Sony will continue to edge out Microsoft but the gap between the two gaming console giants will narrow over the next five years in Australia, according to a new report from research group IDC.

According to IDC's latest Digital Home research, "Next Gen Consoles, Can There Be Only One?: Australia Videogame Hardware and Software 2006-2010 Forecast", the gap between Microsoft and Sony will narrow, with the Xbox 360 installed base slightly lower than that of PS3 by 2010. Nintendo will remain a niche player within the console segment, according to the report.

"Seizing the console throne from Sony will not be a straightforward challenge for Microsoft. The PlayStation console family has enjoyed considerable influence on the Australian consumer mindset for the past ten years steadily bolstering its library and building a familiar gaming experience ֖ that its dominance in the console industry is of unquestioned precedent," said Sophie Lo, IDC analyst for consumer digital markets.

The Xbox 360 will be available in Australia early next year, in a two product launch offering a "core" system, and a "premium" bundle. IDC envisages that Microsoft will launch the Xbox 360 with around 20 game titles, including, "Perfect Dark Zero", "Project Gotham Racing 3", "FIFA 06: Road to FIFA World Cup", "Call Of Duty 2", "The Elder Scrolls IV: Oblivion", "Tom Clancy's Splinter Cell 4" and "Quake 4".

Meanwhile, IDC predicts that the PS3 will be available in Australia just before the 2006 Christmas season. IDC believes that Sony will launch the PS3 without a bundled hard drive along with around 30 game titles, including "Devil May Cry 4", "Final Fantasy PS3", "Metal Gear Solid 4: Guns Of The Patriots", "Mobile Suit Gundam", "Tekken PS3" and "Vision GT".

Both Sony and Microsoft are trying to expand the gamers' demographics with its advances in graphics and processing power combined with feature sets that deliver more than just gaming. They are both positioning their respective platforms as the media hubs of the home, with capabilities to connect digital cameras and digital audio players, or to playback cached video content from the PC or the set-top box.

However, IDC believes that the winning strategy is to deliver a great gaming experience, and not to transform the console into a media hub.

"The right to claim the throne of the next-generation will belong to whoever can position the brand that delivers the very heart of gaming ֖ namely, great games and an immersive gaming experience," added Jerson Yau, associate analyst and co-author of the study.

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