Saturday, February 23, 2013

Console Cold War





Microsoft, Nintendo, and Sony: Three giants fighting for the biggest piece of consumer pie. With rabid fans and dubious debates in all three camps, it can be hard to get a grasp on the big picture. How are each of these giants faring in Japan and America? We're here with some solid numbers and a dash of cultural analysis to help make better sense of it all.

We are currently smack in the middle of the transition from the 7th console generation (Xbox 360, PS3, Wii), and the 8th generation with the Wii U released, the PS4 announced for this Winter, and the next Microsoft console expected soon. So as we head into the new frontier, let's take a moment to look back at how the last generation fared.

American Market

If you guessed that the best selling console of the last generation was one of the big three (360, PS3, or Wii), you're in for a surprise. The Nintendo DS destroyed the sales figures of all three of the "main" contenders at a total of nearly 57 million units sold. Nintendo established themselves as the clear winner in America taking second place as well with the Wii selling over 44 million units. Coming up in third place is the Xbox 360 at about 42 million units, not far from the Wii's figures. Trailing behind the competition, the PS3 clocks in with a lifetime total of just under 26 million (at the time of writing). Straggling far behind the pack, the PSP and the Nintendo 3DS score in at about 21 million and 9 million respectively. It's important to keep in mind that the handheld generations do not line up neatly with the major console generations, leaving the 3DS and Playstation Vita (currently at just over 1 million sold) plenty of time to duke it out. 

Here's the short list:
  1. Nintendo DS
  2. Nintendo Wii
  3. Xbox 360
  4. Sony PS3
  5. Sony PSP

With the only American-made console hitting 3rd place state-side, the Japanese console makers have firmly carved out their place in America. Let's see how everyone fared on the other side of the planet.

Japanese Figures

Well, the #1 position mirrors the American market with the Nintendo DS holding firm at 33 million units sold.
However, the resemblance to the US market ends there. This generation's winners in Japan are the handhelds, with the PSP taking 2nd place at almost 20 million units. The Wii still leads the pack for the "main three" at 13 million with the 3DS following closely at around 11 million units sold. With handhelds holding 3 of the top 4 positions, it becomes clear that Japan gives more preference to portable systems than their friends across the pond. 5th place pulls us back out of handhelds with the PS3 at 9 million units. The Xbox 360, number 3 in America, barely registers at a total of 1.63 units sold: nearly triple the sales of the original xbox, but still less than the Dreamcast or Game Gear sold in their lifetimes.

Let's see the stack up:
  1. Nintendo DS
  2. Sony PSP
  3. Nintendo Wii
  4. Nintendo 3DS
  5. Sony PS3
  6. Xbox 360

Final Verdict

I have to disclaim first, that these rankings are based only on total console sales numbers. They do not include factors such as game sales, time on the market, or consumer loyalty. 

With that said, it seems clear that Nintendo is happily sitting on a bigger pile of money than the competition, with the #1 position in both markets. Their Wii console also beat out all of the same-class competition in both markets.

Sony has found themselves playing the caboose in America, and struggling to match Nintendo on their home turf. The portable console market in Japan has gone a long way in keeping Sony in the game, with their PSP taking 2nd place despite the fierce resistance from the Nintendo camp.

Microsoft has their work cut out for them in Japan. While holding firm as a strong competitor in America, their figures in Japan border on comedy. Whether we chalk it up to game selection, marketing mistakes, or Japanese ethnocentrism is all speculation. However, the numbers paint a clear picture. Microsoft is getting their footing in Japan very slowly. They won't be ready to compete on the same level as domestic consoles until something changes.

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