Pacific Crest Securities analyst Evan Wilson believes Microsoft and Nintendo will release new home consoles by 2010, the year he says will likely mark the end of the PSP and DS cycles.

In an investor note issued to GameSpot, Wilson said it is unlikely that Microsoft or Nintendo will attempt to extend the traditional five year console cycle in this generation.

"We believe that peak industry sales will occur in 2010, given that Microsoft will likely introduce its next console that year and Nintendo will likely launch before then," he said.

 "Further, 2010 is also likely to coincide with the end of the Nintendo DS and Sony PSP cycles."

In November 2007 Wilson claimed Nintendo had already finished work on a successor to the DS Lite, although he added that he didn't expect the firm to release a new handheld until sales of its current system began to tail off in all three major markets.

Wilson also said that publisher EA's future prospects were good, although he doesn't expect the Madden house to meet its ambitious fiscal year 2011 targets.

"EA has given us the best case yet that it has overcome its addiction to spiking development costs, game delays, poor game quality, and lackluster innovation," said Wilson.

"While we have issues with the likelihood that EA will hit its fiscal year 2011 targets, it has a very strong slate in fiscal year 2009 and has every opportunity to gain back market share.

Courtesy of Next Generation.

Feb 14, 2008