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Forums - Sales - How important is 4th quarter to home console sales?

I found this thread to be fascinating.
You should post more.



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Miguel_Zorro said:

I think being more US-Centric probably adds to the seasonality of the XBox One - as Christmas sales are even more important there compared to places like Japan.

I would agree with that.  When you have a global approach to selling your product then I think it's more logical to spread out your releases.

We're also talking about a period with price cuts and sales such as Black Friday.  That means we're probably dealing with the lowest margins of the year.  My own belief is that sales during the holiday season will mostly take care of themselves.  Building a lead the rest of the year against substantially less competition is a good way to gather momentum.  

I've managed seasonal businesses before.  Customers are going to come during your busy periods no matter what.  I was more concerned with running promotions and generating exposure during the slow periods.  That's not the same thing as consoles, of course, but I think keeping a steady stream of positive mind-share is important for a brand.  



The_Yoda said:
Interesting thread thanks.

 

monocle_layton said:
I found this thread to be fascinating.
You should post more.

Oh hey! Thanks guys!



Bet with Adamblaziken:

I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.

pokoko said:
Miguel_Zorro said:

I think being more US-Centric probably adds to the seasonality of the XBox One - as Christmas sales are even more important there compared to places like Japan.

I would agree with that.  When you have a global approach to selling your product then I think it's more logical to spread out your releases.

We're also talking about a period with price cuts and sales such as Black Friday.  That means we're probably dealing with the lowest margins of the year.  My own belief is that sales during the holiday season will mostly take care of themselves.  Building a lead the rest of the year against substantially less competition is a good way to gather momentum.  

I've managed seasonal businesses before.  Customers are going to come during your busy periods no matter what.  I was more concerned with running promotions and generating exposure during the slow periods.  That's not the same thing as consoles, of course, but I think keeping a steady stream of positive mind-share is important for a brand.  

A lot like the Switch.

With positive feedback, people will slowly get more interested.


Solid thinking, but unfortunately it's easier said than done



I knew it was important, but not that important.. o.O



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RolStoppable said:
Good thread for those who don't know all of the fundamental things about video game sales. Which are actually a lot of people, considering how sales discussion has died down on this site due to VGC falling way behind with updates to their sales numbers.

~50% of the hardware sales happen during Q4 alone. Basically Q4 is as big as the first three quarters combined. This held true for older consoles as well. It's for this reason that publishers try to launch their games during the final quarter of the year.

As others have pointed out, the XB1s share is higher because it's US-centric. Black Friday deals have upped the ante since 2010, so consumers in the USA are well aware that BF is the best time of the year to buy a console.

Hmm...a couple of people have brought this up and I think it's an interesting point. I think I might look into this more tomorrow...



Bet with Adamblaziken:

I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.

Normchacho said:
RolStoppable said:
Good thread for those who don't know all of the fundamental things about video game sales. Which are actually a lot of people, considering how sales discussion has died down on this site due to VGC falling way behind with updates to their sales numbers.

~50% of the hardware sales happen during Q4 alone. Basically Q4 is as big as the first three quarters combined. This held true for older consoles as well. It's for this reason that publishers try to launch their games during the final quarter of the year.

As others have pointed out, the XB1s share is higher because it's US-centric. Black Friday deals have upped the ante since 2010, so consumers in the USA are well aware that BF is the best time of the year to buy a console.

Hmm...a couple of people have brought this up and I think it's an interesting point. I think I might look into this more tomorrow...

Would be interesting to know the breakdown for regions.



pokoko said:
Miguel_Zorro said:

I think being more US-Centric probably adds to the seasonality of the XBox One - as Christmas sales are even more important there compared to places like Japan.

I would agree with that.  When you have a global approach to selling your product then I think it's more logical to spread out your releases.

We're also talking about a period with price cuts and sales such as Black Friday.  That means we're probably dealing with the lowest margins of the year.  My own belief is that sales during the holiday season will mostly take care of themselves.  Building a lead the rest of the year against substantially less competition is a good way to gather momentum.  

I've managed seasonal businesses before.  Customers are going to come during your busy periods no matter what.  I was more concerned with running promotions and generating exposure during the slow periods.  That's not the same thing as consoles, of course, but I think keeping a steady stream of positive mind-share is important for a brand.  

Well it's  not just price cuts, it's also about spending.  Consumers just spend so much more.  That is why price cuts happen then, because people are more willing to part with money so you are competing to be the thing they by, for their attention, cause they are going to buy something. 

Which is why this is relevant to all the discussions abot the Switch and how much March impacts it.  The price of the Switch is relatively reasonable for a launch price for a console on its face.  The PS4 was effectively 460 after all.  But in March, 360 is asking a lot of the average consumer.  Which incidentally is also why Nintendo can get away with a thin launch lineup: people aren't *looking* to spend another 60 to 120 after spending 360.  In the Holiday period people spend hundreds and hundreds sometimes thousands, they are looking to buy, whereas in March you are competing largely with their own resistance to spending at all. 

Basically, 360 is asking a lot in March but in the Holidays it's mearly a statistic. 



RolStoppable said:


As others have pointed out, the XB1s share is higher because it's US-centric. Black Friday deals have upped the ante since 2010, so consumers in the USA are well aware that BF is the best time of the year to buy a console.

not if you're a nintendo fan

 

the $99 N3ds sold out so quickly. I hope the Switch doesn't have the same supply issue



So, I won't have all the information that I want to post tonight. But after some initial math...I'd hold off on theorizing about regional consumer spending.



Bet with Adamblaziken:

I bet that on launch the Nintendo Switch will have no built in in-game voice chat. He bets that it will. The winner gets six months of avatar control over the other user.