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Fallout From the November Console Wars

All three 'next generation' consoles are out, and we can finally stop using that term. The NPD numbers for last month have been released, and there's plenty of information there to discuss. Analysts have already made some observations, with brandintel specifically pointing out the Xbox 360's 'surprising' role in last month's fight. For some more well-reasoned thought, Dean Takahashi's take is the place to turn: "At this rate, Microsoft isn't going to hit its goal of 10 million units by year end ... Sony's number is consistent with its warnings, but 197,000 is worse than what many expected ... the fair fight is really going to be what happens in the year 2007, when all three console makers should be able to ship as many consoles as consumers want. To me, this looks like consumers are hit with a case of sticker shock. The mass market is paying for cheap PS2s, DS Lites, and GBAs." Despite the Wii's success last month, it should be noted that Nintendo is no longer bragging of 1 Million units in the U.S. by the end of the year. So, essentially, it looks like all three companies will fail to hit their console goals for the year.

17 of 182 comments (clear)

  1. shucks... by Anonymous Coward · · Score: 5, Funny

    I saw Fallout, but no 3. Frankly, I don't care what happens with those consoles, just give me my Fallout 3!

  2. Remedial geography by Anonymous Coward · · Score: 5, Interesting

    All three 'next generation' consoles are out and we can finally stop using that term.

    *Cough* Europe.

    Despite the Wii's success last month, it should be noted that Nintendo is no longer bragging of 1 Million units in the U.S. by the end of the year. So, essentially, it looks like all three companies will fail to hit their console goals for the year.

    That was for 'The Americas'.

    1. Re:Remedial geography by I+Like+Pudding · · Score: 3, Funny

      We'd be more than happy to give away Detroit

  3. It's the Sticker Shock by scombs · · Score: 5, Insightful

    When it comes down to it, I believe I can have the same amount of fun (if not more) with the $130 Nintendo DS than I could with the $300+ current-gen consoles. My fun wouldn't increase five-fold if I bought a PS3, I don't think.

    1. Re:It's the Sticker Shock by 2nd+Post! · · Score: 5, Insightful

      After playing Rayman and Sports, however, I do think your fun would increase two-fold if you bought a Wii... which coincidentally is less than twice a DS.

  4. Sticker shock for sure by analog_line · · Score: 5, Interesting

    I've no plans to buy an Xbox or a PS3 for only reasons of price. $500 as the minimum cost of entry for a system and one game is just nuts. I can't afford it, and I won't bother with it. There's nothing inherent that I will get out of either of those systems over the Xbox and PS2 that I own now, other than the derision of my friends, that I spent a pile of money I could've spent on food or rent on those. I'm sure the games are great, and I wouldn't mind owning one, but they're not worth that, no matter how many fools are willing to overpay for it.

    I'd like to get a Wii, and I have a reasonable chance of both affording and getting my hands on one at some point soon. However, right now, I'm actually considering getting a new GBA SP, because I have a lot of games I like for GBA, and an SP is a lot easier to carry around than even the new DS Lite (and a lot easier than my original recipe DS). And a second PS2 to backup my current box, so I can play all the good PS2 games that are now showing up in bargain bins before they become collectors items. Once the price comes down to something resembling reasonable, I'll get a PS3, and maybe even an Xbox 360, but it's got a LONG way to fall before it gets there.

  5. XBox a surprise winner? by Hawthorne01 · · Score: 4, Insightful

    No, not when you think about it. Consider the typical big-box electronics store customer:

    "Excuse me, do you have any PS3's?"
    "No."
    "Nintendo Wii's?"
    "No."
    "Well, what do you have in stock?"
    "The xBox 360."
    "We'll take it."

    Having product on the shelves covers a multitude of sins.

    --
    "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
  6. Couldnt be worse for Sony by LibertineR · · Score: 3, Insightful
    Has another corporation ever had such a single bad year?

    Who'd thought that the Wii would suck the life out of the PS3 launch?

    The Wii gets all kinds of free press and publicity, if not for Sports, then for idiots destroying their plasma screens and blaming the Wii-mote strap for being too weak.

    In the mean time, Microsoft has the best game out in Gears of War for the 360, while the only thing I hear about the PS3 is that it is so hard to program that most games will suck on it for another year.

    Oh, and thanks for the root kit, Sony. Karma is a bitch, eh?

  7. Nope. Still Next Gen by moehoward · · Score: 4, Funny


    They are still to be referred to as "next generation" until you can actually get one. Just because Nintendo shipped its only Wii to Zonk does not mean that we are suddenly in a new generation.

    The PS3 and Wii are vaporware at MSRP. I await proof to the contrary.

    P.S. Oh, and when you get proof, pick one up and ship it to me. I'll reimburse via Paypal. Thanks in advance!

    How in the hell did I turn into one of those Tickle-Me-Elmo parents???

    --
    "If you want to improve, be content to be thought foolish and stupid." - Epictetus
  8. Stop the "Artificial restricting supply" nonsense! by jchenx · · Score: 5, Insightful
    From those numbers it really seems like nintendo has screwed the pooch with this launch or that they are artificially restricting supply to give the illusion that greater demand exists. They should have had many more units available for sale given they are using essentially the same hardware that was found in the gamecube.
    When will people realize that this whole "artificially restricting supply" theory is just wrong. First there were claims that MS was doing this with the 360, then next with Sony, and finally with Nintendo. The theory is just absurd.

    Do you think those companies want to miss their sales forecasts, and get punished in the stock market for doing so? Of course not. All three companies have run into supply problems because, well, releasing a console worldwide is pretty damn difficult. (Consider that in the past, hardware releases were generally not global either) Should MS, Sony, and Nintendo be chastised for their errors? Certainly.

    But this whole "oh, they're just artificially restricting supply to make the illusion of demand" is just nonesense. It's usually spouted off by fanbois who can't imagine that there are actually consumers that want the "other" system.
    --
    -- jchenx
  9. Re:Analysts by Chris+Burke · · Score: 4, Insightful

    There's much hype and fanfare, then I'm only able to actually produce 500,000 units. The Sales numbers at this point no longer mean anything. You can only have a valid comparison if there is a steady supply of all three models. Come on folks THINK.

    Actually, they do mean something, just not that much about market acceptance. Since these consoles sold out, we can use the sales numbers as production numbers. And from that standpoint, there are really two interesting pieces of information: Not really a surprise given all the warnings, but Sony was able to make only half of their grossly down-sized forecasts. This means producing the PS3 is even more difficult than was thought, or the blue lasers are in even shorter supply than thought, and may even indicate that the longer term supply will be limited. In some ways more surprising is that Nintendo was unable to reach their manufacturing target for launch. I would naively assume that they should have minimal problems, but that apparently isn't the case. Maybe the remote is a trickier beast than thought? Supplies of extra remotes have been short for those who were able to buy a console.

    I realize that these sales figures may not be complete. I doubt that means Sony really sold twice as many consoles.

    An interesting catch: All these companies depend on IBM. Apple dropped IBM largely because they didn't seem ready or willing to develop and produce mainstream chips on a schedule that suited Apple. Are they partly responsible for the shortage of PS3 and Wii? I have no data to back that up at all; it's just idle speculation.

    --

    The enemies of Democracy are
  10. Re:Interesting by FroBugg · · Score: 3, Informative

    They're still selling every single Wii they ship, often within minutes of it leaving the box, but the problem is that Nintendo isn't shipping quite as many as they had originally said they'd like to. They haven't offered any reasons for this.

  11. Re:Analysts by Hes+Nikke · · Score: 3, Interesting
    An interesting catch: All these companies depend on IBM. Apple dropped IBM largely because they didn't seem ready or willing to develop and produce mainstream chips on a schedule that suited Apple.


    ah, but apple wanted faster iterations of PPCs every 6 months. What they got was a 700 MHz upgrade in 1.8 years, and then the top speed got cut back by 200 MHz to make room for dual core CPUs. Nintendo, Sony, and Microsoft all have PPC specs set in stone for the next 5 or 6 years. much more compatible with IBM's slow pace of consumer chip upgrades.
    --
    Don't call me back. Give me a call back. Bye. So yeah. But bye our, well, but alright we are on a shirt this chill.
  12. Re:Interesting by Overly+Critical+Guy · · Score: 3, Informative
    I rather expected a large turnout for the Wii.
    Nintendo is selling out every shipment. What Nintendo has stopped "bragging" about (i.e., projecting) is a million sales in the U.S.; they're easily going to surpass a million worldwide sales. As many other sites have pointed out, it's likely that Nintendo is pleased with U.S. sales numbers right now and would like to direct more supplies toward Europe and Japan for the rest of the year and spread things out. I suspect, though, they'll still manage to hit a million U.S. sales by December 31...just a feeling. I'm not surprised by the 360 sales given YAXS (Yet Another XBox Shooter) released, which appears to be all its good for. With Microsoft's near-zero presence in Japan and Sony's low supply numbers, Nintendo probably wants to take Japan completely with the Wii and DS.

    Actually, if you include their portable systems, Nintendo is already the #1 video game company worldwide with the most market share and highest sales. The press never covers Nintendo that way, though.
    --
    "Sufferin' succotash."
  13. Re:X360 base price is $299 not $500 by Overly+Critical+Guy · · Score: 3, Insightful

    It's pretty disingenuous of you to not mention that you're referring to the Core configuration, which has no wireless capability or hard drive.

    If you buy a Core system for $300 and actually want to save your game or have XBox 1 compatibility, that's an additional $100 for the hard drive add-on, putting you up to $400 (Microsoft really wants you to get a hard drive). Along with a game, that's $450, and at that high of a price, you may as well just shell out for the Premium configuration at a whopping $400, which is $450 if you include a game.

    And after all that, you still have to pay Microsoft money every month just to be able to play online. Microsoft currently has no plans to make Xbox Live free, while Sony and Nintendo will offer it totally free.

    Of the three consoles, I actually consider the Xbox 360 the most overpriced. Nintendo can justify their price with the built-in WiFi, 512MB flash storage, and remote control, while Sony can cite Blu-Ray and the Cell in contributing to the cost of the PS3. I really think the 360 will be in trouble in the next two years when Sony sorts out its supply issues and everyone else picks up the Wii as a cheap primary or secondary console.

    --
    "Sufferin' succotash."
  14. Re:And the loser is... by Overly+Critical+Guy · · Score: 3, Funny

    That's it, folks. Dan Wesnor's lone experience in a Best Buy officially determines who is winning the next-gen war. Sony, Nintendo, Microsoft--may as well pack up your bags and go home. There's no way around the fact Dan saw some people playing Guitar Hero on a demo kiosk. It's all over.

    --
    "Sufferin' succotash."