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Forums - Sales - Wii worst year for sales already? really???

RolStoppable said:
superchunk said:
RolStoppable said:

Wii sales keep declining from year to year while the 360 and PS3 are able to hold their pace steady or improve their sales rate, despite the Wii being the winner of this generation and the HD consoles the losers. Do these sales trends defy all logic?

sort of.

I think the fact that PS360 started so high in price combined with how 3rd parties refused to jump on Wii with signifianct quality IPs like they did for past generational leaders has allowed the 2/3rd place parties to thrive where previosly they have floundered.

Very interesting but proves a point to all console makers.

1. Nintendo must be within reason of hareware power.

2. MSony can't expect to win with >$300 hardware.

Next gen will be a more 'normal' setup as all three enter with similar abilities in terms of power and probably top out at $300-350. THus, whomever is winning, will have the ability to capture the 3rd party exclusiveness once deemed automatic in previous gens.

You imply that high entry pricing and thus more price cuts over a system's lifetime spur additional demand. That doesn't sound quite right. Games are what create the demand, that's what seperates the 360 and PS3 from, for example, the Saturn. So forget about price, it comes down to third party support.

Also, your points about Nintendo (or anyone, really) having similar hardware power and gaining third party exclusives contradict each other. Today's third parties port everything everywhere if it comes at (relatively) small cost.

I think you misread my statement (or I didn't clarify it very well). I meant to state that the odd 3rd party push for the 2nd/3rd placed systems caused them to grow as the pricing became within reach of most people. My emphasis was on the 3rd party software not the pricing.

The only reason PS360 get almost no exclusives from 3rd parties as they are all ported to both is because the combined market for these two is greater than the Wii and justifies the inceased costs in developing HD games.

Had Wii been within the same power area of the PS360 as PS2 was to Xbox, then the 3rd parties would have stuck with porting to 3 consoles at first until Wii pulled into the 60% marketshare area where it would have been more cost effective to make Wii exclusive games vs built on Wii and ported to PS360. But, Wii could never push greater than 50% of the market on casuals and Nintendo IPs alone. It need some form of a core push as well. 3rd parties didn't allow that to happen as they knew core owners also wanted the tech in the PS360.

Next gen when all three are much closer in terms of power, this will happen. Initially all three will get the same games, mostly, but over time whomever is pulling a large lead will begin to grab the primary dev time and eventually a lot of exclusives which will only propell their market share dominance.



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nightsurge said:

How do you figure that the PS3 is going to sell 8 million from August thru December and the 360 only 6.5 million when the 360 has been outselling it and is looking to continue that trend into the holidays (where the 360 with momentum has had a big advantage over PS3 in the past)?

I'd say your figure for the 360 is way too low and your figure for PS3 too high for that time period.


PS3 last year had a slim model AND price cut that allowed it to raise and sustain a higher sell through rate.

360 had a slim model in March. If there is no price cut in these remaining months, it will begin to drop in sustained sales and while increasing in YOY it won't match PS3's sustained levels.

If 360 does get a price cut, it will have an even larger increase, however, PS3 will undoubtly match the price and therefore simply match the increase.

Plus, looking at the future game lineup and only looking at exclusives, I see GT5 being the bigger console pusher of anything these two are putting out, so PS3 will have a larger demand, imo.



RolStoppable said:

@superchunk

There was no emphasis, you said "combined". Not that important anyway.


eh, your right, I need to be better and rereading my posts to make sure they specify what I intend to really mean.

Do you agree with my last post as it more clearly represents my opinion.



superchunk said:
nightsurge said:
 

How do you figure that the PS3 is going to sell 8 million from August thru December and the 360 only 6.5 million when the 360 has been outselling it and is looking to continue that trend into the holidays (where the 360 with momentum has had a big advantage over PS3 in the past)?

I'd say your figure for the 360 is way too low and your figure for PS3 too high for that time period.


PS3 last year had a slim model AND price cut that allowed it to raise and sustain a higher sell through rate.

360 had a slim model in March. If there is no price cut in these remaining months, it will begin to drop in sustained sales and while increasing in YOY it won't match PS3's sustained levels.

If 360 does get a price cut, it will have an even larger increase, however, PS3 will undoubtly match the price and therefore simply match the increase.

Plus, looking at the future game lineup and only looking at exclusives, I see GT5 being the bigger console pusher of anything these two are putting out, so PS3 will have a larger demand, imo.

I'm glad you put imo because I really have a hard time agreeing with any of that.  What slim model did 360 have in March?

The 360 doesn't need a price cut to sustain levels.  That has been made apparent over the last 2 months now.  Going into the holiday with the momentum behind it, the sales will increase in proportion to how they have in the past, meaning the sales will be higher than even 2008 levels (360's top year so far).  Also, with the overwhelming demand and hype building for Kinect amongst casuals, I think it is safe to say that will be a strong hardware driver for this holiday, far stronger than PS Move will be for the PS3.

If the 360 does cut price, which it likely won't now that sales have shown not to need one, the PS3 would be very VERY unlikely to match the price.  They still aren't making profit in that division, do you think Sony will want to take another $50 loss per machine again after just becoming profitable on hardware?  They didn't match price in 2008 when the 360 took off and I don't see any reason why/how they could this time.

All in all, Reach, Gears 3, Fable 3, and Kinect will be plenty to drive demand for the 360, far far greater than Move GT5 for the PS3 imo.



RolStoppable said:
Metallicube said:
RolStoppable said:

Just goes to show which companies had the better foresight this generation and can reap the rewards now.

I would say Nintendo probably had the better foresight, as they released a console that has already sold 73 million in less than 4 years..

Sure, but how many of those systems have been sold to actual gamers?

@superchunk

There was no emphasis, you said "combined". Not that important anyway.

Ah very true.. I forgot there was a difference between Wii gamers and gamers.



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superchunk said:
kowenicki said:
 

Unfortunately you are incorrect.  "The 360 curve is the same"?? Go check.. it isnt.  360: 2008 11m, 2009 10.6m this year 11m plus... the 360 has been VERY consistent, with marginal changes over the last 3 years.

How you can say the recent Wii fall off this year isnt surprising is beyond me.... the fall off is dramatic... like I said its tracking at about 60% of 2007 sales.



Here is history and my estimate. I think this is not only highly probably but fits my description exactly.

 

JAN-AUG 2006 2007 2008 2009 2010
X360    2,947,603      2,826,295      4,097,550      4,279,386      5,233,468
Wii                   -        7,649,704    11,384,682      8,331,405      7,819,594
PS3                   -        3,062,571      4,969,406      3,987,579      5,805,761
AUG-DEC 2006 2007 2008 2009 2010
X360    2,808,860      5,052,050      6,911,103      5,952,830      6,500,000
Wii    2,932,010      8,738,237    13,008,999    13,471,479    12,000,000
PS3    1,232,194      4,559,320      4,750,059      8,601,436      8,000,000
TOTAL 2006 2007 2008 2009 2010
X360    5,756,463      7,878,345    11,008,653    10,232,216    11,733,468
Wii    2,932,010    16,387,941    24,393,681    21,802,884    19,819,594
PS3    1,232,194      7,621,891      9,719,465    12,589,015    13,805,761

*** EDIT: This is assuming no price cuts for systems before holidays, otherwise you could add 1m to each system easy.


Actually there will be a PS3 price cut in Europe this year. Sony have just discovered an ingenious way to implement it. They'll ride the wave from clearance priced 120s and 250s while selling the 160s, most likely at a pretty comfortable margin, and then when the 320 Move bundle comes out they'll cut the price of the 160s, probably to €275. They'd have to be crazy to keep the 160s at €300 when the 320 with PSEye, Move, and Sports Champions only retails for €50 more. So I'd say 15 million is relatively likely.



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nightsurge said:
 

I'm glad you put imo because I really have a hard time agreeing with any of that.  What slim model did 360 have in March?

The 360 doesn't need a price cut to sustain levels.  That has been made apparent over the last 2 months now.  Going into the holiday with the momentum behind it, the sales will increase in proportion to how they have in the past, meaning the sales will be higher than even 2008 levels (360's top year so far).  Also, with the overwhelming demand and hype building for Kinect amongst casuals, I think it is safe to say that will be a strong hardware driver for this holiday, far stronger than PS Move will be for the PS3.

If the 360 does cut price, which it likely won't now that sales have shown not to need one, the PS3 would be very VERY unlikely to match the price.  They still aren't making profit in that division, do you think Sony will want to take another $50 loss per machine again after just becoming profitable on hardware?  They didn't match price in 2008 when the 360 took off and I don't see any reason why/how they could this time.

All in all, Reach, Gears 3, Fable 3, and Kinect will be plenty to drive demand for the 360, far far greater than Move GT5 for the PS3 imo.


Sorry, March was wrong, meant with E3 in June. My fault.

I think you are overestimating the number of people buying the 360 now. Its been  a lot of those grabbing up the cheaper old models as well as people replacing their models. I'd bet when the next quarterly reports come out and if MS discusses the number of new unique XBLive accounts you'll realize there is no significant jump.

Sony is profitable on the PS3 now and has been for months. They could match any price cut MS would do at this point and remain profitable. I also don't think either company will however, I don't think it is impossible. If it weren't for the staggered launch of the xbox slim models and the subsequent clearance of old stock, xbox numbers would have already fallen to or below PS3 levels.

This will be self evident in September.

In June the 360 managed 670k units. Given the launch was in the last half of June and it happened later outside of NA, July is where the real full effect can be seen. July sold 980k units. However, with 1/2 of August over its only at 425k units and is declining every week. So, by end of month (August) 360 will be at less than 800k. By end september it will be down to less than 500k easily and therefore below PS3. This is assuming no pricecut before end of September of course.



I think something to consider here is that Nintendo planned on having a 5 year life span which has been typical every generation up until now.   Wii will easily be selling for another 3-4 years at some level but likely a new system will be out holidays 11 or 12.     Nintendo never came out and said that but it's obvious.  When Wii launched HD wasn't in a majority of homes but even in '05 they would have assumed HD would be the majority by '10.   It didn't concern them (much) because they figured they'd need a new system by then anyway.

Considering Nintendo profitted from day 1 with Wii, there's absolutely no shame or loss in bring out a new system next year.

MS and especially Sony can't say the same.  They need a 10 year cycle and so do most 3rd parties.

Nintendo isn't in any kind of problem here.  Wii is still selling well and they are profitting nicely (although currency exchange isn't making it look good currently).  

Conversely a new Console from Wii which the same impact of Wii or 3DS in 2011 could devastate Sony and hurt MS margins.   Frankly, Sony and MS would rather see Wii having flat sales so it stays in the market for 10 years than continually dropping.



 

Not sure if this was mentioned, but 2007 Wii numbers were also lower because of shortages all year long was it not?



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Wii looks on target to sell 18 mil for FY 2011 and outsell PS3/360 individually for calender year 2010. If it happens, it will be off the peak by almost 25%. At the same time, it could still outsell its closest competitor by 20%. Can we start worrying when either HD console outsells Wii for the full year?

 



MikeB predicts that the PS3 will sell about 140 million units by the end of 2016 and triple the amount of 360s in the long run.