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phisheep said:
Darth Tigris said:
Can someone please explain to me why the 1 year head start makes a difference? I'm doing several things at once right now and just can't wrap my head around it. I thought I remember reading that the ratio is supposed to go down as a console gets older (I think that was a VGC article if I'm not mistaken).

 

I’ll try – but it isn’t the easiest of things to get your head round.   First of all, remember we are talking about the attach ratio/tie ratio. That is, the number of software units sold divided by the number of hardware units sold. We’re not talking about absolute hardware or software numbers (which obviously go up with time).   Now, just for ease of understanding. Let’s take a fanciful scenario.   Suppose there are two consoles, X and Y, both equally popular, both with similar games available, and everyone who has either console buys a new game every month.   And suppose console X has been out two years and console Y has been out one year.   And suppose both consoles have been selling at a consistent rate since launch.   As console X has been out for two years, the average console X has been in the users hands for 12 months. So they’ve bought 12 games. So the tie ratio is 12.   As console Y has been out for one year, the average console has been in the users hands for 6 months. So they’ve bought 6 games. So the tie ratio is six.   And the only difference between the consoles is that X has been out twice as long, which gives it twice the tie ratio.   That make sense?
 

You're not doing what you said. You would have to do, 12/12 =1 and 6/6 =1 also.

 



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