PS3 and Xbox 360 going strong after price cuts

According to a US video game sales report, the recent price cuts from Microsoft and Sony have already had a huge impact on sales. But the question still remains whether Nintendo will follow suit with its Wii console?

According to the NPG Group, sales in August were down month over month, but the recent price cuts helped spur on the industry.

“The price cuts implemented on the PS3 and 360 hardware already made an impact on sales, despite having been executed fairly late in the month. It will be interesting to see the full impact of the new price points on September sales,” said Anita Frazier, NPD analyst.

According to Frazier, the PS3 price cut was the more heavily adopted among consumers.

“The PS3 captured the greatest increase month over month with unit sales boosted by 72 per cent over July levels,” she said.

Frazier also discussed whether the Nintendo Wii will see a price cut in the future.

“There is a lot of speculation about the Wii and whether Nintendo will take a price cut as sales comparisons to last year show a decline,” she said.

“I do think it is interesting to note that the Wii is still selling at levels comparable to what the PS2 was doing at about this point in its lifecycle.”

On the software side of things, the category dropped 15 per cent with sales of $470.32 million compared to $551.99 million for the same period last year.

Frazier highlighted that the PS3 was the only console to have an increase in software sales from last year.

“The PS3 was the only platform to realise a year over year increase in total software sales and this is reflected in the top 10 list for the month which includes two PS3 games,” she said.

In terms of the overall games industry, Frazier said that the category is in a decline and it is doubtful sales will equal that of last year.

“The industry realised its sixth consecutive month over month decline, and while improved over the last several months, it is still a notable decline,” she said.

“The back four months of the year would have to be up 14 per cent in aggregate for 2009 to come in flat in comparison to 2008 sales.”

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