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Forums - Nintendo Discussion - Handheld vs Mobile Gaming Revenue Estamate

RolStoppable said:
WoodenPints said:

I don't really understand this quote "Yup. It baffles me when people try to say 3DS is doing well. " combined with the chart when you compare 1 handheld (3DS, 2 if we add in Vita but the chart goes to 2019 so likely only a Nintendo handheld by then) to mobile.

It's basically like comparing a revenue chart of "BMW" in 1 bar and "Every other can manufacturer in the world" Comparing one device by one company to everything else in the world is likely to show revenue charts like that.

For some reason ZhugeEX has this weird idea that handhelds are dead, hence why he agreed with Aquamarine's choice of the five systems she can report NPD numbers for (PS4, XB1, Wii U, PS3, 360). But the thing is that the 3DS outsells the Wii U, PS3 and 360 combined. Additionally, nobody cares for the 5-10k units the 360 and PS3 sell per month because that generation is behind us. We would be much better off with PS4, XB1, Wii U, 3DS and Vita numbers; while the Vita sells as little as the 360 and PS3, it's at least an eighth generation system, so more people on this website are interested in those numbers. Aquamarine's justification is that she doesn't care about handhelds.

Anyway, when it comes to handhelds, ZhugeEX tends to lose his senses. While otherwise you can expect objective and respectable analyses of sales numbers from him, handhelds do something to him.

I don't understand why you decided to bring me into the conversation.

I just want to show a vertical slice of the console industry in the USA because that's literally the only part of the traditional industry that gets talked about as a revenue driver.

"Nobody cares" if I share NPD 360 and PS3 numbers, eh? Guess I'll stop sharing them, then. No skin off my back. I'm getting too old for this juvenile nonsense.



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Aquamarine said:

 

Thanks for the additional detail. I imagine those numbers don't include advertsising rev. 

 

Should come as no surprise to anyone that Asia is the biggest market by far. 

I think what's most fascinating is just how much Mobile has grown in Japan over the years. So $6.2b according to the above for Mobile Gaming revenues which can be compared to $1.9 billion in Packaged Software sales at retail for Consoles/Portables in the country. It's a huge difference and that gap is only going to continue growing. 

USA is of course different as Console & PC still plays a significant role. $6.0b in Mobile games revenues in the U.S. can be compared to around ~$4.0b in PC gaming revenues and around $5.2b in Packaged Software sales at retail for console/portables. Although Digital console would boost that number towards $8b so it should be that console games software is still the biggest segment in the U.S. for now. 

Perhaps you can confirm the accuracy of that, Aqua? 

 

Just as an additional note, what's most striking is that there are around 150m+ mobile gamers in the U.S. that generate $6.0b, but in Japan it takes only 50 million players to generate the same amount.  



RolStoppable said:
Predicting that handheld revenue will severely drop during the year a new generation of handhelds is going to launch is... plain stupid?

this



tak13 said:
captain carot said:

This is how handheld vs. mobile works. Nintendo vs. rest of world.

 

And yes, handheld gaming is passing away basically. No one should expect Nintendos next handheld to do better than 3DS.

Not that you need to like it. I don't.

 

Edit: Keep in mind, last gen was the best handheld gaming ever had with over 150 million DS and over 80 million PSP. This gen hasn't even reached a third of those sales. It's still behind the shortlived GBA.

No one should had its own opinion...Eh?

If 3ds successor sells better what will you say? If it sells less instead, I won't say anything, since my opinion  isn't combined with dogmatism, I aknowledged that it could sell less ! How much less could it sell by your opinion?

Who cares for last gen? What about home consoles? Their aggregate sales were 275m? How much for 8th gen? 165m? 110 less and 10m more than what PS2 sold alone? Oh dead, dead, dead!

All comparisons are welcomed but it doesn't mean that all of them are fair and indicative!

As for the gba and its lifetime... Keep in mind that ds lite was released in the end of 2006, if you know what I mean...

6th gen consoles: PS2 hat a 'casual' bonus with Eyetoy, Singstar and the likes. Not the reason it went over 100 million but the reason it went over 150 million

7th gen consoles: Wii, Wii and again Wii. Yes, that was the casual crowd and yes, that walked away without looking back. Depending on how long this generation goes on and how we will count NX we might see something like those 160 million, even less or more. But last gen also was pretty longlived. 25m OG Xbox vs. 85m 360's also is 4 years with no 'afterlife' when the successor released vs. 8 years main life plus two and a half years.

Let's take a look at Nintendo handhelds.

Gameboy 118 million sales, but from 1989 to 2001 plus a bit. 12 years!

Gameboy Avance: 81 milion. Basically from 2001-2005. Yes, it sold a bit in the years after but not much

DS: 155 million, most of that sold within the first six years. And with the strongest competitor a Nintendo handheld ever had.

3DS: Close to 60 million. But after more than five years. With heavily declining sales that's very far from the good old Gameboy. It's way behind GBA. And DS? We'd better not talk about that.

Should be clear that the 3DS didn't actually perform great for a Nintendo handheld.

Now, seeing a 'decline' in overall console sales and handheld gaming basically has the same reasons. Tablets and smartphones. So, mobile sales. That didn't really take sales from games like GTA, CoD and so on. But with the casual crowd leaving the console market it hurt Kinect and other motion control as much as casual games on consoles. And it means that all those casual console buyers wont buy again.

It's worse with handhelds though. With 'everyone' having smartphone and/or tablet, five years olds starting to play on mommys iPhone and mature gamers mainly playing kind of gapfiller games. For teens handhelds don't belong to the cool stuff.

 

Yes, there still is a market for dedicated handhelds. It's getting smaller and smaller though. And if a 3DS successor manages t sell more than 3DS, let alone 3DS and Vita, i'd really be surprised.



ZhugeEX said:

My comments on handheld gaming concern the whole market.

When you look at the handheld market as a whole its clear that it's no longer relevant anymore. PS Vita isn't worth even mentioning and 3DS performance over the last couple of years has been very weak.

I see a lot of people looking purely at one device or comparing one device to another single device. As I mentioned above, you need to look at the whole market.

An install base of 240m handheld consoles last gen dropping to less than 80 million with an ever sharper decline in software sales is not healthy at all. Especially when you consider that the decline has been accelerating rapidly in the last few years.

People can look at hardware sales for a single device all they want, but there is so much more to consider, especially when it comes to overll hardware & software sales, attach rates, average spend per user, number of active gamers, number of active publishers & games etc...

 

Personally I'd take a handheld over a mobile device any day. I'm not a huge fan of mobile gaming. But that doesn't mean I'm blind to the current state of handhelds in the market. 

Looking at the whole Market... That's why people try to Say "This generation is doing good" ans they remove The Nintendo Wii from The comparation?

And even if we remove The Wii, PS3 and 360 have sold something between 170-180 Million. You predict >150 Million for This gen INCLUDING Wii U.

But since we should see the whole Market, we Are looking for a most likely ~45% drop. That's not huge?

Surely is not as bad as a ~65% drop, but You understand what's The Point here?

Not only we will See a massive decline from gen 7, but talking about gen 6, The only PS2 will most likely end with More than what PS4, XBO, and Wii U will Sell COMBINED.

Should not this be very worried?

 

But You many time don't talk about only The whole Market... You many Times Said 3DS is Death.

So well, now there Are not excuse, "PSVita is Death" is totally comprensible cause The 0 support from Sony, and The terrible Sales.

But saying 3DS is Death... It's a 6 years old console, and looks like is also up YOY this quarter in shipments ( confirmed by Nintendo >60m annunced ).

It's selling More than The Xbox one, a console which only has 3 years of Sales. You don't considering This condole Death. So why 3DS is?

You see, there is not much sense here. I can understand all.

 

I can understand if you considering 3DS sales disappoint... I understand if you are worry for the handhelds market... I understand it did less than expect... But saying is "DEATH"?

 

Even you know this is wrong.

 

P.S

And last thing. 3DS did not bad for some years? What means "not bad"?

3DS was selling almost 15 million the firsts years. This is PS4 2014 levels. I would say this is a bit better than a simple "not bad", you don't think so?



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Handheld gaming is like a drop in the water....



Ryng_Tolu said:
ZhugeEX said:

My comments on handheld gaming concern the whole market.

When you look at the handheld market as a whole its clear that it's no longer relevant anymore. PS Vita isn't worth even mentioning and 3DS performance over the last couple of years has been very weak.

I see a lot of people looking purely at one device or comparing one device to another single device. As I mentioned above, you need to look at the whole market.

An install base of 240m handheld consoles last gen dropping to less than 80 million with an ever sharper decline in software sales is not healthy at all. Especially when you consider that the decline has been accelerating rapidly in the last few years.

People can look at hardware sales for a single device all they want, but there is so much more to consider, especially when it comes to overll hardware & software sales, attach rates, average spend per user, number of active gamers, number of active publishers & games etc...

 

Personally I'd take a handheld over a mobile device any day. I'm not a huge fan of mobile gaming. But that doesn't mean I'm blind to the current state of handhelds in the market. 

Looking at the whole Market... That's why people try to Say "This generation is doing good" ans they remove The Nintendo Wii from The comparation?

And even if we remove The Wii, PS3 and 360 have sold something between 170-180 Million. You predict >150 Million for This gen INCLUDING Wii U.

But since we should see the whole Market, we Are looking for a most likely ~45% drop. That's not huge?

Surely is not as bad as a ~65% drop, but You understand what's The Point here?

Not only we will See a massive decline from gen 7, but talking about gen 6, The only PS2 will most likely end with More than what PS4, XBO, and Wii U will Sell COMBINED.

Should not this be very worried?

 

But You many time don't talk about only The whole Market... You many Times Said 3DS is Death.

So well, now there Are not excuse, "PSVita is Death" is totally comprensible cause The 0 support from Sony, and The terrible Sales.

But saying 3DS is Death... It's a 6 years old console, and looks like is also up YOY this quarter in shipments ( confirmed by Nintendo >60m annunced ).

It's selling More than The Xbox one, a console which only has 3 years of Sales. You don't considering This condole Death. So why 3DS is?

You see, there is not much sense here. I can understand all.

 

I can understand if you considering 3DS sales disappoint... I understand if you are worry for the handhelds market... I understand it did less than expect... But saying is "DEATH"?

 

Even you know this is wrong.

 

P.S

And last thing. 3DS did not bad for some years? What means "not bad"?

3DS was selling almost 15 million the firsts years. This is PS4 2014 levels. I would say this is a bit better than a simple "not bad", you don't think so?

 

Come on buddy. This reads like a fanboy post. 

I've said many times that the handheld market as a whole is irrelevant and dead. I've said similar things about the home console market in Japan as well. 

And you know my concerns around the home console market worldwide when it comes to hardware sales, that's where my 150m number comes from. Me pointing out that the install base will be less than most people think, and I made those forecasts at a time when most analysts were putting out numbers like 200m+. 

But you and I both know that whilst the home console market has seen a contraction in the number of players and retail publishers, it's also seen a more core audience emerge who are spending more on games, digital content and services this generation. The numbers for both hardware, software and overall engagement/spend are not even comparable between the Home Console market and Dedicated Handheld market. 

Asking me to say that PS Vita must be dead too isn't really helping your case here. It sounds like you think I have an agenda against only the 3DS or something. As i mentioned above, I've talked many times about how handhelds overall are irrelevant and the PS Vita backs up my point. In fact I even wrote an article on how big of a failure the handheld was and why it failed. In fact it did so bad that Sony ended up writing off a lot of stock iirc. 

http://gearnuke.com/playstation-vita-fail/

 

The 3DS has done considerably better in comparison due to the way it was designed, marketed, priced and due to the fact that it had a lot of desirable software initially. But that inital success was short lived and in the last 2 or 3 years we've seen a really sharp decline in HW/SW sales and user engagement. There are a lot of people who may have bought a 3DS but recent data has shown that only a fraction of the install base still use it. Like I've been saying in this thread and before, the usage case for handheld gaming has now been replaced by mobile gaming and that's caused the majority of that audience to shift towards mobile gaming. There are other reasons as well which have caused many in the West to abandon dedicated handheld gaming in favor of Home Console or PC gaming. Add all these reasons up and the obvious conclusion to me is that handheld gaming is no longer relevant and ultimately dead. It may be a strong word to use but I'm only using it to stress the point. 



People keep telling me 3DS is dead in the water. People also keep telling me X1 isn't selling too bad, just worse than PS4. How does that make sense? What am I missing here?



Official member of VGC's Nintendo family, approved by the one and only RolStoppable. I feel honored.

OdinHades said:
People keep telling me 3DS is dead in the water. People also keep telling me X1 isn't selling too bad, just worse than PS4. How does that make sense? What am I missing here?

Compared to what? Compared to the first years of Xbox 360 Xbone pulled decent overall numbers. There's a big but though. Without doing decent numbers in continental europe we'll see a heavy decline in overall numbers.

PS4 Neo and Scorpio might extend the current consoles lifetime and could possibly change the sales ratio a bit. But i'm pretty sure in the end Xbox One will do way worse than 360.

On the other hand and comparing that to DS/3DS Xbox wont see that massive decline i think. At the same time Playstation is growing. But that's taking potential buyers away from Xbox.

An interesting question would be how many people play with one device though. Home consoles went from kids rooms into living rooms. If i were to make a guess i'd say that more people play with a certain number of consoles than back in the old days.



I still love remembering the good old days when people told me I was an idiot because I said mobile/tablet gaming would seriously damage dedicated handheld gaming. Good times.