Microsoft is going head-to-head with the Wii in Australia as it cuts down the price of the Core console down to AU$ 399.95 (US$ 325) - the same price as the Wii. The Xbox 360 Pro was also cut down from AU$ 649 (US$ 528) to AU$ 579.95 (US$ 472).

 

The price cut may be harmful to Sony, after the company announced that Australia's PlayStation 3 starter packs will no longer be available once supplies run out. However, the slash is definitely a challenge targeted at the Nintendo Wii.

Australia's Xbox director David Mclean says, "Since launch we've always had a fairly deliberate strategy to secure the hardcore gamers first ... but now that we've done that job it's time to expand the market."

Daniel Morse, game analyst at GfK also said, "You get a true next-generation device for the same price as the Wii and on top of that you can play Halo." The price cut may be considered as good timing for Microsoft, because a day before the event, Nintendo Australia announced that there was no plans for a price cut for the Wii.

Some casual games that the Xbox has lined up are Guitar Hero III: Rock Legends, Rock Band and Dance Dance Revolution Universe. Mclean furthers the challenge against the Wii and says, "We are starting to see some of those real social gaming experiences and with the console at the right price point it should enable us to be somewhat more competitive."

Microsoft Australia has recently announced that the Xbox 360 has hit yet another console milestone by selling over 1 million software units in their region. The feat is unprecedented by any console that came before the game machine, taking it just 14 months to register the accomplishment.

Daniel Morse, GFK Australia's director, explained that while pundits would point out that the Xbox 360 has been in the market longer than rivals Sony PlayStation 3 and Nintendo Wii, "they have a bigger customer base, so they are more likely to buy games for the Xbox over the other consoles."

For its part, Microsoft says that the diversity and sheer quantity of the titles under its wings are the two key factors why the software sales are going so well. Microsoft says that every year, the average Xbox 360 owner buys five titles with Gears of War, Saint's Row, and Call of Duty 2 being the top three contributors.

As it currently stands, Microsoft projects a robust library of over 300 titles by the end of 2007. Big games such as Grand Theft Auto IV, Call of Duty 4, and Mass Effect are all on the way along with a slew of other killer games which are sure to entice the console's fans.

Sony Computer Entertainment New Zealand (SCENZ) confirmed that the sales from the New Zealand launch of the PS3 caused "a spike in retail spending not previously witnessed at the launch of any other console in New Zealand," according to analyst group Gfk. In other words, in the 10 days from March 23 - the day of the official PS3 launch in New Zealand - until April 1, there were 4,835 PlayStation 3 consoles sold.

Gameplanet calls it an "unprecedented sales spike." This isn't too surprising considering the PS3's successful pre-order campaign in New Zealand.

There's more good news. PS3 games have taken over the sales charts. Daniel Morse from Gfk said, "Since launch, PS3 games have dominated GfK sales charts taking out all of the top ten places (console and handheld)." The two top sellers were Resistance: Fall of Man and MotorStorm, two games published by Sony Computer Entertainment.

What's the reason for the PS3's success? Warwick Light (General Manager Sales and Marketing, SCENZ) mentioned their advertising campaign and their interactive display units that let people "experience" the PS3. And after the sales success, Light has a right to be proud:

Combining games, photos, music, movies and the Internet, the PS3 is the ultimate entertainment hub in the living room. With the ability to have its functionality expanded through on-line upgrades, PlayStation 3 will be relevant for at least the next 10 years.

For the curious, here are the sales results from March 23, 2007, to April 1, 2007:

• PlayStation 3: 4835
• PlayStation 2: 1567
• PlayStation Portable: 738

Apparently, the PS2 black and pink consoles and the PSP also continue to sell in New Zealand, making Sony the clear retail winner for this month. Here's what Morse had to say about that:

Our combined data for the month of March positions the PlayStation 2 (black) console second to the PS3 as the next highest selling console, with PlayStation 2 Pink and PlayStation Portable rounding out the top four giving PlayStation a clean sweep for the month.

Chris Jenkins of Australian IT reports that Sony has claimed that in the first ten days the PlayStation 3 was on sale in Australia, the console sold more than 27,000 units and has lead to a retail turnover of AU$ 33 million.

The total sales figures was calculated by industry analyst group GfK and included both hardware and software sales for the PS3. According to them the PS3 sold 27,083 units between March 23 and April 1. GfK analyst Daniel Morse said, the spike in total sales set a new mark for a console. He says, "In a matter of just 10 days, the PlayStation 3 created a spike in retail spending not previously witnessed at the launch of any other console in Australia."

Sony also reportedly claims that PS3 titles infested the top ten selling games during the launch week,  with nine of the ten titles being PS3 titles and the top title being Resistance: Fall of Man.

Despite this being awesomely good news for Sony and those who love pressing the triangle, circle, square, x buttons, one has to note that the PS3 sales figure failed to match the 32,000 that the Wii sold, and moreover, that the Wii sells at a profit. Microsoft on the other hand has sold 100,000 units of their console in its first seven months of release. We don't mean to rain on fan-joy here, we're just looking at both sides of the road.

Judging from those figures, it seems safe to say that while those Aussies may not like going to midnight launches, they do like to buy their consoles.

Time will tell if the PS3 keeps it up in the said region.

As a follow-up to the recent news that  Nintendo Wii sales hit 5.2 million units worldwide, we bring reports that the Wii has experienced equally prosperous times in Australia as it clocks in a total of 68,000 sales since its release back in December 6, 2006.

Going into detail, sales for last year alone totalled 51,000 units, with a further 17,000 attributed to 2007. The Nintendo Wii also retains a strong holding in Japan's market, as it reports 78,506 sales from February 19 to 25.

Moving on to the Wii's primary competition, the veteran Sony PlayStation 2 retains its strong following among fans with a solid 256, 000 sales in 2006 - more than a quarter of a million - bringing up its total sales to 19.2 million in Australia since its November launch in 2000. Daniel Morse of the German marketing research firm Growth from the Knowledge (GfK) attributed its success to its low price and wide game selection. "It still offers good value to consumers," Morse said.

But while the PS2 is still holding fast to its place, Morse mentions that for the past two weeks, the Wii had taken the PS2's former title of the fastest selling console in Australia. Microsoft's Xbox 360 console was reported to have sold a total of 153,000 units since its March launch last year, including the 13,000 reported this 2007.

Time will tell how these sales reports will influence the Sony PlayStation 3's upcoming launch, which will take place this March 23, with each PS3 unit selling for an initial price of AUS$ 999 (US$ 772). The PlayStation 2 currently sells for AU$ 199 (US$ 154), the Xbox 360 for AU$ 649 (US$ 502), and the Wii for AU$ 399 (US$ 309).