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Summary:

The next generation console battle comes down to the 360 and PS3, because both consoles are trying to be the all-in-one media device for the living room that offers high definition gaming and movies at a (sort of) reasonable price. The Nintendo Wii was also launched […]

The next generation console battle comes down to the 360 and PS3, because both consoles are trying to be the all-in-one media device for the living room that offers high definition gaming and movies at a (sort of) reasonable price. The Nintendo Wii was also launched this year, but is going for a completely different audience – one more focused on gameplay than glitz. So, of the two competitors in the main race, who came out ahead?

Microsoft by a landslide.

David Riley, Senior Marketing Manager with the NPD Group, a global marketing and retail statistics firm, sent us the December 2006 sales numbers, and of the consoles, Microsoft dominated. According to the numbers, the Microsoft XBox 360 sold 1.1 million units in December as compared to 490,700 units sold for the PS3. What could be the cause of such a discrepancy?

Of course, the PS3 launched with low initial stock shipments, but according to Jack Tretton, President and CEO of SCEA, there have been a million PS3s shipped to the U.S., which doesn’t explain why the total PS3 sales up to December 2006 capped at 687,300 unless the system hadn’t completely sold out. The real issue is probably one more of cost than availability. Either way, Microsoft has to be pleased with this.

  1. Based on current capabilities and officially announced planned capabilities, the Xbox360 blows the PS3 out of the water as an “all-in-one media device for the living room” and that’s not even factoring in the lower cost, and “a-la-cart” style of the Xbox360. Don’t need to be able to play HD discs? Save yourself 200 dollars and don’t buy the HD-DVD drive for the 360! That’s not an option with PS3’s built in blue-ray player.

    I’m sure the PS3 will eventually have most of the features the 360 is offering but it will likely be a year or more behind. Microsoft really did take advantage of their head-start and hasn’t looked back since.

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  2. No porn on Blu-Ray = death of PS3. Gamers want only 1 thing more than games…and that’s porn. If they can’t get porn on BR, why would they want to fork over 600 bucks for the PS3 when the 360 has most of the same games and some exclusives …and PORN on HD-DVD !!!

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  3. dannywilliams Monday, January 22, 2007

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  4. This is typical MS shill FUD. Don’t be fooled. It is just plain stupid to compare the sales numbers for the PS3 during this period of time because they were in such short supply. There are so many MS shills on the net, from paid reviewers to Zune Masters to fake bloggers all on the MS payroll. If sales numbers really mean something in your “analysis”, why didn’t you mention that the readily available PS2 outsold the readily available xbox 360, 6 to 1 last year?

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  5. Cause this guy wouldn’t get his check from Bill if his article was entitled “Playstation Domination: PS2 Hextuples 360 sales”

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  6. Way to reply to yourself.

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  7. “This is typical MS shill FUD.”

    Why would NPD be shills for MS? They have a pretty good reputation in their industry, one that I doubt they’d risk on something so silly.

    As for comparing sales in this time period, wtf do you think NPD does? Do you even know who NPD is or what market research entails? What do you want them to do, use mythical figures for the tracking of the current market?

    As for why they didn’t compare the PS2 to the Xbox 360, this is just a guess, but perhaps it’s because the PS2 isn’t next generation, and thus doesn’t fit a market assessment of next generation consoles?

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  8. This is definitely MS FUD.

    As for comparing PS2 to Xbox 360 – Maybe the point is that the Playstation is the most dominant gaming platform in gaming history. As for features the PS3 matches if not betters the Xbox 360.

    Microsoft made a fatal blunder: They backed HD DVD which is destined to go the way of Betamax. Sony backed the winning horse with Blu Ray

    So Long Xbox

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  9. [...] the first Xbox failed to capture the market away from the PS2, the 360 dominates over PS3, and looks poised to continue doing [...]

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  10. [...] the first Xbox failed to capture the market away from the PS2, the 360 dominates over PS3, and looks poised to continue doing [...]

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  11. [...] the first Xbox failed to capture the market away from the PS2, the 360 dominates over PS3, and looks poised to continue doing [...]

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  12. Justin, firstly Sony didn’t ‘back’ the winning horse with Blu-Ray, they designed/own the horse! And it’s widely believed that if Blu-Ray/PS3 fails Sony could well be in a very difficult financial position considering their expenditure both in terms of R&D and manufacture!

    It’d be stupid to argue that the HD-DVD/Blu-Ray format war doesn’t have some impact on the next generation games consoles, but it is by no means the decider. Yes, Sony is selling PS3s on the strength of their Blu-Ray capabilities (I’m planning on buying one for that alone), but if people don’t buy any games for those PS3s, is the long term, minimal amount of profit made from licensing Blu-Ray going to make back the lost money on those PS3 sales?

    At the end of the day, I’m a big proponent of whatever is best for the market and for the gamer. Whilst I enjoy HD films, I don’t see the advantage which Blu-Ray gives games right now, apart from an incentive for developers to get lazy with compression. If HD-DVD fails, and remember there’s a lot of analysts who believe that both formats could happily co-exist for quite sometime, then it will be by no means the end of the 360. Don’t forget it’s a different market now from the DVD boosting sales of the PS2 era…

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  13. [...] In an announcement that shouldn’t surprise regular GigaOM readers in the slightest (warning signs emerged as far back as last February, and reached crescendo pitch in November and December), Sony Computer Entertainment Inc. just announced that CEO Ken Kutaragi, the “father of the Playstation”, will leave his post in June and become an “honorary chairman of SCEI”. By most appearances, his new title will be an “emeritus” position in the sense attributed to Rupert Murdoch, when he showed a Newscorp exec the door: “The ‘e’ means you’ve been given the elbow and the ‘meritus’ means that you bloody deserve it!” For unsurprisingly, most analysts attribute the departure to the Playstation 3’s poor performance against the Wii, and worst blow of all, as compared to the Xbox 360. [...]

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  14. [...] By most appearances, his new title will be an “emeritus” position in the sense attributed to Rupert Murdoch, when he showed a Newscorp exec the door: “The ‘e’ means you’ve been given the elbow and the ‘meritus’ means that you bloody deserve it!” Unsurprisingly, most analysts attribute the departure to the Playstation 3’s poor performance against the Wii, and worst blow of all, as compared to the Xbox 360. [...]

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  15. [...] will be stepping down from the helm as CEO.  Losing to the Wii was one thing, but it looks like losing out to the XBOX 360 was the straw that broke the camel’s [...]

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  16. [If sales numbers really mean something in your “analysis”, why didn’t you mention that the readily available PS2 outsold the readily available xbox 360, 6 to 1 last year?]

    Well u have to take into consideration that most kids who want a system from there parents are to young to give a damn what they get as long as the are able to play some fun games.

    one thing that pisses me off is that all these fanboys are so quick to talk smack, they don`t realize most people are not that serous about what system the get they just want to have fun and play with there friends. but in the end no one wants to really pay for a ps3 when the 360 is 200 dollars cheaper.yes the ps3 is a good system if not a little (and i mean very little) better than the 360 but the only way u can unlock that potential is if u go pay 2 grand for a HD t.v that most people just dont have.

    i dont really understand the format war between hd dvd an blue ray but what i hear and please correct me if i am wrong is that the blue ray offers much more room but uses old codecs and compression methods and is notorously hard to program games for while the hd dvd offers less room but better ways to compress and is simple to program for making the cost to produce a game for the ps3 exspensive while cheap for the 360 and the floating cell procesors while powerfull and high tech also make it wicked hard to make ps3 games ,making many third party ps3 exclusive go multi platform

    In the end the wii is in a class of its own and will make good sales no mater what happens. while the “battle” raging between 360 and ps3 will be one of marketing and injuneuty. the two systems are both aiming for the trophy but in the end the xbox 360 will make a ton more money while still keeping its consumers happy and thats what they wanted from the start…..and picking up a few ps3 exclusive and bringing them over to the xbox360 is good two

    so i think the 360 will probably win but in the end neither system will parish just evolve and prepare for the next console war.

    sorry for making such a long response thats just my 2 cents

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  17. scratch that comment i made about the ps3 being better when you look at the numbers the 360 has more gpu and a smarter set up for the cpu while the floating cell procesors are almost usless in the big sceme of an entire game

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  18. Sony hyped the sixaxis controller motion sensing but their games offerings so far completly fail to capatialise on it. Only motorstor and flow use it as a primary controller and it’s works like a charm.

    This controller has the potential to make the PS3 games distinct from Xbox 360 games, pc games and even wii games.
    Sony are busy digging their own grave because they wont support it’s motion sensing features.
    Even polyphoney’s GT5 is nothing but a hires version of their earlier PS2 games it has no support for motion sensing driving. To me driving a car with thumbstick is a pitifull joke when you can offer motion sensing like motorstorm does – guess what i am not buying GT5 unless it has motion support.
    Resistance fall of man is another example of lousy sixaxis support i may as well have bought a Xbox360 if sony cant make the motion sensing work. The 360 has a more ergonomic thumbstick design at least.
    I ask why did sony put in motion sensing if they dont intend to use it in their games was it a gimic or something. Why should i have to use a thumbstick to aim with when i can point the controller like mouse or lightgun ?
    Are sony unaware of the capability of their own platform or something.

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