shams said: The statement is quite true. But just like with the PS2 - the console that ends up with a significant lead in the install base, ends up being the one that "wins". The difference this time, is that there is a significant "gap" between the Wii & 360/PS3 technically - whereas the PS2/XBOX gap was much smaller. So there is nothing stopping software from doing well on the 360/PS3, which can't really be done on the Wii. ... It does, however - get *really* interesting if Ninty bring out a "360 spec'd" Wii in 2 years - full backwards compat, etc. Especially if they can do it cheaper.

No doubt Wii is a huge success but like you point out this generation is different than any other generation as both the wii and ps3/360 has to something offer to gamers but it two different directions. Wii-mote / family games (lots of mini-game) vs PS3/360 pc resolution graphics and DD5.1 sound. 

Still if the Big N does decide to bring out a update hardware in the next coming years it would have to then compete with a huge PS3/360 base. So in the klong run on the basic hardware side (not including wii-mote) ps3/360  already has a huge lead  on Nintendo.

 

MaxwellGT2000 said: The nonbelievers shall be smite by God, WELL GO ON! SMITE THEM! *long pause* HES-A cookin' somethin' up.

LMMFAO!!!!!!!!!!!!!!!1

 

That serious, lolololol. OMG, perfect reference. I LOVE you. 

Ok, time for a quick Consumer Marketing 101: the lower the price point, the bigger the market you reach. As such, there are no critical price points, it all comes down to the perceived value vs. the price.

Considering the console race, the winning console goes up in perceived value, being the one getting the most software, so you get a positive feedback loop: increacing perceived value leads to increasing customer demand which leads to increasing hardware sales (provided there is supply) which leads to increased software sales and development which leads to increasing perceivde value and so on, until the point of saturation, which depends on the price point.

So, in essence, what companies are doing when they are lowering prices is improving the ratio of perceived value vs. price AND increasing the size of the potential market. What makes all this so interesting is that the relation between price and potential market size is not inversely linear, so halving the price does not equal to doubling the market size, it perhaps quaqruples the market size, or even more. It could well be even an exponential increase.

What does all this mean for the console manufacturers this time around? Simpy put, Nintendo is in the best position by far: the perceived value vs. price of Wii is clearly better that that of X360 or PS3, and their price point already opens up a bigger market for them. When they lower their price, probably both the percentage and absolute increase of the market size is much bigger than what a similar price cut would do for the competition. Since Wii obviously has such high perceived value and a lower price point, X360 and PS3 would have to match the price point and have at least similar perceived value to be able to compete in the long run. If the Wii can maintain the lowest price point it will always have the biggest market to sell to, so it's a really tough situation for both MS and Sony.

@Plaupius

I saw a very similar brand roundup on CNN back at the beginning of January, lol, did you write that one.

Either way, yes, according to CNN, the Wii has the highest perceived value, PS3 second, 360 and PSP were last. This wasn't a pricepoint comparison either, so basically, the Wii has the highest percieved value not considering price, and it also has the lowest price point on top of the highest percieved value.

That's why, in CNN's opinion, the Wii has a seemingly limitless demand that far exceeds the other consoles.

Most consumers view the Wii as a better game console than the Xbox 360 which also happens to sell at a much cheaper price. When I say most, I don't mean all, I simply mean the majority of potential console consumers.

The RRoD issue has severely hurt the 360's image in the US, as well as the stigma the 360 accumulated with Halo and the original Xbox of being a FPS type system with little diversity.

That stigma is hard to shake off. Just ask Nintendo with their "kiddy" stigma, its completely untrue, but takes generations to shake off, if ever. Sony somehow managed to avoid stigma related with its products, even though they have historically been designed poorly(not this time, but in the past), and has become known for its diversity in gaming. Unfortuantly, Sony is creating a new stigma for itself this gen, due to 3rd party supports poor ports, and lack of diversity in many key genres like JRPG.

Completly off topic. I love you avatar totalwar.

Meh, after all what you can expect from a developer thats making a cheerleading game.

@ZenfoldorVGI

Lol, I don't write for any media or publication, let alone CNN. But in reality, what I wrote is pretty basic stuff and it shouldn't be too hard to figure out. You don't have to be a business consultant, all you need is common sense.

What you wrote is really interesting: if CNN is right and Wii has the highest perceived value overall, it really spells trouble for MS and Sony. I think it is safe to say that they can not compete with Nintendo on price, Wii will always be cheaper to produce than X360 or PS3, so what can they do that would improve their chances? Pretty much the only options they have are to try to lower the perceived value of Wii through marketing / capturing 3rd party developers from Nintendo, and trying to increase the perceived value of their own console. Is it possible? Yes. Is it realistic? Probably not.

Business analysts and executives can talk all they want about the prospects of MS/Sony, the reality is that Nintendo is in a much better strategic position than either competitor. Of Sony vs. MS, I'd say that Sony has a clear advantage because of their other consumer electronics, especially, of course, their HD televisions and now Blu-Ray. MS doesn't really have a lot of other business that would benefit from X360, or support it, so in a sense they are more like Nintendo. Except it seems that they lack the creativity and understanding of gaming markets that Ninty has.

For reference, here are the games that THQ has put out for the Wii, including Gamerankings scores.

Avatar: The Burning Earth (58.2%)
Bratz the Movie (60.5%)
Cars (68.5%)
MX v. ATV Untamed (69.8%)
Nicktoons: Attack of the Toy Bots (55.8%)
Spongebob: Creature from the Krusty Krab (58.4%)
WWE Smackdown v. RAW 2008 (63.1%)

Most of these were Playstation 2 ports.

So, yep. Just another company whining that "waaaaaaaah my shitty shovelware won't sell on the Wii!!"

Smidlee said: shams said: The statement is quite true. But just like with the PS2 - the console that ends up with a significant lead in the install base, ends up being the one that "wins". The difference this time, is that there is a significant "gap" between the Wii & 360/PS3 technically - whereas the PS2/XBOX gap was much smaller. So there is nothing stopping software from doing well on the 360/PS3, which can't really be done on the Wii. ... It does, however - get *really* interesting if Ninty bring out a "360 spec'd" Wii in 2 years - full backwards compat, etc. Especially if they can do it cheaper. No doubt Wii is a huge success but like you point out this generation is different than any other generation as both the wii and ps3/360 has to something offer to gamers but it two different directions. Wii-mote / family games (lots of mini-game) vs PS3/360 pc resolution graphics and DD5.1 sound.  Still if the Big N does decide to bring out a update hardware in the next coming years it would have to then compete with a huge PS3/360 base. So in the klong run on the basic hardware side (not including wii-mote) ps3/360  already has a huge lead  on Nintendo.

No, it wouldn't have to compete with the current consoles, because by the time Nintendo comes with a new console, so will the others. Sony and Microsoft won't make the same mistake again, and will drastically decrease the power increase from this gen to the next as compared to the one we saw from PS2 -> PS3.

Nintendo's next console, WiiHD, will be far more powerfull (imo) than 360: Nintendo has the money, the brandname (Wii) and has always had a technichally competative console.

So next Nintendo will be much closer in power to next MS/Sony consoles. But the big difference is that next time the 3rd party devs WILL stand in line to develop for Nintendo's console.

Sony and Microsoft will certainly keep a chunk of the market, especially the FPS/violent market, but they have to totally re-image to get more access to the casuals. If Nintendo bundles WiiSportsHD with WiiHD for $250,- they'll have even more success.

 

Garcian Smith said: For reference, here are the games that THQ has put out for the Wii, including Gamerankings scores. Avatar: The Burning Earth (58.2%) Bratz the Movie (60.5%) Cars (68.5%) MX v. ATV Untamed (69.8%) Nicktoons: Attack of the Toy Bots (55.8%) Spongebob: Creature from the Krusty Krab (58.4%) WWE Smackdown v. RAW 2008 (63.1%) Most of these were Playstation 2 ports. So, yep. Just another company whining that "waaaaaaaah my shitty shovelware won't sell on the Wii!!"

That's what it looks like. Although, THQ has one interesting consept for Wii, which is Deadly Creatures, but we'll just have to wait and see what it will end up like. Can't say anything about De Blob, since i don't know anything about the game. @Zen&Plaupius: Nice to see someone is on a right track considering why someone buys his console of choice. The perceived value is why i said in another thread, that i doubt 360 would start outselling Wii on a costant rate in Japan even if M$ would give it away for free.