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Forums - Sales Discussion - Nintendo Screwing Up: The production claim

Louie said:
Faxanadu said:
for #2: yeah, i love how the guys that could have bought the system now did not buy software until christmas as they didnt have the system. you think they will buy all the games they would have played in the next 9 months?

Oh great, I love this kind of arguing. I want to discuss the topic. Do you want a discussion or do you only try to prove your point?

First of all, if Nintendo/ shops didn´t stockpile any units you would´ve seen 600k units in the Americas during December 2007. Do you agree that really is a bad number? And do you agree people buy more games during December then during June because it is Christmas? Additionally, bad press during christmas would pretty much kill Nintendo´s good name and more games are released during Christmas. Videogames are like movies: You play them when they are released but you don´t buy most of them after 6 months because they got old. That means your game will sell better when enough hardware is sold at the same time.

Good supply + no games + slow period of time =great hardware sales, bad software sales

Good supply + a lot of games + christmas = Great software and hardware sales

Bad supply + a lot of new games + Christmas = bad hardware and bad software sales ---> the worst scenario you could think of.

Bad supply + a lot of new games + slow period = great software sales but bad hardware sales (additonally software sales would be higher if supply was big in this case)

 

It´s not like Wii demand is infinite, Nintendo still has to get the best results possible out of the shortages.


 Green: I disagree

Red: Bad/ inconsistent logic.

Good logic would be: People only buy games when they buy a new console->more games are released during xmas and ninty wants them to sell well->stockpiling.

your red line only supports my argument. 



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

The views expressed here may be personal and/or offensive and are not necessarily the views of Faxanadu.

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right now its almost impossible to do harm to nintendos good name......at least with the masses.......


but is they have been fudging the production and we dont see the rest it would be almost as stupid as this guy





 

Faxanadu said:
oops, i made one mistake: sales data goes till 8th, ssbb was released 9th.

Better see humongous sales data in NA next week...

still, i find this funky.

Precisely.  Though, I don't know if we're going to see another 200k week in NA like we've already seen a few times, or if we're going to see a massive SSBB spike.  As was pointed out, they do want to launch in China this year.

@DMJ: "lol sure", wow, is that the best you can come up with?  Or do you actually have something to contribute regarding a launch in China this year?  Also, you might want to check the forum rules next time before posting your "in b4 _____" flamebait.

@Faxanadu: Brawl wasn't part of last week's sales, but you already figured that out.  But regarding stockpiling for Christmas, all the major players do it, and they always have done it.  A unit sold in December actually can be worth more than a unit sold in September.  A lot of gifts are purchased during the holidays which would ordinarily not be purchased during the rest of the year.  If you allocate more supply to the holidays, you will reach more of these customers, and therefore increase your userbase.  And yes, image is important.  It's not just bad press, but bad customer relations when millions of parents can't buy your product at Christmas.

@MikeB: I think you're the last person on these forums who should be telling other people to get a life.  :P



With the 360 coming down in price... blu-ray having won the format war...

Nintendo really haven't made the most of their early advantage with the wii.



It wasn't just January stock that was airfreighted, but February as well.

http://vgchartz.com/hwcomps.php?cons1=Wii&reg1=America&cons2=Wii&reg2=Japan&cons3=Wii&reg3=Total+Other&start=39327&end=39516

Forty days from China, plus another week to ship to the stores mean about 45+ days from the high holiday sales would be swiped. Meaning maybe a little from January, but even more from Feb. By now it would be America SSBB stockpiling. Let's see this week's numbers (for SSBB launch on Sunday) and the next few weeks of March. If they are low, then I would agree that something is wrong. (New launches in other new places, possibly?)



Torturing the numbers.  Hear them scream.

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Faxanadu said:
 

Green: I disagree

Red: Bad/ inconsistent logic.

Good logic would be: People only buy games when they buy a new console->more games are released during xmas and ninty wants them to sell well->stockpiling.

your red line only supports my argument.


You dissagree that more games are released during Christmas? Wow...

No the red lined part proves your point wrong. And don´t try to spin it around, my point was people buy games when they are released and not months after a games release (--> core title behaviour). More games are released during the last Quarter of the year, I hope you agree here at least.

So when will you ship most hardware? Right, when a lot of games are released, when the most high profile titles are released, during christmas.

Or in other words: Which game do you want to sell more? Minigame Collection 200054 (released in June) or your high profile game you developed on for years? (released at Christmas). It is true, higher install base means higher game sales but people chose at least one game they buy with their console and Nintendo surely wants this to be the title they developed for the Christmas release. Additionally 3rd parties will also be happier if their Christmas titles sell, rather than their June titles. You can drive demand much higher during Christmas than during the rest of the year. Nintendo isn´t sure about Wii demand, otherwise they would produce a lot more consoles. They do not just sit around and expect their momentum to last while they are sending out every console they have produced, they rather wait for Christmas and do know for certain that the consoles they manufactured sell out.

And that´s only about Nintendo and 3rd parties - what would shop keepers say if they couldn´t sell Wii´s during christmas? Do you really think it doesn´t matter when you ship the things you produced if there is not enough of it?

Honest question: Do you really believe in what you say? It goes against any fundaments of capitalism and the way the market works...

 

Edit: You didn´t even answer to my other argument: All companies are stockpiling, otherwise you wouldn´t see high Christmas sales - its just that Nintendo doesn´t produce enough units for the slower months, in contrast Sony always produced enough units to meet demand during the summer, that´s why nobody talked about it.



Louie said:
Faxanadu said:
 

Green: I disagree

Red: Bad/ inconsistent logic.

Good logic would be: People only buy games when they buy a new console->more games are released during xmas and ninty wants them to sell well->stockpiling.

your red line only supports my argument.


You dissagree that more games are released during Christmas? Wow...

No the red lined part proves your point wrong. And don´t try to spin it around, my point was people buy games when they are released and not months after a games release (--> core title behaviour). More games are released during the last Quarter of the year, I hope you agree here at least.

So when will you ship most hardware? Right, when a lot of games are released, when the most high profile titles are released, during christmas.

Or in other words: Which game do you want to sell more? Minigame Collection 200054 (released in June) or your high profile game you developed on for years? (released at Christmas). It is true, higher install base means higher game sales but people chose at least one game they buy with their console and Nintendo surely wants this to be the title they developed for the Christmas release. Additionally 3rd parties will also be happier if their Christmas titles sell, rather than their June titles. You can drive demand much higher during Christmas than during the rest of the year. Nintendo isn´t sure about Wii demand, otherwise they would produce a lot more consoles. They do not just sit around and expect their momentum to last while they are sending out every console they have produced, they rather wait for Christmas and do know for certain that the consoles they manufactured sell out.

And that´s only about Nintendo and 3rd parties - what would shop keepers say if they couldn´t sell Wii´s during christmas? Do you really think it doesn´t matter when you ship the things you produced if there is not enough of it?

Honest question: Do you really believe in what you say? It goes against any fundaments of capitalism and the way the market works...

 

Edit: You didn´t even answer to my other argument: All companies are stockpiling, otherwise you wouldn´t see high Christmas sales - its just that Nintendo doesn´t produce enough units for the slower months, in contrast Sony always produced enough units to meet demand during the summer, that´s why nobody talked about it.


Green: I fully agree with you.

Red: see my answer to red above. do you understand the gap in your logic?

Yellow: SSBB, WiiFit, MK Wii, MP3 all say hello. How close to Xmas will they be released? Exactly.

 

@Entroper: You are right. That is the ONLY valid reason. Access to a different customer segment. All other reasons fail.

 

For Louie, Entroper to illustrate my point. A small case:

Data:   60 million wiis, produced before Month 0, case period: 24 months

Assumption: Each console owner buys one game every 3 months but NO MORE, starting at day of purchase. NO games older than 6 months are being bought (as in:; thank you, Louie.)

Assumption: Shipped ALWAYS = sold  

Assumption: Xmas at 0, 12 and 24 months 

Business Case 1:  Sell all 60 million at Month 0. Result after 24 Months: 60 Million consoles sold, 480 million games sold

Business Case 2: Sell  20 million each Xmas. Result after 24 months: 60 million consoles sold, 260 million games sold

Here I stop, even before mentioning the cost of warehouse space.... 

 



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

The views expressed here may be personal and/or offensive and are not necessarily the views of Faxanadu.

It's already been stated that they plan to launch in new regions very soon. You cannot launch in new regions with no systems available. It's that simple.



Sky Render - Sanity is for the weak.

godf said:
With the 360 coming down in price... blu-ray having won the format war...

Nintendo really haven't made the most of their early advantage with the wii.

 

too bad price and dvd format aren't why people buy the wii

Bets:Missed by 420k I bet leo-j vg$500 that wii will sell 31 million by 7/31/08.  Sorry, I don't think he has enough vg$ to make it with all of u that wish you could. Hit, with room to spare I bet kingofwale a 1-week ban that wii Americas ltd sales>360 Americas ltd sales as of the numbers for week ending 7/05/08 (using vgchartz homepage #s)

Predictions:

Wii will sell 18-20mil by 12/31/07  CHECKWii will sell 45mil+ WW by 12/31/08Wii will surpass PS2 sales WW by 11/17/11 (5yr anniversary)Wii Fit will hit 12mil sales in 2009MKWii+SSBB+Wii Fit+SMG > 50 mil sales by 2010 > gta4+mgs+gt5+ff13+haze+lbp

Regarding stockpiling for holiday seasons, I don't know if they started stockpiling for that yet, but they can't start too late unless they want to suddenly start cutting shipments by a big percentage... The earlier they start, the more balanced supply will be throughout the year, which is obviously good.

 



My Mario Kart Wii friend code: 2707-1866-0957