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1. Too much, too soon. Who is to say if more games and revenue could have been made if there was about a 2-year gap between each game? It's possible.
2. The requirement of the portal and characters to play is not a massive barrier (since it comes with the core game in a big box) but it is extra stuff to worry about.
3. I think others were right about Nintendo. Nintendo in the home console space was in quite a weak spot from 2011-mid 2014. Mario Kart 8 and Super Smash Bros. helped pump some extra life into Wii U, but not enough. If a family isn't interested in new titles from Nintendo in about that 3-year time period, where do they go? Skylanders is the most obvious choice along with Lego games.
4. Too many competitors eating up market share. Lego and Nintendo went in on Toys to Life.
Activision Blizzard is making plenty of money on Candy Crush, COD and WOW to name a few that I don't think they're worried about reviving Skylanders.



Lifetime Sales Predictions 

Switch: 161 million (was 73 million, then 96 million, then 113 million, then 125 million, then 144 million, then 151 million, then 156 million)

PS5: 115 million (was 105 million) Xbox Series S/X: 48 million (was 60 million, then 67 million, then 57 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima