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Squilliam on 30 August 2008
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ItsaMii said:
Sky Render said:
There is a variant of that silly "rule" that goes on, ItsaMii. A product which pioneers a particular set of values will stand above those that imitate it, and this dominance usually continues for at least 10 years. The split there actually usually is 80/20 or close to it at first, eventually evening out around the 10- or 15-year mark at 50/50, then going into decline. This applies to all products, not just games. 10 to 15 years is roughly how long brand loyalty can be counted on for disruptive and blue ocean products.

 

The point I was trying to make is that there is no 20/80 in the context we are discussing (20% of the titles on gaming business make 80% of the profit). The rule may apply to other business or other variables, but the points Squilliam made are all wrong. Nintendo had less than 20% of the marketshare last gen and made more mony than Sony (a hobo made more money than MS). Take 2 made only 90 million on the quarter GTA 4 released (revenue and profits are far away in this case).

If 80% of any market is losing money, things change. Either the old 20% turns into the new 100% or the market crashes. MS may own 95% marketshare on the OS business, but the other guys are only there because they make some profit.

And for the 10000th time I must say that 400+ xbox games include downloadable games or different versions of the same game.

Its well known that nintendo made the majority of their profits from the handheld sector. So if you're taking the whole market into account they probably had closer to 50% market share considering their handheld dominance, or 40% it doesn't matter. Still even then they had the best selling games on their own platform and they made a lot of money from them so how does that even disprove the 80/20 general rule here?

 

 

 



Tease.