An article published by Jay Srivatsa of research firm iSuppli reports that console sales have slowed significantly in 2003, suggesting that this current generation of machines may have peaked earlier than previous generations. The report predicts that sales in the US will be flat for the rest of 2003 and down as much as 10% in 2005.
Srivatsa blames the situation on the US economy and a lack of “big excitement” in the industry. This echoes the fears of other analysts that this generation lacks an obvious increase in functionality for many customers, when compared to the move from 2D to 3D graphics in the last generation. Although online gaming was mooted as filling this role Srivatsa concludes that it has not made a significant impact on most consumers.
Further information can be obtained from the iSuppli website at http://www.isuppli.com.