| Mikmster said: Tie ratios is irrelevant, as user base increases it will decrease. |
Actually not quite true. The longer a console is out, the higher the games to console ratio will become.
That's not say say that new consoles buyers will somewhat dilute the tie ratio a little. But for the ratio to go down it would have to have a huge influx of new owners, and the bigger the install base gets, the bigger the influx of new owners needed to decrease the tie ratio.
Imagine 1 gamer buys 1 game every month.
1st month 100k consoles sold 100k games tie ratio of 1
2nd month 100k consoles sold install base of 200k, 300k games sold tie ratio of 1.5
3rd month 100k consoles sold install base of 300k, 600k games sold tie ratio of 2 etc
It keeps increasing. But if there is a huge influx,
4th month 1000k consoles sold install base 1300k, 1900 games sold tie ratio 1.46
But the bigger the install base the bigger amount of new console owners need to bring the ratio down.
For instance, month 12, console install base is 10,000k, 40,000k games sold tie ratio 4.
If the same infux of consoles buyers now hit, it won't have any impact on tie ratio.
Month 13, 1000k consoles sold console install base 11,000k, 51,000k game sold tie ratio 4.6
