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Forums - Sales - Mobile games taking big bites out of Nintendo, Sony's handheld biz

kowenicki said:
Soleron said:
Where is this supposed >$1.5 billion in mobile game revenue? Rovio makes $100m in revenue globally, anyone else?


why do people keep repeating the rovio is the only thing that makes any money mantra?

Its bull.


So you show, that smartphones only make a little part of EAs revenues.



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HappySqurriel said:
I would really like to know where these analysts are getting their numbers from ...

The mobile app and game market is primarily made up of companies bleeding money or individuals who are working for "free". A couple guys who spend 40 hours a week (combined) for six months developing their mobile game, releases it in an ad based format, gets 500,000 downloads each with an average of 40 ad impressions, and sees an ECPM of $5.00 from these ad impressions, may be happy with the $100,000 they earned; but that is more downloads, more ad impressions, and a higher ECPM than most of these games get; and a business paying these guys a typical salary with reasonable benefits would basically break even on this performance.

The mobile app/game market is a lot like the dot com market of the late 1990s ... Lots of products with impressive usage without the business model to monetize it, and most efforts to monetize it result in a dramatic decrease in usage


This.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024

10 years greatest game event!

bets: [GTA6]

pokoko said:
He sounds like a politician trying to spin things to look more extreme than they are.

The market has grown substantially and now touches customers it never did before. It's pretty much a no-brainer that market share would sift in that situation. It certainly doesn't mean the previous segment of the market has been replaced or "killed".

Also, with that massive growth in the number of customers, an increase of .5 billion in revenue seems awfully tiny. It leaves the impression that this new market segment spends very little per customer. I'd love to see a breakdown of that.

Finally, this doesn't mean a whole lot to me right now, since he's using the last years of a generation, and the first year of a lackluster launch, as the basis for his conclusion. Let's see how much revenue handheld consoles account for in 2012, and if the Vita does improve it's numbers, 2013. THEN he can tell me that he has killed that market.


Yep, that's basically what I thought. He says the smartphone-games are killing handhelds, and then explains that the way to reach your customers are different on this platforms. Doesn't this clearly hints, that this is a different market? And, as you said, a market that has customers spend very little money.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024

10 years greatest game event!

bets: [GTA6]

Videogame maker Electronic Arts Inc. (EA) is exploring a sale as the company struggles to grow its business amid competition from free online gaming sites, the New York Post reported, citing sources.

The paper reported EA has been approached by private-equity giants KKR and Providence Equity Partners about a potential deal.

Representatives for EA weren't immediately available for comment.

EA is the maker of such popular video games as "SimCity" and "Madden NFL" and had a market value of $4.17 billion as of Wednesday's close.

Shares climbed 17% to $15.25 in light premarket trading and are down 36% this year.

The paper quotes a source familiar with the company saying EA would do a deal at $20 a share. It last traded above that price in January.

EA has reported mixed results in recent periods as softer demand for console videogames has hurt margins and as it faces increased competition from free-access online games. Last month, EA reported fiscal first-quarter earnings fell 9% as the company's core revenue slipped.

The company is looking to transform its business model to better compete against rivals such as Zynga Inc. (ZNGA), which has expanded its business to better support Internet-based sales.

http://online.wsj.com/article/BT-CO-20120816-705905.html



Mnementh said:
kowenicki said:
Soleron said:
Where is this supposed >$1.5 billion in mobile game revenue? Rovio makes $100m in revenue globally, anyone else?


why do people keep repeating the rovio is the only thing that makes any money mantra?

Its bull.


So you show, that smartphones only make a little part of EAs revenues.

wow, way to miss the point. 

it shows mobile (smartphones) revenue > Nintendo handhelds (3DS + DS) + Playstation handhelds (PSV + PSP)

it shows the total mobile (everything above combine) has 23% growth which is highly skewed by smartphone growth at 83%.



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wfz said:
kitler53 said:
megaman79 said:
kowenicki said:

This is head in the sand stuff.  The mobile market is going to explode. Tablets are niche products still depsite what people think, In the next 2 to 3 years every home will want or have one.  We shall see who is right here I guess in quite a short space of time.  Imagine how expensive the ipad 6 and other tablets will be in 3 years time... the Vita and 3DS will much cheaper.


If price point for games is relevant, entry price point is relevant in this argument too.

Do you genuinely believe IPad's will sell more than Wii U controllers and DS's? Do you still believe that Apple is king of the smart phone market? Do you really believe that Android hasn't/won't significantly fracture the smart phone / tablet user bases?

And i would certainly love to see the sales numbers on EA's Tetris vs EA's Dead Space.

 

how could you not?  ipad sold 17M last quarter during a slow part of the year which is more than wii U will do in a year (including the holiday). add to that 24M iphones last quarter which almost sounds like if you add nintendo, MS, and sony together maybe they could compete until you realize, oh fuck, you're right about apple not being king cause samsung sold 50M android smartphones last quarter.  the numbers are staggering and they don't look good for traditional gaming...


Cell phone and tablet sales make you worry about traditional gaming? Do you feel as though the millions and millions of traditional gaming fans are simply going to stop buying the software they enjoy simply because cell phones and tablets are selling better than their favorite consoles?

I don't see why anyone would be afraid of any of our games going away. The consumers who like them will continue to buy them regardless of what other markets emerge. Unless you're assuming we're all going to stop buying the games we love and instead play 99 cent iphone games.

you know, if you weren't such a wii fan i'd have let this slide...   but for years now you have been part of the "the mainstream doesn't need graphics, or online, or whatever" mantra.  and you know what, you aren't entirely wrong.  yes graphics and traditional gaming matter to me but the wii proves a heck of a lot of the market that were buying ps2 a gen ago don'tt care.

so let's start with where you are soo absolutely wrong (its almost sad anyone still spews this (basically bigoted) bull shit).  that's the part where you say "99 cent iphone games".  mobile games have come soo far since their launch 4 years ago.  not only are there  plenty of big name franchises on smartphones, they're selling for higher price points ($5 - $10).  now dont' get me wrong, these are 1 to 1 ports of what we "traditional gaming" but they pretty good overall.

now here is where you sound silly.  that same "good enough" matra you've been repeating about the lack of wii advances not mattering to the mainstream is just as applicable to mobile gaming.  it's the EXACT same thought. 

...and when the mainstream leave there won't be enough money to support the games i want to play.  the more than just "good enough" experiences are expensive to build and there is a required critical mass in audience size to justify creating them.  look at have shit-tastic the vita is doing and behold your future: small audience, low sales, questions about product viability.  even the 3DS is stalling everywhere but japan which is not coincidental to the fact smartphones are far more popular in the west than japan. 



kitler53 said:
wfz said:


Cell phone and tablet sales make you worry about traditional gaming? Do you feel as though the millions and millions of traditional gaming fans are simply going to stop buying the software they enjoy simply because cell phones and tablets are selling better than their favorite consoles?

I don't see why anyone would be afraid of any of our games going away. The consumers who like them will continue to buy them regardless of what other markets emerge. Unless you're assuming we're all going to stop buying the games we love and instead play 99 cent iphone games.

you know, if you weren't such a wii fan i'd have let this slide...   but for years now you have been part of the "the mainstream doesn't need graphics, or online, or whatever" mantra.  and you know what, you aren't entirely wrong.  yes graphics and traditional gaming matter to me but the wii proves a heck of a lot of the market that were buying ps2 a gen ago don'tt care.

so let's start with where you are soo absolutely wrong (its almost sad anyone still spews this (basically bigoted) bull shit).  that's the part where you say "99 cent iphone games".  mobile games have come soo far since their launch 4 years ago.  not only are there  plenty of big name franchises on smartphones, they're selling for higher price points ($5 - $10).  now dont' get me wrong, these are 1 to 1 ports of what we "traditional gaming" but they pretty good overall.

now here is where you sound silly.  that same "good enough" matra you've been repeating about the lack of wii advances not mattering to the mainstream is just as applicable to mobile gaming.  it's the EXACT same thought. 

...and when the mainstream leave there won't be enough money to support the games i want to play.  the more than just "good enough" experiences are expensive to build and there is a required critical mass in audience size to justify creating them.  look at have shit-tastic the vita is doing and behold your future: small audience, low sales, questions about product viability.  even the 3DS is stalling everywhere but japan which is not coincidental to the fact smartphones are far more popular in the west than japan. 


1) Outside of a few times I've played NSMB with my girlfriend, I haven't touhed my Wii since the disappointing release of Skyward Sword. If you read any of my posts since last October, you'd know I'm heavily into online PC gaming with both Battlefield 3, Dota 2, etc. I love how you assume my bias right away and base all my points off of that...

2) "now here is where you sound silly.  that same "good enough" matra you've been repeating about the lack of wii advances not mattering to the mainstream is just as applicable to mobile gaming.  it's the EXACT same thought. "

You're taking that point far out of context, and I actually didn't mention a single word about that in my post. Way to address something I didn't even bring up! You should get bonus points or something...

3) You mention that iphone games aren't just 99 cent games anymore, but are replicating more complex designs we see in portable handhelds. Nowhere did I mention all iphone games are 99 cents. No where. Good job completely missing my point and actually helping my point at the same time. Did you just mention iphone games becoming more complex and offering fuller experiences? Are you assuming that will continue to advance more so into the future as mobile eats up handhelds completely?

FANTASTIC! Now you have your traditional games on the mobile device that you and millions of others can now enjoy. You haven't lost anything. Your gaming is still alive, just on a different platform.

4) The vast mainstream may find that things are "good enough" at certain points, and that is perfectly fine. It caters to their tastes and gives them what they enjoy. However, there are millions and millions of gamers who love more complex experiences with high production values, and those consumers won't magically change their tastes, and they won't magically disappear.

There really isn't anything to be afraid of. Except for the possibility of some of your favorite gaming companies (ex: Sony) going out of business due to putting out products consumers don't care enough about. Outside of that, gaming will move on and continue to evolve with 30 million LoL players, 15 million Battlefield players, 10+ million Skyrim players, 25+ million 2D Mario lovers, etc, etc, etc. There is room for all different sorts of gaming experiences. You nor the fans who share similar tastes to you will magically disappear.

 

Oh and for the record, I have absolutely nothing against mobile platforms.



wfz said:

There really isn't anything to be afraid of. Except for the possibility of some of your favorite gaming companies (ex: Sony) going out of business due to putting out products consumers don't care enough about. Outside of that, gaming will move on and continue to evolve with 30 million LoL players, 15 million Battlefield players, 10+ million Skyrim players, 25+ million 2D Mario lovers, etc, etc, etc. There is room for all different sorts of gaming experiences. You nor the fans who share similar tastes to you will magically disappear.

 

Oh and for the record, I have absolutely nothing against mobile platforms.

Your biggest mistake in your thinking is confusing console and pc gaming with portable gaming. These games you mention are not portable games except for 2D mario. I do not think anyone thinks moblile platforms are affecting consoles as much as they are portables. The games on consoles are too different and more adavanced than portables can currently do. Nintendo and Sony will lose out in the hendheld business, not the console business. Hence the title of the thread.



chocoloco said:
wfz said:

There really isn't anything to be afraid of. Except for the possibility of some of your favorite gaming companies (ex: Sony) going out of business due to putting out products consumers don't care enough about. Outside of that, gaming will move on and continue to evolve with 30 million LoL players, 15 million Battlefield players, 10+ million Skyrim players, 25+ million 2D Mario lovers, etc, etc, etc. There is room for all different sorts of gaming experiences. You nor the fans who share similar tastes to you will magically disappear.

 

Oh and for the record, I have absolutely nothing against mobile platforms.

Your biggest mistake in your thinking is confusing console and pc gaming with portable gaming. These games you mention are not portable games except for 2D mario. I do not think anyone thinks moblile platforms are affecting consoles as much as they are portables. The games on consoles are too different and more adavanced than portables can currently do. Nintendo and Sony will lose out in the hendheld business, not the console business. Hence the title of the thread.

I am not confusing anything. I realize handheld platforms are dying and mobile is on an upswing. Those games I mentioned were actually all *console* games (I meant the NSMB on the Wii).

With the handhelds dying, people are afraid that these cheap mobile games will wipe out the handheld games that people traditionally enjoy. Yet at the same time, people are also admitting that mobile platforms are receiving more and more complex games. Look at the megaman game that was just announced.

These game styles people love won't just disappear. If for some reason handhelds and consoles both die, you can bet that those franchises and game styles will still be made for whatever platforms are thriving. As long as the audience is there, the sales will be there...



kitler53 said:
Mnementh said:
kowenicki said:


So you show, that smartphones only make a little part of EAs revenues.

wow, way to miss the point. 

it shows mobile (smartphones) revenue > Nintendo handhelds (3DS + DS) + Playstation handhelds (PSV + PSP)

it shows the total mobile (everything above combine) has 23% growth which is highly skewed by smartphone growth at 83%.

Correct me if I'm wrong, but doesn't the above graph only include digital revenue and not retail revenue or total revenue?

Wouldn't you expect digital revenue growth to be highest on smartphones since most people only download games digitally.

It's good that you noted that the graph says that "mobile" includes handhelds since i think some people miss that footnote too.