Sony PlayStation 2 Approaches Its Dusk

by Anton Shilov
10/24/2007 | 12:56 PM

Even though Sony PlayStation 2 game console has become the most successful game console ever with 120 million units sold, its era is coming to the end, as sales of the entertainment device have been declining in the recent months, some analysts believe. Considering weak adoption of the PlayStation 3, the waterfall of the PS2 sales may mean that Sony Computer Entertainment Inc. will find itself behind Nintendo and Microsoft.

“PlayStation 2 software sales fell 47% year-over-year to $85 million, representing a deceleration from the 33% year-over-year decline [in September, 2007]. While this substantial decline was inevitable, it is currently unclear whether the drop reflects consumer transition to next-gen software or weak spending patterns amongst the low-end consumer. Needless to say, with tougher comps ahead for PS2 software sales, we think that the PS2 may finally be on its way out of the industry for good,” said Deutsche Bank analyst Jeetil Patel, reports GameDailyBiz web-site.

Even though total available market of non-portable game consoles in the U.S. has been increasing in the most recent three months, sales of PlayStation 2 hardware has been declining. Even though the popularity of SCEI’s PS3 is weak, it is considerably higher than half a year ago, therefore, sales of PlayStation 2 might suffer because of that. Still, considering the fact that the PS2 retails for $129, whereas PS3 cost starting from $499, hence, the competition of the consoles from Sony is doubtful. On the other hand, popularity of Nintendo Wii at $249 price-point has been skyrocketing, whereas adoption of Microsoft Xbox 360 at $299 and $279 has been growing slowly, but surely.

Sony PlayStation 2 was the most popular game console in the USA, according to data by NPD group. If the recent price-cut on the PlayStation 3 does not drive sales of the latest game console by Sony Computer Entertainment Inc. upwards, Sony will find itself on the third place in the game console world following Nintendo Wii and Microsoft Xbox 360.

In September gamers bought 1.363 million game consoles in the U.S., according to NPD, of which there were 215 thousand of PlayStation 2 and 119.4 thousand of PlayStation 3. Meanwhile, Nintendo sold through 501 thousand of Wii, whereas Microsoft Xbox 360 was bought by 527.8 thousand of gamers in the USA.