NEWS - Friday, May 19, 2006

Analysts Predict Xbox 360 to Win Console War

Analysts from Merrill Lynch are at it again, this time it’s a statement predicting the Microsoft Xbox 360 domination over the Sony PS3 and Nintendo Wii. The statement suggests that the Xbox360 will win simply because of pricing. Merrill Lynch explains, "The PS3 will not only be significantly more costly than Xbox 360 at launch, but will continue to operate at a cost disadvantage for several years... The Xbox 360 could be selling at half the price of PS3 in the latter half of 2006." Merrill Lynch advised their investors to sell Sony stock after they predicted that the PS3 would be around $800-$900. Sony’s stock fell 7.8% during E3 for a total of a $3 billion dollar loss. Could this be an unfair statement from Merrill Lynch since the PS3 isn’t quite shipping yet? What we saw at E3 with the Sony PS3 controller left many in shock. Well, not the vibration of the controller, or the all-movement feature, but why Sony returned to the PS2-type prototype. Sony is betting on Blu-ray to dictate the PS3 success, while most of Hollywood is already backing the Blu-ray technology over Toshiba’s HD DVD. As for the Nintendo Wii, well, they did put on a good show and many people liked what they saw. But it will be up to the consumer on which video game console will dominate. Remember, Merrill Lynch has been wrong before, and many times in regards to the video game industry.


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