Analysis: Console Sales To Stagnate Soon (?)

Analysis: Console Sales To Stagnate Soon (?) Analysis: Console Sales To Stagnate Soon (?)

A report on Mercury News suggests that the current generation of consoles failed to attract new audience.

According to the report, 40 to 42 percent of U.S. households are using at least one game console. According to some sets of research, that represents little or no growth in recent years.

According to analyst, Michael Arrington, this indicates that "most new consoles are going into homes that are either replacing an existing console or adding a second (or third) unit."

If that analysis is correct, Microsoft, Nintendo and Sony might have to face stagnating sales in the near future. But it seems that Nintendo is a little safer than both of its competitors. For whatever market growth there is, noted Arrington of Adams Media Research, it's likely the Wii is "doing the most expanding into existing homes that haven't ever ... taken the console plunge. PS3 and Xbox 360 are being bought almost entirely by folks that are already comfortable with 'doing the console thing' ".