Geek Gestalt

People always talk about dog years, or cat years, but what about video game console years?

It's hard to know what that math is, but one thing is certain: Sony's PlayStation 2 turned 9 years old Wednesday, and it sure feels like the best-selling video game console of all time has been around a whole lot longer than that.

Yet even though we're already more than three years into the PlayStation 3/Xbox 360/Wii console generation, the PS2 is still going strong. Routinely, month after month, its sales are in six figures--146,000 in September in the United States alone, according to The NPD Group--and there's no reason to think the 485 (and counting) developers who have made games for the platform are going to stop any time soon.

The PS2 turned 9 on Wednesday. What's that in video game years, if dog and cat years are equal to 7 human years?

(Credit: Sony)

In large part, that's because there are millions of people for whom the world-beating processing power of the PS3 and the Xbox 360, and the graphics-so-good-you-can-see-beads-of-sweat-on-sports-players'-bodies aren't worth paying several hundred dollars for. For $100, they say, you can get one heck of a good video game playing experience with a PS2.

It "still holds a place in my heart--there's so many great games with huge amounts of replay value," said Michael Steavenson, a public relations professional who bought his PS2 around 2001. "I'm not so interested in blazingly fast processing speeds, graphics that make games look like a movie, or uber-cutting-edge hardware stats. If the game is well-designed, fun to play, and provides me with a good emotional connection, I'll play it forever."

According to Sony, one out of every three U.S. households owns a PS2, and, worldwide, almost 140 million people have one. To date, Americans have bought more than half a billion PS2 games, and all told, nearly 10,000 titles have been released for the platform. Not bad for a machine that has earned the right to be living out its golden years sitting on a porch somewhere, smoking a cigar and grumbling about kids these days.

The PS3 Slim, the newest iteration of the PlayStation 3, comes with the lowest price ever for the PS3: $299. Because of the price cut, the PS3's sales rose in August and September, and many people see signs of a resurgence for the console.

(Credit: Sony)

Is Sony's PlayStation 3 at long last ready to stop being its rivals' punching bag?

With its first-place finish in September in number of units sold, Sony finally has a tangible response to persistent criticism that its PS3 can't keep up with its next-generation video game console competitors, Microsoft's Xbox 360 and Nintendo's Wii.

For the month, according to video game analysts at the NPD Group, Sony sold 491,800 PS3s in the United States, while Nintendo moved 462,800 Wiis and consumers bought 352,600 of Microsoft's Xbox 360s. It was the first time since the next-generation console wars began in earnest nearly three years ago that the PS3 finished a month on top.

Yet, as everyone knows, a single positive piece of data does not a trend make--something Sony's competitors are quick to point out--especially when the existing trend is so contradictory. So, on the heels of those rosy-at-long-last September numbers, and the August price cut and launch of the new PS3 Slim that preceded them, can Sony finally demonstrate conclusively to its detractors that it is through being badly outmaneuvered?

According to a group of experts interviewed for this article, the answer appears to be yes. No one will yet predict that Sony is ready to grab hold of the leadership position it enjoyed in previous console generations. However, there does seem to be widespread agreement that for the first time since its November 2006 launch, the PS3 is ready to seriously compete for that role.

"I think that the fact that they did introduce a new footprint for the PS3 (the Slim) and a lower price point, coupled with some of the really high-demand games" coming out for the platform, "could really prime the pump for Sony to have a resurgence for the PS3," said Brian Crecente, editor of the popular video game blog Kotaku.

"I do think that we are probably going to see, if not it topping the charts leading into the holiday, it...doing better than it has in (the recent) past," he said.

Beginning a comeback in a hole
There's no doubt, however, that Sony is beginning any PS3 resurgence in a rather sizable hole. Since the start of the current console generation (in November 2006 for the PS3 and the Wii, and November 2005 for the Xbox 360), Sony has sold 25.26 million PS3s worldwide and 9.76 million in the U.S, according to VGChartz, a Web site that aggregates video game sales data. By comparison, the Wii has moved 54.19 million units worldwide, of which 25.05 million were in the U.S., and Microsoft--with its one-year head-start--has sold 32.51 million Xboxes, including 18.66 million in the U.S.

By those measures, the PS3 has a minimum of a 2-1 disadvantage, in the U.S. at least, when it comes to the PS3 install base. That fact puts pressure on third-party developers working on games for the console because they know that there are at least twice as many Xbox buyers in the U.S. as there are for the PS3.

That dynamic, in turn, has led to one of the biggest complaints over the years about the PS3: that the software lineup has paled in comparison to that of the Xbox. To be sure, Sony has always disputed that notion.

Hard to prognosticate
Over the last three years, this space has been home to multiple arguments that the PS3 would one day emerge as the clear-cut winner of the next-gen console wars. But there's also been plenty of room here for the theory that Sony's flagship video game device was doomed to languish behind the Xbox and the Wii.

Clearly, prognostication about the PS3's fortunes has been difficult. And with the state of the economy in flux, supply chains always hard to analyze, and consumers' whims ever-changing, there's no way to know for sure how the console wars will go from here on out.

But Sony definitely feels like it's finally in the driver's seat.

"Overall, we're just hitting a stride that just (reasserts) what we knew all along--that there's tremendous value under the (PS3's) hood," said Julie Han, Sony PlayStation spokesperson.

That's a notion that video game industry analysts agree with. Yet when talking about Sony's laudable September numbers, they also point, first and foremost, to the fact that there were a lot of consumers sitting on the sidelines, just waiting for the company to lower the PS3's price. In August, with the release of the $299 PS3 Slim, Sony did just that.

"It's really a combination of pent-up demand and (the point) where value and pricing meet," said Jesse Divnich, an analyst with Electronic Entertainment Design and Research. "The (thing) about the PS3 was, it was really a system ahead of its time. Developers didn't really have the capabilities to take advantage of all the power in the PS3, and at the same time you had systems like the Wii, which just had perfect timing. But now, (the PS3) has caught up."

That means, Divnich continued, that the time has finally come where the PS3's jam-packed collection of a powerful video game console, a Blu-ray player, and built-in Wi-Fi met consumers' needs, even as the price dropped to where large numbers of people feel they can afford it. The lowest-priced Xbox costs $199, while the Wii runs $249.

Finally hitting a 'sweet spot'
Divnich said that at $299, the PS3 has finally hit its "sweet spot." And he said while it's likely the initial boost of sales that came as a result of the August price cut will slow down, "Long term, into 2010 and 2011, I don't think the PS3 is going to be in last place to the degree it was before. The gap between the systems will be much smaller."

For his part, Wedbush Morgan analyst Michael Pachter said he expects the PS3 to outsell the Xbox during the holiday season because of the perceived value of the $299 PS3, loaded as it is with the Blu-ray player and Wi-Fi. He and others do, however, still think that Nintendo will sell more Wiis because of the broader general appeal of that device and the fact that it is seen as a better Christmas present.

"Is Sony back? Yeah," said Pachter. "Are they back as the leader? Probably not. Are they back in second? Probably."

Another analyst, Lazard Capital Markets Senior Vice President Colin Sebastian, also attributed the September PS3 sales boost to the "pent-up" demand for a lower price, and said that there would have been serious trouble for the console if the results had not been so good.

"If they had not shown the uptick with the price cut," Sebastian said, "then we'd all be putting a nail in the coffin for (the PS3). But what we're seeing is that there's still life left for the PS3, and that's an encouraging data point (for Sony)."

Still, as Pachter put it, "Microsoft is not the type of company that's going to stay (down) for a long time. They don't like it."

That's why, Pachter said, if the PS3 can keep pace with the Xbox for the next few months, there's a good chance that Microsoft will drop the price of its console another $50 sometime early next year, a move he doesn't think Sony would be able to match.

To be sure, Microsoft wouldn't easily cut the Xbox's price--"they're certainly not going to give money away just for the hell of it," Pachter said--but it is an arrow in their quiver.

Sebastian said he, too, could see an Xbox price cut next year, as well as one for the Wii. Would Sony follow suit if its rivals did so?

"They could do it," Sebastian said. "It's just a matter of what their tolerance is for absorbing less revenue on the hardware side, and whether they can make up that revenue on the software side."

According to Xbox spokesman David Dennis, a price cut is just one of many things Microsoft would consider as a way to keep pace with the market. He said other possibilities include different hardware and software bundles. "There's a lot of different levers you can pull," Dennis said.

Not surprisingly, Dennis is dismissive of the PS3's sales boost. He agreed that there were a lot of people waiting to buy the console at a lower price, but said that the impressive initial jump in units sold came as a result of early leaks of pictures and information about the PS3 Slim, and so there were "months of pent-up demand."

Further, he predicted that Sony would not see a sustained resurgence for its console and that even in September, when the PS3 outsold the Xbox and the Wii, Microsoft brought in more revenue for the entire Xbox ecosystem--including accessories, software, and fees for online services--than did Sony.

The two halves of 2010
In the end, most people seem to agree that the overall fortunes of the consoles have as much to do with software as price. That's why each of the analysts talked to for this story pointed to a bright future for Sony: They see a lot of strength in the PS3's coming games lineup, which includes titles like God of War III and Gran Turismo 5. And then there's also Sony's PlayStation Motion Controller, which could bring the PS3 more Wii-like functionality.

That's why Divnich said he thinks that the PS3 is likely to dominate the first half of 2010.

But he also expects that Microsoft will release its highly anticipated Project Natal motion-sensitive controller in the second half of 2010, a move that could stir up the console pot anew. Indeed, Divnich said he thinks that the Xbox will once again overtake the PS3 at that point.

And after that? It's anybody's guess.

For the first time, the Sony PlayStation 3 was the monthly top-selling video game console, a mark that has been nearly three years in the making for the much-maligned platform.

According to video game analyst NPD, Sony sold 491,800 PS3s in September, beating out Nintendo's Wii--which moved 462,800 units--and Microsoft's Xbox 360, which came in last at 352,600 units sold for the month.

The PS3, the newest iteration of Sony's next-generation video game console, finally won the top slot in a monthly sales report, thanks to the platform's lowest price ever.

(Credit: Sony)

For Sony, the news seemed to prove that many would-be PS3 buyers had been waiting for nearly three years to get one of the consoles at a price more in line with what Nintendo and Microsoft charge for their devices.

In August, Sony unveiled the $299 PS3 Slim, which got the platform under the $300 level for the first time. The Wii currently runs for $199, and the lowest-price Xbox goes for the same.

Based on the PS3 price cut, some analysts had been predicting that the console would finally come out on top when NPD released its September numbers. Indeed, Wedbush Morgan Securities analyst Michael Pachter was proven right when he suggested that price cuts for all three consoles would most benefit Sony. He even said that he thought it is possible that the PS3 will outsell the Xbox for the rest of the year, which, if true, would be a major blow to Microsoft's video games group.

Sony would do well to temper any crowing. Its first one-month victory came after nearly three years, and clearly demonstrates that many buyers felt the console was too expensive previously. The PS3 was originally released with a top price of $599.

Still, the September results are big news for Sony and could be a sign that things are finally turning around for the beleaguered PS3. ... Read more

Is this the new PS3 Slim? Rumors have it Sony may unveil such a device at the Gamescom show in Germany Tuesday. On the other hand, it may all be fanboy-driven fervor with no substance. Either way, to CNET News reporter Daniel Terdiman, the excitement is unlikely to be matched by the reality of anything Sony may introduce.

While all new technology product rumors have to be taken with a grain of salt, you can sometimes tell--often by the volume of online chatter about a particular morsel--that one is more likely to turn out to be true.

That seems to be the case with the so-called "PS3 Slim," a rumored new PlayStation 3 form factor that could well be on the horizon. And if the latest slew of blog and forum posts are right, there's a pretty good chance Sony will formally announce the new console Tuesday at the Gamescom conference in Cologne, Germany.

That may be true, and, of course, it may not. But what I want to know is why so many people seem to be so excited about this as-yet-unseen console? After all, the PS3--once thought by many to be the most likely winner of the next-generation console wars between Sony, Microsoft (with its Xbox 360), and Nintendo (with its Wii)--has lagged far behind its competitors.

In a stark reversal of the trend on display just a few short months ago--when general retail sales were plummeting even as the video games industry was still showing growth--cautious optimism in retail is now being offset by many losing months in video games.

In July, according to industry analyst the NPD Group, video game sales fell for the fifth straight month, and the year-over-year numbers are striking: In July, the video games business posted sales of $848.9 million, down 29 percent from $1.1 billion a year earlier. Year-to-date sales, reported NPD, were at $8.16 billion, down 14 percent from the same time period a year ago.

And things are only getting worse. While the industry's June numbers were down a full 31 percent from a year earlier, they still topped nine figures, coming in at $1.17 billion in June. But that means that in July, sales were down 27.4 percent from just a month earlier.

It wasn't that long ago that many people were making the argument that video games--because of their relatively low cost and many hours of entertainment value--were seen as close to recession-proof. But now, it would be hard for anyone to make that case.

Indeed, NPD analyst Anita Frazier wrote in a report Thursday that, "In order for the industry to come in flat or slightly up for the total year, the back five months of the year have to come in 11 percent (or more) higher than the last five months of last year."

That would seem to be a near impossible task, given the recent trend. But Frazier did throw the industry a bone: "While year-to-date results are weak, there are some big titles set to be released over the next several months, including Madden (10, from Electronic Arts) this month, which should help spur sales. The worst...should be behind us, and looking beyond August, we have The Beatles: Rock Band, Halo 3: ODST, and of course, Call of Duty: Modern Warfare 2 to look forward to."

Not to mention Guitar Hero 5.

One thing was also made clear in NPD's July report: sales weaknesses in the industry are being seen across the board. However, hardware led the charge, with a drop in sales of 37 percent ($280.94 million in July, 2009, as opposed to $447.71 million a year earlier). Software and accessories were down 26 percent and 12 percent, respectively.

Microsoft was quick to jump on what may have been the only bright spot in NPD's report: that its Xbox 360 was the only console to deliver growth over a year earlier. In its own report, trumpeting NPD's numbers, Microsoft pointed out that the Xbox has turned in 17 percent growth for the year over the same period in 2008.

And while Nintendo's Wii still leads the pack among the big three consoles (the Xbox, Sony's PlayStation 3, and the Wii), its lead has shrunk considerably. In July, consumers bought 252,200 Wiis, versus 202,900 Xboxes and 121,800 PS3s.

All in all, it's hard to be optimistic about the industry's prospects, though, as Frazier pointed out, there are a slew of big titles coming down the pike that could drive big sales. Still, the same is true every year, and as a result, there are few who could argue at this point that the video game business is facing what may be its biggest crisis in years.

The appearance by Beatles Paul McCartney and Ringo Starr at the Microsoft Xbox E3 press briefing on Monday caught the world by surprise, and turned into a perfect way to formally introduce 'Beatles: Rock Band.'

(Credit: Daniel Terdiman/CNET)

LOS ANGELES--If you were among the thousands of people at Microsoft's E3 press briefing on Monday, it's a pretty sure bet that the appearance on-stage there of Paul McCartney, Ringo Starr, and Yoko Ono was one of the most unexpected things imaginable.

But if you think about it, the very existence of the game that led to their showing up during the Xbox press briefing, Harmonix and MTV Games' "Beatles: Rock Band," is even more surprising. After all, the Beatles have, over the years, maintained a stranglehold over control of their music. For example the Beatles are still the holy grail that iTunes has not yet been able to corral.

The game will be released on September 9 (09.09.09) on the Xbox 360, the PlayStation 3, and the Wii.

So how did the game come to pass?

Since the two remaining Beatles weren't able to come to the phone for this article, I decided to stop by the Harmonix booth at E3 and ask the game's lead designer, Chris Foster, for the skinny behind what has got to be one of the biggest coups in video gaming history.

Foster said the story begins a couple of years ago, when MTV President Van Toffler ran into Dhani Harrison, son of the late Beatles guitarist George Harrison, in some random social setting.

"It was just sort of through happenstance," Foster said. "Dhani was a big 'Rock Band' fan, and there was this sort of, 'Wouldn't it be nice if...but it'll never happen.'"

Beatles RockBand rocks E3

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But being a "Rock Band" fan, Dhani Harrison took his idea to Harmonix CEO and co-founder Alex Rigopulos and began a conversation about what a Beatles version of "Rock Band" could be. Foster said that the idea seemed like a huge challenge, but, deciding to pursue it, Harrison began evangelizing the idea to Apple Corps, the Beatles' U.K. publisher, and its shareholders, particularly McCartney, Starr, and Ono.

"So then, from that point, it was just sort of getting them familiar with ('Rock Band')," Foster said, "and getting them understanding what the game could be like."

By now, the discussions were far enough along that Harmonix put together a simple demo of the kind of music and conceptual art that could be used in the game, Foster said.

And, amazingly, inexplicably, it worked.

Creative partners
"At that point," Foster recalled, things "moved to (the Beatles) being creative partners" in the project. One of the most vital things to happen at that point was the introduction of music producer Giles Martin to the "Rock Band" project. Martin, the son of the Beatles' original producer, George Martin, helped Cirque du Soleil put together its Beatles show, "Love."

That was crucial, Foster said, because Martin was able to help solve one of the most important problems any Beatles "Rock Band" game would have, adding multitrack capabilities.

"We needed multitrack," Foster said, "because in 'Rock Band,' (players) need to get (individual) feedback about whether they're playing well or not. So with all those pieces in place, we were able to do a demo of what the music (in the game) would be like."

As things progressed, the developers knew that to make the game feel authentic, they'd have to offer players real Beatles venues to play in. So they worked to add famous Beatles locations like Liverpool's famous Cavern Club, the Ed Sullivan theater, Shea Stadium, the Budokan in Tokyo, and the rooftop at Apple Corps.

Then, Foster said, the development team came up with the idea for adding psychedelic dreamscape visions to the game. The game's trailer (see below) does a great job of demonstrating that element, as do some of the best pieces of Cirque du Soleil's "Love."

'We respected them and their music'
To Foster, the chief reason that the improbable game ever came together at all is that "they liked that we respected them and respected their music. I don't want to put words in their mouths, but what was important to us was that we respected them."

That's one reason that the development team made sure to include venues where the Beatles had actually played famous shows. "We weren't shoving them into live venues that didn't make sense," he said.

Another important factor was the developers' adding the ability to include vocal harmonies as part of game play.

"Their music is so much about harmonies," he said. Adding vocal harmonies was something that had never been done in "Rock Band" before, but it was considered vital to accurately representing the Beatles' music in the game.

And that also presented the developers with a hurdle they had to clear.

"The challenge (was) making it so vocal harmonies were fun and challenging, but really accessible, and finding a way to put that in the game, without overwhelming" players, Foster said. "(We didn't want to make them) feel like they failed to sing like the Beatles."

Foster acknowledged that contracting with the Beatles was a huge win for Harmonix, especially when it's been clear for some time that "lots of people were thinking about doing it."

The game is already being anxiously awaited by players, developers, and industry executives alike, and for both game play and business reasons.

"Clearly, (the Beatles) saw an opportunity of reintroducing their music to the current music-loving consumer and it makes perfect sense for them as they try and manage their brand," said Nintendo President and COO Reggie Fils-Aime. "So I think it makes a lot of sense and, candidly, what the music industry is finding is that the games industry is a great way to drive music sales."

And for Microsoft, having McCartney, Starr, and Ono take the stage at the Xbox press briefing at the University of Southern California's Galen Center was a gigantic victory. A Microsoft spokesperson said that the appearance came about because the company is always talking to its publisher partners, including, in this case, MTV Games. And that as "Beatles: Rock Band" progressed, the Beatles decided that the Xbox press briefing would be a very appropriate place to announce the game.

Note to Sony and Nintendo: Work harder at finessing those publisher partner contacts, and next time, maybe the stars will pick your E3 briefing.

To Foster, a big part of what makes the game seem authentic was that the designers concentrated on "telling the Beatles' story" but still finding a way to do so in the context of a "Rock Band" game that fans of both the band and the game franchise would appreciate and recognize. And also because the game will appeal to even the youngest Beatles fans.

He explained that the Harmonix team liked the idea of bringing new, younger audiences to the Beatles for the first time. But reality soon disabused them of that notion.

"The (Beatles') music is like the air we breathe," Foster said, "and it catches every generation...It's sort of presumptuous to think you can introduce the Beatles to anyone."

For the second straight month, video game industry sales tumbled nearly 17 percent year over year, a downward trend for a market segment that had previously seemed resistant to the economic pressures of the recession.

In April, according to industry analyst NPD Group, the industry posted revenue of $1.03 billion, down 16.9 percent from the $1.24 billion it recorded in April 2008. Sales for the month were also down 30 percent from $1.43 billion in March.

NPD analyst Anita Frazier cautioned in a report that it's hard to reach the conclusion that the industry has begun to soften, noting that "it's important to remember that April (2009) is being compared against a month--April 2008--that realized nearly 50 percent growth over April 2007."

Frazier also noted that the industry's performance last month was its second-best April on record, and that unit sales across the board were down just 5 percent, with the rest of the revenue decline coming as a result of reduced "average selling prices."

Still, there's little doubt that the trend line is heading down, both broadly and rapidly. March's numbers were already down 2.7 percent from February's $1.47 billion, and in April, each of the three major video game consoles--Microsoft's Xbox 360, Nintendo's Wii, and Sony's PlayStation 3--saw sizable sales drops. Xbox sales were off 47 percent, while the Wii and PS3 were down 43.4 percent and 41.7 percent, respectively.

The only bright spot, on the hardware side of things at least, was the newest generation of Nintendo's DS handheld gaming device, the DSi, which launched during the month. In April, Nintendo sold 1.04 million handhelds, up 84.7 percent for the month.

Perhaps most interesting in those numbers is the steep decline in sales of the Wii, which has been dominating console sales for some time. The Wii did still lead the pack in April, but there have been rumblings about its strength softening in recent months, despite the console now being easy to buy. Earlier in the year, and especially during the holiday season, it was nearly impossible to find a Wii for sale at retail. These days, they are readily available at many stores.

But Frazier, again trying to soften the blow of the April numbers, noted that the Wii's 52.4 percent year-over-year sales drop (Nintendo moved 714,000 Wiis in April 2008) was partly attributable to the fact that a year ago the console's fortunes had been driven by the launch of two "huge new titles: Super Smash Bros. Brawl and Mario Kart."

On June 22, Geek Gestalt will kick off Road Trip 2009. After driving more than 12,000 miles in the Pacific Northwest, the Southwest, and the Southeast over the last three years, I'll be looking for the best in technology, science, military, nature, aviation and more in Colorado, Utah, Idaho, Wyoming, Montana, and South and North Dakota. If you have a suggestion for someplace to visit, drop me a line. And in the meantime, join the Road Trip 2009 Facebook page and follow my Twitter feed.

This camera, from Israeli startup 3DV Systems--which has reportedly been acquired by Microsoft--could form the basis of a new motion-sensitive controller that Microsoft is reportedly working on.

(Credit: Jared Kohler/CNET)

Nintendo won't be the only video game console maker with a sophisticated motion-sensitive controller if a report out Tuesday from The Wall Street Journal is accurate.

The report said Microsoft plans to unveil a new video camera that would allow players of its Xbox 360 console to control games by moving their bodies. And if true, it's a clear shot across the bow of Nintendo and its innovative Wii console, which shocked the video game world when it was released in late 2006 with its own motion-sensitive controller.

The camera may well be the product of Microsoft's reported acquisition of Israeli start-up, 3DV, which had developed a motion-sensitive camera.

For months, there had been speculation that Microsoft's interest in 3DV was about taking on Nintendo and the Wii. But neither company would confirm such speculation. On Tuesday, Microsoft declined to comment on the Journal story.

March revenues for the video game industry dropped 17 percent from a year ago, the NPD Group reported Thursday, the first time in the current recession that the business has seen sales fall.

For the month, the analyst firm reported that the industry turned in total sales of $1.43 billion, down 17 percent from $1.72 billion a year earlier. Hardware sales were down 18 percent, while software was down 17 percent.

But while the numbers look poor, NPD analyst Anita Frazier said she attributed some of the drop to the vagaries of the calendar.

"While it might be tempting to jump to the conclusion that the sky is starting to fall on the video games industry given this month's results, it's important to remember that two very big things are different this year than last," Frazier wrote in a note accompanying NPD's report. "First, Easter fell in March last year whereas it fell in April this year, and last March included the release of Super Small Bros.: Brawl, which went on to become the fourth best-selling game in 2008."

Perhaps, but one game's fortunes are unlikely to be enough to turn around an entire industry, especially given that hardware sales dropped about the same as overall revenues.

Overall sales were also down 2.7 percent from February's $1.47 billion, and each of the six hardware platforms NPD tracks--Sony's PlayStation 3, PS2 and PSP, Microsoft's Xbox 360 and Nintendo's Wii and DS--had lower sales in March than in February. The PS3 and Wii led the drops, with 21.0 percent and 20.2 percent lower sales, respectively.

By comparison, the Xbox saw its sales fall between February and March, but less than the PS3 and Wii, and Frazier reported that Microsoft's console was the only one with good year-over-year news.

"While it's not unusual for March hardware sales to be lower than February," Frazier wrote, "I thought we'd see higher unit sales on most platforms. The Xbox 360 was the only platform to achieve a year-over-year sales increase."

Frazier also said Nintendo's numbers were noteworthy, given the effect of Super Smash Bros.: Brawl on the company's March 2008 sales.

"Wii and NDS hardware sales remained brisk, taking the top two spots for (March 2009) in hardware unit sales," she wrote. 'It's important to keep in mind that the (game's) effect from last year impacted hardware sales as well, so while the year-over-year comps are down for the Wii, the sales are still impressive."

Still, the Wii--the darling of the video game industry media since its surprise success became almost institutionalized--has seen some negative press recently.

In March, for the first time, the PS3 outsold the Wii in Japan, and many observers wondered if that milestone indicated that Nintendo's console's dominance had finally come to an end.