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NPD: Behind the Numbers, February 2009
 
 
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Features
  NPD: Behind the Numbers, February 2009
by Matt Matthews
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March 21, 2009 Article Start Page 1 of 6 Next
 

[The leading analysis column for NPD's North American game industry stats returns with a look at February 2009's trends, from Xbox 360 sales to software surprises.]

Through February 2009, Nintendo's DS and Wii continued to dominate hardware sales while software for those systems continued to rule the top software lists, according to the latest NPD Group data released on Thursday.

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Microsoft's Xbox 360 built momentum from its strong showing in January, and also made a strong showing in the top 20 software. Meanwhile Sony's platforms uniformly lost ground, although the exclusive Killzone 2 made a strong showing on the PlayStation 3 with only two days of sales.

Current Generation Console Hardware Bases

Nintendo's Wii had strong sales again in February 2009, with 753,00 systems sold, or a rate of over 188,000 systems per week. Microsoft's Xbox 360 was Nintendo's strongest competitor with sales of 391,000 systems for the month or 97,750 per week.

When this generation of hardware was fully underway – at the end of November 2006 – the Xbox 360 enjoyed a full year lead while Nintendo and Sony were just getting their hardware out to the market. Before the Wii and PlayStation 3 launched, the Xbox 360 had 100% of the current generation console hardware base.

The graph below shows how each system's share of the hardware base has changed over time. (The data is given quarterly, to smooth out month-to-month and seasonal variations.)

Marketshare

Points of interest are marked with letters on the graph.

A: Sony moves first on price, first with reduction of the 60GB system to $500, and then the introduction of the $400 model with a 40GB hard drive and no PlayStation 2 backward compatibility. Sony's marketshare begins to increase.

B: The Wii officially overtakes the Xbox 360 in hardware share.

C: Microsoft's price cut strategy begins to pay off, slowing the loss of marketshare to its competitors. PlayStation 3 share drops for the first time, from 19% to 18%.

As we near the end of the first quarter of 2009, the Wii stands within a few percentage points of the 50% mark. However, more robust sales of the Xbox 360 and modest (but flagging) sales of the PlayStation 3 have slowed the growth of the Nintendo consoles share, at least by this measure.

 
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Comments

Sebastian Bender
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Can someone tell me what markets are represented by these numbers? Is it U.S. only?

Matt Matthews
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This particular NPD Group data is on the United States only.

Roberto Alfonso
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Just wondering, wouldn't these prepaid cards for Lost and the Damned be the minority of sales? I would expect to sell a big portion via credit card and the minority to those not owning them.

Jay Lee
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Bingo Roberto and the author of this article seemingly fails to mention that small fact. What is more NPD has zero way of tracking those. There is absolutely no way because MS does not freely give that data out, and NPD has zero way of tracking that internal Xbox Live data. The only way we’re going to get hard data is if MS or TT decides to provide it, and I would not expect any hard numbers before TT next earnings release. What we do know however is that it did somewhere north of Killzone 2 numbers for the month with the package and with the direct downloads which seems pretty obvious at this point that is where a majority of the sells actually occurred. Not too hard to add that up at this point.

Jay Lee
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Another small note worth mentioning is that the 1600 point cards were number four for the month in accessories, again not mentioned. The GTA IV DLC pack came with a direct download and not a 1600 point card, but 1600 points is exactly what consumers needed in order to purchase the DLC directly. However, this still does encompass the many ways people can buy the actual download. Whether it is buying points directly on Live or already having points saved for the content there is still zero way for NPD to actually track direct to download sales off Live in any given meaningful fashion.

Mike Lopez
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I am surprised MS did not release the Lost and the Damned numbers if only to steal some of the limelight from Killzone 2 and from the Sony platform as an extension.

@ Sebastian / @Matt
I believe NPD covers all North America, not just sales from the USA.

lee johnson
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The PS3 is going to very likely take the lead soon, because not only is Sony going to reduce price or create 'more' incentive to buy ps3, but you have 2 very important options you are all missing I think;

1) Bluray
2) If you factor in the 'real cost' of owning a 360 which incluces a Harddrive ( which is proprietary and VERY expensive unlike PS3 units, '&' a wireless adapter ( $99 + tax ) '&' non free xbox live, '&' a 'BluRay' player since HDDVD IS DEAD, then you are at that point 'well' beyoind the cost of the ps3, even if you factor in backwards compatability.

Games of course are going to be instrumental in selling systems as is seen, and Killzone 2 is only the 'beginning' of developers harnessing the PS3, just as PS2 before it , -if we remember our history ;)


Roberto Alfonso
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Lee, 1 and 2 seem contradictory. Back when PS3 was the cheaper blu-ray player, the sales were pretty bad. Now that there are players for less than half the PS3 value, you cannot say that blu-ray will make people buy a PS3.

If we remember our history...
a) Never a console manufacturer got a third cycle in the top in 30 years of gaming
b) Never the most powerful console of a generation ended at the top in 20 years of gaming

;-)

lee johnson
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Your forgetting something Roberto ,

1) Ps3 has the best Bluray player in it from what I've Reviews Ive read:
http://www.pcworld.com/article/147209-3/the_best_bluray_players.html > ps3 Bluray player is noted as one of the absolute best period for various reasons.

2) You said absolutely nothing about total 'cost of ownership' ( gee, I wonder why ), and that alone I think spells doom for 360, at least in part due to the rise of BluRay, let alone the rise in cost of ownership of XBox Live ( $50/year does add up especially if your on a budget as most 'are' at this time in our economic problems).

Oh and btw, History doesn't always repeat itself, and we're looking at a very narrow window as relates to consoles.

:-)

Jay Lee
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Yes we've all heard those arguments before. PS3 got a Blu Ray bump back in 08 and many called it the new coming then. It didn't happen and I didn't see any reason for it to happen then and I knew exactly how 08 would end up playing out except it was an even a wider margin at the end than even I thought. I see this year playing out the same as last year although possibly with the 360 having an even better first half compared to last year, which seems likely at this point based on the first two months of data. February was the second strongest month for the 360 save the Halo 3 launch and holiday months.

If the Loot Ninja source is to be believed then yes Sony is prepping a price cut for next month. Seems pretty evident now with all these retailers trying to flush their stock out of channel with all these promotional gift card offerings that have been going on for well over a month now. However, according to their source it’s not only Sony prepping a nice price cut its Microsoft as well for April. So basically MS could once again pull the rug right from under them and that would certainly be something else to see. Thing is a lot folks have this preconceived notion that MS is done with price cuts for a good while, maybe or maybe not. They can drop the price of the Elite and flush that out of the channel and then they could drop the price the premium to $250. If they were really smart they could take the Arcade and throw in the old 20GB drives and price it for $179 before the holidays and if you think the $199 price point was a hot ticket Christmas item last year that SKU would make it look like a joke in comparison.

Since the $199 price drop the 360 lead over the PS3 has increased by right at ~1.7 million per NPD figures. At a 7.3 million lead there is little hope that dynamic is going change in the three or fours year left before the next gen arrives. If I had to make a guess now like at this point last year my best guess going into 2010 would be the lead will be even larger.

Roberto Alfonso
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Hmm... Lee, you keep pushing contradictory arguments. You say the PS3 is the best blu-ray player, to which we agree. However, immediately after you say that consumers are price aware and that the cost of ownership of an Xbox 360 is higher than the PS3. Don't you think that, if the consumers are aware about the cost of ownership, they wouldn't choose a cheaper blu-ray player? People buy the best DVD player or a cheaper one?

The key question is: who is going to teach the casual market about the cost of ownership? Microsoft is not going to, and Sony doesn't do anything either. Even if you are right and the total cost of an Xbox 360 is higher than a PS3, the consumer doesn't know that, or prefer to go with a Xbox 360 just because it is cheaper.

This console generation was decided during E3 2006 when Nintendo let everyone test the controller. The media chose them, and you know, the mass market (the one that decides where industries move) follows the media. It is possible that PlayStation 3 finishes ahead of Xbox 360 when all is said and done, but I doubt Sony will ever reach the 150 million unit barrier they wanted to.

About the history, your window was extremely short, just 6 or so years since PS2 launched until now. When I stretched it to 20 years, other facts you may not have realized appeared, others that you now dismiss because history "doesn't always repeat".

Roberto Alfonso
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Also, is $50 per year that high? It is just a bit more than $4 per month, or what is the same, not drinking a couple of cokes per month. Isn't cable more expensive? World of Warcraft subscription? A few cigars less per week?

Matt Matthews
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@Mike Lopez: Yes, I know about NPD Canada. That's why I put "this data", referring to this set of figures.

Dave Endresak
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I think that people are missing the very simple fact that it is not price that moves a piece of hardware so much as it is the software offering for the hardware. Price plays a part, yes, but ultimately it is the software that causes people to save up, sell off other stuff, or whatever in order to own the hardware (and associated software) they need or desire. PS3 has a very poor selection of software titles at present, at least as far as attracting a diverse audience, and this trend does not seem to be changing this year. In fact, PS3 cannot even appeal to hardcore gaming RPG fans as the PS2 did, particularly for Japanese RPGs.

I'd also like to add that the industry needs to stop assuming that everyone owns an HDTV (most of the market does not, a fact that Nintendo is quite happy to take advantage of with their simpler, cheaper hardware). The same is true for blu-ray discs; most of the market is not about to restock their library, and cannot even if they wanted to do so.

gstarr -
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Matt, does it annoy you as much as it annoys me to read comments about who's tech will ultimately win this generation, when clearly both have already lost? Hmmm. You know what? Thanks for the great article, but I'm going to go play Wii-fit. I've got my Wii-fit age down to 29 (I'm 38)!!!

Christian Keichel
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gstarr I agree, the Wii has won this competition, at the end of the year we have one console that is 48 months on the market and two consoles that are 36 months on the market. If the Wii is still in lead, and I can't see how Sony or MS will catch up to Nintendo, they are the clear winner. After 4 years in a console cycle, there will be no change in lead, that hasn't happened in previous generations and I don't see why it should happen this time.
BluRay is no advantage for a console, cause BluRay is something which doesn't appeal to a mainstream userbase, it will find it's niche, Laserdisc found one as well.

Bob McIntyre
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Roberto, if you're going to argue that $50 a year isn't very much, then take the price difference between the two consoles, divide that by the number of years the machines will be used, and look at that number. It's probably lower than $50.

Dave, I think that what really moves hardware is marketing. It's about the perception of what the hardware offers. It's not the technical specifications of the hardware, and it's not the software lineup, it's the perception. Look at Metacritic's overall scores. Look at which platform has the most high-rated games. It's not really about that, though. It's not about what's really out there, or what's really being sold, and that's why "true cost of ownership" doesn't matter. It's about perceived software library. It's about perceived total cost of ownership.

Sega marketed "blast processing," a completely made-up term, and did well with it. They also totally dropped the ball on the Dreamcast, and people just waited a year to get the PS2, which was perceived as being superior. Whether or not the PS2 was superior isn't important. What matters is that people held off on buying a pretty nice machine on the perception that a different, unreleased machine was going to be better.

patrick thomas
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-If Blue-ray was going to do anything it would of had an affect in 08.
-WE are also in another format switch with many people relying on Downloads to Hard-Drive and Netflix's, rather dealing with another VHS-DVD headache.
-If you look at Console trends, 9/10 the numbers start to decline at this stage in the game. A rising Sun for Sony seems implausible.
-The World economy is at its lowest point in 80 years.. The Japanese are known for Stonewalling even at the face of defeat. If Sony does not reduce the PlayStation to $225-$175 then they are going to end up in the same place the other Japanese console makers have been for the last 30 years.. a Wiki entry.


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