Let the predicting begin!
o We expect May sales of $333 million (up 16% compared to May 2006’s $286 million). We expect next generation software sales of $228 million and current-generation software sales of $105 million. Our estimates include $73 million in software sales for the PS3 and Wii, which is based on our expectation of a tie ratio of around 2.75 units for each
hardware unit sold (400,000 Wii plus 100,000 PS3).
We expect May sales to be driven by recent releases Nintendo’s Pokemon Diamond/Pearl and Activision’s Guitar Hero II and Spider-Man 3, along with new release Activision’s Shrek the Third (PS2, 360, Wii, DS, GBA, PC), Microsoft’s Forza Motorsport 2 (360), and Nintendo’s Mario Party 8 (Wii).
o Our views for console hardware sales are as follows:
Xbox 360 225,000
o Our forecast assumes PS2 software sales of $80 million, down 22% compared to last year. We project a more modest decline than last month's -49%, as a strong slate of mass-market titles was released in May.
o Sales growth over the last 11 months is a robust 15%, although last month's sales declined -1%. We expect volatile sales throughout the summer, as sales comparisons get tougher in June and remain tough until the holidays.
o However, we continue to expect contribution from next generation software sales to grow on a year-over-year basis throughout 2007, more than offsetting modest declines in current generation software sales.
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People are difficult to govern because they have too much knowledge.
When there are more laws, there are more criminals.
- Lao Tzu