Gamecube and Xbox. Are early Hits

Taken from MSNBC
Nov. 20 — Consumers may be curbing their spending in some areas, but they apparently don’t mind splurging on the two newly released video game consoles from Nintendo and Microsoft, according to new research.

A GOLDMAN SACHS SURVEY of U.S. retailers found that 73 percent had already sold out of Microsoft’s Xbox and that 47 percent were sold out of Nintendo’s GameCube, less than a week after the two systems were released.

The survey was conducted among 49 retail chain stores in large cities, said Goldman, which speculated that the difference in inventory levels could be traced back to the amount of consoles the stores initially received. Microsoft was estimated to have shipped 300,000 Xbox units, and Nintendo is estimated to have shipped 700,000.  

“We note that Nintendo’s shipment policy appears to be staving off serious shortages,” Goldman said.

Toys “R” Us is well stocked with GameCube consoles, according to Goldman’s research, but “it is only a matter of time before Christmas demand consumes this inventory.” Wal-Mart and Toys “R” Us both lack Xbox inventory and do not know when shipments will arrive, said Goldman, adding that Electronics Boutique stores carry both systems.  

But these early indicators are not just good news for the console makers. Strong sales of game machines naturally lead to strong sales of video game titles and accessories.

The high demand for GameCube and Xbox could turn what has already been a strong year for the game industry into a record-breaker, according to NPDFunworld, a research firm.

Unit sales for the entire market, including consoles, software and accessories, were up 12 percent through September, the firm said, and console sales were up 62 percent. But the majority of sales usually take place in the fourth quarter, senior account executive Richard Ow said. Factor in two new game systems, and “a new record for the video game industry looks likely,” he said.

The Sept. 11 terrorist attacks have hurt retail sales in other industries, but could be having the opposite effect on the video game industry, Ow said.  

“Due to recent events, Americans may be spending more time at home, which bodes well for video game sales this holiday,” he said. Game software unit sales were up 23 percent through September, NPD found.

The interest in video games could even be a boon to other industries.

“We believe customers continue to go into stores such as Best Buy and Circuit City for the products, and, if they can not find the new gaming platforms, customers are often resorting to “alternative purchases” such as Sony’s PlayStation 2 or even DVD hardware and software,” wrote Gerard Klauer Mattison analyst Scot Ciccarelli.

The boom has certainly helped video game software makers, or at least their investors. Since October, shares of Electronic Arts have surged 32 percent, THQ is up 31 percent and Activision has jumped 44 percent. Even shares of smaller companies have benefited: Acclaim Entertainment is up 90 percent since October, and Take 2 has more than doubled.

Looks like the console war is off to a good start. Thoughts?

I wonder how this is going to affect the PC as a gaming platform.......these consoles are doing better than ever....I wouldn\'t mind if the Xbox got stacked with PC-style games, as I can see the PC dying out as a gaming platform very soon (and I\'m bloody sick of all those upgrades!!)

Hmm... this is only the tip of the ice burg. Sony will intelligently and systematicly work their way past all the hype the X-Box is generating and inevitably come out on top.

I dont know which to belive the Ny Post or MSNBC. The Post says 57% of gcs have been sold and 87 % of x-boxs have been sold. But only 300,000 x-boxes were shiped and 700,000 game cubes.......accordin to the site I linked and quoted in my thread game cube sold over 300,000 and if x-box hasn\'t sold out yet, gc has sold more so gc is winning over x-box for 2nd place of this generation\'s console wars.

Hmm... this is only the tip of the ice burg. Sony will intelligently and systematicly work their way past all the hype the X-Box is generating and inevitably come out on top.

  I agree, but sony has already won the console war.