Analyzing the NPD Game System Numbers: Why Nintendo Won 2007 and Sony Lost Big

By Rob Enderle
January 23rd, 2008

Last week NPD released their market share numbers and the nice thing about NPD’s numbers are that they report what is actually sold (granted they use a sampling method which means there are inherent inaccuracies). But most of the other numbers you see reported don’t take into account inventory and thus they inflate the positions of those that had manufacturing advantages; in other words, they do not report how many consumer purchased them, just how many were sold to stores. Another problem is these numbers only represent the lucrative US market and they, and this piece, don’t represent the rest of the world ( Japan is a major battleground).

Last year Nintendo remained manufacturing constrained which means they couldn’t fulfill demand and some of that demand likely bled over into the Microsoft and Sony camps. If you remember your economics, ...

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