According to a report by global research and consulting company Strategy Analytics, Sony Microsoft and Nintendo will sell nearly 200 million next generation games consoles by 2012.

In the report "Games Consoles For The Digital Home: Assessing The Prospects For PS3, Xbox 360 And Revolution", Microsoft's Xbox 360 will present a serious challenge to Sony's dominance of the games console market and will lead the North American and European markets until 2007. But the PlayStation 3 (PS3) will eventually pull ahead if Sony ensures that its online experience matches that of the Xbox 360, and that its Cell processor technology meets its full potential to transform gaming into a near-video quality experience.

Sony will use the PS3 to help establish Blu-ray Disc and the Cell processor as mass market technologies. For Microsoft the Xbox 360 could secure a leading position for the home PC as a broadband digital media server.