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Software industry

Sony Dominates Video Console Market Through 2010, Reports In-Stat

Strategic Insights

— 1 min read

Sony's grip on the video console market is expected to persist through 2010, according to a report by In-Stat. The Japanese electronics giant's market share is projected to remain high, with the Microsoft Xbox 360 and Nintendo Revolution taking second and third place, respectively. Analysts attribute Sony's success to its early mover advantage, strong North American market presence, and appeal to older gamers.

Key Takeaways:

  • By 2010, the Sony PS3 is expected to account for just over 50% of the installed base of next-generation consoles, while the Microsoft Xbox 360 will have 28.6%, and the Nintendo Revolution will have 21.2%.
  • The PS3's inclusion of Blu-Ray DVD playback is a key component of Sony's corporate strategy, reflecting the company's commitment to high-definition technology.
  • Nintendo's console innovation centers around a novel controller that tracks user arm movement, enabling immersive gaming experiences.
  • Despite higher prices, the peak year for shipments of next-generation consoles is expected to be comparable to that of current-generation consoles, with overall shipments expected to exceed current-generation levels.
  • A survey of over 1,000 consumers found that console ownership plays a significant role in shaping purchase plans for next-generation machines.
  • In-Stat's research emphasizes the importance of company strategy in shaping the global market for line-powered video game consoles.

Statistics:

  • Through 2010, the Sony PS3 is expected to account for 50% of the installed base of next-generation consoles.
  • The Microsoft Xbox 360 is projected to hold a 28.6% share of the market.
  • The Nintendo Revolution will comprise 21.2% of the installed base.
  • The peak year for shipments of next-generation consoles is expected to be approximately the same as that of current-generation consoles.
  • Over 900,000 consumers own at least one console, highlighting the importance of access to gaming technology.

Sources:

  • In-Stat, "Video Game Consoles 2006: Microsoft Launches Next Generation, Sony Dominates Current Generation" (#IN0602145ME)
  • In-Stat, http://www.in-stat.com
  • Reed Business Information, http://www.instat.com/catalog/Ccatalogue.asp?id=162
  • Reed Business Information, 480-609-4551, emckeighan@reedbusiness.com

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