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Has the Wii Bubble Burst?

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Has the Wii Bubble Burst?

 

Nintendo’s runaway success may be entering its most difficult period yet.

As speculation circulates on how UK retailers will respond to the raised Wii trade price, one analyst is pondering how much appeal the Wii will have over the coming set of months.

“We are looking very closely at all the platforms for any signs of slowdown,” says Ed Barton, games analyst at Screen Digest. “We’ve made a number of channel-checks and had many conversations with platform manufacturers, and our research shows us that in North America the demand/supply ratio for the Wii has balanced out since the beginning of the year.”

Demand heavily outweighing supply has become a trait of Nintendo’s home console ever since its 2006 launch, though there are several factors which suggest that the Wii boom may soon go bust.

Sale performance for the console is already in steep decline in Japan; falling at a greater rate than the average console during the dry post-Christmas period. More importantly, the system also is showing little sign of recovery as its competitors begin to pick up the pace.

Barton believes that the Wii’s current software line-up could be a decisive factor in the Wii’s outlook: “There’s a real absence of a major games release from Nintendo in the next few months. MadWorld has obvious appeal for hardcore gamers, but this is way outside the kind of software which has typically succeeded on Wii. This isn’t going to help Nintendo.”

“If we look at the software line-up, as well as recent supply/demand data, and add to it the chance that the price of the console may have to go up in a key market, you have in front of you a number of things which will not help Nintendo succeed with the Wii in the way that it has for two years.”

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Jepp I guess so......

Of course Nintendo raises the price for the Wii in the UK since it way cheaper there then rest of Europe.

 

Can someone explain how Wii is loosing steam while it still outsell it competition combined without any new games in months while the other have had several big games released the last couple of weeks?



If it isn't turnbased it isn't worth playing   (mostly)

And shepherds we shall be,

For Thee, my Lord, for Thee. Power hath descended forth from Thy hand, That our feet may swiftly carry out Thy command. So we shall flow a river forth to Thee And teeming with souls shall it ever be. In Nomine Patris, et Filii, et Spiritūs Sancti. -----The Boondock Saints

Well obviously the sales have to level off eventually. I think it's surprising that it took this long.



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The question is "Will the Wii bubble burst and if yes, when?". That is the question this guy is really asking.



How many cups of darkness have I drank over the years? Even I don't know...

 

Aren't sales up YoY?



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Think this is one bubble that will never burst simple expand and shrink again

Burst implies that sales will all but dry up in a short period of time

Sure sales are going to go down but I don’t see it as being 400 k one month then all the sudden 95 k the nest like they seem to feel here

I mean going from 400 k one month to 325k the next to 295 k the next to 265 k the next to 230 k the next and so one over the span of a year or two till you reach the 95 k mark isn’t real a bursting fast thing is it?



 

chasmatic12 said:
Aren't sales up YoY?

 

About 40%

 

It's only in Japan it strugles but that is easy to explain.



If it isn't turnbased it isn't worth playing   (mostly)

And shepherds we shall be,

For Thee, my Lord, for Thee. Power hath descended forth from Thy hand, That our feet may swiftly carry out Thy command. So we shall flow a river forth to Thee And teeming with souls shall it ever be. In Nomine Patris, et Filii, et Spiritūs Sancti. -----The Boondock Saints

This is so stupid even i understand the depth of stupidity involved here.



“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.

Japan is the only thought territory for Wii today. I guess the rise on price will affect on retailers but honestly if there's demand there's nothing to do.



I wish the Wii would die but I really don't think it will.

Now I see why all the other console owners hated the PS1 and PS2 when I owned and loved those systems. I blame Final Fantasy for my past disrespect of other consoles.