Next-Gen Console Wars Heating Up

Next-Gen Console Wars Heating Up Next-Gen Console Wars Heating Up

Now that all three next-gen consoles are, almost, available we take the time to see how the competitors are poised on the run-up to that all important holiday season.

Microsoft's Robbie Bach has started off the week in style as he was quick to claim that Microsoft's early launch of the XBox 360 has given it a definite pricing advantage which will see it cut costs and eventually prices very quickly, putting Sony on the back foot for the duration of the next-gen console wars. Because we were out there first, we have a bigger installed base of consoles, we can drive down the manufacturing curve sooner and faster. And because we designed a box that was fundamentally easier to manage on costs, we're going to have that advantage, said Bach.

Meanwhile, Lazard Capital Markets, U.S. financial analysts, are reporting that 20,000 PS3 consoles bought in the U.S. have already been sold through eBay while 15 per cent of those that bought a PS3 in the U.S. had plans to resell it for a profit.

The same analyst reports that Nintendo will be shipping 150,000 - 200,000 Wii consoles every week in 2006 and claims that, Our retail checks and comments from specialist retailer GameStop indicate that there is strong demand for PS3 and Wii ahead of meaningful replenishments, while the XBox360 appears to be benefiting from new console shortages and the release of new title Gears of War.

SCEA is reporting that it is happy with its 1 million consoles shipped in 2006 prediction and that it believes it is on track to meet that target.

The confusing information coming from the next-gen console manufacturers can be interpreted in various ways but the bottom line seems to be that Sony will be troubled by the high price of the PS3, its hardware shortages and the recent negative press while Nintendo is likely to do well due to the availability of the Wii and the hype that has been gradually building. Microsoft remains a dark horse in this round of the console wars as it is not yet clear how the X360 will take advantage of current market conditions. What is clear is that MS is aggressively pursuing the Wii and PS3 launches and has managed to attract attention with the release of Gears of War and the attractively priced bundles it is now offering.