Nintendo displaced Sony as the leader in the video-game console software market during Q3 2007, and Microsoft continued to hold a very distant third place, according to data released today by supply-chain data company iSuppli Corp.
Including its Wii and DS software, Nintendo raked in $1.2 billion in the third quarter worldwide, up 31.4 percent from the second quarter, and more than double the year-over-year revenues. In comparison, Sony in Q3 generated $1 billion in gaming software revenue for its PlayStation 3, PlayStation 2 and PSP, the same amount it generated during Q2. Microsoft, meanwhile, posted just $317.8 million in revenue for its Xbox 360 and and Xbox software, a very distant third place, but certainly more than its $271.9 million Q2 performance.
According to iSuppli, software sales for the PS3 “have been suffering due to the console’s high price point, combined with a lack of compelling titles. The problems have begun to affect even the third-party publishers, including leading game maker Electronic Arts, which … is losing revenue due to meager PlayStation 3 sales and … rooting for price cuts and improvements to the console….”
In addition, said iSuppli, “because Sony was slow to reduce the price of the PlayStation 3 and to produce compelling games, third- party game publishers are flocking to other platforms. If the PlayStation 3 can’t promote more game sales, developers may begin to feel working with Nintendo outweighs the benefits of working with Sony.”
This holiday shopping season could prove to be a make-or-break period for all three manufacturers in the console race.
