interesting competition to make, and I thought “What’s better than console war?”. So I went and compared PS3, Xbox 360, and Wii. and here is the result:
Pretty obvious Wii came out of no where in 2005 Q4 to take over soon. Xbox 360 over does PS3 for most of the season. And only recently PS3 seems to be catching up with XBox 360, as it is becoming more affordable and has more games. That’s not all you can read from the marvelous Google Trend however. If you take your eyes down a bit to the regional break down you will see this:
What can you see? Xbox 360 is red remember. It is the lowest of all in Japan, and we’re not talking about a tiny difference. Not for any other console or region there is such low demand. Pretty interesting ha! Guess Japanese hate this thing to heart. The other interesting thing I noticed is that United States come at # 8 in ranking for PS3 demand, and does not exceed # 6 for the other two consoles. I didn’t think France, Canada and Spain would be topping the US in video game demand.
Now for a detailed look at how the graph looks for console demand in the land of games, Japan:
OUCH! Very very low for XBox 360. Wii is starting to get competition with the yet to prove PS3.
If there is one lesson that I have learned from the gaming industry, it’s that strength is not everything. The report and results from PC World says so. After two years of promising next generation powerful console, PS3 came out unloaded and had nothing special. Sales of PS2 are surpassing PS3 now, that Sony have increased this year shipment of the old console to 13 million unites, up from 11 millions planned originally.
But why is that lack behind? When Nintendo launched, they didn’t have much advancement in graphics, and I think they made the right choice not to go with that direction. To succeed, they decided instead to do thing differently, with their remote like controller that really made the simplest of games sound fun to play, and easy too. Another thing they saved on was the price, compared to the expensive PS3 console. In addition, Nintendo had their killer apps ready for launch. The long anticipated and exclusive Legend of Zelda, was enough to get people lined up for the Wii console. Rayman did not do bad at all as well. Sony on the other hand had no killer app, nor exclusive games. It was basically the sames games on other consoles with a bit more on graphics. Nothing that is worthy of 400 to 600 dollars! While both Wii and PS3 should not be available worldwide, in Kuwait ofcourse they both are even at large stores like Virgin. The funny thing is, some shops are selling Wii for over $700, almost the price of PS3. It is worth mentioning that PS3 came first to Kuwait for over $1500, and it is now worth around $850 only. Read the PC World report for more information on console sales in the US.
The Register writes about the game console sales in US last month, lead by XBox 360 with 1.1m unites, followed by Wii 604,200 and Sony 3 490,700. PS3 is still in the last place, and XBox 360 taking the lead among. This lead is most probably due to the lack of productions units for Wii and PS3. Why is the PS3 also less popular? Well I suggest you browse for the PS3 games and see which game is worthy of buying the $400 console. There is no killer app for PS3 yet, but they should be coming in 2007 or else Sony will be kicked out of this round.
The amazing thing is the sales of the old consoles however. PS2 reached 1.4m, 1.6m for Nintendo DS, and 953,200 units for PSP. How could people still buy the PS2 I wondered, and then I remembered the tag price for new consoles. The total console sales in December rose %59.2 from last year, totalling $1.6bn! Can you imagine. And my dad used to tell me video games are just for kids.
