Retailers gird for launches of GameCube and Xbox consoles

NEW YORK -- Let the console game wars begin.

With Microsoft's much anticipated Xbox due in stores Thursday, followed by Nintendo's GameCube three days later, this holiday season is looking to become a hardcore gamer's dream.

In a slumping economy, the nation's retailers are counting on the new consoles to drive overall traffic into their stores and hoping a sizzling video game market will fuel holiday sales.

The two hot new entries, their near simultaneous launch a first for the $20 billion video game industry, enter a free-for-all competition for consumers' dollars with the reigning leader, Sony Corp.'s year-old PlayStation2.

Microsoft and Nintendo are set to release more than a million consoles each this holiday, and clearly there are not enough to go around for everyone who wants an Xbox or GameCube.

"It's one of the few situations for holiday where demand will far exceed supply," said Kurt Barnard, a retail consultant. "For those who want one, you are going to have to get up very early."

Brian Nugent, a 22-year-old game addict from Hackensack, N.J., tried and failed to pre-order an Xbox online.

"At first, I wasn't sure what I wanted, but now I'm going for Xbox first," he said. Nugent still plans to buy GameCube once the game portfolio is broadened.

Hype and demand

Retailers are carefully trying to avoid the consumer frustration and lost sales of 13 months ago, when Sony ended up halving its original PlayStation2 allotment, leaving many stores in a tough spot.

"Merchants are trying to strike a balance between creating hype and meeting customer demand," said P.J. McNealy, senior analyst at Gartner G2.

Some retailers, such as Toys R Us, have done few pre-sales so as not to disappoint walk-in customers, said company president John Eyler. And Toysrus.com is being "extra vigilant" in keeping customers informed about the availability of consoles on its Web site, said company spokeswoman Jeanne Meyer.

Target demographics

The consoles target a varied crowd.

The core customer base for $199 GameCube is those under 20 years old; the majority of its games at launch are kid-friendly. Meanwhile, Xbox and PlayStation2, each priced at $299, seek to attract the 18-to-34-year-old market. Xbox is the only console with a built-in hard drive and a plug for high-speed Internet access. Those features are external add-ons in the PlayStation2.

The PlayStation2, which has shipped more than 20 million units worldwide, was aimed at so-called early technology adopters and now wants to broaden its reach, marketing down to age 13, said Sony spokeswoman Molly Smith.

Toysrus.com and Kmart's Bluelight.com have in recent weeks done several advanced online sales of GameCube and Xbox, selling out within minutes. Neither company would disclose sales numbers. And already, hundreds of units of both consoles are listed for sale on the eBay online auction house.

Nintendo, which originally set the GameCube launch for Nov. 8, postponed it to ensure 700,000 machines in the initial shipment -- and 1.1 million by year's end, the company says.

Microsoft announced in September a one-week delay of the Xbox's U.S. release. It won't say how many units will be available Thursday.