Grand Theft Auto IV Didn't Boost Console Sales

Despite record-breaking sales and levels of hype never before seen for a video game launch, Grand Theft Auto IV had no discernible effect on PlayStation 3 and Xbox 360 hardware sales for the month of May.

The ominous news was delivered by two separate analysts firms, Lazard Capital Markets and Wedbush Morgan Securities, as part of their monthly NPD preview report.

"We do not believe the recent release of GTA IV has generated meaningful incremental demand for the Xbox 360 or PS3 platforms," said Colin Sebastian of Lazard Capital Markets.

Analyst Micheal Pachter added that further price cuts could do more than GTA IV to boost console sales.

"Next generation console unit sales are running well ahead of the level in the analogous period of 2003 (when console prices averaged under USD 200), implying room for significant sales growth as price cuts are implemented," Pachter explained.

The news does not bode well for Sony, whose executives have continually flaunted Metal Gear Solid 4 as a "killer application" for the PS3. Killer applications, by definition, are software titles that sell more systems.