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Saturday, December 02, 2006

Nintendo is the winner of the war between PS3 and Wii

Digg! Slashdot Slashdot It! Nintendo sold 600,000 units of its new Wii video game console in the first eight days after its release in the America, as the company vies with rivals Sony and Microsoft for gamers' hearts and wallets.

Including sales of accessories and games, Nintendo's Wii-related revenue had hit $190 million since the machine's November 19 release, the company said.

At $250, the Wii costs half as much as the cheapest version of Sony's PlayStation 3 console, which went on sale in the United States two days before the Wii hit the market.

The consoles are also being hawked on Internet auction sites such as eBay for several times their retail price tag.

"We've shipped retailers several times the amount of hardware the other company was able to deliver for its launch around the same time--and we still sold out," Nintendo of America President Reggie Fils-Aime said in a statement.

Sony has not revealed how many PlayStation 3 consoles it has sold in North America so far, but has said it aims to have shipped 1 million units by the end of the year.

Microsoft has shipped more than 6 million of its Xbox 360s since launching it in November 2005.

The winning strategy Nintendo 's success maybe due to a strategy that attracts players who might not normally purchase a video game console and a smooth supply chain process and a multimillion dollar marketing campaign. Microsoft's head start Microsoft's head start has given Microsoft the resources to make more Xbox 360s to keep up with the holiday demand which they had the same problem as PS3 when it launched last year. When hardcore gamers go to stores hoping to get a PS3, when they walk in and finds that there is no more PS3s they will just buy a Xbox instead. The PS3 sells for $500 and $600, depending on the model, and the Xbox 360 sells for $350. When the holiday hubbub is over and the console sales figures come out, Nintendo's $250 price point may prove to be an advantage over the competition throughout the coming year.

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