The games console wars finally kicked off in style in 2006, as all of the major players saw their next-generation kit flying off the shelves.

Microsoft had already beaten Nintendo and Sony to the punch back in 2005 with its Xbox 360 console having a full year to bed in.

"With Sony's recent difficulties getting the PlayStation 3 to market, Microsoft has a golden opportunity to solidify its position in the market," said Ovum analyst Carl Gressum.

"Microsoft has also brought out more popular games titles, such as Gears of War, which should boost sales in the US and Europe, but Japan will remain a tough sell with the launch of Nintendo's Wii." 

Microsoft has managed to rack up six million Xbox 360 sales in the run-up to Christmas, although this compares with an expected four million Nintendo Wii units in December 2006 alone. 

Gressum expects the Xbox 360 to reach 10 million units by the end of the consumer Christmas period, matching Microsoft's expectations. 

Sony, on the other hand, has misjudged the market, according to Gressum. " Ken Kutaragi, often referred to as the father of PlayStation, envisioned the PlayStation 3 as not only a game console, but a multimedia hub for the home," he said.

"Sony's focus has therefore shifted away from creating an ultimate gaming ex perience towards a richer home entertainment environment.

"However, costs spiralled and technology after technology got binned from the PS3 design to keep costs down; three Ethernet ports are not needed to create a great games console!"

Gressum also said that Sony was wrong to produce a console with two different specifications when production problems and lack of units meant that demand was so high. 

"There is no point in introducing a lower specified PS3 while production is so low because the PS3 is being resold on eBay for over $1,000, and Sony has a very loyal fan base," he said. 

"The lower spec version should be introduced when the fan base market has been saturated, and Sony wants to take the PS3 to the more price-sensitive markets."

Sony originally predicted that it would ship four million units by Q4 2006, with another two million units on shelves by the end of the company's accounting year in March 2007. But Ovum said that the figures would not reach that mark.

"With the recent production hiccups at Sony, Ovum expects shipments for 2006 to be just under two million units, which is lower than the official Sony guidance of between two and 2.4 million units," Gressum said.

The analyst also applauded Nintendo's efforts in the console market with the success of its Wii console.

"A year ago Nintendo was almost disregarded in the race for next-generation consoles by most people in the industry," he said.

"Nintendo focused instead on making fun games with broad appeal, at an affordable price and that brave move seems to have paid off."

Nintendo sold 600,000 Wii units in the Americas alone and consoles sold out in the first day of the UK launch within minutes.