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Nintendo Wii To Face Tougher Competition From Xbox 360, PS3

A fresh analysis by the Cowen Group has revealed that Nintendo might not be able to attract new gamers for its gaming console Wii, thereby relinquishing its existing hold on the market.

Doug Creutz, an analyst with Cowen Group talking to Gamasutra, said that Wii owners, who were casual gamers, are purchasing fewer game titles this season where as Playstation3 and Xbox 360 users were planning to buy more.

He added that the core-gamers, who were likely to own PS3 or Xbox 360, will cut games from their budgets as money gets tighter by the day.

The analysis showed that 21 percent of the people who don’t own a gaming console were planning to buy PS3, almost the double the figures for Xbox 360.

It is interesting to note that when Nintendo Wii was launched it had surprised everyone by taking the market by storm. Competing against PS3 and Xbox 360, the console had recorded the highest number of users.

Experts believe that the reason behind this was that Wii was the lowest priced console whereas PS3 was launched with a high price tag of $600. Now that both PS3 and Xbox 360 have slashed their prices, Wii is increasingly finding it difficult to compete in the gaming console market.

Our Comments

Even if punters buy less games, they will still continue purchasing consoles. In fact there is a booming second hand market for games (see Ebay or computer exchange), something that organisations like Charttrack do not record but which are flourishing.

Related Links

Analyst: The Wii bubble is deflating (opens in new tab)


Nintendo Wii set for slump? (opens in new tab)

(Tech Watch)

Analyst thinks "Wii bubble could be deflating" - but is it? (opens in new tab)

(Guardian UK)

'PS3 has a significant price advantage this holiday' (opens in new tab)

(Video Gamer)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.