Nintendo, Microsoft and Sony React to Year-End NPD

As usual following the release of NPD video game sales data, the big three console makers have issued their respective takes on the spectacular finish for 2008. Nintendo, which dominated the market for most of the year, emphasized that its Wii had been purchased by 10.17 million Americans – no game system had ever been purchased by more than 10 million people in one year in the U.S. before.

Overall, the Wii represented 55 percent of next generation home console sales in 2008, while the DS took 72 percent of all portable sales. More than 132 million games were sold in the U.S. for Nintendo systems. Nintendo said its products were responsible for 99 percent of the additional retail dollars that drove industry growth to 19 percent in 2008.

"Our type of entertainment has now moved to the point where there is no longer a question that if you offer consumers an expanded definition of what a video game can be, and deliver that idea with quality and affordability in mind, millions of new people will start playing video games," said Cammie Dunaway, Nintendo of America's executive vice president of Sales & Marketing. "Concepts like Wii Fit, Guitar Hero, and Rock Band never would have seemed feasible just a few years ago, and now they're driving growth for our the entire industry."

As for Microsoft, the company noted that December was the "biggest month in Xbox 360 history." With 1.4 million consoles sold, the 360 outsold the PS3 more than two-to-one (the third month in a row). Third-party game sales for Xbox 360 increased from $298 million in November to $504 million in December, and the system "has generated more life-to-date dollars at retail for third-party publishers than the PS3 and Wii combined." Additionally, online transactions over Xbox Live grew 84 percent in 2008 and over 40 million downloads took place through the Live Marketplace in December alone, Microsoft said.

"Our goal for 2008 was to reach new audiences by bringing ground-breaking games and entertainment to Xbox 360," said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft. "Looking forward, new waves of innovation will extend our position as the global leader in interactive entertainment."

Finally, looking at Sony, the company may continue to trail the competition, but PS3 sales were up 40 percent in 2008 (3.6 million sold) and PS3 software sales were up 115 percent. Overall, PlayStation hardware unit revenue generated more than $2.5 billion in 2008, while PlayStation software unit revenue totaled more than $3.2 billion.

"The PlayStation brand has had a solid calendar year with total PS3 hardware sales up 40% and total PS3 software sales up 115%. We remain confident in our momentum into 2009 as we continue to deliver to our consumers the best entertainment content and technology out there," said Peter Dille, Senior Vice President of Marketing and PlayStation Network, Sony Computer Entertainment America. "And we delivered on that promise this past year with one of the best software line-ups in the industry, a dramatically expanded PlayStation Network with the launch of the video delivery service and the beta of PlayStation Home, as well as extended hardware offerings with the PSP 3000 and Uncharted 160GB PS3 bundle. We also hit a remarkable milestone for the PlayStation 2 platform in North America with 50 million units sold. It's truly an amazing testament to the power and legacy of our brand."