Forums - Sales Discussion - Global Hardware 09 November 2019

curl-6 said:

This is the last week of the year where the Switch is playing Mr Nice Guy. From next week on it should go into kaiju mode.

The only thing holding it back now is Nintendo's stubbornness in not doing any good holiday deals.

Ya but why do big holiday deals when you can sell ~20 million without them?



When the herd loses its way, the shepard must kill the bull that leads them astray.

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zorg1000 said:
curl-6 said:

This is the last week of the year where the Switch is playing Mr Nice Guy. From next week on it should go into kaiju mode.

The only thing holding it back now is Nintendo's stubbornness in not doing any good holiday deals.

Ya but why do big holiday deals when you can sell ~20 million without them?

Cos you could sell considerably more systems with them.

Last edited by curl-6 - on 15 November 2019

Bet with Liquidlaser: I say PS5 and Xbox Series X will sell more than 56 million combined by the end of 2023.

curl-6 said:
zorg1000 said:

Ya but why do big holiday deals when you can sell ~20 million without them?

Cos you could probably sell an extra 2 million systems with them.

Yeah, but by that logic they could sell an extra 5-10 million if they cut the price in half. There is a point where extra sales aren't worth the loss in revenue/profit and having a cheaper model release two months ago replaces the need for discounts.



When the herd loses its way, the shepard must kill the bull that leads them astray.

zorg1000 said:
curl-6 said:

Cos you could probably sell an extra 2 million systems with them.

Yeah, but by that logic they could sell an extra 5-10 million if they cut the price in half. There is a point where extra sales aren't worth the loss in revenue/profit and having a cheaper model release two months ago replaces the need for discounts.

I'm not talking about taking it to the extreme, just doing the same kind of deals that Sony does for PS4 on the regular.



Bet with Liquidlaser: I say PS5 and Xbox Series X will sell more than 56 million combined by the end of 2023.

Xbox about to be passed. So sad :P



Made a bet with LipeJJ and HylianYoshi that the XB1 will reach 30 million before Wii U reaches 15 million. Loser has to get avatar picked by winner for 6 months (or if I lose, either 6 months avatar control for both Lipe and Hylian, or my patrick avatar comes back forever).

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curl-6 said:
zorg1000 said:

Yeah, but by that logic they could sell an extra 5-10 million if they cut the price in half. There is a point where extra sales aren't worth the loss in revenue/profit and having a cheaper model release two months ago replaces the need for discounts.

I'm not talking about taking it to the extreme, just doing the same kind of deals that Sony does for PS4 on the regular.

I know but if they are already on pace to surpass their fiscal year goal for hardware, software & profit than there really is no reason to have discounts.



When the herd loses its way, the shepard must kill the bull that leads them astray.

zorg1000 said:
curl-6 said:

I'm not talking about taking it to the extreme, just doing the same kind of deals that Sony does for PS4 on the regular.

I know but if they are already on pace to surpass their fiscal year goal for hardware, software & profit than there really is no reason to have discounts.

You can always do better. 



Bet with Liquidlaser: I say PS5 and Xbox Series X will sell more than 56 million combined by the end of 2023.

curl-6 said:

This is the last week of the year where the Switch is playing Mr Nice Guy. From next week on it should go into kaiju mode.

The only thing holding it back now is Nintendo's stubbornness in not doing any good holiday deals.

Nintendo is clearly pursuing a long term strategy with Switch's pricing. They won't condition potential customers to expect great deals, something that is known to not generate much additional sales, but instead first and foremost shifts sales from point of time to another one.

Holiday deals have been most prevalent in the USA and the result of them has been a shift of December sales into November. December used to be significantly bigger than November for console sales before steep Black Friday deals. Nowadays November is bigger than December for PS and Xbox, but the total sold during the holidays hasn't grown much. Especially good deals even shift sales from the following year into November, hence why the PS4 has had so many sub-200k off-season months. It's even worse for Microsoft who had to issue additional temporary deals throughout the year to keep sales at a somewhat respectable level.

The justification that Sony and Microsoft see in earlier sales at lower prices is an earlier purchase of PS+ and Xbox Live subscriptions, so the money that is left on the table with a holiday deal is expected to be made back. Nintendo's subscription costs only one third of PS+ and Xbox Live, so the maths doesn't add up for Nintendo. Especially because Nintendo console owners are less inclined to pay for online and rather opt to use their console offline.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

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Skeeuk said:

how is the ps4 selling so much in its final year the numbers must be off

Keep in mind that those numbers are still over 30% less then what the console pulled one year ago.

Also, this is far from being the PS4's last year - just the last full year before the successor is out - and that one comes only in roughly one year, so the PS4 has one more year of sales before getting replaced.



zorg1000 said:
curl-6 said:

This is the last week of the year where the Switch is playing Mr Nice Guy. From next week on it should go into kaiju mode.

The only thing holding it back now is Nintendo's stubbornness in not doing any good holiday deals.

Ya but why do big holiday deals when you can sell ~20 million without them?

28 million with them.

Seriously though, that's up to their accountants, it might be that price drops at this particular time won't significantly increase sales output. There are various strategies that can be used to generate enough interest to maximize holiday sales. As a business, it would be in Nintendo's interest to take the cheapest option possible. Having a gigantic Q3 could also mean a slower Q4, or even a slower 2020 altogether. Part of the major reason for much slower Wii sales in Calendar 2010 was the price drop for the holiday quarter in 2009 (which I believe is still the highest-selling quarter for any home console ever); but that was only hardware, Wii enjoyed heavy user usage and strong software sales in 2010/FY2011. Another factor to consider is the schedule for upcoming hardware, the Wii got the price drop about a year in advance of the 3DS release, and 2 years in advance of the Wii U release - if they wanted to extend the life of the console, they might have held off on a price drop until later.

Last edited by Jumpin - on 16 November 2019

I describe myself as a little dose of toxic masculinity.