Video Game Console Shipments Down In 2001 As Consumers Anticipate New Releases.

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 consoles shipments totaled over $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,” says 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.” Also, In-Stat finds that consoles are evolving beyond mere game machines as the addition of DVD movie playback, Ethernet adapters and hard drives open up a host of new possibilities, from online gaming to e-commerce.

In-Stat has also found that:

Overall unit shipments of video game consoles will increase by over 13% per year between 2000 and 2005.

Sony is the dominant player in the video game console market. PlayStation 2 and PlayStation were the two best selling consoles worldwide in 2000, and are expected to repeat this feat 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.

For more information at http://www.cahners.com.