What if Nintendo never launched the Wii?...(article).

[famousringo]

Smashchu2 said:

theprof00 said:
@griffin
because if there are 10 people buying a 600$ product vs 60 people buying a 100$ product, the market is the same. That market with the higher number of people has expanded the demographic, but not the revenue.

The problem with the argument that everyone is bringing up with me is that while all of these things are very closely related, they are not all the same thing. They are slightly different interpretations. Mine is not wrong simply because your interpretation is different, you just have a slightly different viewpoint.

Like looking at a ball with a color gradient on it, where I stand, the ball looks blue-green, wheras where you are standing, the ball look green-blue. Niether of us are wrong, but it's folly to start saying that only one view can be right.

No, the revenue is the same, not the profits. The system selling for $600 might have a higher variable cost. Cost of Good Sold could be higher. The $600 system may have higher fixed cost. The question may be why the system is $600.

The problem prof is your claim is still wrong. Your claim is "The market would be growing of the Wii was not there." The revenue has been going up. The profit has not. The number of consumers going in are not going up. Since the market declined in 2009 along with the Wii, it means the market is tied with the Wii, meaning any growth is also tied to the Wii's growth. If the Wii grows in 2010, expect the market to get better.

I think you have your causality backwards. The games market hasn't shrunk because the Wii is in decline. The market has shrunk because we're in a recession. The HD systems and handhelds have felt it less than the Wii (in terms of unit sales) because in the past year they've recieved all kinds of hardware redesigns and price cuts and more big software releases than the Wii has seen, not because the game market is somehow completely defined by the Wii.