The 2008 holiday season saw a sharp increase in gaming console sales, despite the current economic crisis - with Microsoft's Xbox 360 experiencing its biggest sales in six years.
According to a Microsoft statement, Christmas sales of the Xbox 360 in the Europe, Middle East and Africa (EMEA) region doubled from the same period a year ago. However, the company would not give exact figures.
Eight million Xbox 360 game consoles were sold in total up to 2008, in the EMEA region. According to Microsoft, Xbox 360 has increased its lead over its biggest competitor, the Sony PlayStation 3 (PS3), in the EMEA region to more than one million consoles.
Chris Lewis, regional VP for Interactive Entertainment Business EMEA, says Microsoft reduced the price for the Xbox 360 in September, in light of the uncertain economic climate.
“2008 saw us grow faster than any of our competitors and we overachieved in sales during the crucial Christmas selling period. With eight million consoles sold since we launched, and consistently out-selling PS3 in EMEA, we're poised to build on this success in 2009.“
More ahead
Sony says its PS3 sales increased 130% globally during the holiday season. However, at the time of publication, Sony had yet to release its sales results for SA.
Sony Computer Entertainment Europe president David Reeves says 2009 is set to be a promising year for the PS3, despite the current economic crisis.
Sony Computer Entertainment America VP Ian Jackson says: “Early internal data points to an increase of more than 130% of PS3 hardware sales for the holiday season - since black Friday - and we're also seeing a growth of nearly 40% in total PS3 hardware sales for the calendar year. We remain confident this momentum will continue into the new year.”
Nintendo says that, in general, its local South African sales units increased by 35% in December compared to the same period in 2007. Nintendo claims its Wii console was the biggest seller this season; however, DS Lite sales increased over four times when compared to normal monthly run rates.
The best selling titles include Wii Play, Wii Fit and Mario Kart. DS software sales were driven by Dr Kawashima's Brain Training, New Super Mario Brothers and Nintendogs. Nintendo says these South African statistics closely correspond to European sales trends.
Shannon Rogotzki, marketing director for BT Games, says BT saw a phenomenal increase in gaming console sales. “People are seeing gaming as long-term entertainment. People are staying at home more and are looking for that long-term playability. It will be interesting to see what happens in the year.”
Gaming overtakes music
Steven Ambrose, analyst for World Wide Worx, attributes the booming increase in gaming consoles due to the economic recession as more people opt to stay at home, as well as the positive uptake of successful game titles.
“The global recession has not hurt gaming as much as it has hurt other industries and it's interesting to see how, in particular, Nintendo and Sony have captured that market. From what we've seen internationally, 2008 was a great year for gaming. We've had some really well received titles internationally and locally.
“Gaming has been a larger market than the music industry for quite a few years now. The gaming industry is growing while the music industry is declining and unfortunately the growth in online music sales has not compensated for the sales in CDs. All the major retailers have realised the high sales in gaming, and gaming consoles have also become more affordable.”
Ambrose adds that gaming will become more interactive locally as the cost of broadband comes down with the implementation of the Seacom undersea fibre-optic cables.
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