European Industry: 360 could be in trouble, Wii casual market could dry up, PS3 needs to educate consumers

The industry is witnessing short term performance indicators of next gen console sales but doubt still remains as to their scalability in the mid to longer term. Some platforms are waiting for stronger software launches to drive hardware volumes while software publishers are waiting for installed base growth – one comes with the other but without one the other cannot thrive – a real chicken and egg situation. Screen Digest takes a look at some industry debate.

For Xbox 360, European hardware sales seem to have hit a wall.A scratching of heads has started over questions concerning the long term viability of the platform in some territories. With the UK underpinning European performance and without year on year sales improving across the rest of the region, the platform could be in jeopardy on a global basis.

While some commentators have bet their farms on the outright winner of the next gen war being Nintendo's Wii, others are more cautious, with some suggesting the current market of casual gamers could dry up. Hence the Wii's target market could be saturated more quickly than its competitors as the technology looks increasingly tired by comparison.

Most publishers European management teams feel that the PS3 will win out, especially in Europe where the brand still appears to be impregnable. Brand PlayStation has always commanded respect from a broad parish to come up with what is required to prevail in the marketplace.

[SuperSaiyan4]

Give me a break sheesh!

Not EVERYONE is going to go out and buy whatever new hits the market, there are still millions and millions of people out there that have PS2's because it has tons of games.

Then you have those that like to upgrade to the latest console out.

Then you have those that wait for deals.

Then you have those that wait for deals and or better games before making a decision.

Lets see how it goes once all the 360 exclusives and AAA titles come out this year also with PS3 exclusives and its own AAA titles then re-check this so-called WALL that we have hit.

The Wii on the other hand is a novelty and we all know how people just love a novelty - Furby anyone?

[Antan]

"Furby anyone?"

No thanks, keep it for yourself.

[Keyser]

Super Saiyan4...you said "we" do you work for MS? Don't take it personal. We don't work for them. We're consumers. Itf they both do well then we get great games from both companies. If one does well then we get just okay games. That's not a good thing.

I like the PS3 but I also have a 360 and I love that MS is making this thig competitive because it's making everyone step up their game. That's what it's about.

[nobizlikesnowbiz]

Yea Wii's a fad, it'll dry up sooner or later. Probably before the holidays?

[Diselage]

Not sure why you would think Wii would dry up before the holidays, People who buy the console will give the console at least a year and half. People know the first year is dry of games but they expect games after that so after this holiday season maybe.

[nobizlikesnowbiz]

I agree with you it was kind of a dumb comment. But I was thinking taht maybe by the time Xmas dropped, everyone who wanted a Wii would have one. I mean, they're flying off shelves still.

[Saint Sony]

Typical "could be, what if, might happen, IF IF IF, apparently, assuming that.. IF IF IF, maybe" article.

[Coffin87]

well every look in the future looks like this.

but still i agree. there are too much articles like this one.

[Premonition]

Wii is selling pretty much do to the price, I mean really why play little type party games when you pretty much have a DS for that, Wii pretty much has DS type games but for home use, and to me thats not really something big or something that will make me want to purchase one.

[ItsDubC]

Isn't the purpose of a party game to play it with others? The DS is not suited for that at all. The control scheme for the Wii also makes it fun to watch ppl play Wii games, which is an overlooked aspect of the funfactor of social gaming that the Wii provides and is something that the DS cannot.

It's true that the Wii isn't for everyone, particularly those who might frequent a gaming website such as n4g. I'm willing to bet that those who have no interest in the Wii also have no interest in the DS, but the DS is a resounding worldwide success. Nintendo is hoping that the Wii will become a similar success, but competition in the home console market is much more fierce than that of the handheld market.

[gunnar2906]

<>

[tudors]

"There is no doubt that currently there is a lack of distinctive content to drive hardware sales but Q4 2007 and Q1 2008 could reveal some unrivalled games which are exclusive to PS3, not least because competing platforms would be technically incapable of offering them."

IMO the longer this goes on and the more AA titles come out for Xbox-360 the less the above comment will matter; by the time the PS3 actually shows that it is superior nobody will care because we will have moved on.

Seriously though it is all about service; the fact is that the Xbox-360 and the WII offer a product people want; if the PS3 can do the same people will by that also.

[Shadow Flare]

im european so i feel i have the right to say this, but you can see why sony released the ps3 here last. It's because they know that europe is very much a playstation orientated continent. They had to release in the USA (where xbox is big) amd there home country (where nintendo is big). They weren't worried about Europe because they know Europe is loyal to them. Sure it really sucks getting everything last...but being a playstation fan its kinda cool living in a continent where playstation is so popular. Its almost hard to find anyone my age that doesn't have a ps2. And now ps3's are kicking in.

I think the wii will lose interest for sure also cos let's face it, there is a severe lack of games and good games man. Its a minigame console, a gimick and a novelty that casual gamers will lose interest in fast. Give it one more year

[_insane_cobra]

Actually, now that the launch craze has worn off, European PS3 sales don't look that hot anymore:

http://vgchartz.com/eweekly...

[ItsDubC]

Both the Wii and PS3 are facing a game shortage because they are both fairly new consoles. A year from now, there will many more games for both consoles no doubt. However, isn't it entirely possible that the Wii will have more games than the PS3? Dev costs are lower for Wii games, Wii games don't take as long to make, dev studios are creating new divisions dedicated solely to casual gaming, and the Wii will most likely still have a larger installbase than the PS3. Wouldn't developers want to create games for the console that has hold the most units to increase the chances that their game(s) will sell the most copies?

PS3 games will be graphical masterpieces no doubt, and that is simply now the expectation. These games cost $10 more here in the US to cover the cost of development, so a dev studio loses out a lot more if their games don't sell well. And selling well has a lot to do w/ exposure.

A highly-anticipated PS3 game will probably be bought by a larger percentage of PS3 owners than a highly-anticipated Wii game will to Wii owners because the installbase of the Wii is so diverse. It can't be safely assumed that most Wii owners will be interested in Mario Galaxy because Uncle Joe bought his Wii for sports games and cousin Bobby doesn't like spending hours on end sitting on his @ss in front of his TV so he only plays minigames. But it's a pretty safe assumption that most PS3 owners will be interested in MGS4.

All I'm trying to say is that giving any console a specific timeframe to prove your point may just be setting you up to eat your own words. If it's any different a year from now than what you predict, what will you say in your defense?

[Eclipticus]

Nice thoughts on releasing the console when, but if Xbox was king in US, why does everythat plays videogames have a PS2? and before the Launch Sony was way more popular in Japan than Nintendo.

[tplarkin7]

Price is key for the moment. However, the Wii's will collect dust and they will move on to the 360.

[predator]

i dont know where they got there info from, from the sales chart the 360 in europe were double the ps3 sales since launch

[DJ]

Could you please provide it, because all the sales I've seen for Xbox 360 outside of North America have basically fallen flat.

[Why o why]

link please.................

[Maddens Raiders]

on a dollar base, they expect 70 percent of their sales to come from PlayStation. The remaining 30 percent will come from Nintendo and Xbox but almost all of that will be from Nintendo.

[KingME]

Please man, "A retailer told me.." Unless this retailer is your dad, when does a lowly gamer have common dialog with a multi-million dollar retailer. Or are you talking about joe, the basement garage sale owner with 5 total employees including himself and his wife.

Because the clerk at gamestop or gamestation doesn't count as "A RETAILER". BTW which retailer would this be or did he say for your to keep it a secret.

Some of you guys will say anything to get your points across. Incredible.

[Maddens Raiders]

King Louis & SturmBlitzhitlerYouth -

that was an old KK quote you lugubrious dolts. {[KK= ken kutaragi. Get it!? =]} Sarcasm get it. Life is more than making sweaty, sweet, slow love to your 360's and crying to defend it's honor...err umm...well, nevermind kids.....you've been punk'd.

Cheers

[Fart_Bubbles]

just can't accept reality and admit that the 360 is basically done in europe.

EVERYONE over there knows about the watchdog episode complete with disc scratching, red ringing and microsoft's arrogance in blaming the people who paid them good money for a reliable console for the scratched discs.

Europeans aren't stupid and can see a company that is full of it coming from a mile away.

GET IT YOU RETARDS?? the xbotch 360 is DONE in Europe. By this time next year I expect it to be doing japanese numbers in europe.

2k-3k a week bwahahahahahaha, and that's being kind.

[progx]

oh really?

[Silver360]

But what about retailers? The sell more on the 360.

[Bill Gates]

Anyone with just half a brain knows that the 360 is a rip off, and a waste of money in the long run.

EDIT@ KingME.......BlowME. lol

EDIT@insane_cobra....I'm saying you have NO brain. That's why you love it.

[KingME]

Can anyone tell me why this guy has only one bubble? Does he really make this many stupid comments. Or did he just get lucky this time.

[_insane_cobra]

So Bill, are you saying you only have one half of a brain?

[BIadestarX]

http://vgchartz.com/eweekly...

What Europe are we talking about? Asuming there is more than one...
I mean we all know how crazy Europeans are about the Playstation brand.... but these charts obviously are not showing that loyalty... now... does it?

[tk]

USA XB360
Japan Wii
Europe PS3

Hmmmm... Well, at least all three will have some stronghold....

[Wotbot]

The PS3 is a waist of money at the moment. And that comes from someone who has one. I haven't played mine since April.

It wouldn't matter if the PS3 was a thousand times better than the competition. There are no new good games at the moment and I wish I had never paid £425 for mine. I should have waited until Christmas.

And who in Europe is buying the PS3's. I know one other person who has one and his just broke.I know loads of people who have 360's and even more people who are going to purchase a Wii as their next console.

This is just my opinion and I have all three consoles. I am a gamer at heart and I don't care for which console wins. They will all still be around in the next 4-5 years.

I wish the news could focus on the good games coming out for each system rather than predictions of who will win. A total negative story.

[FeralPhoenix]

Hey guess what? MOST Americans are not "fanboys" and last time I checked Americans brought more orginal PS's and PS2's than any other country. -So the fact that PS3 isn't selling as expected right now here in the US (*Japan either) is because people are waiting for Sony to deliver. Yes Sony had a record breaking launch in Europe which helped them reach a mil quicker than their competitors but hell they did delay the launch there, which I'm sure helped their supply issues quite a bit. The guy above who said it was "because they know that europe is very much a playstation orientated continent." -lol, yeah tell yourself whatever makes you feel better. Now just as we've seen in the US and Japan after the vast majority of hardcore fans have brought their PS3 its sales have dropped. So Europeans are no different....they just have a wierd accent on Live for some reason. -j/k

-The point is while the Playstation brand is respected, the PS3 will NOT get by on name recognition alone(mass consumers) or because of what PS2 did last gen....the fact is that the industry is alot more competitive and Sony will have to fight hard(deliver the best games, content, and services) if they intend to "win" the larger market share.

[Anego Montoya FTMFW]

but the ps2 didn`t get by on name alone either, it didn`t start selling until the software came. no systems can.
sony will deliver, its just a matter of time.

[Wotbot]

I agree apart from the wierd accent thing.

[ApocalypseShadow]

when the price drops,more will buy the ps3.but i don't see 360 systems flying off the shelves.

[FeralPhoenix]

It was a (lame)joke....which is why its followed by "j/k" short for just kiddin'.

[Wotbot]

I know mate, just thought I would throw it back in there for a joke. Just didn't state the obvious j/k.

It must be the English humour. That was a joke by the way.

[ApocalypseShadow]

the only country that has a big 360 installed base is america.but in other places,it's amazingly poor sales.

the other system sales are spread out in 37 countries.

let's say that again:"37 COUNTRIES."

it has been out for 2 years in japan,and still hasn't reached 500,000 systems sold.even dreamcast sold more in 2 years.360-2500+ systems a week.now that's poor.but even at a higher price and less games,ps3 is outselling 360 5 to 1 or more.

what about europe.microsoft hasn't released those numbers.why?is it that poor over there too?sony announced straight up that we hit a million in the uk in 9 1/2 weeks.no counter numbers from microsoft.

america is the only country 360 can hold on to.let's see:4 million presales of halo3.5.5 million US 360 owners.it would seem the halo fans bought the system more.and the rest are gamers who couldn't wait for ps3 or could afford it.

can't wait for E3.

[Wotbot]

No mate, the 360 has not been out for 2 years in Japan. It was released on December the 10th 05 if my memory is correct. Or around that date.

And 1 million mark in the UK. Where did you dig that up from???? I would be amazed if they had sold that many. I thought I was the only person to have bought one.

[Xi]

on a weekly basis, the 360 is out selling the ps3 in europe, and the world. What makes you think that will change with a ps3 price drop. The 360 will drop too, and then what?

So what if the ps3 sold faster than the 360 in the same time frame after launch. What matters is that the ps3 isn't catching up to the 360. Or selling as fast right now.

In japan the ps3 is selling what the gamecube was selling years into its life, no one ever thought the 360 would be a lead there.

ps3 is in more trouble than the 360.

[SorenK]

Here you go son

http://vgchartz.com/eweekly...

[Fart_Bubbles]

microsucks name is chit in europe don't you fanboys understand??

you idiots really don't get how damaging that watchdog episode was to your beloved console.

no one in their right mind would waste their money on a 360 over there.

keep blaming your customers for your faulty hardware microsuck, that'll keep em coming back...lol

now I see why xbox attracts morons, it's made by a company run by morons.

[ChickeyCantor]

" 8 - It's all about price.
Price is key for the moment. However, the Wii's will collect dust and they will move on to the 360. "

what? who? the " hardcore" gamers...maybe YESS but the nieuw audience Nintendo is trying to reach isnt walking over to the PS3 or 360 anytime now.

[Close_Second]

...but nothing like introducing a whole new legion of fans to brand loyalty now is it.

Consider this, what if Nintendo take all that new found revenue and develop the Wii-2 in 4-5 years time. How many current Wii owners would not upgrade to a higher spec'd Wii for the right price?

How many people who had the PSOne went on to purchase the PS2?
How many PS2 owners have purchased or are waiting to purchase the PS2 and won't consider any other options?

Lets face it, if Nintendo's aim was to introduce a inexpensive option for gaming to both make heaps of cash and spur brand loyalty then I would say they have been extremely successful.

[DrunKao]

If Europeans publishers want to bet on the PS3 then that'll be their loss when they come to the realization that the PS3 is doing just as badly in Europe as it's doing in the US and Japan. Hopefully things work out for them in the end.

The only thing that makes the PS3 look like it's doing well in Europe is the fact that it sold 1 million in like 2 months. But when you take into account that Sony launched with around 1.5 million units (correct me if I'm wrong), they didn't sell out anywhere, and sales have dropped off rather considerably, it doesn't really look that great. Even pint up demand caused by the delay wasn't enough for the PS3 to sell out.

The fact that PS3 sold more at launch in Europe than any other console before it means very little when every other console has been supply constrained at launch. I know a lot of people like comparing the PS3's launch to that of every other console and use that as evidence that the PS3 is this huge success in Europe, but is that really fair?

Even the thought that the Wii is some kind of fad or that it's market will dry up is laughable. Are European publishers so introverted that they can't see what's occurring in the world around them?

[dale1]

most people in europe dont like 360 why 4 reasons red ring of death xbox 360 not backwards compatable for old games and disc scratching
yeah and microsoft blaming the customer
as microsoft is yet to do anythink for the customer i suspect it will get worse as the games for playstation comes out and the wi for that matter
tv over there plays a big part in produt reveiws unreliable products are only tolerated till somethink better comes out and electicals should carry a two year guarantee
taking people to court for faulty goods like the 360 in the uk cost only £30 so big companys cant hide behind failure to help the consumer
badly made products get big air time on consumer shows and word of mouth spreads like wild fire
microsofts hardware could be the biggest issue

[DrunKao]

Don't Americans have the same problem with their 360 as Europeans. I think it's more than the red rings of death and backwards comp.

[BubblesDAVERAGE]

I dont knwo why u guys think USA is so pro ps3...all my friends like ps3 over the 360...ps3 will sell more here then anywhere else in the world just like ps2 did and ps1..playstion = america nad europe and japan..jsut get use to it..PLAYSTION NUMBER ONE

[Kastrol]

i hate first year of consoles and analysts predicting winners after 8 months

[CrazzyMan]

Can any analytic give me a list of games, which will be released in 2009-2010 ?
Oh, they can`t. So how can they predict something?
I mean, during that time may be released a lot MUST PLAY games, what means must buy a console.

they are very naive, if you think that after 6 month you can judge has console succeeded or failed. =)
to judge a console you need atleast 2 years.
just look at psOne sales. =)
http://vgchartz.com/hwcomps...
and who won? =))

[drtysouf21]

things will be interesting then.

[drtysouf21]

!!!!

[Uganda64]

But yes, I've said this before - not as good in Europe and Japan. Then again, PS3 is only doing moderately better, and worse in America. Then again, 360 isn't doing PS2-well in America, so it's not insurmountably ahead.

However, 360 has been decreasing YOY and has 1-? killer apps depending on who is asked. PS3 had Resistance and Motorstorm to pull it through 7 months. It's getting an explosion of software this year, and hopefully a price drop, we'll see where that leads.

The only reason Wii is selling is because of price. For a fad, it's a great price. Other consoles would smoke it at that price though, no question.

Also, value. PS3 will be more valuable at 400 than Premium 360 at 300, so arguments saying "if Sony drops the price MS will and then more people will buy a 360" - they're not the same product, they're each on different demand curves with PS3 being extremely desirable, but not affordable for the masses. If Wii drops in price, say to 99, then it'll be closer to its value of $75, but in the eyes of consumers, the fad will have passed.