2006 proved to be a record-setting year for sales in the video game industry. Now that the three big video game console makers have spent at least one holiday season with their new consoles on the market, numbers coming out show how many people are buying the new hardware and what rationale they are using for their purchases.
The NPD Group—a provider of consumer and retail information for different industries—released information showing that the video game industry reached $12.5 billion last year. The numbers, obtained by video game news website gamespot.com, show that the sales of the Nintendo Wii and Sony's Playstation 3 drove profit in the final part of the year. Through the end of 2006, the Wii sold 1.1 million systems in the United States, and the PS3 sold 687,300. Microsoft's Xbox 360, which was released over a year ago, sold 1.1 million systems in December alone. Even in this year of transition to new hardware, consoles remain as popular as ever with consumers. Newer systems often sell out of stores in the Madison area.
But what could drive people, especially money-deprived students, to buy a new system at the approximate cost of $250 for a Wii and a minimum of $300 and $500 for the Xbox 360 and PS3 respectively? UW-Madison senior Brian Boothby plays video games and may want a PS3 someday, but said it would only happen with ""a bigger income and a cheaper price.""
UW-Madison junior Ryan Vande Zande plays video games with his roommates on a big screen TV. While they have talked about buying a new system, price is the main factor holding them back. Some students may wait on buying a new system, but a November 2006 NPD Group report suggests price is not the top consideration.
""Price is definitely a factor, but not as much as is content,"" Anita Franzier, industry analyst for the NPD Group, said in a press release. The release cited ""must-have"" features, appealing games and backward compatibility with older games as top concerns for buyers. This holds true for UW-Madison junior Kyle Brown, who waited in line for the Wii.
""I was set on the Wii right from the release mainly because of the Zelda game,"" said Brown, who also enjoys its motion-sensitive controls. The other consoles all have their own notable features. People may buy the PS3 for its Blu-ray Disc drive, while others may like the Xbox 360's online game services.
Even with this revelation, price still can make a difference to students. Brown also said that price did affect his choice.
""Price was not the most important factor, but as a college student with no job it did play a big part in my decision,"" Brown said.
While price may hold people back initially, better content and games can ensure a console's success in the future. Even with the higher price tags, sales of the new video game consoles do not show any signs of slowing down.
