Right now, there are few areas that Sony or Microsoft can claim victory over Nintendo in. But for Microsoft, one of those areas has been revenue, for a long time now. Even after Wii has passed them in worldwide install base and monthly unit software sales, higher hardware and software prices keeps 360 ahead in dollar spend, at least in America.

But this is about to end. First of all, two high-price, high-profile releases for Wii should eradicate any revenue advantage 360 has. Wii Fit has been a smash hit in Japan, and Rock Band has been a smash hit on 360. Both games drop on Wii in America in the next few months. Certainly, 360 will see GTAIV in this period, but Wii will see Mario Kart, which will drive additional peripheral sales as well. Then sometime this year, 360 should see another price drop in America. And lastly, Wii should see increased hardware production, boosting sales of everything. In total, Wii should end up with a substantial revenue advantage.

We know that 360's American hardware install base lead is also going to end at some point this year. The attach rate argument seems to have been disappearing since Cmas 07 sales numbers came out. With the death of the revenue defense, I'm not really sure what the next standard of success for 360 will become. Some combination of 3rd party attach rate, 3rd party revenue and online revenue or attach rate? Watch out for insultingly stupid standards like "revenue attach rate" or even "average sale price."

I totally agree. Nice thread.

Great read, & I'll make sure I'm on the lookout for those when I enter sites like 1up.

I don't understand.. why does matter if Wii makes more revenue in the casual user market? 360 will STILL make money in their own demographics.

How will Wiifit hurt 360? The answer is.. no, it won't, so I don't see why it's a huge deal. It's only a huge deal if you are a true hardcore fanboy who might get his/her pride hurt

Good point. It will take some time until the "average top 10/50 on gamerankings" argument dies. Grasping at straws is a funny thing to watch. Fanboys from all factions do it.

This is pure speculation.  Its not like every time you buy a game the employee writes down whether you're a hardcore gamer or a casual gamer.   

Not to mention the fact that (in the US at least) the money is the same color and spends the same no matter who spends it.  With sales numbers I can see a reason for distinguishing hardcore and casual (although still not a good one) but when it comes to revenue making a distinction just makes no sense. 

MS - "We're proud to announce that while we're losing in casual revenue we're still doing quite well in terms of hardcore revenue.  Later this year we hope to unviel our new revenue source tentatively titled 'elite hardcorez revenue'. "

^^There is a reason you don't see statements like that. 

 Well, Microsoft PR will be soon running out of "positive spins", it's just the way it is.

PS3 is selling it in every region and Wii kicks both of their asses too.

THe LTD number vs PS3 can probably hold for another year and half.

God I hate spins.

I think your post is the best definition of irony in whole internet. Just after the OP wrote: 

Watch out for insultingly stupid standards like "revenue attach rate" or even "average sale price."

you come and say: ZOMG! hardcoar revenue FTW!

And like that was not enough you deal the overkilling blow: "It's only a huge deal if you are a true hardcore fanboy who might get his/her pride hurt".

 my post had nothing to do with "revenue attach rate" or even "average sales price". It's just targeting different demographics with increase of one does not imply decrease of another. (or have very little to do with it)

In fact, Wiifit will do absolutely nothing to PS3 or 360's revenue whatsoever. 

i agree