January hardware and software sales in North America are expected to rise far above their NPD results from the same period last year.
That was the joint-conclusion from two independent, high-profile analyst groups.
Electronic Entertainment Design and Research (EEDAR) believes that next-gen console and handheld sales in North America will increase by 58% over last year, selling a combined total of 1,985,000 units. Wedbush Morgan Securities’ estimates, meanwhile, are largely in agreement that Jan 09 sales will dwarf that of last year’s, though it forecasts total unit turnover of 1,650,000 units.
EEDAR’s Jesse Divnich believes that the sales boost was mostly driven by the Nintendo Wii, which the group expects will sell 740,000 units, a 170 percent increase over last January. WMS adds that the Wii is expected to show “solid year-over-year growth in early 2009, with supply and demand finally in balance by March or April.”
The PS3, conversely, is forecast by both groups to be the only console which will experience a year-over-year sales decline. WMS states that over the last three months “Sony’s PS3 hardware sales were modestly down [from the same period last year] due to a higher value proposition… We expect this trend to continue in January.”
EEDAR agrees, stating that Sony’s powerhouse console is expected to be stung by a 22 percent year-over-year decline in sales.
For the Xbox 360, EEDAR foresees an annual sales increase of 30 percent for the January month. The console collection (from Arcade to Elite) is projected to amass around 300,000 sales, whereas WMS predicts a slightly more conservative sales result: expecting Microsoft’s box to move 275,000 units. Both predictions, however different, still expect the console to improve on its Jan 08 NPD sales month.
While it would be great to see that type of growth, I suspect year-on-year will actually be flat, if not down a little. The gaming bubble can't continue unabated forever.
If digital distribution takes off via Steam/Impulse/Live/PSN it will allow for the cutting of costs at the expense of retail stores. It helps save developers and publishers but will eventually gut Gamestop and their millions of employees.
Ultimately, it's a scenario where someone is going to get hosed...but who will it be in the end?
Brian
www.brianwoods.com
We maybe at the brink of a drepression not a ression, We will see what happens. I predict more lay offs and more software companies going bankuprt with high production costs.