Sales of the Xbox 360 have hit a brick wall as its appeal is limited by the small range of games genres available. That's according to trade analysts at Screen Digest, who also said the Nintendo Wii and Xbox 360 will struggle to keep up with the PlayStation 3 in the long-run.

"For Xbox 360, European hardware sales seem to have hit a wall. The target market is still too focused on adult males and the brand does not enjoy the same cachet in non-Anglo Saxon markets as it does in the US and, to a lesser extent, the UK," the report says.

"The FPS / shooter genre is well served on the Xbox 360 with numerous high quality titles, so satisfying the adult male demographic is not a concern. But failing to break out of a small number of genres and thereby appealing to groups outside of hardcore gamers is."

Screen Digest also had a lot to say about the Nintendo Wii. "There are still concerns over Wii hardware supply constraints throughout 2007. Nintendo expects a strong summer line-up from third parties. Forty per cent of Wii owners are connected to the net and have proven enthusiastic in their adoption of online delivered, back catalogue games through the Virtual Console service."

Screen Digest reports

And on the PS3: "The PS3 has reached one million sales in PAL territories according to SCEE. A price drop before year end is becoming inevitable and would be in line with previous PlayStation first time price reduction timings.

"This is certainly what is needed to boost sales. However, the education of consumers as to what is in the box and what its benefits are has not been forthcoming from Sony.

"Most publishers' European management teams feel that the PS3 will win out, especially in Europe where the brand still appears to be impregnable."

Check out the full report at Screen Digest.