Strategy Analytics - Game console sales to slump 20% in 2012, Wii U can't save Nintendo

BOSTON -- The global TV games console market will drop by 19 percent in 2012, according to the latest research from the Strategy Analytics Connected Home Devices service, “Global TV Games Console Outlook: a Transitional Year Awaiting a New Wave.” The report projects a decline in global Xbox 360 sales 13.8 million units in 2012; and PS3 sales will also fall, to 13 million units. Nintendo is fully focused on preparing for the upcoming Wii U release; however, even the launch of the new Wii U will not save Nintendo, or the industry, from this downward trend.

Additionally, this recent Strategy Analytics ConsumerMetrix survey shows that users of Sony’s PS3 games console showed the highest level of usage frequency, topping its two major competitors. Forty-four percent of PS3 owners use their console on at least a weekly basis, in contrast to 40 percent of weekly Xbox 360 users and 30 percent of Wii users.

“Last year, Xbox 360 sales beat PS3 globally, despite its relative weakness outside the US. However, Strategy Analytics research indicates that PS3 is slightly more popular among core gamers than Xbox 360,” comments report author, Jia Wu, Director in the Strategy Analytics Connected Home Devices service. “On the other hand, Xbox 360 appeals to a broader audience, as more consumers buy the Microsoft console for non-gaming as well as gaming functions.”

“Sales figures alone do not determine winners in this generation’s console competition,” adds Kantideep Thota, Analyst at Strategy Analytics. “Wii has sold the highest number of games consoles cumulatively; but Sony’s and Microsoft’s advancement in online game distribution and cross-platform integration grants them higher user engagement and a solid foundation for the next generation console war.”