Analyst: Xbox 2 Will Not Make MS Dominant

May 4, 2005 By Ian Bell

A Wedbush Morgan analyst does not see the new Xbox 2 as a breakthrough product for Microsoft and thinks Sony will continue to hold the lead.

“The analyst suggests that once Microsoft Xbox 360 is launched, people will continue to get software for the PlayStation 2 anticipating the PlayStation 3 release. He believes few PlayStation 2 ownerswill get the new Xbox save for hardcore gamers who own numerous consoles. Mr. Pachter thinks only about 30% or a bit more of consumer gamers will get the Xbox 360 in foreseeable future even withMicrosoft’s advantage in terms of time-to-market over Sony and Nintendo.

â€œIt’s just that I think the impact on current consumer behavior is limited to 30% of all consumers. Among pure PS2 owners (not those who own an Xbox and PS2), no one is sitting around saying, â€˜Oooh I can’t wait for the Xbox 360!’ … 35% of the existing consumer base is going to slow its purchases in anticipation of the Xbox 360 launch. Next year, 50% of the consumer base will slow its purchases in anticipation of the PS3,â€ Mr. Pachter said.”

Showing 3 comments

Comoc at 8:50am 6th May 2005 The CELL processor in the PS3 will give XBOX a long hard slog for market share. Until XBOX is able to adopt something similar, it will be second best.
L3e at 8:36pm 5th May 2005 I agree with James on this. But of I think it is still too early to tell. Of course nobody is sitting around saying "Oooh I can’t wait for the Xbox 360!" because MS hasn't said a word about it yet.

I don't know if MS will take the lead in this next generation, but if not, I know MS won't take 2nd again without a huge battle.

It will be interesting and I will probably save up to buy both of the new consoles.
James at 11:06pm 4th May 2005 I think she is drinking the Sony kool-aid. MS made it to the number two spot ousting Nintendo in their first year! They have deeper pockets than Sony and a bigger drive. This Christmas will give us the answer.