Sony leads in the digital home

Microsoft a close second despite disappointing Media Center sales

Written by Ken Young

Sony is leading the digital home market with a 23 per cent market share, followed by Microsoft with almost 15 per cent, according to new research from analyst firm Canalys

A total 10.5 million platforms were sold during the first quarter of this year. Top sellers were consumer PCs (50 per cent) followed by games consoles (40.5 per cent) and DVRs (9.5 per cent).

Despite the high volume of PC sales, less than three per cent were running Windows Media Center.

Sony's strong position is due primarily to the PlayStation 2 console, and it remains the only vendor to participate in all three platform categories. But it has not yet reached a top five position in the PC and the DVR markets.

Due to a continuing decline in its console sales, Sony is relying on a successful PlayStation 3 launch to maintain its overall market position.

Canalys reported that the PC is the primary platform for the delivery, storage and consumption of digital content in the home, but is not yet established as a platform for recording and playback of TV. As a games platform the PC still lacks ease of use for less tech-savvy users.

Games consoles and DVRs remain strong in their niche areas, but overlap in the area of DVD playback.

Canalys expects the new generation of games consoles to provide greater competition to the other device categories, while rising hard disk capabilities and wireless connectivity will broaden the scope of DVRs, further blurring the distinction between devices.

Microsoft's number two position is largely due to continued growth of the Xbox. But Canalys pointed out that Microsoft is struggling in Media Center PC sales, for which it provides the operating system, due to high prices, complexity, confused messaging and a lack of language support.

Panasonic holds the personal video recorder lead in Europe, but UK-based TV service provider Sky is in close second position despite only operating in the UK.

"Over the past 12 months convergence has arrived in Europe," said Canalys chief executive Steve Brazier.

"The biggest driver has been the widespread availability, increasing speeds and falling prices of broadband. Meanwhile IP-based TV has arrived in France, and Apple's iTunes has been rolled out to more countries."

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