UK Shows Record Game Sales, Xmas Hardware Decline
Thanks to Reuters for their story indicating that the UK videogame software market swelled to a new high of 1.26 billion UKP (2.29 billion USD) in 2003. The piece points out the increasing success of publisher Electronic Arts, "which notched up five of the top 10 selling titles, and the top four overall", and the original ELSPA press release notes that soccer title "FIFA 2004 was the overall [sales] winner." However, Gamesindustry.biz weighs in by revealing that "total [console hardware] units sold over the crucial Christmas period were down by over 10 per cent year on year", and pointing out that "the overall picture clearly indicates that hardware sales have peaked a year earlier than some analysts predicted - meaning the next two Christmases will be even more challenging for retailers, with discounted software likely to be rife as they battle for market share." The dominance of the PlayStation 2 at UK retail is supreme, though, as: "Over the crucial last four weeks, the PS2 outsold the Xbox by 2.69 to one, and the sixty-pounds-cheaper Cube by 4.81 to one."
When sales drop for hardware like this, it is clearly the case that people are simply not buying the hardware. Many factors are probably at play here, but the bottom line is that the expected number of units were simply not sold do to less demand.
I have been pwned because my
A Game Cube is 60 pounds less than a PS2?
And here I thought the Xbox was massive.
I am really suprised by how much the ps2 has outsold the cube over them 4 weeks, I really thought the cube would be the best selling since its got some really good packages really cheap, then again nintendo would help there cause if they just released a pokemon game for the cube already, I know many people who would have bought one ages ago if they had.
BTW I do know that there is now a pokemon game in japan for the cube, but its a mystery why they did'nt want to release it here for christmas time since I can't imagine it needs much in translation.
It's simple folks. It means those UK people must be even MORE unlucky then Americans with PS2's that break down every 6-12 months and need to be replaced.
You must master your joystick like a fisherman masters bait! - Gimpy
Odd that the GCN was so low, it is a bit of a self fullfilling prophecy though. When people came into the shop I work at without any idea what they wanted there was no problem guiding them to the system best suited to their needs - young kids would always be better off with the GCN; where the family all wanted to use it then the PS2 would be better and if a mature person wanted a machine then the Xbox would be ideal. However, the name recognition of Playstation also plays a big part in it, we would frequently get people in who had no idea what they wanted but it had to be a playstation. Its getting like people buying a hoover instead of a vacuum cleaner. I'm sure Sony loves that,
"I have the attention span of a strobe lit goldfish, please get to the point quickly!"
Considering that sales in the UK over Christmas were poor all round it's hardly surprising. Why should we expect consoles to buck the trend?
This console cycle is going to be larger than usual (new consoles are going to start arriving almost two years from now), and I believe that Sony has had a great run on the stretch (with inferior console - that proves that software lineup is the most important asset).
I think that since Sega is not a player anymore it helps to extend the life of consoles too (no players making rush moves into the market, e.g 32x, Saturn). It's also good to remember that there's a spike once a console reaches the $99 price point (I'm waiting on the PS2 and Xbox myself), because adoption by lagards (or 2nd/3rd console option).
"Microsoft, meanwhile, must reflect on a very disappointing Christmas, with a summer price cut and numerous fantastic value bundles failing to increase demand over the same point last year. Sales for the four-week Christmas period were around five per cent down despite an impressive surge during the last two weeks - and the Redmond giant would have been hoping for much better things in the console's second Christmas."
Gee... although it's undeniable that the Xbox has been somewhat a success (considering it's a 1st attempt), but I really wonder about the next round of consoles. If things don't progress (market share, profit margins) beyond XB1, I don't know how long will MS keep their videogame incursion up. (Not that they don't have TONS of money, but how long can you drag a venture without making business sense).
Unlike automotive companies that make supercars to attract people to dealerships (so they buy the middle end vehicles after realizing that they can't afford the supercar), microsoft won't be selling more Office or Windows copies for each Xbox that they sell at a loss.
The future sure looks interesting....
It's funny to look at the surging health of the UK game market in light of all the failed European game studios mentioned on Slashdot earlier this week. Clearly someone's not rooting for the home team.
I feel like going for a troll, so here it is. The general accepted currency abbreviation for the UK is GBP (Great British Pounds) not UKP, which I have never seen before.
for someone to come in an mindlessly defend the GC.
C'mon, it is only a month and it is only the UK...only fools are going to bother saying, "Haha, the GC sucks," when reading something like this. Get over it, you don't need to defend it every second of every day.
It's their fault, because they use that f*cked television system, PAL. Eons ago they should have dropped that crap and adopted NTSC like everyone else.
And, while I am trolling about stupid systems, it's time the Americans stop using their retard metrical system. Everyone should be using meters/kilograms/Kelvin/etc. for their measures right now. We are in the XXI century you know! The time in which you could measure things with your elbow or whatever has passed away!