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Nintendo to Lose Share to Third Parties This Year, says Analyst

Forums - Nintendo Discussion - Nintendo to Lose Share to Third Parties This Year, says Analyst

With more third parties aligning resources towards the Wii, Sterne Agee's Arvind Bhatia sees Nintendo's software share finally declining in 2009.

by James Brightman on Friday, March 06, 2009

Sterne Agee analyst Arvind Bhatia has not only weighed in on the potential for PS3 and PS2 price cuts, but he's also addressed the third-party publishing situation on Wii. Nintendo has always dominated its own platforms with its first-party titles, leaving a much smaller share of the market for third parties to wrestle for. That's been especially true on Wii, but more third parties are starting to find success on Nintendo's platform of late.

Bhatia said that with the massive success of the Wii, "third-party publishers are aligning more towards the Wii console this year given the large (and rising) installed base and lower development costs for the Wii console." He estimates that Nintendo currently controls a 70 percent share of the Wii software market, thanks to hugely successful titles like Wii Fit, Wii Play, Mario Kart and more. As 2009 progresses, however, Bhatia said "we expect third parties to take share from Nintendo."

With past Nintendo systems, the balance between first-party and third-party was closer to 60/40, from what we understand from publishing sources. So there's certainly plenty of room for further third-party software growth. How much beyond 40 percent third parties could capture time will tell.

Bhatia also said that although the current console cycle is expected to last 7-10 years, with the new consoles not launching until 2012 at the earliest, he commented that "it is possible Nintendo releases a slightly updated machine without a full upgrade" – a Wii 1.5, if you will.

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They're making it sound like a bad thing. =P



That's what Nintendo wanted. Give third parties an opportunity to get in.



 

blackstar said:

He estimates that Nintendo currently controls a 70 percent share of the Wii software market, thanks to hugely successful titles like Wii Fit, Wii Play, Mario Kart and more.

A little bit over 50%, afaik.



Parokki said:
They're making it sound like a bad thing. =P

 

Nintendo is DOOMED!!!



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Its interesting how it was ALWAYS 60/40. Quit your moaning 3rd parties



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

I'll believe it when I see more 3rd parties put more effort into thier games.
its started to happen with a few of the companies, but alot half-ass thier titles and expect us to buy them.

Im more interested and waiting for Nintendo's Punch-Out!! than any 3rd party title out there right now, my second most wanted game is (probably sad to say) is the new Boom Blox. Just saw the new trailer for it last night and I loved the first one



as far as third party goes,i'm most interested in little kings story, with games like the conduit, madworld, ect coming in as *maybies*.



come try out the computer game i've been working on for my high school senior project, titled sling ball. http://vgchartz.com/forum/thread.php?id=47568

 

brawl friendcode - 3823-8201-9151

mario kart wii friendcode - 0387-9491-4552

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150vg$ bet(with haggy) mk wii 2009 worldwide sales > any 360/ps3 game released in 2009.

current mk wii worldwide sales (jan 9th): 553k

Why is it game analysts can take even good Wii news and make it sound bad?



Isnt this actually good? cause i can recall that, werent one of the reasons of bad third party support for the cube were nintendo over fllowing the system with too many of their games, leaving very little shares and success for third parties?