Year sees explosion in next generation gaming

Analysts are predicting that there will be 100 million console gamers in the US by the end of the year.

Jupiter predict that almost half of US consumers who own already a video game system will have purchased a replacement console this Christmas.

2001 has seen the beginning of unprecedented competition in next generation gaming, with consoles from three manufacturers in play in the US market.

Two new rival machines launched in November - Microsoft's Xbox and Nintendo's GameCube.

Both are competing with the PlayStation 2, which enjoys the considerable advantage of having launched last year.

Sony says its has already sold more than 20 million units worldwide, building on the success of its previous incarnation.

It remains to be seen which console will win the hearts and minds of US consumers.

According to a June survey, video gamers look at price (46%) and selection of exclusive games (44%) when choosing a new system.

Analysts say that exclusive software titles - or 'system sellers' - will be the main marketing attraction for the three major video game competitors.

Console gaming may have stolen the limelight, but there appears room for optimism for online gaming, with a recent report suggested that there are 47 million home computer users played a PC game application in October.