Microsoft Xbox 360 – “The Winner in the Next-Generation Console Battle,” Says Analyst

by Anton Shilov
11/22/2006 | 06:02 AM

Even though many analysts believe that the PlayStation 3 will become the most popular among the next-generation game consoles, analyst firm Merrill Lynch claims that the actual winner of the battle that has just begun will be Microsoft Corp.’s Xbox 360, which has a year in advance compared to others and wide availability not to mention technology as well as infrastructural advantages.

“The winner in the next-generation console battle is likely to be the Xbox 360, which is the leader in North America, the world’s biggest market,” said Yoshiyuki Kinoshita, research analyst for Merrill Lynch.

A note by the company predicts that by the end of December 2011 (Japanese fiscal Q3 2011) Microsoft will have the largest market share worldwide and in North America, Sony will be the No. 1 in Japan and the No. 2 worldwide. Meanwhile, Nintendo will have strong presence all around the world with 27% market share.

“We forecast respective market shares at end-FYQ3/2011 of Xbox 360 at 39%, PS3 @ 34% and Wii @ 27%, thus overturning Sony’s domination of the market with its PS2-based share of 69%, and doubling Microsoft and Nintendo’s respective market shares,” Mr. Kinoshita is reported to have said according to International Business Times.

In North America, Microsoft will hold the lead with 50% market share, while Sony and Nintendo will follow with 27% and 23%, respectively. In Japan Sony Computer Entertainment Inc. is predicted to command 57% of the market, whereas Nintendo Wii is expected to have 39% market share. Japanese market share by Microsoft was not supplied. Given that numerous users own more than one console, it is not obvious that Microsoft Xbox 360 will only command a piece of the market left after Nintendo and Sony.

According to Merrill Lynch, strong sales of Microsoft and Nintendo will mean that the domination of the PlayStation on the console market vanishes. Nevertheless, strong presence of Sony will not allow Xbox 360 to become the dominant console either.

“In the next-gen console market, we see the end of any common global dominant platform,” Mr. Kinoshita said.