The NPD research data for March is out. Cold comfort for Microsoft (NASDAQ: MSFT) and Sony (NYSE: SNE).
In the U.S., the Nintendo Wii sold 259,000 units. Xbox 360 sold 199,000 consoles, and Sony Playstation3 sold 130,000. The PS2 did well, moving 280,000, but its price tag is about one-third of the PS3s.
Nintendo is obviously the big winner here, but that only tells part of the story.
Microsoft's goal in introducing the Xbox was to be a major player in the game console market. It may not have thought it could catch Sony, but being in second place might not be bad. It would appear that Microsoft may have done better than that. Although the success of Xbox is nice for Microsoft, it is still a small part of the company compared with the sales of the Windows desktop and server software.
Sony's position is different. Its consumer electronics division, which sells products like TVs, does well. So does its movie studio business. But the game console business has been driving Sony's profits for years. Now it is faced with that going away. That has to concern Sony shareholders.
The race in game consoles is almost over, and Sony needs a win.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
4-22-2007 @ 10:21PM
Robert Higley said...
Sorry Doug, but I have to take exception to your last comment. The "console race" that you refer to is far from over. Please research how long the PS3 has been available. Compare the number of units sold by MS at the same point in its products lifecycle. Lend more weight to the fact that PS2 is outselling even the Wii, and consider the implications that has for the Sony brand. Stockholders in Sony should note that overall Sony's game division sold 410,000 units. Nearly twice the number of units sold by its next competitor. For as long as PS2 continues strong sales, expect to see two things: 1) PS3 will not have a price drop and 2) The console war is not over.
4-21-2007 @ 10:13AM
Dots said...
As long as the price for the PS3 is so high Sony can't expect to be the top contender. The most average video player just doesn't have that kind of money. I know alot of players that would love a PS3 but just can't afford it. But the wii everyone has one or is planning on buying one and loves it and buys the games the minute they come out. If Sony and Mircrosoft would have kept the price down they might have did better in the Video System game wars. Can you just see the moms and dads of the world buying a child a PS3 for a birthday present or just because. A little expensive gift I would say. Just my thought about the WAR?
4-23-2007 @ 4:21PM
eric mcmiller said...
I have one question for you mr.Robert Highly. If you owned sony and your ps2 are doing far better than your ps3 your next gen console which is suppose to be in a race and its far behind whould you drop the price to compete or or just let the ps2 handle everything.The ps2 race is over it won..but the ps3 sucks in its race.it's far behind. ONE REASON......THE PRICE!!!!!!!