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In-Stat: ’01 Game System Sales Will Be Down

As gamers await the release of Nintendo’s GameCube and Microsoft’s Xbox in November, unit shipments of video game consoles are expected to decline in 2001, according to Cahners In-Stat Group.

The market research firm reports that last year, worldwide video game console shipments totaled more than $4.5 billion in revenue and, despite this year’s decline, unit shipments should increase substantially between 2000 and 2005.

“The video game console market is seeing a period of unprecedented change,” said Brian O’Rourke, a Senior Analyst with In-Stat. “This change has been marked by the exit of legacy player Sega from the market, and the arrival of Microsoft.”

In-Stat has also found that:

  • Overall unit shipments of video game consoles will increase by more than 13 percent per year between 2000 and 2005.
  • Sony is the dominant player in the video game console market. PlayStation 2 and PlayStation 1 were the two best selling consoles worldwide in 2000, and are expected to repeat in 2001.
  • The Nintendo GameCube should have a significant advantage in the console wars, specifically because of its $100 price advantage. To cost conscious parents and gamers, a $199 console may prove to be more appealing than a $299 console, particularly in current economic conditions.

The report, “Ready to Rumble: The Video Game Console Market,” includes a five-year forecast for the game console market. Contact Matthew Woods at 617.630.2139 or [email protected].