NPD: Analyst reaction (NPD not using Toys R US?)

[shams]

Well, this is all rather priceless.

1. Firstly - the issue of bundling. Once you don't count bundled software at all (explains poor performance of games like Nintendogs?), the entire equation changes. So much software sold these days is bundled. It also seriously disadvantages Sony & MS titles - as its primarily those titles that are bundled.

But its sort of fair - as there is NO extra revenue being handed over for those titles - which is one of the primary measures of overall performance.

In fact - if the industry is RELYING on bundled games to sell hardware - then that does have a significant impact on the bottom line. It also means less (other) software is purchased.

I think it is quite fair, and a good thing for NPD to do.

 

2. Now - re: Toys R Us:

Even if NPD isn't tracking them this week - they will have reams of data about the past performance of Toys R Us compared to the rest of the market.

At the least, they will extrapolate this out based on past history.

What this may not take into account - is special offers, 2-1 deals (and the like). These 2-1 deals also sort of screw up revenue projections (as do any form of discounting or bundling).

Its interesting though - does this mean NPD is cutting their budget, to reduce costs?

(I wonder how their revenue has gone over the last few months...)

 

3. Re: Sony - no surprises there.