By Lisa Gill E-Commerce Times
01/09/03 11:48 AM PT
Sony noted that its new online gaming site has been wildly successful so far. According to the company, more than 200,000 gamers spent time on the site between Christmas Eve and New Year's Day, logging more than 1 million hours of game time.
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In a holiday shopping season that was strong across the board for e-commerce but relatively weak for offline retailers, video gaming got a turbo-powered boost. Leading
console maker Sony (NYSE: SNE) sold 8.5 million PlayStation2 units worldwide, up
24 percent compared with the 2001 holiday period. In North America,
the surge was even more pronounced: Sony sold 4 million consoles in
this region alone, 42 percent more than in 2001.
European sales gained 27 percent to 3.4 million machines, while sales
in Japan fell 27 percent to 940,000. PlayStation2 has been available in
the Japanese market for nearly three years, and Sony has said it has
nearly reached the saturation point there.
Holidays Exceeded Expectations
Sony Computer Entertainment America, a wholly owned subsidiary
of Sony, said the holiday results exceeded the company's expectations,
even in a weak economy. Jack Tretton, executive vice president of Sony
Computer Entertainment America, attributed the high sales numbers
to the availability of solid, popular games.
Yankee Group analyst Mike Goodman agreed, telling the E-Commerce
Times that such games as Harry Potter, Lord of the Rings and Grand
Theft Auto propelled PlayStation2 sales during the 2002 holiday
shopping season.
"You're in a period now where, to a large extent, games sell consoles,"
he said of the US$10 billion video game market.
A console price cut last spring also likely helped Sony, according to Goodman,
as PlayStation2 console prices fell from $299 to $199. Retailers also began
bundling games with the console to compete against Microsoft (Nasdaq: MSFT) , which sells
its Xbox with games included.
Continued Growth for 2003
Goodman noted that the holiday season appears to have been strong for all
video game console sellers, even as Microsoft continued its battle to win
the number two slot from Nintendo. And growth is expected to continue
in 2003.
The Yankee Group has estimated that the installed base of gaming
consoles will grow 4 percent in 2003, from 48 million to 50 million
units. A high replacement rate will fuel that increase, according to the
research firm.
Second-generation consoles, including PlayStation2, Gamecube and
Xbox, currently make up nearly 70 percent of the market, Goodman
noted. "I can't think of any other product category where
replacement happens that quickly," he said.
Online Success
Sony also noted that its online gaming site has been wildly successful
so far. According to the company, more than 200,000 gamers spent time
on the site between Christmas Eve and New Year's Day, logging more than
1 million hours of game time.
The company also noted that sales of its network adapter, which enable the
PlayStation2 to interact with an Ethernet or modem, had exceeded 400,000 units
as of December 30th, surpassing the company's five-month projection.
sold 8.5 million PlayStation2 units worldwide, up
24 percent compared with the 2001 holiday period. In North America,
the surge was even more pronounced: Sony sold 4 million consoles in
this region alone, 42 percent more than in 2001.
in Japan fell 27 percent to 940,000. PlayStation2 has been available in
the Japanese market for nearly three years, and Sony has said it has
nearly reached the saturation point there.
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