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Taiwan to Continue Leading Global Game-console Supply Chain

2009/01/08 | By Quincy Liang

Taipei, Jan. 8, 2009 (CENS)--Global sales of the top-three TV game-console brands, including Nintendo (Wii), Microsoft (XBOX 360), and Sony (PS3, PS2), are expected to grow 22.6% to reach 73.89 million units in 2008, according to Market Intelligence Center (MIC) of the Taiwan-bases Institute for Information Industry.

The Center attributed the high growth to two major factors including declining game-console prices and increasing promotion of game software. Game-console sales in 2009, however, MIC added, are expected to drop by about five million units as most existing game-console models have matured in terms of product life cycles.

Taiwan is expected to maintain its global-lead as the top game-console supplier in 2009 as most makers of integrated circuit (IC) chips, system assemblers, and parts makers to Nintendo, Microsoft, and Sony are Taiwan-based; also Taiwan has many comparative advantages in connector, power-supply, DVD player, wireless local area network (WLAN), printed circuit board (PCB), cable, substrate etc. sectors.

Microsoft began cutting the price of its XBOX 360 and pushed the Halo 3 new game in mid-2007 so as to further stimulate sales volume. Such strategy has been successful. Sony, though has been adjusting the specifications of its PS3, lacked attractive-enough new games to support sales of the machine.