<div style='font: 9pt ; text-align: left; '>From MagicBox:
Strategy Analytics has released a new console shipment forecast report, indicates that Sony will
continue to dominate the sales in the console market. Throughout this year, the console sales has
increased by 84%, and PlayStation 2 captured 63% of the worldwide market share, with over 41.9
million units shipped. GameCube is in the 2nd place with a 21% market share, or 10.8 million units;
Xbox is in the 3rd place with a 16% market share and 8.2 million units.
- Furthermore, the report forecasts that the market share of PlayStation 2 will further increase to 72%
by the end of the year. Strategy Analytics pointed out the console war has become a race for the
second place, as Nintendo and Microsoft will continue to fight for the second place head to head. The
industry experts predict that Nintendo may move to a software-only developer like Sega in the next
few years.
Might actually happen, which isn't necessarily a bad thing, IMO. The future of the console market is in the set-top boxes, no doubt, I just think it'll be later this decade. So, Nintendo goes it one more round in the consoles, then it just becomes too difficult for them to compete, with their limited product focus......unless they revolutionize the market again (don't say "no chance", that's what everyone told them back in 1985 when they launched the NES in the US a year after the Atari crash left a bad taste in EVERYONE's mouth, particularly the business world). And now they don't have Yamuachi's ego to force certain issues. I think they'll always stick to the GBA with a possibility of maybe making a future GBA-type machine with cell, PDA, and other wireless communication capabilities, in a partner deal with leading firms, of course. They really rake it in off the handheld machine, they'd be stupid not to carry that one on, evn if it's only to licence the hardware (to play their officially licenced games, their major cash cow) to other manufacturers. It's the console machine's declining profit margins and extended necessary capital outlay, R&D, and longer break-even time from a hardware point of view that might get them to leave the market; risks just way too high if your focus is only games.
Like I said, not necessarily a bad thing from a profit-maximizing point of view. The only real question is: will Microsoft be able to compete on the world market with Sony to the degree that we won't have another situation like we had with Nintendo back in the mid- to late-80's (no competition leading to iron fist ruling) or will there be yet another company which will present itself? Nintendo could stay in, but they'd need to strenghten their partnership with Matsushita a lot more or with some other company. Either way, they can't remain the dominant partner to compete in the future.
One thing's for sure, our kids will have FAR more interesting stuff to play games on than us</div>
Strategy Analytics has released a new console shipment forecast report, indicates that Sony will
continue to dominate the sales in the console market. Throughout this year, the console sales has
increased by 84%, and PlayStation 2 captured 63% of the worldwide market share, with over 41.9
million units shipped. GameCube is in the 2nd place with a 21% market share, or 10.8 million units;
Xbox is in the 3rd place with a 16% market share and 8.2 million units.
- Furthermore, the report forecasts that the market share of PlayStation 2 will further increase to 72%
by the end of the year. Strategy Analytics pointed out the console war has become a race for the
second place, as Nintendo and Microsoft will continue to fight for the second place head to head. The
industry experts predict that Nintendo may move to a software-only developer like Sega in the next
few years.
Might actually happen, which isn't necessarily a bad thing, IMO. The future of the console market is in the set-top boxes, no doubt, I just think it'll be later this decade. So, Nintendo goes it one more round in the consoles, then it just becomes too difficult for them to compete, with their limited product focus......unless they revolutionize the market again (don't say "no chance", that's what everyone told them back in 1985 when they launched the NES in the US a year after the Atari crash left a bad taste in EVERYONE's mouth, particularly the business world). And now they don't have Yamuachi's ego to force certain issues. I think they'll always stick to the GBA with a possibility of maybe making a future GBA-type machine with cell, PDA, and other wireless communication capabilities, in a partner deal with leading firms, of course. They really rake it in off the handheld machine, they'd be stupid not to carry that one on, evn if it's only to licence the hardware (to play their officially licenced games, their major cash cow) to other manufacturers. It's the console machine's declining profit margins and extended necessary capital outlay, R&D, and longer break-even time from a hardware point of view that might get them to leave the market; risks just way too high if your focus is only games.
Like I said, not necessarily a bad thing from a profit-maximizing point of view. The only real question is: will Microsoft be able to compete on the world market with Sony to the degree that we won't have another situation like we had with Nintendo back in the mid- to late-80's (no competition leading to iron fist ruling) or will there be yet another company which will present itself? Nintendo could stay in, but they'd need to strenghten their partnership with Matsushita a lot more or with some other company. Either way, they can't remain the dominant partner to compete in the future.
One thing's for sure, our kids will have FAR more interesting stuff to play games on than us</div>
I was there on that fateful day, were you?
