Video Game Consoles 2006: Microsoft Launches Next Generation, Sony Dominates Current Generation

SUMMARY

Abstract

The transition to the next generation of game consoles has begun. Microsoft has launched the Xbox 360 in North America, Europe, and Japan. Sony's PS3, centered on the Cell processor developed with IBM and Toshiba, is due later in 2006. Central to Nintendo's Revolution console, also due later in 2006, is a new type of controller that allows the user's arm movement to affect the movement of game characters.

Sony and Microsoft continue to offer extra-gaming entertainment features in order to entice more purchasers and establish their machines as living room entertainment centers. The next generation of consoles is likely to have much higher ASPs, as seen in Microsoft's $399 Xbox price. This trend is driven by development costs that continue to increase, along with console features and capabilities. A prominent example is the high definition Blu-Ray DVD playback that will be built into the PS3.

This report contains shipment and revenue forecasts through 2010, broken out regionally for each current and next generation console. Online subscriber forecasts through 2010 are available for Sony, Microsoft, and Nintendo as well. In addition, results from an In-Stat online survey of over 1,000 US consumers on console ownership and future purchase plans are included.

TABLE OF CONTENTS

• Executive Summary
• Methodology
• General Report Methodology
• Survey Methodology
• Console Gaming Survey Responses
• Current & Next Generation Consoles
  • Sony
    • Current Generation
      • Console
      • Marketing
      • Online
      • Shipments
    • Next Generation
      • Console
      • Cell Processor
      • Marketing
      • Online
      • Shipments
  • Nintendo
    • Current Generation
      • Console
      • Marketing
      • Online
      • Shipments
    • Next Generation
      • Console
      • Marketing
      • Online
      • Shipments
  • Microsoft
    • Current Generation
      • Console
      • Marketing
      • Online
      • Shipments
    • Next Generation
      • Console
      • Marketing
      • Online
      • Shipments
• Review & Forecast
• List of Tables
  • Table 1. PlayStation 2 Shipment & Revenue Forecast by Region 2002--2010 (US$ in Thousands, Units in Thousands)
  • Table 2. PlayStation 2 Installed Base Forecast by Region 2002--2010 (Units in Thousands)
  • Table 3. PlayStation2/PlayStation 3 Online Subscriber and Installed Base Forecast 2002--2010
  • Table 4. PlayStation 3 Shipment & Revenue Forecast by Region 2006--2010 (US$ in Thousands, Units in Thousands)
  • Table 5. GameCube Shipment & Revenue Forecast by Region 2002--2007 (US$ in Thousands, Units in Thousands)
  • Table 6. Game Cube Installed Base Forecast by Region 2002--2007 (Units in Thousands)
  • Table 7. GameCube/Revolution Online Subscriber and Installed Base Forecast 2002--2010
  • Table 8. Revolution Shipment & Revenue Forecast by Region 2006--2010 (US$ in Thousands, Units in Thousands)
  • Table 9. Xbox Shipment & Revenue Forecast by Region 2002--2007 (US$ in Thousands, Units in Thousands)
  • Table 10. Xbox Installed Base Shipment Forecast by Region 2002--2007 (Units in Thousands)
  • Table 11. Xbox/Xbox 360 Online Subscriber and Installed Base Forecast
  • Table 12. Xbox 360 Shipment and Revenue Forecast by Region 2005--2010 (US$ in Thousands, Units in Thousands)
  • Table 13. Next-Generation Game Console Shipments & Forecast 2005--2010 (US$ in Thousands, Units in Thousands)
  • Table 14. Game Console Shipments & Forecast 2002--2010 (Units in Thousands)
  • Table 15. Game Console Revenues & Forecast 2002--2010 (US$ in Thousands)
• List of Figures
  • Figure 1. Game Console Shipment History and Forecast by Console 2002--2010 (Units in Thousands)
  • Figure 2. Which of the Following Describes Your Age Range? (N=1,009)
  • Figure 3. Which, If Any, of the Following Types of Video Game Consoles Do You Own and Personally Use? (Please Check All that Apply, N=1,009)
  • Figure 4. How Familiar Are You with Each of the Following Next-Generation Game Consoles? Xbox 360 (N=952)
  • Figure 5. How Likely Are You to Purchase an Xbox 360 in the Next 12 Months? (N=621)
  • Figure 6. How Familiar Are You with Each of the Following Next-Generation Game Consoles? PlayStation 3 (N=1,009)
  • Figure 7. How Likely Are You to Purchase a PlayStation 3 in the 12 Months After It Is Released? (N=514)
  • Figure 8. How Familiar Are You with Each of the Following Next-Generation Game Consoles? Nintendo Revolution (N=1,009)
  • Figure 9. How Likely Are You to Purchase a Nintendo Revolution in the 12 Months After It Is Released? (N=190)
  • Figure 10. Game Console Shipments 2002--2010 (Units in Thousands)