Topic: Strategy Analytics Looks at Consoles

[TheYoungerPlumber]

Here’s yet another report predicting Nintendo’s downfall in the console market.

Business analysis company Strategy Analytics published a report on the home console market earlier this month.  The report discusses the obvious fact that Sony owns the vast majority of the market, but perhaps more interesting is its analysis of Microsoft and Nintendo’s positions.  

“This report determines that the games console market is entering a critical three-month period which could determine success or failure for both GameCube and XBox. Several factors lead to the conclusion that Nintendo will probably exit the console market since the survival threshold for any game platform is now in the region of 15-20 million systems deployed. This continues to rise as games development costs increase. Furthermore, in spite of Xbox’s slow start, Microsoft will continue to commit the funds necessary to evolve their Xbox platform into a full-fledged broadband home entertainment system.”

It seems that although the GameCube is slightly ahead of the Xbox, the report predicts that Nintendo is most likely to withdraw from the console market.  History suggests that there is no reliable indicator of the future in this market, though, so the only way to really know is to wait and see.