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Forums - Gaming - Brilliant Sean Mastrom's blog entry

omg sean malstrom makes me sick.....everyone thinks he's so clever and witty when in reality, he's just a fanboy that can write pretty paragraphs to mask his fanboyism



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Squilliam said:
Garcian Smith said:

 

Squilliam said:

 

 

 

 

1. I was talking about all of his posts.

2. Straw man argument from Malstrom - HD games are failing to make a profit - Fails to mention Epic, Valve, Bungie, Insomniac etc. Also fails to seperate engine costs from development costs.

3. Market analysts had little hard data at the beginning of the generation, now that there is much more information out there, they have the advantage.

4. I don't need to shoot holes through this one it falls flat on its own.

 

1. not interested in answering

2. R u serious? you will pick the exception rather than the rule. I am sorry but there is enough proof to show that the majority of HD gmaes out there are not even breaking even,. how many studio seem to be closing down, you seem to be grasping at straws, there, you may not like the way ,but even you can't deny reality.  Winston Churchill says the truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is. You tell me a console that has sold as fast as the Wii has, either it is attracting new customers or the previous customers are picking it up faster than they did previous console's, now which one is the most logical?

3. I am sorry but lest not make excuses for these analysts, analyzing data and predicting what will happens are in their job criteria, they were flat out wrong, but even during those times Malstrom was saying the Wii would be a killer, the Material is still there, there is no denying that malstrom correctly predicted what will happen and he did it very well. Read that Churchill quote again. 

I can understand a lot of people do not like the way malstrom writes, but lets not attack him as a person, if you are going to dispute his work, bring fourth evidence, qoutes, links if you must to disprove what he is saying and has said. The thing is with the amount of detractors he has, no one has actually been able to disprove his theory, and his theory is still the only one that runs strong, and for the amount of people who like to describe what disruption is, it seems they have not read the book, from the man who coined the term



Nintendo & Sony Supporter

Currently own- DS, PSP, PS2, Wii, Xbox 360, PS3 DreamCast.

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Plaupius said:
Squilliam said:
celine said:

 

Because for someone who seems to think he understands, he actually doesn't.

  1. His posts read like a cross between a get rich quick book and cultist literature. They do not understand, while you the reader understands because you listen to me.
  2. He has a propensity for creating straw man arguments to caricature people like analysts/journalists/publishers/console developers etc and then defeating them.
  3. He is an "intuitive type" but without hard data that analysts have access to, he may as well sit in the lotus position and smoke his bong for all the understanding it will give him of the "market"
  4. His bias is extremely evident in everything he writes. He appears to only accept information that supports his world view. In mathematics class if I get lucky and give the right answer but the method to get that answer was completely wrong, giving the correct answer doesn't matter because I still fail.

 

 

You have some valid points, Malstrom's writing style is, IMO, working against him. But where I disagree with you is the lack of hard data: Malstrom is analyzing business strategy, and for that purpose his articles have plenty of hard data. He also uses the theory of disruption to explain Nintendo's success and the relative failure of the more hardcore industry players in a sound way. His problem is he's labeled people in a disrespectful manner (for example his continuous use of "birdmen"), which inevitably causes a defensive reaction if the reader happens to be one of those people.

Excellent post, Plaupius.  I couldn't have said it better.

I for one, however, get a kick out of Malstrom's writing style.

 



noname2200 said:
Squilliam said:
Plaupius said:
Squilliam said:
celine said:

He may have data, but he doesn't have the hard data, the paid for kind. How does he know if his "disruption" theory is true if he doesn't even know who are buying the Wii? Hell, how does he know if ANY of it is true, when recent data shows that a large majority of U.S Wii owners were PS2 owners anyway.

Furthermore hes not even applying disruption theory properly. Market disruption is when Cell phones replaced pay phones.

There are two disruption factors at work. "Low-end disruption" occurs when the rate at which products improve exceeds the rate at which customers can adopt the new performance. Therefore, at some point the performance of the product overshoots the needs of certain customer segments. At this point, a disruptive technology may enter the market and provide a product which has lower performance than the incumbent but which exceeds the requirements of certain segments, thereby gaining a foothold in the market"

There is no more low level disruption in this market. The Xbox 360 is approaching the price of the Wii.

""New market disruption" occurs when a product fits a new or emerging market segment that is not being served by existing incumbents in the industry" - That fits into his theory except that recent data shows that most Wii owners owned a PS2, which shows that while its an effect, its not a significant reason why the Wii is selling as it is.

Could it be that Nintendo Wii is just serving existing customers better than either the PS3/Xbox 360, not creating new markets here there and everywhere?

A couple of points. First, we don't actually know whether or not he has full access to NPD data and the like. More importantly, having access to that data doesn't seem to be doing Pachter et. al. too much good, so such access is apparently not the deciding factor that it's cracked up to be. And while it's possible that all Wii buyers are composed primarily of traditional gamers, the fact that non-traditional software is selling at a record pace, that its sales are going through the roof in spite of hostility from the traditional base, and that there is a mountain of anecdotal data on this point all combine to make his point more likely to be true than not.

As to disruption, I won't claim to be an expert, but I'm 99.999999% certain that you're misunderstanding it. Price does not determine value: according to disruption, the 360 could cost half of what the Wii does and still not be disruptive. What matters is that the Wii seems to be serving customers' needs much better than the 360 does, because it offers something that the HD consoles lack but which many "overshot" customers desire (more accessible controls, software focused on their needs, etc.).

Put alternatively, a farmer looking to buy a tractor wouldn't be interested in buying a Porsche, even if it costs the same as the tractor.

As to your second point that because the PS2 shares much of the same base as the Wii, I believe you're highly misinterpreting disruption and what the data is telling us. In point of fact, I believe that may prove Malstrom's point in a lot of ways. The PS2 was "good enough" for many folks in many ways; the added features of the HD consoles are not things that the average consumer is apparently interested enough to pay for. The HD consoles thus are examples of overshooting technologies.

Now, you say that because quite a bit of the PS2 user base are also purchasing a Wii, then the Wii is not truly expanding the market. Perhaps you're right, but I'm skeptical about that as well. Apart from the anecdotal evidence (which I concede is rarely worth as much as we make it out to be) there is the fact that the Wii is outselling the PS2 during the latters' heyday, and the fact that the PS2 is still selling.

The former tells me that unless the PS2 turned millions of people into die-hard gamers that simply have to have video game consoles now, the Wii is appealing to new people in addition to those who already were interested in gaming. The latter fact tells me that people who're only interested in the PS2 expereince are sticking with the PS2; if they were satisfied with just that experience, they wouldn't also buy a Wii. Put alternatively, the Wii must be offering more than what the PS2 offers, or else folks wouldn't be double-dipping.

Man... I'm so glad I took the time to read through this thread before initially posting.  Some great things being said in here.

@noname:  I see you've been following Malstrom a bit (you and me both).  I bolded a few terms that he uses in his language quite often.

 

 



Good article.

@Squilliam,

Are you seriously trying to say you know more about disruption than Maelstrom?  If you honestly think you do, perhaps you should try to contact the man for a debate and set the record straight? 

Your rants about him thus far have been..uhm.. interesting.....A few notes I took while reading:

  • The Wii owners being predominantly PS2 owners *supports* the disruption claim..it doesn't contradict it.
  • Disruption has almost nothing to do with price, bringing up the price of the 360 as a supporting point illustrates that you don't really understand this stuff. Disruption is all about refocusing the values of a product away from an overshot value and towards new values that customers appreciate more than incremental upgrades to the old value.  The price is a tertiary concern.
  • And no it can't be that Nintendo is just serving existing markets better (although that could be part of it).  This should be obvious since compared to last generation at this point the Wii represents ~89% of the total HW sales of PS2, GC, and Xbox sales combined. Comparing the full market there has been an increase of 92% in hardware sales GTD GoG. Nintendo has a ~270% growth over the last gen, Sony has a ~15% drop over last gen, and MS has a  16% growth over last gen.  So which console is primarily reponsible for that 92% growth in hardware sales?  And where do those extra customers come from?

PS - For the record I definitely agree Maelstrom can be a cocky and pompous writer but he also knows what he is talking about.



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That whole thing made my mind go crazy....hes almost hypnotic



I hope my 360 doesn't RRoD
         "Suck my balls!" - Tag courtesy of Fkusmot

noname2200 said:
Million said:
Should be re-named "Pro Wii Blog".

Malstrom's cheerleading does get on my nerves sometimes, but over the past two years the man's proven to have a firmer grasp on the video game market than all the professional analysts that have talked to the media (I'm pretty sure the competent ones keep their advice to themselves, seeing as how selling their thoughts is how they make a living...).

But if you're actually interested in hearing some insights on the industry, you'll wade through the bad times to get to the many gems.

Alternatively, you could just stop visiting threads about him...

 

 

Malstrom does have a talent for breaking down the industry to very understandable terms and with often humerous and vivid writing. 

It was a Malstrom article that straightened out how I saw Nintendo's Blue Ocean strategy.  Originally, I had a grasp of it, and what Nintendo's focus was, but it was somewhat jumbled, and I had trouble explaining it.  After reading one of Malstrom's blogs, it made perfect sense. 

And most publishers are a bunch of whiney cowards.  He's absolutely right about that.  Every time they believe a certain game or genre "won't sell on the Wii because of [insert stereotype of Wii owner here]," they are showing immense cowardice. 

However, Malstrom should also do a blog breaking down the problem with many Nintendo Fanboys, who I view as the ones to blame for the relatively dismal performance of the GameCube and N64.



There is no evidence that Sean Malstrom give’s a rat’s ass about video games or has ever played one. His essays are about business models, not game design. His style his certainly not everybody’s cup of tea and if you don’t like him don’t read him.

You can always read dry as a bone Michael Pachter, who is getting better now, though he was dead wrong reading this generation for a long time. He is now, according to Kokatu where he is idolized, right a whole 60% of the time. The other experts are doing worse, a majority batting less than 50% and  well know Billy Pidgeon getting it right almost 20% of the time. There are your analysts with all the facts. Crap, I’ve been more accurate than that and I don’t have any data to work from.

 

 

 

You’re welcome to your opinion but to me Sean Malstrom has a lively and entertaining fresh style if occasionally over the top and a frustrating habit of actually understanding the market and how it works and I’m damn sure he’s batting way over 60% especially if you go back to the beginning when all of the experts would almost always forget to mention Nintendo at all as a contender and it they did it was only to predict certain disaster



That was funny! specially the "young journalist" XD



And people, keep criticizng him that he writes "poorly", that he loves nintendo, that he suffers of..bi-polar dissorder?! since when having creativity is synonim of illness?!

This guy is right. I am sorry but he is. More right tan patcher and all the stupid magazines out there. Yes, he cheerleeds the Wii because it deserves it.

So criticize him all you wany. He's right, you are wrong.

Period.