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Friday October 13, 2006 1:57 pm

Analysts Talk Latest NPD Data

PSTwo The latest NPD data showed strong September sales growth; 38% over 2005. Nintendo and the DS showed strong growth, and the “next generation” transition doesn’t seem to have hurt the industry as much as expected. But hidden in the NPD data are some interesting points that various analysts have started to dissect. GameDaily reports on analysis from Michael Pachter of Wedbush Morgan Securities, and Deutsche Bank analyst Jeetil Patel. Pachter sees the PS2 growth as a good sign, with software sales up 12 percent compared to last year. But the original Xbox has been fading fast. As one looks at the numbers, it appears that the Xbox 360 is completely cannibalizing the original Xbox user base. The Xbox 360 seems to be pushing better than expected software sales, a good thing for Microsoft.

Still, things don’t appear to be completely rosy in the Xbox 360 camp. Jeetil Patel feels like the Xbox 360 is underperforming. Tracking the Xbox 360 versus the original Xbox’s sales path seems to indicate that the Xbox 360 has moved fewer net units than the original Xbox at this point in the console life cycle; the lack of units during Microsoft’s holiday launch last year really set the company back. In addition, NPD data has the total Xbox 360 sell through at approximately 2.7 million units. Japan adds only a fraction to that number, with well under 200,000 units sold through in that territory. An optimistic projection for the Xbox 360 in the rest of the world might match the US total. At this point, it is starting to look like Microsoft’s projections of a 10 million unit head start by the time the Playstation 3 launches was extremely aggressive. With probably just over six million Xbox 360 consoles moved worldwide to date, Microsoft would have to nearly double their worldwide sales in October and November to match their goals before Sony’s November launch of the Playstation 3.

Read More | GameDaily BIZ

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