Strategy Analytics: Nintendo Likely to Lose GameCube Gamble; Microsoft's XBox Will Gain Ground In This Year's 36 Million Unit Console Market.Entertainment Editors/Business Editors LONDON--(BUSINESS WIRE)--Feb. 25, 2003 he number of users of advanced games consoles soared by 128 percent in 2002, reaching 56.3 million worldwide, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest research from Strategy Analytics' Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). Entertainment Strategies service. 75 percent of users own Sony's PlayStation A video game console from Sony that was introduced in the U.S. in 1995. CD-ROM based and using a 32-bit MIPS CPU, the original PlayStation was the first of a family of desktop and handheld units. 2, compared to 13 percent with Nintendo's GameCube, and 12 percent with Microsoft's XBox A video game console from Microsoft that was designed to compete with Sony's PlayStation and Nintendo's GameCube. Introduced in 2001 with a 733 MHz Pentium III CPU, 5x DVD drive and custom-designed graphics processor, the Xbox also includes four game controller ports, Ethernet networking . Forecasts suggest GameCube will lose ground during 2003. According to the analysts, Nintendo could build a leading position in the $12 billion software market, but it must first abandon its present console strategy. Global sales of advanced 128-bit consoles reached 32.9 million units in 2002, according to the research. PS2 was the choice of nearly 70 percent of buyers, while the remainder was split evenly between GameCube and XBox. Total sales of all platforms in 2003 are predicted to reach 36.2 million units, but GameCube's sales are expected to fall by 4 percent in 2003, while XBox sales will rise by 12 percent. Key drivers of this trend are XBox's growing software library, its clearly defined online gaming See gaming. strategy, and Microsoft's substantial investments in the platform. By contrast, the GameCube's online strategy is unclear, and its support from publishers appears to waning. Strategy Analytics recommends that Nintendo abandon its traditional console-exclusive software publishing strategy and publishes its games across multiple platforms Refers to two or more operating environments, which typically include the CPU family and operating system. For example, if versions of a program run on Windows and the Macintosh, the software is said to support multiple platforms. . The company stands to lose relatively little, while gaining access to an additional 77 million console owners during 2003. "Nintendo is missing out on the current generation of games players," says David Mercer For other persons named David Mercer, see David Mercer (disambiguation). David Mercer (27 June 1928, Wakefield, England – 8 August 1980, Haifa, Israel) was an English playwright and dramatist. , VP of the Strategy Analytics Global Broadband Practice. "Culturally it will be difficult for the company to change course, but it must do so in order to secure its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. position as a leading games publisher."
Global Advanced Games Console Installed Base Forecast
Millions 2000 2001 2002 2003 2004 2005 2006 2007 2008
North America 1.2 11.1 26.8 42.9 54.5 61.4 67.8 74.9 80.6
Europe 0.8 5.5 16.1 28.9 37.6 43.1 48.9 53.7 54.5
Japan 3.6 8.0 13.3 17.2 18.9 20.1 22.1 23.1 23.1
Total 5.7 24.6 56.3 89.0 111.0 124.7 138.9 151.7 158.1
Growth Rate 333% 129% 58% 25% 12% 11% 9% 4%
Note: includes 128-bit and succeeding generation consoles
Source: Strategy Analytics
About Strategy Analytics Strategy Analytics, Inc., a global research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com |
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