‘Consoles have hit their peak,’ says analyst

DFC Intelligence analyst David Cole believes the console market has hit its peak, and ever though he believes the next generation home consoles will sell well, he doesn’t believe they will cross, say, Wii’s sales.

“We feel the consoles have hit their peak,” Cole said while talking to VentureBeat.

He says while the Wii U will sell well, it will never cross the Wii’s sales. Microsoft and Sony, he believes, are enjoying Xbox 360’s and PS3’s success right now. And the more the console manufacturers wait to bring out the next generation, the more mobiles and tablets will be able to close the gap between the two markets.

“Systems like the Xbox 360 and PlayStation 3 are having their best sales ever five or six years into their lifecycle,” he said. “Unfortunately this means Microsoft and Sony are in no hurry to launch new systems that would generate substantial consumer excitement and spending.

“Games on Facebook and products like the iPad help expand the audience and the way products are delivered. The console business is firmly established and suffers mainly from the reluctance of hardware manufacturers to commit to expensive new products.

“The dedicated console business is still the major driver of industry growth, but we feel overall it has peaked with the current console systems.”

What do you think? Does the market have more potential for expansion? Or is it as Cole says? Let us know in your comments.