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PS3 Predicted to Lead Market Through 2011 314

eldavojohn writes "The Yankee Group (a Boston Technology firm) recently announced that it predicts Sony's PS3 to lead the market with a 44% share through 2011. Most interesting is their prediction that the Wii will maintain only 16% of the market share. From the article: 'The analyst group believes Sony will lead in next-gen market share by 44% in 2011, with Xbox 360 taking a close 40% share, followed by Wii with a wee little bitty 16% share.'"
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PS3 Predicted to Lead Market Through 2011

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  • by dtfinch ( 661405 ) * on Thursday August 17, 2006 @03:01PM (#15928840) Journal
    My own prediction was that Wii will kick ass, at least in terms of units and games sold. But I suppose if a PS3 costs the same as 3-5 Wii's, Nintendo would have to sell 3-5 for every 1 PS3 to match their market share by the Yankee group's measure. Sort of like how Linux has a very low market share when measured by operating system license revenue.
  • Past != Future (Score:5, Insightful)

    by kannibal_klown ( 531544 ) on Thursday August 17, 2006 @03:04PM (#15928869)
    The "article" is pretty light on details. My guess is that they are looking to the past to forecast the future. While not a bad strategy I can't see that leading to much accuracy in the current scenario.

    In the past, the PS2 was in a class by itself (after destroying the Dreamcast). For a long time it was THE console to have, and by the time the others (GC and XBox) came into play it was too well entrenched and had a huge library of games.

    Now it will be competing with the XBox 360 (say what you want about it, but at least it's out already) and a newly released Wii. Unless there's a lot more going on than I'm aware of, I can't see how it will dominate for the next 5 years when:

    - it's entering a market already saturated with similar hardware specs (even if slightly weaker)
    - price entry

    Had they beaten the 360 and Wii to market, then I could see it. But this isn't the past.
  • by Yvan256 ( 722131 ) on Thursday August 17, 2006 @03:05PM (#15928873) Homepage Journal
    Well, there we go. Proof that those so-called "expert/analysts" don't know anything aside from making shocking statistics to grab headlines.

    I predict about 70% for the Wii, 30% for the Xbox 360 and 15% for the PS3. I know it adds up to more than 100% but given all those "Xbox 360 + Wii = PS3" comments we've all heard so far, I think it's realistic.

    As for the Wii getting 70%? Well, don't forget that we can look at the Nintendo DS for proof: Nintendo are grabbing a lot of non-gamers and the Wii shouldn't be any different. A lot of so-called "hardcore gamers" will go for the Xbox 360 and/or the PS3, but they're only a tiny % of the general population.

  • by hattig ( 47930 ) on Thursday August 17, 2006 @03:05PM (#15928875) Journal
    It doesn't look like they're taking cost or popular opinion into account.

    Wii: $199, with hopefully revolutionary must-have controller mechanism.

    Controller fad might die off, but it will still be fun to use. Lots of games.
    Weaker hardware allows cheap cost. Price is at the point where you can pick it up without thinking if theres a game that appeals. Free online play. Ideal christmas present for children too - cheap, and ideal for secondary TVs in the house rather than the main HDTV.

    360: $299 - $399
    PS£: $499 - $599

    Both of these are 'stop and think' purchases for anyone. You really have to justify the purchase.

    Of course, the price will come down over time for both of these - the PS3 will drop quite drastically once BluRay drives become cheaper to make, say around 2008. There'll probably be price parity by the end of 2008, Microsoft might have moved to HD-DVD inside the console. The Wii will be cheaper too, and fun games can spread like a fever like Guitar Hero has in my circle of friends. And Nintendo is popular because of the DS.

    At a time when people are tightening their purses and wallets because of higher cost of living, a high priced console is not the ideal product. Some games might be so 'must have' that a lot of consoles will sell, but I really do think that it will be 40-30-30 this time around - which wins is in the air right now.

    Nevermind that Sony is not popular right now, and can't do anything right.
  • by CaseM ( 746707 ) on Thursday August 17, 2006 @03:15PM (#15928964)
    I always find it interesting when people predict the Wii's success at this stage in the game. Most people were rather down on the DS when it was first announced ("What a gimmick...", etc.), what makes us so sure, now, that the we'll be any better at predicting the success of the Wii?
  • by timster ( 32400 ) on Thursday August 17, 2006 @03:22PM (#15929034)
    Well, when the DS was announced everyone was skeptical that the touchscreen would go anywhere. Many people were predicting that after a while most games wouldn't bother with touch controls and that we would end up with an overclocked GBA.

    The success of the DS, and in particular the success of the touchscreen interface, has caused people to rethink the idea of innovative controls. The Wii seems like an obvious extension of that; now the PS3 looks like little more than an overclocked PS2 (regardless of the changes in its internal architecture).

    Since the pattern of DS vs PSP seems almost identical to the Wii vs PS3, we figure that we can make a pretty good prediction.
  • by jandrese ( 485 ) <kensama@vt.edu> on Thursday August 17, 2006 @03:22PM (#15929041) Homepage Journal
    I'm not going to make any predictions at all until I personally try out the Wii. With the 360 and PS3 I have a good idea of what I'm getting, but with the Wii there is a lot of margin for error. Everyone says the remote just works fine, but all they had was the E3 demo and whatever closed door stuff Nintendo does. If my mom hooks up the Wii to her somewhat crappy TV in the sunlit family room, is it going to work as well? I hope so, but if it doesn't you could see a lot of wind fall out of Nintendo's sails. At this point I really don't have enough information to even make an educated guess.
  • by thatguywhoiam ( 524290 ) on Thursday August 17, 2006 @03:32PM (#15929128)
    Yes the article is completely speculative. But don't think for one second that the majority opinion of slashdot is in any way indicative of the general public. (I refer you to the original iPod posting.)

    While the nerd crowd here can look at the Wii (uh, that name...) and be pleased with the innovative interface, the low price, the focus on gameplay over graphics and yes, substance... this isn't how the marketing will flow.

    Sony will drive dumptrucks of money to ad agencies all over the planet. It will be like a blitzkrieg of PS3 as we approach the launch; I wouldn't be surprised if they spent $100 million on ads alone. Microsoft will counter, having anticipated this for years, and probably roll out their own add-on HD drive as well - more marketing insanity to follow.

    Nintendo will of course do their own marketing push, but don't be surprised if you hate the approach they take. Big N is after 'the rest of us', the non-gamer, and will appropriately tailor their messaging to this end. That means, more girls, more moms, more people who do not typically play video games. Yes, there will be Metroid and a few others to keep the original fans happy. But it will not be the juggernaut that Sony and MS will unleash. Its just not the same market anymore.

    I like the Wii but I think that this go-round they only have a shot at 2nd place, at best. The videogame market has eclipsed the filmmaking industry for several years now, and the people who put it there are you guys, buying the kind of games you like. That's where most of the money is. Nintendo is gambling big time with this new machine; they want to create a new segment of the market, sort of like the iPod did. Good for them. But this is a risky strategy. Sony and Microsoft are taking the safe route, MS the safest of all.

    It may not make for great headlines to the crusty gamer crowd here who appreciates Nintendo's willingness to break the mold, but for general 'consumption' I acutally tend to agree with the market analysis of FTA. For different reasons than they stated.

  • Typo (Score:4, Insightful)

    by antifoidulus ( 807088 ) on Thursday August 17, 2006 @03:38PM (#15929180) Homepage Journal
    should read "PS2 to lead through 2011". That is my armchair prediction anyway. Microsoft has a nice niche market for themselves but cannot seem to grow. Nintendo will carve out a potentially bigger niche, and Sony will shoot themselves in the foot, but honestly I don't think that any of the next gens will reach anywhere near the market penetration of the playstation 2.
  • by Anonymous Coward on Thursday August 17, 2006 @03:41PM (#15929198)
    When you're dealing with market analysis you have to remember one thing, most of the time the analyst doesn't understand the market they're doing research on; this tends to mean that they do their analysis on more general factors (brand recognition, market position, etc.). Ultimately, if you look at the Gaming market like you look at the Shampoo market it is easy to believe that the PS3 will dominate.

    The fact is that the console gaming market is very different from most markets you can examine. People buy gaming systems because of the games available for them and there are very few products that people purchase in order to gain the opportunity to buy another product. The PS3 is in a bad position (in my opinion) because people are going to say "Is Warhawk really worth $500?" or "I want Metal Gear Solid 4, but I'll wait for a price drop."

    Ultimately, if people are reluctant to buy your system you'll sell less systems, if you sell less systems fewer developers will choose to make (exclusive) games for your system, when you have less (exclusive) games available people will be less likely to buy your system, and so on ... Eventually, you'll find yourself in a cycle where you can't get people to buy your system because you don't have the games they want, and you can't get the games people want because no one is buying your system (It's a bitch, just ask Nintendo)

  • by brkello ( 642429 ) on Thursday August 17, 2006 @03:42PM (#15929213)
    When you surround yourself with people who think exactly like you, it's hard to see that other people think differently. I am not saying that this guy is right (I think he is wrong). But when you come on Slashdot, don't expect people to counter you on any positive statement on Linux, Macs, or Nintendo. It gives the illusion that everybody out there is just like you and will be buying a Wii first. This is not true. Nintendo still has the kiddy image. While that doesn't matter to a slashdotter, it matters to others. The PS3 will be seen as the more mature console and will thus appeal to the teen/early 20s crowd. It is funny to read slashdot posts that are already claiming victory for the Wii when it isn't out yet. Maybe I have out grown being excited over things. I will wait unitl it is out. Wait until the bugs have been ironed out. Wait until a price drop...then decide what I will purchase. It seems like most people on here are terrible consumers...that drool over things that don't exist yet. While Nintendo does have a good reputation, they have made plenty of stupid mistakes in the past to warrant caution. Patience is a virtue.
  • Nintendo had the long lines at E3 to try out the Wii-mote. We've all seen the videos of everyone playing with it and saying it was cool, fun, etc. Unlike yourself, there seemed to be far MORE people "want[ing] to wave that around" than there were to wanting to play 360 or PS3 demos.
  • by Turn-X Alphonse ( 789240 ) on Thursday August 17, 2006 @03:51PM (#15929302) Journal
    You sir are incorrect.

    I'm a gamer and the Wiimote to me seems kind of a turn off. Don't really want it, but then I remember going "wow that touch screen is going to be so useless". Now I have to say I love my DS and the dual screens is insanely useful. The Wii will do the same, they'll have a rough start but people will soon get the hand of it and see how it should be used and then we'll open up entirely new genres, give us stuff we've always dreamed of (light saber fights are a hit with everyone).

    So what is "I'm so hardcore I must have one of every console" doesn't dig the Wii. Thre are other options for them, but the Wii is going to be just like the gamecube as far as I can see. It won't be "teh uber popular" it won't be the strongest, but when you just want some fun and games you'll turn it on and get exactly what it said on the box.

    As for the FPS comment.. Well when the hell did a console do FPS well? (STFU Halo fans before you even start). PCs are always better than consoles at FPS and RTS because they were more or less designed for their unique controls.

    On the other hand think of playing something like Bushido blade with the Wii or a Zombie invasion style game where you have to fight off zombies as you escape the city or whatever.

    Oh and are you forgetting the gamecube controller plugs straight into the Wiimote so we can play the "classic" style games at the same time?
  • by SuperKendall ( 25149 ) on Thursday August 17, 2006 @03:56PM (#15929342)
    I can't see how it will dominate for the next 5 years when:

    - it's entering a market already saturated with similar hardware specs (even if slightly weaker)
    - price entry


    It has one major hardware advanatge which is the Blu-Ray player.

    As for price, it's only $100 more than the 360 yet when you factor in Live costs is actually only $50 more - the first year. Plus is has a huge back catalog and a lot of developers onboard ,including major japanese developer support which is important to a lot of people - just look how beloved the Metal Gear franchise is (even though personally I'm not that crazy about it).

    If in two years the console is not doing well then developers might start dropping off the system, which would cause problems. Look how lond developers have hung around the PSP though which had a lot tougher barriers to entry!

    As always, in the end the games for a system matter most. If the PS3 can deliver enough compelling games then people will buy the system despite the high price - on eBay for the whole month of December the average price for a 360 was around $800 which prooves that people will pay quite a lot for something new.
  • by Anonymous Coward on Thursday August 17, 2006 @03:56PM (#15929344)
    Wasn't Laura Didio from the Yankee Group? Any followers of Groklaw will remember their input on the SCO vs. IBM case. Didio thought that SCO would win. Ha!

    In other words, I wouldn't take their predictions too seriously. Given the news we've seen lately, and the fact that I hate Sony, I really want the PS3 to tank, anyhow :-) Of course, given how low anyone's expectations are for that thing at this point, one would think that it'd have to be at least possible for it to "exceed expectations" somehow; I just won't buy one no matter what [1] and I doubt it'll be that great.

    [1] Like I said, I'm pissed at Sony. Seriously, I'm still about as mad as if they'd run over my dog. Even being a long time fan of Final Fantasy, there's no damn way in hell I'll buy their console, and only a complete and thorough change in company policy and behavior would make me stop boycotting their products.
  • by jizziknight ( 976750 ) on Thursday August 17, 2006 @04:08PM (#15929437)
    Perhaps he knows that Sony-bashing will ensue? Sony could actually win the console war AND the HD format war and we here at /. would still collectively trash-talk them.
  • by rsilvergun ( 571051 ) on Thursday August 17, 2006 @04:11PM (#15929479)
    to have an extremely profitable console platform that they release most of the A-List titles on. Sega tried this with the Saturn. They ignored developers (actually, they treated them like dirt) and pushed their first party titles to the detriment of 3rd party (in the States, this didn't happen in Japan). It killed the console. Nintendo pulled if off though. To be fair, they didn't do it by being jerks to their 3rd parties, they just can't get too many A-List 3rd parties since there's not enough room to manuever in the Gamecube's install base. Still, the Big N doesn't really care about raw market share, because they can be pretty damn sure that all or most of that 16 percent will buy their software. Sega wanted that, and I guess they got it, but the videogame market was smaller and their share closer to 2% or 3% by the time all was said and done.
  • by Mattintosh ( 758112 ) on Thursday August 17, 2006 @04:19PM (#15929571)
    the real money is in hardcore gamers

    You have no idea what you're talking about, do you? I'm sure it'll make your head hurt, but let's do some math.

    Given conditions:
    - In a population (P), let's make a liberal estimate of 1% "hardcore" 39% "casual" and 60% non-gamers.
    - A console's lifetime is 5 years.
    - "Hardcore" gamers buy 5 games a year.
    - "Casual" gamers buy 1 game a year (this accounts for the fact that they're likely to buy 2 or 3 games for the first 2 years and none after that).
    - Non-gamers will buy nothing.
    - A game console costs $X.
    - A game costs $Y.

    Over the course of the lifespan of a given console:
    - A hardcore gamer will bring in $Y + 25X.
    - A casual gamer will bring in $Y + 5X.
    - A non-gamer will bring in $0.

    Now applying this to a population of 100:
    - "Hardcore" gamers bring in $Y + 25X
    - "Casual" gamers bring in $39Y + 195X

    Now for a population of 1,000,000:
    - "Hardcore": $1000Y + 25,000X
    - "Casual": $390,000Y + 1,950,000X

    It's pretty clear with these numbers (admittedly, they came straight from my ass), that the "hardcore gamer" crowd is worth nothing when compared to the awesome crowds of the unwashed masses. Nintendo is aiming specifically at these "casual" gamers. You mention that "mom and pop may buy a Wii and [1 or 2] games" and that "the average Xbox360 owner already has [4 or 5] games", but what you're missing is that "mom and pop" outnumber "the average Xbox360 owner" by 200:1 or more. It doesn't take a rocket scientist to see that Nintendo doesn't need hype to sell their console, and that PS and Xbox fanbois need to get used to being the minority. Hey, us Nintendo fanboys had to grow up, now you do too.
  • by Wind_Walker ( 83965 ) on Thursday August 17, 2006 @04:19PM (#15929572) Homepage Journal
    Spoken like a man who hasn't investigated the Wii at all.

    The Wii remote will be a fad - who honestly wants to wave that around: Yeah, it really looks like he's really waving it around [google.com]. Oh wait, it's small wrist movements which controls the action, not huge motions.

    good luck using it in FPS games: Yeah, nobody [gamespy.com] liked [gamepro.com] the controls [gamespot.com] on Metroid Prime 3.

    Whether or not you like it, marketing and hype is what sells consoles. I don't see any Wii hype anywhere but on Digg and Slashdot. Sorry.: Where's the PS3 hype? I see nothing in mainstream media and nothing but negativity from the online media. Where's the X360 hype? I haven't seen any since their launch a year ago. I also haven't seen any compelling reason to buy an Xbox 360 aside from maybe Xbox Live Arcade games (which I played 10 years ago)

    Mario sux0rs to me - but Mom or the kid next door can have fun with it if they want: I'm honestly very sorry that you have a complex which prevents you from enjoying video games which are fun because you're afraid they are too "kiddy". If it's any consolation, you'll grow out of that once you graduate 9th grade.

    Then again, I guess I shouldn't expect too much out of a user named "XpL1CiT". Have fun in High School kid.
  • What the hell? (Score:2, Insightful)

    by EchoBinary ( 912851 ) on Thursday August 17, 2006 @04:40PM (#15929797) Homepage
    Who is anyone to say that anything will lead any marked for that amount of time? That is quite an arrogant boast IMHO. Whoever made such claims has balls.
  • by Belial6 ( 794905 ) on Thursday August 17, 2006 @04:48PM (#15929869)
    That might be because the SNES generation of systems were the first systems to have good graphics. They couldn't do photo realistic, or fantastic 3D, but I believe that many games had graphics that looked just like the developer wanted them to. Everything after that was no longer a matter of making the graphics look good, but making the graphics look more realistic, and moving from 2D to 3D.

    After the games looked good, a new kind of gammer entered the market. The old school gamers that were more concerned with gameplay than graphics (because there were no good graphics) started getting out numbered by the new gamers that were more concerned with graphics than play. Once this tip happened, the developers started looking at numbers and saw that games with good graphics sold more, and good gameplay didn't affect sales in a significan enough way to matter. After all, good gameplay takes a lot of time and talent. Then when you are done, you still will be taking a gamble on whether you have succeded or not. Good graphics are a much easier defined characteristic, and it is a whole lot easier to find a good 3D artist than it is to find a good game designer.

    Basically video games have become a victim of their own success.
  • by hexix ( 9514 ) on Thursday August 17, 2006 @05:01PM (#15930003) Homepage
    I would also suggest to you not to disregard something because it is said on Slashdot. What the post you replied to was saying is something I've been hearing in many places other than just Slashdot.

    Many people who grew up playing video games have lost interest. The games have become too complicated and often force you to sit through 5-10 minutes of story telling before even letting you attempt to play. If you're not into remembering which button throws grenades, which shoots your gun, which brings up your inventory, which calls for backup, then you're S.O.L. with current games.

    I agree that stupid things are said on Slashdot. I laugh every time there is a story on some device and people on
    Slashdot claim that nobody is interested in such a device unless they can upgrade the RAM or play Ogg Vorbis. However, I don't think the excitement over the Wii is the same as that.

    People are excited for something fresh and new. They're also excited for something old and familiar. We do have to wait and see how the Wii actually functions before we can say for sure. But I wouldn't be surprised at all if the Wii takes off big. I decided on a whim to buy a Nintendo DS when the lite came out, and I've been playing it every single day since then. I'm constantly amazed at how people who have no interest in video games keep wanting to play Brain Age, or the mini games in Super Mario on my DS.

    Hell, my grandma still plays Tetris every day on her old B&W gameboy. People want to play games, they're just not interested in learning how to control Halo.
  • by nschubach ( 922175 ) on Thursday August 17, 2006 @06:06PM (#15930599) Journal
    I'd have to disagree on this. I will most likely buy a PS3, not because I'm some kind of "psycho Sony fanboy" or anything, but because the spec sheet pins it being a better overall system if/when(?) the games start rolling in for it. I could care less what the price is to tell you the truth. I've spent nearly as much on a video card as this system costs.

    The only people I really see complaining about the PS3 are those that bought 360s and my only assumption here is that they don't want it to fail as the XBox did. Rightly so, but damn those MS bitches need to calm down a bit.
  • by aardvarkjoe ( 156801 ) on Thursday August 17, 2006 @07:21PM (#15931108)
    the ones that I would consider to be casual gamers are the ones that seem pretty appathetic about it reguardless of how much I rave about it.

    You have to realize, that from the perspective of someone who would rave about any game console, pretty much everyone is apathetic. You have to be pretty far beyond casual to care that strongly about hardware that is still several months out and that nobody really knows what it's like.

    For the record, I'm in the casual category. I have a gamecube, but I can't imagine myself buying a next-gen console any time in the next three or four years.

  • by Anonymous Coward on Thursday August 17, 2006 @09:25PM (#15931768)
    I don't like Sony, but I don't want them to tank.

    Having Microsoft as pretty much the sole owner of the console space is a scary thought.
  • by PyroMosh ( 287149 ) on Friday August 18, 2006 @02:59AM (#15932778) Homepage
    Do you really think this represents a significant portion of those who've purchased PSPs? I'm no Sony fan by any means, but that's insane. Moders and homebrewers represent a fringe group. To make it out to be otherwise is just silly.

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