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@CrazzyMan

While it boggles the mind Sony is actually making progress weekly in North America in a almost demented sort of way. They comprise less then sixteen percent of the domestic market, but last week they accounted for eighteen percent of market sales. Their market penetration is improving.

That said I think Microsoft and Nintendo are letting a golden opportunity slip between their fingers. Both are failing to be aggressive enough, and that could prove to be their undoing. They are in a perfect position to drive Sony out of the North American market. Nintendo should be focusing supply into the market, and Microsoft should be dropping the price on their console in an attempt to enter the mainstream market.

The reality is this if they both made the real concerted effort to do this one thing they could probably slash the PS3s lifespan in half, because getting blocked out of half the market is an effective death sentence. Microsoft has shown you can survive without Japan, and Nintendo has survived in the past without relying on Europe, but has any global console survived for long without North America.

Given the lack of aggression it appears that the PS3 is only going to get stronger over time not weaker. The higher the console sales get the better the PS3s domestic position will be, because it becomes harder to rest their market share from them.

For example sake if Nintendo sold fifteen million, Microsoft sold ten million, and Sony sold five million. In the first year Sony would account for 16.5% of the market. Now if the second year were to repeat the first identically even though the other two competitors still tripled and double the sales of Sony. Sony would still control the same percentage of the market.

I think North America can only become a concern for Sony if they develop a diminishing market share. Rather then the others merely having greater bulk sales. Sony can effectively work off a smaller market share if they can spread the load globally. They certainly will not get forced out of any market with a greater then fifteen percent market share.

Sony really doesn't have to do squat as long as the others aren't forcing them into a corner. They are not doing great, but they are doing well enough and doing better. I think the competition has a small window that is closing quickly. The only question is will they see it, or in fact do anything about it. Give Sony a few more unmolested months, and their position will be permanent if not secure. Then how it performs outside of North America will matter greatly.

You would think that Nintendo and Microsoft would welcome the prospect, but perhaps they are being too small minded about it cashing in the short term at the expense of the long term. They would generate far more money if the pie was only being divided by two, and the effect would increase their success globally. Sony has actually gotten rather lucky over the past couple months.