Race for consumer spending on for console, gadget vendors
Now that all three major game console vendors have launched their next-generation gaming machines and the portable entertainment market is also healthy as ever, the race for consumer spending is on, analyst firm Ovum said in a recent report.
The competition will be especially intense this holiday season, one which will likely serve as a barometer for their performance in the coming new year, according to Ovum’s research executive Carl Gressum.
Microsoft, noted Ovum, had a full year to fine-tune its machinery, and with Sony’s recent difficulties getting the PS3 to market, it has a golden opportunity to solidify its position in the market.
Microsoft has also brought out more popular games titles, such as Gears of War, which should boost sales in the US and Europe. However, Japan will remain a tough sell with the launch of Nintendo’s Wii, it added.
By the end of Q3, the Xbox 360 had to-date sales of 6 million units, compared to the projected 4 million Wii shipments in December 2006 alone.
Although Microsoft has also added video download services to the Xbox 360 platform, the report said this is unlikely to have a significant impact on consumer demand during the holidays, adding that its 20GB hard disk is hardly sufficient for video downloads.