DVDINSIDER: Video Game Console Market On The Rise

DVD News
01-24-2001
DVDINSIDER: Video Game Console Market On The Rise

DVD NEWS-24 January 2001-DVDINSIDER: Video Game Console Market On The Rise (C)1999-2001 DVD News. Distributed for AM Newswire Inc via M2 Communications Ltd (www.m2.com). With several units being positioned as living room entertainment gateways, the video game console market will continue its robust growth over the next several years, with sales soaring from $4.1 billion in 2000 to $7.8 billion in 2004, according to Cahners In-Stat Group. The high-tech market research firm finds that the video game console market is undergoing greater changes than it has seen in quite some time. Sony's PlayStation 2 is pacing the video game console pack. Sony will use DVD discs for game titles, and give consumers the option of using the product for gaming, DVD movie playing and eventually Web surfing. Other new consoles like Nintendo's Game Cube and Microsoft's Xbox will be equipped with DVD technology, broadband connectivity and hard drives. These game consoles are evolving into low-end computers or home entertainment gateways capable of audio, video and high- speed Internet functionality and some may be able to support PC printers and other peripherals in the future. "The versatility in new consoles can only help to boost sales," says Brian O'Rourke, senior analyst with In-Stat's Multimedia Service. "Online gaming will grow rapidly over the next three to five years to the point where it may rival packaged games in revenue. This development will make high-speed Internet access via consoles more important than ever." In-Stat has also found Sony, having led the console market from 1995-2000 with 47 percent market share, will remain the dominant player in the console market through 2004. Nintendo and Microsoft will be its fiercest competitors as Sega gradually phases out its console business. North America has historically been the largest single market for video games, led by the United States. Europe is not far behind, and Japan has been the largest per capita market for video game consoles. Conceivably, online computer gaming could erode the console market, but that is unlikely. The new generation of consoles' graphics capability is so good that online gaming will probably never be able to compete in that area.

(Copyright 2001)