Strategy Analytics: Nintendo Likely to Lose GameCube Gamble
Microsoft's XBox Will Gain Ground In This Year's 36 Million Unit Console Market
LONDON--(BUSINESS WIRE)--Feb. 25, 2003--The number of users of advanced games consoles soared by 128 percent in 2002, reaching 56.3 million worldwide, according to the latest research from Strategy Analytics' Broadband Entertainment Strategies service. 75 percent of users own Sony's PlayStation 2, compared to 13 percent with Nintendo's GameCube, and 12 percent with Microsoft's XBox. 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 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. 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, 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 position as a leading games publisher."
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Originally posted by: RickPowers
Before this is taken the wrong, way, I'm going to echo my comments from the news story on PGC.
There is a lesson to be learned here. If these analysts knew all the answers to these questions, why aren't they running multi-million dollar successful companies? Because those that can, DO. Those that can't, play armchair quarterback.
q]
O so true.
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Is Nintendo REALLY more profitable on the Gamecube than Sony is on the PS2? Because if it's true, shown with evidence, I'll drop my case entirely.
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Originally posted by: Perfect Cell
It might be half trues or lies or Microsoft sponsored crap, but the problem with articles like this is that it HURTS Nintendos image, Nintendo doesnt need to have companies calling it to leave the console wars, people will way, oh look Nintendo will go the way of Sega, why should i spend my hard earned money on a Gamecube now? Bad Press is Not good in the Videogame console wars, Nintendo needs to fight back with their own sponsored propaganda to fight back this crap cause im sick of it! I want Nintendo to stay in the console buisness!
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This report determines that the games console market is entering a critical three-month period which could determine success or failure for both GameCube and XBox. Several factors lead to the conclusion that Nintendo will probably exit the console market since the survival threshold for any game platform is now in the region of 15-20 million systems deployed. This continues to rise as games development costs increase. Furthermore, in spite of Xbox's slow start, Microsoft will continue to commit the funds necessary to evolve their Xbox platform into a full-fledged broadband home entertainment system.
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Originally posted by: Bloodworth
Well, he said they were doing something right, not everything right. It's true that Nintendo is not marketing as well as they could be and that they don't have the largest percent of the market, but the whole point we're trying to get across is that it doesn't really matter. If they're still more profitable than Sony and they continue to make great games, then there's no reason to cater to the masses.
People saying that Miyamoto needs to make different styles of games are just not thinking straight. Miyamoto didn't get the status he has today by making games that copied other designers or fit perceived market wants, he is a creator and he has the freedom to create pretty much whatever he wants. If you pushed him to fit a certain mold, chances are that he'd lose some of his passion and produce less than his potential.
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Originally posted by: StarBlue
Also Xbox does have a portable game system, it is called a LAPTOP
StarBlue