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Forums - Sales Discussion - Why the Wii Won't sell 80m+

mrstickball said: Squirrel - I understand that Nintendo can easily get warehouses to hold Wiis in, as they do that with DSes. Here's my issue: The Wii is selling right now @ 1.0m units per month (give or take). Nintendo will increase their abilities to 1.1m or 1.2m in April and stay at that. Now, the question is, how are they going to increase SUPPLY in the holiday months? They won't buy/purchase/aquire more factories (atleast at a very large #), but they will do like you said: store Wii units. The issue with that is it lowers the 1.2m "average" which is exactly that, an average, and that's what I meant it as. I believe Nintendo might sell 1.0m units a month from now till October (on average), and stockpile the extra 200,000 units each month to then give them an extra 1.6m units for the holidays. Again, my number of 1.2m a month for the next 12 months is just an average based on maximum possible sellthrough + the fact that Nintendo will decrease their supply to retailers in the months preceeding November-December, as every company does.
You're presuming Nintendo shall never increase Wii production after April. But Fils-Aime already announced a couple of months ago they're increasing Wii production in April and again in August. So from August they will produce more than 1.2 unit per month. And you don't know how much. And maybe they will increase production capacity again and again, like they've done for the DS, due to high demand.



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mrstickball said: 80 million IS alot. Especially if it's only over a 4-5 year period. Only Sony has reached the production abilities to do those kinds of numbers. Even the DS, after 3-4 years, is only at 39m in this cycle.
Quick note: the DS launched in Nov. 2004. Right now it's just shy of 2.5 years. Keeping in mind that the majority of its sales were in the last 12 months, it can very easily double its current install base in another 24 months.



Potential to reach the 80 million mark. Wii: Slim chance. I see it breaking records for console sales in it's first two years, but as the prices of the other two get cheaper the casual gamers will move from the Wii to the more technologically advanced consoles. I estimate 50-70 million total. 360: Probably no chance unless it does much better in Europe. I think Sony will eventually beat them there, and as the 360 is a non-factor in Japan there's no way the US market can make enough difference to push it that high. I see 45-60 million in the end. PS3: Probably the best chance of the three if it has a long lifespan, and Blue Ray wins the high def DVD wars. Also no one should underestimate the Sony brand name. People aren't buying it in large numbers now because of it's high price, but as it comes down and big beautiful games come out many of those PS2 owners will come back around. This is the hardest of the three to predict. I see anywhere from 40 million to 90 million depending on numerous factors. If I had to guess I would say no system this gen will cross the 80 million mark, though the DS will definetly end up crossing that mark.



Christopher_G2 said: Potential to reach the 80 million mark. Wii: Slim chance. I see it breaking records for console sales in it's first two years, but as the prices of the other two get cheaper the casual gamers will move from the Wii to the more technologically advanced consoles. I estimate 50-70 million total. 360: Probably no chance unless it does much better in Europe. I think Sony will eventually beat them there, and as the 360 is a non-factor in Japan there's no way the US market can make enough difference to push it that high. I see 45-60 million in the end. PS3: Probably the best chance of the three if it has a long lifespan, and Blue Ray wins the high def DVD wars. Also no one should underestimate the Sony brand name. People aren't buying it in large numbers now because of it's high price, but as it comes down and big beautiful games come out many of those PS2 owners will come back around. This is the hardest of the three to predict. I see anywhere from 40 million to 90 million depending on numerous factors. If I had to guess I would say no system this gen will cross the 80 million mark, though the DS will definetly end up crossing that mark.
Why would you assume that the PS3 will have a long life span? Every console ever released which was not in the #1 console in the world after 24 months had a life span of under 72 months ... Please inform me why things that have never happened in the history of videogames will happen for the PS3; why it's current poor sales will not eliminate its third party support, why it will suddenly become popular 2 years after its release and why it will live forever inspite of poor sales? It is way too early to determine how this will end up, but with current sales the Wii could be at 18 Million by the end of 2007, the XBox 360 will be at 16 and the PS3 could be at 8, by the end of 2008 the Wii could have sold 40 Million consoles, the XBox 360 at 22 and the PS3 at 18; why would you assume that there would be any major third party support left for the PS3, or that there would be a high level of consumer interest? I'm not saying this is what will happen, but I would say if Sony doesn't change something soon this is what will happen.



auroragb said: MS has shown that it's interested in 4 year console cycles (probably because of its PC roots), so chances are, it will be MS delivering a new console in 2010 instead of NTDO)
That would be 2009, not 2010... I think that HappySquirrel is right. The less successful you are with a console, the sooner you are going to replace it. The 360 is more cost-effective (though I don't think it will break even this or next year) and sells better than the Xbox. MS are going to do a 5 year cycle unless Sony can seriously smash them in 2008.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

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HappySqurriel said: Why would you assume that the PS3 will have a long life span? Every console ever released which was not in the #1 console in the world after 24 months had a life span of under 72 months ... Please inform me why things that have never happened in the history of videogames will happen for the PS3; why it's current poor sales will not eliminate its third party support, why it will suddenly become popular 2 years after its release and why it will live forever inspite of poor sales? It is way too early to determine how this will end up, but with current sales the Wii could be at 18 Million by the end of 2007, the XBox 360 will be at 16 and the PS3 could be at 8, by the end of 2008 the Wii could have sold 40 Million consoles, the XBox 360 at 22 and the PS3 at 18; why would you assume that there would be any major third party support left for the PS3, or that there would be a high level of consumer interest? I'm not saying this is what will happen, but I would say if Sony doesn't change something soon this is what will happen.
Quick question for you. You do know the Wii is in a diffrent 'class'. There will be 2 'champion' consoles this time around. The Wii, for... "non-gamers" and the 360/PS3 for gamers. (pick one that will win, I wont)



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stof said: Why is it that the Wii's lack of power compared to the PS3 and 360 will suddenly become a problem in 4-5 years? I still don't follow that line of reasoning. Also, It's not that Sony was the only company with the ability to produce so many consoles, it's that they were the only company with a console that that many people wanted to buy. If the Wii continues to sell PS2 like numbers, expect production to meet supply And the DS wasn't always selling the way it is now. in Europe and NA, it's only been since the Summer of 06 that the system suddenly hit most wanted status. Besides, they'll keep making the system as long as people buy it. Yes, the DS is supply constrained right now, but once again, supply will eventually meet demand.
Uh.....DS is supplied constrained in some places cause Nintendo can't get their manufacturing together. So why is it unreasonable to conclude they may have the same issues with Wii? From my perspective in recent years Nintendo has proved they are a horrible manufacturer. And their is a reason, they don't have a manufacturing arm so they have to rely on outsourcing and contracting. I'd like to point out that PS2 was much closer in terms of functionality and ability to gamecube and Xbox than Wii is to the 360 and PS3. And I think that will become important in a few years. In fact, PS2 has been able to rival GC and Xbox now in terms of graphics, just see a game like God of War 2. Wii will never come close no matter how hard devs work or how much they exploit the system. Graphics aren't all important, but in terms of specs of the system Wii is no where close to the other 2 and that will matter at some point to some gamers.



Stromprophet said: stof said: Why is it that the Wii's lack of power compared to the PS3 and 360 will suddenly become a problem in 4-5 years? I still don't follow that line of reasoning. Also, It's not that Sony was the only company with the ability to produce so many consoles, it's that they were the only company with a console that that many people wanted to buy. If the Wii continues to sell PS2 like numbers, expect production to meet supply And the DS wasn't always selling the way it is now. in Europe and NA, it's only been since the Summer of 06 that the system suddenly hit most wanted status. Besides, they'll keep making the system as long as people buy it. Yes, the DS is supply constrained right now, but once again, supply will eventually meet demand. Uh.....DS is supplied constrained in some places cause Nintendo can't get their manufacturing together. So why is it unreasonable to conclude they may have the same issues with Wii? From my perspective in recent years Nintendo has proved they are a horrible manufacturer. And their is a reason, they don't have a manufacturing arm so they have to rely on outsourcing and contracting. I'd like to point out that PS2 was much closer in terms of functionality and ability to gamecube and Xbox than Wii is to the 360 and PS3. And I think that will become important in a few years. In fact, PS2 has been able to rival GC and Xbox now in terms of graphics, just see a game like God of War 2. Wii will never come close no matter how hard devs work or how much they exploit the system. Graphics aren't all important, but in terms of specs of the system Wii is no where close to the other 2 and that will matter at some point to some gamers.
I want to ask the same question again here in another way hopefully I will get an answer which explain the blind trust in the superior hardware for Xbox360/PS3 vs Wii. First the facts: Sale numbers Wii is selling fast, really fast now. xbox360 is doing ok in USA. PS3 is, looking at its ancestors great performance, not that good. Game Graphics and so on: The most sold game for Wii is Wii Sport. (looking at Japan) PS3 resistance xbox360 gears? (it has sold a lot at least) Now here we see that PS3 and xbox360 already now is crushing Wii in showed power. Meanwhile Wii is the best selling consol. So why should this change in a couple of year? More games is heading each week to Wii even if they might be fast cash in, but they are starting to get the possibility to a great diversed game section. So why should people just stop buying Wii? I mean PS2 is today selling because of Guitar Hero II, Buzz, Singstar. Those games don't need 100% perfect graphics or AI, so why should the casual market go for xbox360 and PS3 in a couple of years? Price Cut wont do it because Nintendo has the ace when it comes to price wars. 100 USD for PS3 will put it at 400 USD for the entry model, meanwhile 100 USD for Nintendo (and they aren't selling the system for a loss now) would put it at 150 USD. A bargin compared tp PS3. The same thing can almost be said about xbox360 were it core system is more or less useless because you have to buy extra memory cards and so on. So please again: Why should power start matter in 2 years when it doesn't now? Wii is already outdated graphic wise, so why should 2 years do so much?



 

 

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Stromprophet said: Uh.....DS is supplied constrained in some places cause Nintendo can't get their manufacturing together. So why is it unreasonable to conclude they may have the same issues with Wii? From my perspective in recent years Nintendo has proved they are a horrible manufacturer. And their is a reason, they don't have a manufacturing arm so they have to rely on outsourcing and contracting.
Nonsense. Nintendo shipped 19 million DS in Apr-Dec '06, up from 9 million units in Apr-Dec'05 (source: http://www.nintendo.com/corp/report/3QEnglishFinancial.pdf). They have doubled their DS output within a year.



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robjoh said: So please again: Why should power start matter in 2 years when it doesn't now? Wii is already outdated graphic wise, so why should 2 years do so much?
Because the Xbox Premium will be sold for $199 by then. That's were mass market starts.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.