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Forums - Sales Discussion - Nintendo killing industry/consumer , on it's path to victory.

DISCLAIMER : I have little analytical/mathmatical ability in comparison to the dudes that roam VG charts 9 hours a day and do nothing but look @ sales figures, i'm simply presenting my take on the Wii's effect on the gaming industry. I don't hate the Wii , but I do hate the effect I believe it is having on the industry and the consumer. I might be a little off , I might be completley wrong but hey it's my opinion.

 

According to VG chart's sales figures the Wii has roughly 44% of the market in terms of console sales ( based on rounding of VG chartz estimates to the nearest million, 20/(20 + 16 + 9)=0.44. The Wii is basicly selling multipes of the competition. I think that Wii's majority market share is unhealthy for the console market and i'll explain why.

 

[Quote=celine]

EA : loss -> US$ 327 Million
http://investor.ea.com/phoenix.zhtml?c=88189&p=irol-newsArticle&id=1035321
http://investor.activision.com/secfiling.cfm?filingID=1104659-07-80748
Infogrames ( Atari ) : loss -> US$ 20.7 million ( - 14.2 million euro )
http://corporate.infogrames.com/MT-3.34-en/mt-static/FCKeditor/UserFiles/File/RES_SEM_07_08FINAL_
Sci/Eidos : loss before tax -> US$ 59.9 million ( £ - 30 million )
http://miranda.hemscott.com/ir/seg/pdf/AnnualReport07.pdf
Take 2 :
loss -> US$ 138.4 million
http://pc.qj.net/Take-Two-announces-fiscal-year-2007-financial-results/pg/49/aid/109968

[/QUOTE]

As you can see huge 3rd party business are reporting considerable losses , this could be attributed to the huge cost of technologies required to develop next gen games , i guess it's still possible these businesses can overcome these losses in future. On the other hand....


[quote=bodhesatava]

Sony's CE Division
Microsoft's CE division
Eidos
Take 2
Electronic Arts
Konami
Sega/Sammy
Namco/Bandai
Activision
Capcom
SquareEnix
Hudson
Ubisoft
Infogrames

Over this time frame is approximately -1,148,000,000, or negative one billion, one hundred and fourty eight million dollars. The highest earner is Microsoft (150 million) followed by Namco Bandai, with a total positive net income of 71.5 million dollars.

Nintendo's net income in this time frame is 1.15 billion dollars. Nintendo has earned approximately 2.3 billion dollars more than the rest of this list combined. If I've made errors in calculation, let me know.[/quote]

It apears Nintendo is thriving off the success of the Wii and NDS respectivley wheras much of the gaming industry is suffering.

Now in this kind of situation where developing for the Wii is unprofitable because of the low attatch rate of games and 1st party title dominance , developers are forced to do one of two things.

(A) make very cheap games for the Wii in order to minimise the effect of poor sales or to maximise the profits from good sales. This creates a problem because it's not really viable to port Wii titles to the 360/PS3 because the "hardcore gamers" would simply lauph at them, this means that as opposed to killer apps being made to sell on the Wii and then possibly getting ported to 360/PS3 at later dates , they're not , that equates to smaller game libaries for the respective consoles than possible.

(B) completley disregard the Wii and focous on the development of next gen titles , the chances of 3rd parties selling millions is far greater on the PS3/360 than it is on the Wii , however if now ones buying the 360/PS3 and everyones rushing for the Wii then it makes option (B) less financialy viable too.

I firmly believe that the Wii has caused a serious decline in the average quality of games , this in turn affects the consumer ( many of us not knowing/caring however ) for those of us that do appreciate quality games MGS , FF , Halo Wars , GoW 2 etc etc it's becoming increasingly difficult for 1st party , 3rd party developers to do so because of the financial constraints . Now we're forced the 9 hour games and other mediocore crap even on our next-gen consoles that are capable of so much more.

The Wii's success is pretty much the demise of the gaming industry , I really do hope that the Wii fails within the next two years and allows for PS3/360 to experience growth so that everyone (both the industry and consumer) can benefit.

 

What does everyone else think ?(how the hell do I quote lol)


 

 




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So by expanding the market you are killing it?

I see, great sense of logic there mate, love it.



Neos - "If I'm posting in this thread it's just for the lulz."
Tag by the one and only Fkusumot!


 

Neos said:
So by expanding the market you are killing it?

I see, great sense of logic there mate, love it.

I don't think your understanding my point , yes Nintnedo has caused significant growth in the gaming market but who's benefited from it appart from Nintendo ? a few others yes but the effect isn't as general as it should be.

 

If an expanding market = crappy motion sensing N64 ports and alarming numbers of 3rd party developers in dept then i'd rather have a declining market if the opposite occours.

 

Yes the Wii has many quality titles Zelda , SSBB , SMG . but what have they all got in common ?  




so the wii is making games fail? is it the wii's fault if third party developers make bad games. and the wii wont fail



Or they could just make good games for Wii?

The only reason the Wii is seeing less third party support is that games being released now started development over a year ago, and only a few visionaries/lunatics had realised the Wii was going to end up on top. The poor quality of most titles since is because developers were caught with the pants down, and had to get *something* released for the best selling piece of hardware.

Lots of games of all types and qualities for the Wii have started production during the past year, and it's only natural that the bad ones and cheap cash-ins got here first.

Also, if you look closely you can notice that the publishers posting serious losses are ones that have either been largely ignoring the Wii, and/or just plain crappy ones. That's called bad business decisions, not Nintendo destroying the market. If anything, it's the HD consoles and their high development costs that are holding gaming back.



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Million said:
Neos said:
So by expanding the market you are killing it?

I see, great sense of logic there mate, love it.

I don't think your understanding my point , yes Nintnedo has caused significant growth in the gaming market but who's benefited from it appart from Nintendo ? a few others yes but the effect isn't as general as it should be.

 

If an expanding market = crappy motion sensing N64 ports and alarming numbers of 3rd party developers in dept then i'd rather have a declining market if the opposite occours.

 

Yes the Wii has many quality titles Zelda , SSBB , SMG . but what have they all got in common ?


you just lost your credibilty mate, i bet you have no real clue about what games are actually out and are coming out. Do some homework before you post such a thing..

 Also, so it's nintendo's own fault they are the best developer in the world? It seems others just need to work a little harder..



Neos - "If I'm posting in this thread it's just for the lulz."
Tag by the one and only Fkusumot!


 

I think your pretty much reading the last paragraph and going into flame mode , I hope it does.




@Neos

Yea its expanding the market with 20M install base, call me when it passed 120M.



 

mM
leo-j said:
@Neos

Yea its expanding the market with 20M install base, call me when it passed 120M.

 it's called Time



Neos - "If I'm posting in this thread it's just for the lulz."
Tag by the one and only Fkusumot!


 

Neos said:
Million said:
Neos said:
So by expanding the market you are killing it?

I see, great sense of logic there mate, love it.

I don't think your understanding my point , yes Nintnedo has caused significant growth in the gaming market but who's benefited from it appart from Nintendo ? a few others yes but the effect isn't as general as it should be.

 

If an expanding market = crappy motion sensing N64 ports and alarming numbers of 3rd party developers in dept then i'd rather have a declining market if the opposite occours.

 

Yes the Wii has many quality titles Zelda , SSBB , SMG . but what have they all got in common ?


you just lost your credibilty mate, i bet you have no real clue about what games are actually out and are coming out. Do some homework before you post such a thing..

Also, so it's nintendo's own fault they are the best developer in the world? It seems others just need to work a little harder..


 Many Wii titles are crappy motion sensing (N64 looking ports, don't quote me word for word lol) I could give you at least 30 titles in the next ten minutes ( don't know em of the top of the head)