Halo 3 "cannibalizing the industry", PS3 sales "dismal"

The biggest news to come out of the industry-tracking NPD Group's September US retail sales figures yesterday was that Halo 3 sold 3.3 million copies and helped push Xbox 360 hardware sales in a big way. Today, a handful of industry analysts added a bit more shading to the story with their own interpretations of the numbers.

Jesse Divnich, analyst for the gaming-prediction market simExchange, accused Halo 3's blockbuster sales of cannibalizing the market.

"The most curious result was that all other games severely underperformed the prediction market's expectations, indicating that Halo 3 had a substantial negative effect on other major titles across the board," Divnich said. "Games that were especially impacted were the Xbox 360 games Stranglehold, BioShock, and Madden NFL 08."

Despite Halo 3's taste for its own kind, Nollenberger Capital Partners' Todd Greenwald and Wedbush Morgan Securities' Michael Pachter both saw longer-term gains as a result of the shooter's success. Greenwald called the Halo 3-spurred boost to Xbox 360 hardware sales a "best-case scenario" for publishers.

"While the success of the Wii has been great for the industry, ultimately Nintendo, and not publishers, is the prime beneficiary," Greenwald said. "It is more advantageous for third-party publishers that the Xbox 360 and PS3 grow their installed bases."

Pachter also expects the hardware boost to pay short-term dividends.

"Although sales of Halo 3 accounted for all (and then some) of the growth during the month, the game clearly drove hardware sales that will position the industry for even greater sales in November and December, when many Halo players will be ready for a new challenge," Pachter wrote.

Analysts were particularly downbeat about the performance of the PlayStation 3, with both Greenwald and Pacific Crest Securities describing the system's hardware sales of 119,000 as "dismal."

"We expect similar (dismal) results in October for PS3 hardware units as a result of Sony's low-end price reduction to $399, which does not go in effect until the last two days of the October NPD period," Wilson wrote.

Sony's 40GB PS3 is scheduled to go on sale in the US on November 2, whereas the $100 price cut on the 80GB model is already in effect.GameSpot

Woah. Teh 800-pound gorilla of Halo. Teh ultimate powaaa? Teh dismal sales? :shock:

It's also affecting movie ticket sales. Halo 3 the new black hole for entertainment perhaps?

Oh, well, Ima go play rumble pit.

It's also affecting movie ticket sales. Halo 3 the new black hole for entertainment perhaps?

Oh, well, Ima go play rumble pit.

jmorey01

It's Stranglehold's own fault for releasing so close to it. Stranglehold is a really cool game but it can't expect to stand up to Halo 3 or anything. Stranglehold should've pushed for the early summer release and gone up against, say, Shadowrun instead.

This is really good news, lol consoles are eating each other to death. The end is near!smokeydabear076

Back from the fiery pit from whenst ye came!

[QUOTE="jmorey01"]

It's also affecting movie ticket sales. Halo 3 the new black hole for entertainment perhaps?

Oh, well, Ima go play rumble pit.

Dreams-Visions

But suck movies being out while good stuff is out on video/DVD has happened many times, almost every year.

Movie ticket sales alongside Halo 3 have plummeted to lower than they've been since sometime in the Nineties.

This is really good news, lol consoles are eating each other to death. The end is near!smokeydabear076

Reminds me of a Miyamoto quote:

Too many powerful consoles can't coexist. It's like having only ferocious dinosaurs. They might fight and hasten their own extinction.

And this guy knows video games. Even his worse game is good. I'm not counting the Mother series on his resume.

[QUOTE="Dreams-Visions"][QUOTE="jmorey01"]

It's also affecting movie ticket sales. Halo 3 the new black hole for entertainment perhaps?

Oh, well, Ima go play rumble pit.

Newnab

But suck movies being out while good stuff is out on video/DVD has happened many times, almost every year.

Movie ticket sales alongside Halo 3 have plummeted to lower than they've been since sometime in the Nineties.

Amazing. Halo 3 really made the US pause for a few days. :shock:

Halo is ruining gaming AND movies! Take that wii!astiop

:lol: win :P

[QUOTE="smokeydabear076"]This is really good news, lol consoles are eating each other to death. The end is near!Video_Game_King

Reminds me of a Miyamoto quote:

Too many powerful consoles can't coexist. It's like having only ferocious dinosaurs. They might fight and hasten their own extinction.

And this guy knows video games. Even his worse game is good. I'm not counting the Mother series on his resume.

The market can easily support 3 consoles. it did last gen and the gen before that. it will now. But Halo is a unique phenomenon that almost must be looked at independent from any other game.

Halo is ruining gaming AND movies! Take that wii!astiop

HAHAHA Post of the day.

who would actually buy strangle hold??

it looks like they made it in 4 minutes with a production cost of 5 dollars

Halo is huge . I can't wait for the Peter Jackson project.turgore

[QUOTE="turgore"]Halo is huge . I can't wait for the Peter Jackson project.Vandalvideo

Silent Hill movie was bad. But the Peter Jackson project he's talking about is the video game supposed trilogy bein'g done with Jackson on Halo. I'm guessing a prequel on the story.

[QUOTE="turgore"]Halo is huge . I can't wait for the Peter Jackson project.Vandalvideo

The Super Mario Bros movie..... and that's it really.

[QUOTE="turgore"]Halo is huge . I can't wait for the Peter Jackson project.Vandalvideo

I'm not sure if Peter Jackson is directing the Halo movie though. MSFT and Peter Jackson formed Wingnut studios so I think the PJP will be a game..I could be wrong:(

[QUOTE="Vandalvideo"][QUOTE="turgore"]Halo is huge . I can't wait for the Peter Jackson project.kcpp2b

Silent Hill movie was bad.

I thought it was amazing.

I read that article the other day and mused to myself that it sounded kind of foolish. Especially considering no sales numbers of the PS3 were discussed. It sounded likemore hype. Just like all of the Microsoft hype generated for Halo 3.

Also, although Halo 3 sold fairly well, I seriously doubt it had any impact on people that want a Sony product. Furthermore, with all the marketing that Microsoft outlayed,it appears that things will flatten out quickly once again for Microsoft, as the global market continues to snub their product and US sales go back to being flat.

Well the Wii still moved half a million units last month, and the DS is still barreling along, so more or less it's just cannibilizing other Microsoft titles and the PS3. So half of the industry would probably be more specific, not even taking the PC into account.