Topic: Yet Another Market Analysis

[Shorty McNostril]

See what you make of this one.

Quote
Yankee Group Finds Sony will Hold off Microsoft and Nintendo in Video Game Console Sales

NEWS RELEASE - 16 AUG 2006
Third-Generation Consoles Emerge as a Significant Channel for Digital Content Distribution


Boston, MA, August 16, 2006—Yankee Group today revealed that despite intense competition from Microsoft and Nintendo, the Sony PlayStation 3 will lead sales in North America - though by a narrow margin. As a result of video game consoles’ emergence as platforms for digital distribution, Microsoft and Sony are engaged in a bruising battle for market dominance. Microsoft is off to a fast start, launching the Xbox 360 nearly 12 months before the PlayStation 3. However, by the time third-generation consoles reach market maturity in 2011, the PlayStation 3 will once again be the market leader.

According to the Yankee Group DecisionNoteSM, Can Sony Hold Off Microsoft as Video Game Consoles Emerge as a Platform for Digital Distribution?, published today, by 2011 the PlayStation 3 will have sold about 30 million units and account for 44% of cumulative third-generation console sales in North America. Comparatively, Microsoft will have sold nearly 27 million units by 2011, accounting for 40% of the market and Nintendo will have sold just over 11 million units, accounting for 16% of the market.

"With a growing installed base of connected consoles, content owners are beginning to recognize the potential video game consoles offer as a distribution channel," said Michael Goodman, Yankee Group Media & Entertainment Strategies Senior Analyst. "Additionally, these platforms will serve as a strong medium for advertising, validating the growing market for in-game and around game advertising."

Additional findings in this Yankee Group DecisionNote include:

• Overall, fewer consoles will be sold this generation. Yankee Group anticipates that as a result of higher console prices, overall unit sales will lag the previous generation of consoles (i.e., PS2, Xbox and GameCube).

• Microsoft will put significant price pressure on Sony during the PS3’s lifecycle. In addition to starting at a lower price than the PS3, Microsoft is well positioned to make a large price cut in the spring of 2007 and each year thereafter—putting significant price pressure on Sony.

What do you think of this one? Obviously time will tell, but I think this guy is a bit of a Sony pawn.  

[wandering]

Yankee Group? Haven't we already discussed, and pointed and laughed at, this?  

[Smoke39]

I think we have.

[Shorty McNostril]

Have we?  I couldn't remember it.  My apologies if it's already been covered.

[Nick DiMola]

Analysts are a joke, and the Yankee Group is the funniest one. Every report I ever see from themis baseless and always places Sony lightyears ahead of the competition. Usually having the worst business plan in the world and an astronomical price tag put you in a position to fail, but I guess these analysts don't see it that way.

[UncleBob]

Third Generation?  Wha?

OH MY GOD!  The PS3 is going to go back in time and beat the NES, SEGA Master System and Atari 7800!  That's how they're going to win!

Damn, I wonder how much the PS3 would cost in mid-80's dollars.

[Ceric]

Actually this is a new one.  The other one that we pointed a laughed at was more ridiculous.  I will sayh this though they don't know when to quit.  Their credibility right this moment is out the window because these are just wild guesses for the most part.  Going by how things are with the console currently how can they even make claims like this.  Nintendo has more out about it's online then Sony know has.  Though I could be wrong I haven't gone through TGS coverage.

[Nick DiMola]

I believe I posted the last analysis these clowns made in the Wii forum under the title Analysts Suck. Go figure they still suck.

[wandering]

Pretty sure this is the same one. Note the August 16th date. And the fact that the percentages (44, 40, 16) are the same.

[Hocotate]

Posted before of not, I still lol'd.