Analysts Predict Consoles Sales Peak Reached
Thanks to Yahoo News for reprinting the press release regarding financial analysts' predictions that the current videogame console cycle has peaked. According to a spokesman for U.S. Bancorp Piper Jaffray, "We believe spring 2003 marked the midpoint of the current video game cycle", suggesting 2003 "will be the peak year for unit sales of current generation hardware." This may mean leaner times before the next generation of console hardware debuts, predicted by Piper Jaffray for "autumn 2006", and meanwhile, the company is forecasting "...that 22.3 million hardware units will be sold in North America in 2003, a modest increase from 21.1 million units in 2002 and will subsequently decline in 2004 to sales of 20.3 million units as the installed base of video game hardware becomes saturated."
that the amount of fun you can have playing console games peaked in 1990.
"If you think you have things under control, you're not going fast enough." --Mario Andretti
ha ha ha ha ha
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GO FREEBSD!
It seams like every month there is a new console on the market. This has to have an effect.
Also, with so many people having computers these days, why have a console? Sounds like redundant spending to me.
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nt
This may mean leaner times before the next generation of console hardware debuts
Not really. Even the companies that don't lose money on their console sales aren't making a whole lot. Game sales are what is important, and the larger installed base should help those.
Super Nintendo had some of the best games ever. Illusion of Gaia, Final Fantasy 3(6), Super Mario All-Stars + Super Mario World...Not to mention the Super Scope. Shooting your TV with a bazooka is just... ok, retarded. I'm done now.
"What is Internet Explorer 7? Are you saying we can't access the normal internet?" - I love tech support. Really.
Who are these guys? Do they speak with any authority on this subject? I read the article and as far as I can tell they're a bunch of financial analysts. Do they have a history of predicting this kind of thing accurately? Is there any reason to listen to these predictions?
I have a lot of opinions about Cyborgs and Architects
I suppose a 10% decline is quite steep, but considering the console itself isn't the money maker for the companies, aren't they still expecting huge profits? Consider...if each console owner purchases 1 game per year, with sales as they are you're talking about an increase of ~20 million games per year. This compounds each year of the consoles' "life" such that after 5 years worth of sales like this, you'd be expecting 100 million games sold per year, with a yearly increase in the number of sales. That seems like a decent profit margin.
--trb
How is this going to affect the next line of consoles? Will it cause the prices to be much higher? Will the number of consoles to be made drop?
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This anonymous analyst predicts that the number of industry analysts peak in stupidity has yet to be reached. Critical mass expected in 2012 when Gartner gets bought out by Microsoft and Illumanti purchased by Intel. The rest are gobbled up by Faux News and King Supreme, George W. Bush and Prince Supreme, John Ashcroft.
In other news...
The major console companies all had a post-peak cigarette today. Nintendo was quoted as saying, "Hold me."
Unfortunatly, the lovefest came to a quick end when Sony and Microsoft got into a fight over who would have to sleep in the wet spot.
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now ill go buy a game cube, play it for a week and then go back to playing the classic zelda. new games are fun, but the classics never die
It was announced today that IBM will be making processors for Nintendo's next generation console. So that means IBM will be involved in developing the processors for all 3 next-gen consoles. Sony obviously has its own thing with the Cell processor, but what about Nintendo and Microsoft. Is it possible that they have basically decided to team up (against Sony)? It is possible that they will both use a PowerPC-type processor on their next console, as well as an ATI graphics core. Could it be that a) they are going to develop one XBox/Nintendo console, or b) that they will make their hardware so similar that porting a game from one to the other would be child's play? Option a) seems very intriguing to me. There would be no question that I would get the XBox/Nintendo console over the PS3-- especially if I could play both Gamecube and XBox games on it.
Also, in an interview with Denis Dyack of Silicon Knights, he said "...it wouldn't surprise me if sometime in the future there is a collaboration [between console makers]. It doesn't mean that there's a less-competitive environment, but it would mean that everyone could worry about making good content instead of the technology. And I think that would be a huge positive shift for our industry." Denis Dyack is very close with Shigeru Miyamoto, and is likely to have some insight and input on Nintendo's plans for the next generation.
What does everybody else think?
One thing to keep in mind is that software (In this case games) sells hardware. So you could see a spike in hardware sales if a killer game comes out for one system and not on the others. Say the "best game ever" comes out on x-box next year. Sure, there are some die hard ps2/gamecube fanboys, but plenty of them would buy a ps2 just to play the "best game ever".
The Cross platform releases are what keep hardware sales down, (good) exclusive titles should make console sales go up.
Funny thing is, I think that Half Life 2 will be a major selling point for the next gen game systems. No current game system can produce graphics as good as HL2 (or Doom3). Not saying that these titles will even be availble for the next gen systems, but they do both show how aged the current technology is. Take for instance Max Payne 2. Fucking Amazing looking game, the difference between MP1 and MP2 is striking and it even isn't a true "next gen" title. It will take a lot to dislodge people from their current PS2s as the graphics are good enough. From the specs of the Ps3 I am certain it will be enough to make the PS2 look woefully inferior. Lastly, the price won't matter either. People paid $299 for the PS2 when it came out and will pay $299 when the PS3 comes out. An alliance between M$ and Nintendo would really make a lot of sense for both companies as I am sure both of them realize that there can be only two systems in the end.
"Jeremy, you need to get to an internet cafe and cut and paste some appropriate sentiments about me from the world wide
Every mention of sales so far this year says that year-to-date sales of consoles are lower than they were last year. GameCube sales are up, but that's not enough to counter a large drop in PS2 sales combined with a small drop in Xbox sales.
Check Nintendo's recent press releases. I think the PS2 year-to-date sales are down 17%, Xbox 5%, and the GameCube up a few percent or so.
Looks like 2002 might've been the peak, unless something unexpected happens next year to drive up sales.
The Gamecube was unloading with Zelda, Metroid Prime, and Mario Sunshine (which wasn't that great, but the name alone sold it)
The PS2 was going insane trying to counter the Xbox's online advantage and cranking out/announcing more games to the Greatest Hits list
The Xbox was... well... being itself.
I'm not surprised that Spring 2003 was a high point in the video game console market, but to say the market will suffer from a decline now is both really not saying much and really not doing your research.
On the PC side, they have Half-Life 2 and Doom 3 coming out. That alone is going to eat gamers' time up like MMOGs. Hence the decline.
On the other hand, consoles have MGS:Twin Snakes, Fable, Halo 2, and MGS3. Talk about not expecting big name games.
Depending on how you want to look at it (will Half-Life 2 and Doom 3 be able to go up against Halo 2 and MGS3?) there isn't really much indication that the console market will really go down.
I have a mac and several consoles dating back to the 80's
Smurfs for Atari 2600 is a sweet game.
"What is Internet Explorer 7? Are you saying we can't access the normal internet?" - I love tech support. Really.
alone will sell 10mil xboxes.
A few years back, I bought a Voodoo5 for my boyfiend at the time because he really really wanted it. Cost me $250, which, if you recall my comment about carrying $5 or $10, is a lot for me. Not 6 months later he was complaining because, since NVidia took over the video card market, his new games didn't like the overpriced card I gave him. I probably should have taken it out of his computer when I left him. Perhaps that colors my opinion.
"What is Internet Explorer 7? Are you saying we can't access the normal internet?" - I love tech support. Really.
So, uhh, basically what they're saying is in about a year i'm going to have to purchase a Playstation 3, a Gamecircle, an XBox2, and upgrade my graphics card/processor to keep current with the video game market.
Between owning 3 PCs, an Atari 2600/7800, NES, SNES, Genesis, SegaCD, Dreamcast, a PS, PS2, a Gamecube, and tons and tons of games over the last few years, I can honestly say this hobby is more expensive than a crack addiction...
"In a Democracy, people get the kind of government they deserve." -Winston Churchill
WHY would you rebuy a console you say? Why not fix it yourself? FOR INSTANCE, the PS2 issue with the LASER being a bit OFF after a few hundred uses. I have personally experienced this, twice. But since i have a library of about 50 games (PS1/PS2) that I enjoy, I'm not about to waste those purchases by waiting for a PS3 to come out, SINCE I purchased a refurb (as oft I do) and I hadn't discovered the issue with the Laser yet, I just boxed my old PS2 back in it's original box, put it in the attic and went out and purchased a full waranty PS2.
I probably should have had the first one repaired, but I was in the general lazy mood I get when thinking about consoles in general. After a particularly long day the last thing I want to do is fight with a screw casing, or a small hex screwdriver to get a stupid laser aligned.
This tax on laziness, probably will sell an additional several hundred units, if only cause the average consumer isn't even going to think of having their console repaired.
Today I was in an Orange County CA GameStop and the manager was talking about how another store in the district had over 400 preorders for Halo 2 and that many were over 200... He was upset that his store only had a little over a hundred. Now, I am not the smartest man in the world but it seems that if Halo 2 has this many preorders in one county with several months to go until launch date, saying that Halo 2 will sell less than 10 million copies is a little short-sighted. I think that the game will indeed move Xboxes and a lot of people with Xboxes and no Halo (Such as myself; I bought it for KOTOR) will pick up Halo 2.
Is the console "dick swinging" going to end and the REALLY good console games come out?
Some of the best console titles end up being mid - late gen games to the console.
FFVII-IX, Syphon Filter, MGS; Shenmue, surely others I've missed, it seems that truly innovative titles hit a console late in it's development cycle.
The financial analysts behind these "revelations" have sold video game interests short. These prognosticators are no better at telling the future than Miss Cleo. Remember, analysts are the folks responsible for encouraging millions of Americans to invest and lose billions in tech stocks. Funny thing about the future ... it hasn't happened yet. Makes it hard to say what happens there!
_/\ - Sturgeon's Law: 90% of everything is crud.