Next Gen Console War: Report 2 May 22, 2007 John JCal Callaham

Wii	Page:: ( 1 / 3 )

Wii Battle Report

The Wii may be hard to find in stores but that hasn't stopped the console from still becoming the hottest home electronics product since Apple's original iPod. Whenever a retail store like Best Buy or Circuit City advertise in their Sunday papers about having Wii consoles on sale, the lines of people tend to be massive as they wait for the doors to open. It's clear that if Nintendo had more Wii consoles to sell they would quickly vanish from shelves.

It's clear that consumers want something that's both cheap ($250) and fun to play and the Wii delivers on that promise with its Wiimote controller and its emphasis on easy to play games. One of the best selling games for the Wii continues to be WiiPlay, which combines a new Wiimote with quick mini-games akin to the Wii's included game title Wii Sports. Nintendo also uses its Mario franchise well; its Super Paper Mario game has been a big best seller and the Mario Party 8 game will likely also be a big selling when it is released in late May. In June, the Wii will bring its first online title to the US with Pokemon Battle Revolution. The Pokemon name should be enough to bring in gamers but we will have to wait and see if Nintendo's online multiplayer for the Wii will be up to snuff.

Despite the huge initial success of the Wii Nintendo doesn't have a free ride to win the console war just yet. Lack of supply continues to be an issue and if it continues into the summer months it could hurt Nintendo as the all important holiday season looms. Uncertainty about Nintendo first party game releases continues and third party publishers still don't seem to have a handle on how to create games for the console. As we go into the summer months we offer some advice to Nintendo to keep its current momentum alive

Solve Wii Supply Problems

We are, quite frankly, wondering why Nintendo doesn't seem able to make more of the console. The hardware isn't exactly state-of-the-art compared to the PS3 and Xbox 360 so making more shouldn't be an issue. Some have even speculated that Nintendo is deliberately trying to keep supple scarce but that doesn't make much sense either. Nintendo needs to fix these supply problems and soon. If they don't have consoles ready to pick up in stores by the start of the holiday buying season in September people who are still waiting to get a new console may turn to the Xbox 360 and PS3.

Make Sure First Party Titles Come Out This Year

The Nintendo fans are waiting for Super Mario Galaxy and hardcore gamers are waiting for Metroid Prime 3. Nintendo has stated that they expect Super Mario Galaxy to be released before the end of the year and today they announced that Metroid Prime 3 will be coming out on August 20.. However, Nintendo does have a tendency to make some unexpected announcements for delays in their games. With games like Halo 3, GTA IV and more coming down the pike Nintendo cannot afford to have nothing less than at least these two major titles in stores this fall.

More Online Multiplayer Gaming Support

The Wii online service certainly has features that make it stand out from the other two consoles; from offering tons of classic games to news and weather support and more. However, we are still waiting for more news on how the console will handle online gaming. According to online rumors third party publishers might have to wait until after the end of the year to offer support for online multiplayer games for the console (Nintendo execs have been quoted as saying that they do expect third party games to offer Wii online multiplayer this year). As multiplayer gaming continues to grow among consumers, Nintendo might have to accelerate their support of these features. Having Wii parties is one thing but not everyone who buys the console will have access to that kind of social scene. Making online multiplayer a priority would seem to be a great way to extend that kind of fan support for the Wii

Offer Original Virtual Console Games

We mentioned this in our last console war report and it bears repeating here. Having access to a bunch of classic games from the NES, SNES, and N64 from your Wii downloadable Virtual Console channel is terrific but quite frankly most of these games show their age quickly. Both Microsoft and Sony are accelerating their efforts to offer original downloadable only games. It's something that Nintendo needs to do as well.

360	Page:: ( 2 / 3 )

Xbox 360 Battle Report

Microsoft's next-gen console continues to lose money for the company and the amount of consoles it currently sells doesn't compare to the Wii but the Xbox 360 is still holding its own in the next-gen console war thanks to a number of best selling exclusive titles like Lost Planet and Crackdown. Even non exclusives like Ghost Recon Advanced Warfighter 2 and Guitar Hero II have sold well. The console has been on sale for 18 months now and despite the surge of interest in the Wii it looks like it will continue to generate sales for games like Forza Motorsport 2 and Bioshock. Oh and Halo 3, their biggest first party game, is due out on September 25, much earlier than anticipated.

More than just the sales of games and consoles at retail stores, Microsoft's Xbox Live service has matured to become the premiere online console services. While some people might still complain about paying money to access the Gold service (where people can play online multiplayer games), the truth is that you get what you pay for and the service continues to expand with game add-ons, movie and TV downloads and more services. Microsoft hasn't revealed how much income it gets specifically from its Xbox Live service but we expect that the revenue will continue to grow.

We do have concerns about their hardware bundles. Unlike Nintendo and Sony who currently only have one choice to purchase (Sony dumped their 20GB model only a few months after the November launch of the PS3), Microsoft currently has a whopping three different hardware configurations; the $299 Core model (with no hard drive), the $399 main model (with 20GB hard drive) and the recently launched $479 Elite model (with 120 GB hard drive and HDMI port and cable). Good luck finding that Elite model, by the way; it's now almost as hard to find in stores as the Wii console and online web sites don't currently have any in stock. Microsoft reportedly will add the 120 GB hard drive model and the HDMI port to their regular $399r Xbox 360 console this fall, but what about all of us who bought the original model? Will there be some kind of rebate-exchange offered to us so we can upgrade?

Microsoft is stil in a good position and if Halo 3 is as big of a hit as they expect it will definitely help move sales of consoles. But there are definitely some other things they can do to help consumers and perhaps overtake Nintendo:

Lower Price Of Xbox 360 Core System

We are getting close to the two year anniversary of the launch of the Xbox 360 with no price cut. Microsoft could push people to purchase more consoles if they lowered their Core system down by at least $50 to put it on a par with the current price of the Wii console. Let's face it; Microsoft's console pretty much blows away the Wii in terms of technology and there is certainly a lot of games to play.

Rebate-Exchange Program for Xbox 360 Owners

If Microsoft keeps to their plan to put in 120 GB hard drives and the HDMI port for the main Xbox 360 model this fall, it certainly will upset all those owners who thought they were purchasing the highest end model. We suggest Microsoft offer a rebate for all those people who want to exchange their current model for the new one in order to make the transition a little better.

Make Sure Halo 3 Is The Best Game In The Series

We are quite frankly a little worried that the September 25 release date of Halo 3, while great for a marketing coup, might make things a little tight for Bungie in the development side. Microsoft is putting a lot of eggs in their basket with the release of Halo 3, much like they did last year with Gears of War. As it turned out, the gamble paid off in 2006; Gears of War was a critcal and commerical hit and took some of the thunder away from the PS3 and Wii launches. Microsoft needs to ensure that Halo 3 will have the same reception. If it means delaying the game slightly from September to a more traditional November release, that will be OK by us.

All Future Xbox 360 Must Come With A Hard Drive

Microsoft actually followed our earlier advice and released a 120 GB hard drive. Now it needs to make sure all Xbox 360 consoles have at least some kind of hard drive, even if its the now much smaller 20 GB version. Having a Core system with such a drive and the main model with a 120 GB version will let everyone experience Xbox Live and all of the services it offers. Xbox Live is by far the best feature the console has and it's a shame that some owners don't have access to it.

Keep Quality Control And Customer Service High

The "red light of death" seems to continue to be a problem for the console. While Microsoft will not officially comment on numbers, it seems clear from various message board posts that the Xbox 360 continues to have a higher amount of hardware failures than it should. Microsoft needs to get this problem fixed and also needs to make sure that if a console does break within the hardware warranty period that customers get a quick and free replacement.

PS3	Page:: ( 3 / 3 )

PS3 Battle Report

Sony's $599 console has not fared well at all six months after the console's worldwide launch. Current estimates state that only 3 million or so consoles have been sold worldwide and last week the NPD Group said only 81,000 PS3 consoles were sold in the US during the month of April. Sony in an official statement attributed the low sales to lack of PS3 software but we believe the real problem is one word; price. People just don't want to purchase a $599 console right now. It doesn't help that the company has lost a lot of third party frachises to the Xbox 360 that used to be Playstation exclusives. The only third party PS3 exclusive that Sony has retained so far is Konami's Metal Gear Solid 4 and that game won't likely be released until after 2007.

We are encouraged, however, about Sony's plans for the next 9-12 months. At last week's PS3 Gamers Day event, the company showed off a number of their first party titles and games like Heavenly Sword, Lair, and Uncharted: Drake's Fortune are looking to be solid hits for the PS3. While they likely won't see Halo 3 sales numbers they will boost consoles sales. Sony's plans for their 3D chat and community service, Playstation Home, have generated a lot of mainstream coverage but we are not sure if this free service will be the revolution in online community that Sony thinks it will be (although having trophies as achievements for game playing is certainly a plus over the simple numbers Microsoft offers for Xbox 360 achievements).

Sony also seems to want to make downloadable games a priority. While they have been slower out of the gate than Microsoft and Nintendo in this area, Sony's plans to offer retail quality games like Warhawk and SOCOM Confrontation via download will be a huge plus in our book (why Microsoft can't do the same thing is a mystery to us). However, Sony also needs to offer up things like more add-ons for retail games for download (Microsoft almost has a monopoly in this area right now) and more importantly movie and TV downloads. Oh, and we disagree with certain financial analysts that the system's Blu-Ray drive will help it. There's no indication that people are embracing the Blu-Ray movie format in droves. If they were, wouldn't the PS3 have sold more units?
So for our final look at the current war situation we give our advice to Sony for what they need to do to improve the PS3 chances of success.

Lower The Price Of The PS3 Console ASAP

Even UbiSoft's CEO agrees with us. The $599 price tag for the console needs to come down and soon. Sony is losing market share to the Wii and Xbox 360 rapidly and most of it can be attributed to the high price of the only remaining model of the PS3. We recommend at least a $100 price cut before the end of the summer and it might not hurt to cut it down to $399 to match the price of the main Xbox 360 model. Will Sony lose some money in the short term in hardware? Yep. But it's sure to lose even more if it keeps its current price through the end of this year.

Have A Solid First Party Line-Up

Sony seems to be trying to push a lot of first party games out the door for the holiday shopping season. With games like Lair, Uncharted: Drake's Fortune, Warhawk, SOCOM Confrontation, Heavenly Sword, Ratchet and Clank Future: Tools Of Destruction among other slated to be released this fall the company is aiming to improve upon the quite frankly lousy PS3 launch line-up of 2006. The big question: Will all of these games be released before the end of the year? We think we might see one or two not make it but if that happens Sony will likely still have a pretty good game release schedule.

Where Are the Movie, TV And Music Downloads?

Sony owns a movie studio, makes TV shows and owns one of the major recording companies as well. It would seem to be a natural that the PS3, touted before its launch as not just a game console but a multimedia device, would be a great way to get downloadable access to these other Sony entertainment companies. Yet Microsoft was first out of the gate offering movie and TV downloads and while Sony execs have stated they also have similar plans, its been all talk and no action so far as Sony seems to be concentrating on promoting its upcoming Playstation Home service. Sony's had similar issues in the past; their Sony Connect music download service bombed as Apple's iTunes took over the market. Will something similar happen in this area? Sony had better learn from its mistakes in the past and offer movie, TV and music downloads sooner rather than later.

Conclusion

Six months after the next-gen console wars began, Nintendo's Wii has emerged on top with high sales but Microsoft's Xbox 360 continues to be a popular console with a number of best selling games and a solid install base so far. Right now the company with the most to lose is Sony as its launch of the PS3 has been curtailed due to the high cost of the console itself as well as a lack of quality titles. However even Nintendo has dents in its armor right now. Will it continue its momentum it has gained via the launches of titles like Metroid Prime 3 and Super Mario Galaxy? Will Microsoft's Halo 3 and other titles be enough to continue to sell consoles? Most important can Sony come out of the deep hole it has dug itself in and make the moves it needs to make before the PS3 becomes the Dreamcast of this current console cycle? We will post up another report from the front lines after E3 in July to give our continued opinions and advice as the console war heads into its critical fall 2007 battle engagement.