Mark Androvich 01:33 (BST)
30/04/2008

Videogames market researcher DFC Intelligence is now forecasting that over the next few years Nintendo's systems will supplant Sony's systems as the leader in most major European markets.

Even so, DFC is also forecasting strong sales for the PS3 and, to a lesser extent, the Xbox 360.

"This generation is not expected to be a case of one platform dominating like the PS2 did in the last generation," DFC said in a statement, suggesting that more European consumers will start purchasing two or more systems.

"No one system satisfies all the diverse tastes in today’s market."

In the long-term, DFC Intelligence believes that the PS3 will be a fairly strong competitor - with the biggest "loser" in Europe likely to be the Xbox 360.

"Microsoft has seen its self-proclaimed fall 2007 'greatest holiday lineup in video game history' come and go with very little impact on the Xbox 360's position in the European marketplace," the report said.

Ahead of its forthcoming industry forecast, DFC Intelligence says that the most notable growth trends in 2007 were the strength of online PC games and Nintendo's success.

Europe, it says, is a key area for growth.

"DFC believes that some of the most exciting growth opportunities for the video game business are in the European markets and DFC believes Nintendo will be the leader in Europe over the next few years," it reported.

DFC pointed to casual, mass market products such as SingStar and EyeToy as drivers for the PlayStation 2's success in Europe - crediting SCE Worldwide Studios president Phil Harrison.

With Harrison's departure, however, DFC sees a symbolic "passing of the torch" to Nintendo.

"The Nintendo DS and Nintendo Wii are enjoying tremendous success in Europe. In large part this is because Nintendo is following the mass market design philosophy that made Sony Worldwide Studios such a success," DFC concluded.