By using this site, you agree to our Privacy Policy and our Terms of Use. Close

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

reverie said: 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.
You shouldn't come with hard facts like that, it isn't nice at all



 

 

Buy it and pray to the gods of Sigs: Naznatips!

Around the Network

robjoh said: 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 Wii is already outdated graphic wise, so why should 2 years do so much?
Nintendo doesn't have the ACE when it comes to price wars because they can't drop the price as much as the other guys can. What looks better to a consumer? A 50 dollar price drop on a Wii, or a 100 dollar price drop on the others. I've said this before, I'll say it again. How much did GC debut for? 200, what is the price retail now? 100. What did the PS2 debut for 300, what can you get it at now? 130. You see, they can't lower the price as much as you think. Components always cost money no matter if it's even old technology. Nintendo will NOT lower the price by 100 dollars. They only lowered the price of the DS 20 bucks in almost 3 years now. What makes you think they would lower the Wii by 100 bucks? A 250 dollar system will probably only be cut to about 120-100 in final price in its life cycle. A 300 dollar to 150-130 in its life cycle. A 500 dollar system to 250-200. Looking down the road, the cost comparison gets closer over time not farther apart. _______________________ On the point of graphics and otherwise. 3rd party games for the Wii will have to be floor up, they can't be ports because ports will look gawd awful. Regardless, it matters as the NA consumer enters HD which it is doing so quickly. Wii sports is the high seller because it's bundled with the system. It does matter over time. Even though the PS2 had a plethora (way more 3rd party support than the Wii has now, and a much larger library). Xbox was still able to catch them in monthly sales in the US. It wasn't because they had better games, but comparable games (i.e. Madden, and all multiplatform titles) looked better on the Xbox. So why is it unreasonable to conclude that the power, graphics, advanced ai, large interactive environments will matter at some point in time? I've sited a very classical example, the Xbox started to sell better in US and Europe at one point in the PS2 life cycle. Granted, it was so far behind it didn't make a difference, and then the Xbox started losing support because 360 was coming, however it did happen. Why? It certainly wasn't because Xbox had better games because it didn't. It's games weren't more fun, it didn't have more exclusives, it certainly wasn't cheaper? I think it will matter at some point or another. I think it starts to matter when you get common games, sports games, sandbox games, rpgs, fps that have more realistic physics, AI, environments, and graphics are much better on the 2 other systems. I'm not saying the games are "more fun" Just that when people who own both systems, or think about what systems they would own see two games that cost about the same amount of money and one looks better, has better features, and offers more they would likely choose that one. It most certainly went that way with some Xbox titles vs. PS2 titles, even tough PS2 had a massive base advantage, the graphics won out. This time it's more than just graphics, the cores of the 360 and PS3 can generate more than just better graphics, but also more realistic large environments (which leads to replay factor, which is very important in games) more realistic AI, and in general more to do with more realistic physics.



reverie said: 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.
Well does it matter if Nintendo succed in getting the casual to buy their consol in an higher rate before than. If nintendo is sitting on the games, note not hardcore fps here, why shouldn't people keep buying the Wii? I mean sure xbox360 has the graphical power, Nintendo has their Wiimote. The Wiimote is at least for one of my friends the reason why he is back in gaming. It is easy to learn. But well we will see in two years, but I do mark my self sceptical espesially here in Sweden were the xbox360 premium almost is costing the same as the Wii. Wii is still sold out, xbox360 doesn't seem to move the same numbers.



 

 

Buy it and pray to the gods of Sigs: Naznatips!

reverie said: 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.
That's not what I was pointing out. I've heard several times that people have been unable to find DS in common retail stores. Would you refute that? (Meaning the system is still somewhat supply constrained at one point or another, whether it's Nintendos logistical model or manufacturing model, one or the other is not meeting its end) PS3 production was more than doubled within 2 MONTHS of release and it's a much more complicated piece of machinery. What nonsense?



Stromprophet said: Nintendo doesn't have the ACE when it comes to price wars because they can't drop the price as much as the other guys can. What looks better to a consumer? A 50 dollar price drop on a Wii, or a 100 dollar price drop on the others. I've said this before, I'll say it again. How much did GC debut for? 200, what is the price retail now? 100. What did the PS2 debut for 300, what can you get it at now? 130. You see, they can't lower the price as much as you think. Components always cost money no matter if it's even old technology. Nintendo will NOT lower the price by 100 dollars. They only lowered the price of the DS 20 bucks in almost 3 years now. What makes you think they would lower the Wii by 100 bucks?
First 50 USD brings the Wii to 200 USD, which according to me is a lot more budget friendly than 300 or 400 USD (xbox360 premium, PS3 20 GB). If you don't agree I am very sorry because then you have more money than me. Second DS have only had 20 USD cut, because it is sold out everywhere, and if Nintendo can keep that one coming I don't really see the problem if Wii cost 250 and the rest 200!
Stromprophet said: On the point of graphics and otherwise. 3rd party games for the Wii will have to be floor up, they can't be ports because ports will look gawd awful. Regardless, it matters as the NA consumer enters HD which it is doing so quickly. Wii sports is the high seller because it's bundled with the system.
Does it matter if Wii games has to be bundle up if they have a user base of 30 millions or more after 2 years? PS2 had a lot of 3rd party exclusivs why can't Wii have it (I mean they all ready have). Wii Sport is the high seller in the WEST because it is bundle, not in Japan! Somehow we seem to think that the 20 million+ that PS2 made in Japan is impossible to reach for the Wii. USA and EU is not the only market in the world. If Nintendo can replicate the DS succes in Japan or in EU and gett more female players (5 million Nintendodogs in EU says hello). I don't see why the couldn't continue selling for at least5 years. I don't say that they will be the only consol selling, I am just saying that Nintendo might actully sell to another crowd then the old male player. Just as Singstar and buzz is doing in Eu.
Stromprophet said: It does matter over time. Even though the PS2 had a plethora (way more 3rd party support than the Wii has now, and a much larger library). Xbox was still able to catch them in monthly sales in the US. It wasn't because they had better games, but comparable games (i.e. Madden, and all multiplatform titles) looked better on the Xbox.
Well the PS2 is still kicking microsoft butt all day long.
Stromprophet said: So why is it unreasonable to conclude that the power, graphics, advanced ai, large interactive environments will matter at some point in time? ....
It isn't but it is unreasonable to say that it is the only market out there. Brain Age, Buzz, Guitarr Hero, Singstar, Nintendodogs have shown that there exist a bigger market than just the hardcore Graphic nerds (note nerd for me is not a negativ word). Again I don't think xbox360 sales will die, or that PS3 always will sell as bad as it is now. I just belive that Nintendo can succed in doing one more DS, sell to both their old fans and a new crowd. So I don't see why the Wii just suddently will stop selling as long as they have the games for that other crowd.



 

 

Buy it and pray to the gods of Sigs: Naznatips!

Around the Network

Stromprophet said: That's not what I was pointing out. I've heard several times that people have been unable to find DS in common retail stores. Would you refute that? (Meaning the system is still somewhat supply constrained at one point or another, whether it's Nintendos logistical model or manufacturing model, one or the other is not meeting its end) PS3 production was more than doubled within 2 MONTHS of release and it's a much more complicated piece of machinery. What nonsense?
What's the point of your unsourced 2 months statistic? If I have 1 factory today and start the 2nd tomorrow I can double my capacity within 1 day... I was talking about total shipments based on quarterly financial reports and compared year over year. It's nonsense to say "Nintendo can't get their manufacturing together" (like you did), because they doubled their output year-over-year and are now at a PS2-like level, shipping more than 2 million units per month (based on their forecast of 13 million units for Oct'06-Mar'07). Likewise they could start shipping 2 million Wiis per month within one year if necessary.



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

auroragb said: @mrstickball Just to point out a small flaw in your trending analysis: console lifespan 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)
Then why was Moore quoted saying the next Xbox will be in 2011-2012? That'd put the 360 at a 6-7 year lifespan. Also, with the R&D involved + costs associated, MS can't afford a 4 year lifespan.
NTDO has shown that it's willing to upgrade hardware while keeping the core. NTDO can release a HDWii and replace Wii like DS lite replaced the DS. Do people track DS fat sales separately from DS Lite sales? Well, most don't (such as this site). btw, iirc, the 45-50 lifetime sales prediction was pre-launch, I don't think they've discussed it since launch.
Some track the sales differently. The argument I'm making against the standard Wii selling 80m+ is the fact that I believe Nintendo will be quick to release a WiiHD or whatever. A WiiHD would be more powerful, not smaller/lighter/better battery life. Its like saying the GBA sales should be counted with the GB sales entirely....Both are the same family of systems, but the GBA is more powerful despite looking similar.
Also, except for maybe the plastic (which I know very little about, tho I can't imagine why it can't be easily produced in mass quantities in China, China is very good at it), the only thing the Wii is constrained by is the CPU and GPU production. Everything else is very commodity. If IBM can be persuaded to up the production, everyone will be in business. I'm just thinking that ramping to 1.2 for all of 2007 is too conservative and makes no sense. Especially since 1.2M will barely meet demand and not allow them to stock up for xmas. I suspect there will be another production boost to 1.5+ later in the year
Here's the big issue with just magically ramping production up instantaneously: It takes TIME to make the parts, aquire the factories and everything else involved. Nintendo has to buy the custom made Broadway CPUs from Intel. Intel has a specific area of a factory to make these chips. If Nintendo wants more systems, they have to contact each and every part maker, negotiate new deals with each company to get a good deal on these parts. The factories then have to re-tool their dies to output more, go through HR departments to hire new workers and train them for the factories, ect, ect for the 100-odd parts in the Wii. Because of that, it's difficult to just say "oh, the Wii is selling out, lets get more parts and make more tommorow". I sincerely believe that Nintendos production increase is due to them initiating the purchase orders for the factories and parts in November once the Wii was selling out, if not earlier. Look at the 360. Winston Flextronics and another factory were the only 2 producing 360s, and it was late Febuary before the 3rd factory came online....That was 4 months AFTER the 360 was selling out. It's not just a Nintendo thing, its a life thing. Thats why Sony actually owns their own factories and produces quite a bit of items in-house - they can reach their agreements for production capacity faster. Nintendo is producing the supposed 2.5m DSes a month after months and years of contract negotiations with the parts manufacturers. Again, it's a business thing that involves time. Why? If Nintendo had the honest ability to make a large amount more systems very quickly, they would. Why? If Nintendo theoretically had the ability, they could probably make and sell 5 million Wiis a month right now and 5 million DSes for a few months. MS could of as well for the 360 for the first few months.



Back from the dead, I'm afraid.

I just saw a post on NeoGAF that is relevant to this topic, hope you don't mind, ioi. :)

Kobun Heat Reading Blue Ocean Strategy is *scary*. I think everyone who fashions themselves a video game industry pundit does need to read it. It's written for busy executives, so it takes all of a few hours to go through it. And it's absolutely freaky how it illustrates why every one of the Wii's so-called "problems" are in fact crucial to its success. The creepiest part of the whole thing is when it actually says point-blank that existing customers' needs will not be met by a blue ocean product, and that they might even go so far as to openly mock it. That said, it's not like Nintendo went out, bought this book, then decided to restructure their company around it. Market-expanding products are as old as time, but the idea of a reliable strategy that you can execute to develop one -- not just leaving it to random chance -- is what's new. When Nintendo talked this book up, they did it because it's an easy-to-digest distillation of the concept of disruptive technologies and market expansion (they always talked about The Innovator's Dilemma at the same time). It was never to suggest that they were themselves making this particular book the cornerstone of their company.
http://www.neogaf.com/forum/showthread.php?t=148502&page=16 last post on that page, #800



Nobody is crazy enough to accuse me of being sane.

@mrstickball So basically you say if Nintendo can't increase their shipments within one day it will take them 5 years? I and others have suggested a lead time of 6 months or 1 year to increase production. Nintendo shipped 5 million DS in Nov'04-Mar'05, 11 million in the following year (05/06), and another 23 million in its 3rd year (06/07; forecast). That's double shipments every year. The Wii can go the same way if demand is there. You're just exaggerating. @robjoh: I'm totally on your side. I regard the Wiimote as being more unique than 720p graphics. However we have to see how the market reacts in 2009 when PS3 and 360 become affordable. Nintendo will do the same. If people want HD Nintendo will release a WiiHD by 2010. If they don't care, we will get a Wii 2 by 2011 or 2012.



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

vanguardian1 said: I just saw a post on NeoGAF that is relevant to this topic, hope you don't mind, ioi. :) Kobun Heat Reading Blue Ocean Strategy is *scary*. I think everyone who fashions themselves a video game industry pundit does need to read it. It's written for busy executives, so it takes all of a few hours to go through it. And it's absolutely freaky how it illustrates why every one of the Wii's so-called "problems" are in fact crucial to its success. The creepiest part of the whole thing is when it actually says point-blank that existing customers' needs will not be met by a blue ocean product, and that they might even go so far as to openly mock it. That said, it's not like Nintendo went out, bought this book, then decided to restructure their company around it. Market-expanding products are as old as time, but the idea of a reliable strategy that you can execute to develop one -- not just leaving it to random chance -- is what's new. When Nintendo talked this book up, they did it because it's an easy-to-digest distillation of the concept of disruptive technologies and market expansion (they always talked about The Innovator's Dilemma at the same time). It was never to suggest that they were themselves making this particular book the cornerstone of their company. http://www.neogaf.com/forum/showthread.php?t=148502&page=16 last post on that page, #800
Yes, yes, YES. Absolutely. Wii and DS match "Blue Ocean" completely. Also... Nintendo are planning 2 production increases for this year. And it sounds like for the second, they will be bringing a new partner onboard, meaning its a big increase. If they've already announced publicly multiple increases, and we've heard leaked the parties they are negotiating with already, certainly its reasonable that they've been working on this for some months already, and may have more factories building Xmas stock by the start of fall. Nintendo is a $30 billion dollar multi-national corporation, who currently have the two best-selling videogame systems in the world. They have the ability to dramatically increase their production over the next 9 months, and continue increasing it as needed over the next 5 years. They aren't going to have any trouble producing Blu-Ray diodes, for example.



"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."

Satoru Iwata, Nintendo President. Only slightly paraphrased.