Thursday, March 01, 2007

Wii Win, Wii Win, Wii Win, Wii Win, Wii Win

In news that will make David happy, Yahoo is reporting:

Nintendo's Wii game console outsold its competitors in January, keeping its lead against rivals Sony and Microsoft, according to new sales figures from analyst firm NPD.

Nintendo sold 436,000 units during the month, with Sony's previous iteration of its console, the PlayStation 2 coming in second place. Microsoft's Xbox 360 was third, followed by the PlayStation 3.

Nintendo has maintained its lead primarily through ease-of-use, a lower price, and strong game titles at launch time, analysts have said. Sony and Microsoft, in contrast, have tried to develop consoles that are cutting edge, which has increased the price of the units.

Down Not Out

But just because Nintendo is ahead does not mean that its rivals have thrown in the towel. Sony has announced that it is giving away freebies in an attempt to win users to the PlayStation 3 platform. In March, the company will give a Blu-ray Disc version of the movie "Casino Royale" to the first 30,000 Australian PS3 buyers.

It is likely that Sony is attempting to demonstrate why the PlayStation 3 is worth the higher price by showcasing the quality of Blu-ray movies on the console. It remains to be seen, though, whether Australians will agree. Although the device is $600 in the United States, gamers down under will end up paying closer to $750.

In a recent report, TheStreet.com analyst Michael Comeau predicted that Nintendo's momentum should have Microsoft thinking about a price cut for the Xbox 360. But he expects that move could be delayed until 2008, when "surefire hardware mover" Halo 3 is released.

Console Wars

As the console wars rage, it is likely that over the next year, the major manufacturers will keep stressing their benefits over the competition and adding more services and functions. Nintendo, for example, could take advantage of the amusing and anecdotal stories of weight loss as a result of using its Wii controller, noted Forrester Research analyst Paul Jackson.

"Instead of going to the gym, you can just play a game, like boxing or tennis," he said. "There are people who have blogs about losing weight with these games and are proud of how they break a sweat and get their heart rates up."

Could the Wii replace Jared and the Subway sandwich phenomenon as an easy-to-follow, non-gym weight loss plan? Time will tell, but Jackson added that if there is a perceived benefit, Nintendo will likely tout it before long.

"Nintendo already has an excellent start in the marketplace, and has sold a great deal of hardware," he noted. "But to maintain a lead in this industry, you can't rest on your success."

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