I'm gonna clarify something for the people incredulous about my end of 2008 Wii 60 million prediction.
The Wii is coming off of 10+ years of Nintendo in the passenger seat saleswise in consoles. Coming off of the Gamecube/N64 consoles performances which netted them worldwide about 35 million (N64) & 21 million (GC).
These two systems Gamecube & N64 following the trends of Nintendo's glory years of the NES/SNES (61 million/50 million). The market when Nintendo was undisputed king of consoles was roughly a 50 to 60 million market more or less. Well I mean this is the big numbers a competitor could pull in. Meaning top competitor reaches this echelon.
Sony with the PS1 & PS2 pushed the market up into the 100 million/120 million range. They doubled it like Niles Standish. Expanding market and good advertising & better influence in Europe helped this out. Not to mention Sony's infrastructure factorywise.
Before this NES the market was about a 30 million market & NES basically doubled that. Atari's world was the 30 million era.
I hear people say PS2 sold 10 million in its first year, right? Well no matter who's charts you abide by, this one or NPD or whoever, Wii is at 14 million NOW before the holiday period has fully kicked in. While people doubt it Nintendo will have 20 million sold by end of this year bare minimum. Too much money to pass up. Everybody's been wanting a Wii since last Christmas and with this thing being short in many regions the anticipation grows for the system every day. Each player who touches Wii Sports gets infected with the "Wii virus" so to speak.
I have personal evidence of this just the past few days. My uncle's companion came by the house & I showed her the Wii & Wii Sports. I let her play it. Now SHE wants a Wii & she never liked videogames before. EVER. Now she's hot for a Wii after playing a little Wii Tennis & Wii Boxing. All this does is build latent potential for buy-up. They are buyers in reserve just waiting for the stock to become plentiful. As soon as it shows up in the region where it's short it's snapped up like the UK recently.
So Nintendo still coming out of a NES/SNES factory production model with a 50/60 million production rate has to adjust to the new expansion which is hard to do for such a small company like themselves. We forget that despite Nintendo's skill in making money sizewise they are dwarfed by giants like Sony & Microsoft who can crank out big numbers at will with all their money & infrastructure especially Sony who is at heart & soul a consumer electronics company.
But Nintendo is adjusting. The expansion of NoA to San Francisco is part of it & their trek into Korea & China is more evidence. It's gonna take some time but the money is there so Nintendo will do its best to match. Will they ever satisfy demand? Not hardly. They may never master demand for most of the life of this system. It will always elude them and dumbfound them. But they will get better and more factories will produce to match the demand.
People rag on Nintendo's game sales not being as super strong as XBox 360's but they forget...Most people don't buy games unless they got a system to go with it. So as long as stock is not so readily available the games don't get picked up quite as strongly at first. But as supply increases so will game sales of old and new.
20 million in one year or rather 13 months on the market is unprecendented. 14 million is unprecedented. But they will have it. And the fact that nearly every Wii they made will be sold will force them to adjust their estimates higher. They adjust higher and demand stays crazy so they have to adjust even higher. They do it again and still no change so they go even higher. This is the flare out that happens after a system's first year on the market.
If PS2 sold 10 million in the first year but ended up with about 100 million in 5 years what does that tell you?
PS2 in 2000 = 10 million, PS2 in 2001 =22.5 million, PS2 in 2002 = 22.5 million, PS2 in 2003 = 22.5 million, PS2 in 2004 = 22.5 million.
And that's only if I flattened the rates year to year after the first year. It doesn't show the natural upward progression & flare out.
Wii is trending higher than PS2 in every possible way & big games are about to pack in back to back. 3rd party will kick in on 2008 silencing those who complain about 3rd party representation on Wii. Nintendo's games & others will make big sparks on the charts all of next year in every region. AND they will slowly tighten up their weakest market, the PALs most generically referred to as Europe & friends. How about when they tighten up Europe & PALs? More sales right?
Nintendo has to do a double adjustment all at once. They have to move from a NES/SNES production model to a PS1/PS2 production model and bypass that as they are doing that to create the new production model known as Wii which will once again double the market at the VERY least. And I don't really see just a doubling based on the design of the console. Tripling, Quadrupling & even Quintupling is what I really see. We will not believe Wii's ability to transform and expand the industry. 360's Scene It/Buzz thingy is already reflecting this. It's their attempt to bottle some of that Ocean Blue.
All the shifts and adjustments will result in an ultimate 60 million by 2008's end total worldwide. And we don't know if price cuts will come up or new colors. Some people are simply waiting for the Black Wii before buying the system.
2008 will busy as hell for Nintendo and they will struggle to build up their production models but they will do it. The company is about to grow to obscene levels business wise.
THAT'S why I say 60 Million by 2008's end so confidently. Wii Fit will be your first clue. Brawl will help too. but by no means will those tell the whole story for 2008.
John Lucas