As we are getting closer to the release of Sony's and Nintendo's third-generation game consoles, more market research firms are releasing their sales forecasts. Yesterday, we published an article that highlighted the change in enthusiasm and evolving hurdles for Sony's upcoming high-def console.
Despite the uncertainty that revolves around the stratospheric price of the Playstation 3 (PS3) and the battle between HD-DVD and Blu-ray formats, the market research firm Yankee Group believes that Sony will once again dominate the console market. According to a report released on Wednesday, Sony is estimated to have sold 30 million PS3s by 2011 - when third-gen consoles are believed to have reached market maturity - and hold a market share of 44%. Microsoft will have sold only 27 million Xbox 360s by then (40% market share) and Nintendo only 11 million (16% market share).
Overall, Yankee expects that sales of third-generation consoles will trail the sales of the preceding generation of PS2s and Xboxes as a result of higher prices. Also, the firm believes that Microsoft will be increasing its pricing pressure on Sony. "Microsoft will put significant price pressure on Sony during the PS3's lifecycle. In addition to starting at a lower price than the PS3, Microsoft is well positioned to make a large price cut in the spring of 2007 and each year thereafter - putting significant price pressure on Sony," Yankee said.