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Forums - Sales - Buying Games in Bulk?

mrstickball said:
milano said:
I think that the reason many people (including Kwaad above) say that the Wii has a poor attach ratio is that their definition of an attach ratio is:

No. of software units sold in a given period : No. of hardware units sold in a given period

which seems to me to be incorrect, because the software is being purchased by the whole installed userbase, not just by people buying hardware units. This would then give a low ratio for the Wii, not because the software sales are low (they aren't), but because the hardware sales are so high. To illustrate why this ratio is misleading, consider what would happen if software sales stayed the same, but hardware sales fell by 50%. The attach ratio would then double, but are people actually buying more software? No, they're not.

I can understand why some people might consider that ratio valid, because in the past someone buying a game console might buy around 5 games to go along with it. That doesn't seem to be happening with the Wii, but it does seem that Wii owners are buying games, they're just not buying them all in one go. As far as I can see from the VGChartz figures, in any given week, the Wii software sales are pretty close to the X360 sales, even though the Wii's installed user base is only about half of the X360's. Even if you take out Wii Sports (which I don't think you should) and Wii Play (arguable) the Wii's software sales are still higher relative to the userbase (by which I mean total hardware sold).

 

The only issue with the weekly tier ratio is that it doesn't give the big picture of Wii owners. Yes, sales might stay the same, if hardware went down, but for how long? Tier rates are very, very important LTD, rather than just spikes. You can give "what ifs" all you want, but the reality is that hardware sales are good, and software, to go along, is only OK. For comparison, at this time last year, the X360 was selling 250,000 units a week on average - about the same number the Wii is, minus Wii Sports/Play. What makes the tier so impressive on the X360? It sold the same number of primary software (non bundled), but did it had 1.5m less hardware units in the US at the same timeframe.

Again, this is why it's important to consider LTD ratios, and not just spikes. MHP2 for PSP in Japan was huge, and by all means, a great succuess. However, that doesn't mean that the PSP software in general is doing great. A casual observation would see that PSP software is doing decently, but upon a further investigation, the fact is, the PSP has near a 3.0 LTD tier ratio. That's absolutely abysmal, considering the DS has nearly twice that.

 


I'm going to ask this of you, since Kwaad seems to have hit the hay: 

Do you have some evidence to support your claim that Wii attach ratios are poor (or "okay")? Again, the only region with lifetime software totals is Japan, and for that region, the Wii's attach rate is quite good, and noticeably better than the PS3's. 

Also, it's quite unfair to simply ignore Wii Sports and Wii Play. We've gone over this before. Put simply: if people did not have Wii Sports/Play, then logically, they'd often buy something else to go with their Wii instead. Simply making those figures vanish into thin air is quite unfair. Perhaps including 50 percent of their value would be justified? It's not easy to pinpoint what's correct, but including none of it is obviously invalid. 



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Bodhesatva said:
 

I'm going to ask this of you, since Kwaad seems to have hit the hay:

Do you have some evidence to support your claim that Wii attach ratios are poor (or "okay")? Again, the only region with lifetime software totals is Japan, and for that region, the Wii's attach rate is quite good, and noticeably better than the PS3's.

Also, it's quite unfair to simply ignore Wii Sports and Wii Play. We've gone over this before. Put simply: if people did not have Wii Sports/Play, then logically, they'd often buy something else to go with their Wii instead. Simply making those figures vanish into thin air is quite unfair. Perhaps including 50 percent of their value would be justified? It's not easy to pinpoint what's correct, but including none of it is obviously invalid.


 I'd agree with that. As someone I know who has a Wii (and was the first and only one I've played on lol :P) only has those games. So if they were not pack-ins it's likely they would have sold anyway, because people want those kinda games. Although I was kinda dissapointed with the tennis because I've played on Dreamcast tennis games that look better than that, although I guess it's the control scheme that makes it good



One person's experience or opinion never shows the general consensus

PSN ID: Tispower

MSN: tispower1@hotmail.co.uk

In the US, I don't consider Wii Sports a valid argument at all. It's bundled. Wii Play, I'm rather iffy on, because when you buy Wii Play, your not actually buying software. Your buying a bundle pack with basically a free (or near free) game with a Wiimote.

Japan? Totally different story. Wii Sports costs money, and is doing very very well. Had Wii Sports not of packed in the US, I would gladly consider it a normal, purchasable game, despite the lower pricetag, but it gives Wii software sales a brutal, unnatural advantage versus PS3 and X360 software (I feel), in the US. The top 2 selling games for the Wii in the US are either free, or actually counted as hardware since you pay $40 USD for a $30 controller and a $10 game. Is that fair? That'd be like counting Hexic HD as a normal software sale. Im not saying don't count it, but when we're discussing US software sales, it needs left out.

Attach rates for US/Japan:

In Japan, the attach rate for the Wii is 2.32 software units per Wii - Okay, but not quite what I think would be considered dominant. Again, this is due to budget titles in Wii Sports/Play moving about 45% of the software in Japan.

PS attach ratios are indeed abysmal - 1.5 units per PS3. Quite a bit worse than the Wii, because atleast there was atleast a decent bit of revenue for Wii Sports (around 4,000 yen x 1.8m units) and Wii Play (4,000 yen for controller + game x 1.2m units). But the tier ratios have improved much quicker for the PS3.

By the end of December, the Wii had an attach ratio of 2.09, and the PS3, a ratio of 0.99. Since then, the Wii's attach ratio has increased 10%, whereas the PS3 has increased 50%.

For comparison, the Xbox 360 had an attach ratio of 1.68, and by July of last year, had a ratio of 2.57 - an increase of 45%.

And again, the PS2, atleast as far as this website is considered (I think the sales are actually quite low, as the LTD attach ratio VGC has for PS2 is 6.0, when it was actually 10.0); was 1.33 by its first month, and was 1.69 by a similar period, but was without a holiday (like the Wii, X360, and PS3 had @ start). But again, I think the VGC numbers are most likely off by 50%.

If the Wii is to be dominant in Japan, the ratios need to improve faster than what they have. Although the tier ratios are "bad" (considering the lack of sales of actual fullprice titles), I'm not trying to be negative about it. The Wii attach ratios are certainly going to improve since DQS seems to be doing real well, and is full price. Again, I just think if the Wii wants to mimic PS2-type sales, it needs a strong tier ratio of atleast 3.5 or 4.0 by December in Japan.


Likewise, in the US, I have the data for the yearly, and attach ratios LTD, because I saved them all to my HDD before NPD closed the data down. The Wii has around a 4.3 attach ratio including 1.0 from Wii Sports, and about 0.3~0.4 from Wii play. The ratio is FAR better in the US, which it seems to have a decent ratio, but again, when compared to the PS3 and X360, it's not too great. The PS3 started out at 1.0 by the end of December, and is now at 3.0. The X360 started it's life out at 3.9, similar to the Wii w/ Sports & Play, but in the same timeframe, was at 5.0, and is now near 6.0 LTD. Whereas the Wii started out with 3.9, and has only increased to 4.3. So basically, the only thing that increased the actual attach ratio was Wii Play outside of normal full-price titles.

So basically, my synopsis is that the Wii attach ratios are not very good in either country, not entirely because of the actual ratio, but lack of increase despite games coming out. The US ratio is acceptable, but hasn't really increased in 9 months. Thats a huge problem. What happens when December comes around? Will consumers stay @ 4.0, and only buy a few games, while the PS3 attach ratio keeps increasing, and hits 4.5 or higher for actual full-priced games, and the X360 hits 6.5, or even 7.0 at the end of this year? With scenarios like that, it makes me question the ability for the Wii to dominate this generation - even if hardware does gangbusters, 3rd parties will realize consumers don't want the software like the fanbase of the PS3/X360.

This is nothing against Nintendo, but it's audience certainly isn't interested in much. Even for comparison, the NDS ratios are much better, as it enjoys a 5.0 tier ratio, and that is very strong for a handheld. So even despite the "casual" audience of the DS, and strong female demographic, the sales have still be awesome.



Back from the dead, I'm afraid.

mrstickball said:
In the US, I don't consider Wii Sports a valid argument at all. It's bundled. Wii Play, I'm rather iffy on, because when you buy Wii Play, your not actually buying software. Your buying a bundle pack with basically a free (or near free) game with a Wiimote.



Stop right there! This is very silly, MrStickball. I know several people who bought Wiis recently and just own Wii Sports and Play! If those games didn't exist, obviously they'd buy something else (or not buy a Wii at all, which would also increase the system's attach ratio in this hypothetical world). You absolutely cannot discount it entirely. You say including it gives (in your opinion) a "brutally unfair" advantage to the Wii's attach rate: I say not including it does the same in the opposite direction. I don't think including every sale is warranted, but not including any of them also isn't fair. Perhaps going by the Japanese attach rate is justified -- it's difficult to decide.

Until we decide how to calculate that, all of your other calculations can stay by the wayside.

Edit: At least for the American side of things.

The Japanese are another story. As noted by Famitsu -- and as can easily be verified by simply doing some math -- the Wii actually has an extremely high attach rate in Japan, given its install base and age.

http://biz.gamedaily.com/industry/feature/?id=16697

The relevant text: Despite its penetration pace being slower than that of the PS2 (3,267,000 units sold as of its 30th week mark) or the GBA (3,306,000 units sold as of its 30th week mark) the Wii's total software sales have been far in excess of these other systems' in terms of volume –thanks to its outstanding software-hardware tie ratio.

This is difficult to calculate given relatively weak data pools, but the Wii's attach rate can easily be compared to the current day competitors at their current paces. As noted, the PS3's attach rate is 35 percent lower than the Wii's in Japan. If the Wii's attach rate is just okay in Japan, what's your assessment of the PS3? You can also calculate the 360's attach rate at this point in its lifetime (We are 33 weeks in to the Wii's lifespan in Japan. 360 had been released in Japan for 33 weeks during the week of May 6th, 2006). The attach rate of the 360 at that time in its life was 2.52: approximately 8 percent better than the Wii's rate, which is notable but not drastic, especially considering the sale rates of the systems themselves. 

So, again, the American market we can't agree on until we can solve the Wii Sports/Play conundrum, and the Japanese market is, as far as I can tell, very healthy for the Wii.



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mrstickball said:


So basically, my synopsis is that the Wii attach ratios are not very good in either country, not entirely because of the actual ratio, but lack of increase despite games coming out. The US ratio is acceptable, but hasn't really increased in 9 months. Thats a huge problem. What happens when December comes around? Will consumers stay @ 4.0, and only buy a few games, while the PS3 attach ratio keeps increasing, and hits 4.5 or higher for actual full-priced games, and the X360 hits 6.5, or even 7.0 at the end of this year? With scenarios like that, it makes me question the ability for the Wii to dominate this generation - even if hardware does gangbusters, 3rd parties will realize consumers don't want the software like the fanbase of the PS3/X360.

If you have the data to back that up, that seems like a rather large problem. I do think that the audience that the Wii is aimed at is going to have a detrimental effect on software sales. I mean who is really going to buy Wii Sports 2? I mean the extremely casual gamers who are buying the Wii, aren't going to buy loads of versions of cooking mama etc. I just can't imagine many casual people picking up the latest Resident Evil or Metroid. That's not to say they won't sell, just won't sell well in comparison to the user base.

That's my 2 cents anyway. 



One person's experience or opinion never shows the general consensus

PSN ID: Tispower

MSN: tispower1@hotmail.co.uk

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But again, in terms of software revenue, which one is better, which shows what the consumer is buying:

1 million games a month at $60 USD or
750,000 games a month at $50 USD + 500,000 a month at an average of $20 USD.


Again, look at Japan, where Sports isn't bundled: The attach ratios are about half of that as they are in the US. This obviously shows people aren't adopting 3rd party, or other 1st party software. It's fine if you know people that have a Wii just for 1 or 2 games, but that really doesn't help the Wii out, outside of the hardware sale, does it? Videogame creators don't care about people that buy a Wii for a free, or near free game, because the games THEY have to make cost money, and if the consumer isn't willing to PAY for that game, they won't put the software out, will they?

A great example: Big Brain Academy. It's totally inline with the casual selling Wii Sports and Wii Play, but it's at #34 overall, and has sold under 90k units LTD, and is dropping badly! Why is that? Everyone here has said price. Nintendo hasn't been able to sell a game like that in the US very easily at such a high price, which leads the the strong assumption of mine that the only reason some things are selling (Wii Play) is merely because it's cheap, and everyone wants a real cheap game. So again, it leads to the arguement that the tier ratios for the Wii are somewhat deceptive. Again, bolstered by the fact that original 3rd party and 1st party full-price titles have not done very well compared to other historically dominant systems, and even the Wii's competition. This is huge, because it could be part of the reason that few 3rd parties have announced major IP franchises to goto the Wii - the sales just aren't there!

Likewise, we can take NGS versus RE4. RE4 has done very well, selling just around 200,000 units in US + Japan. NGS has sold around half of that (in a few week's less time). But again, extrapolating data puts NGS at a more favorable outcome: RE4 is $30USD, and NGS is $60USD, and similar prices in Japan. The PS3 also has half the LTD sales of Wii hardware in both countries.

So again, to a 3rd party, what is more enticing there with those kinds of sales? I'm just merely trying to remove myself from the picture and think like a businessman, and considering revenue and consumer trends before just the "Wii: 400k software sales this week" number.



Back from the dead, I'm afraid.

your mother said:

There arent more than 10 good games out for the console.
That's your opinion.

I dont know a single person who owns more than 10 PS3 games.
Perhaps because there aren't more than 10 good games out for the "P" console? That may be my opinion, but if you yourself don't have more than 10 games for the console made by S, well...

Everything else is a direct invitation to a flame war.
Have fun.


Does the "w"ii have 10 good games, i cant even count ONE thats not a port from a previous gen console.

"P"sp has no 10 games that are good, you think thats not direct invitation to a flame war.

 



mrstickball said:
But again, in terms of software revenue, which one is better, which shows what the consumer is buying:

1 million games a month at $60 USD or
750,000 games a month at $50 USD + 500,000 a month at an average of $20 USD.


Again, look at Japan, where Sports isn't bundled: The attach ratios are about half of that as they are in the US. This obviously shows people aren't adopting 3rd party, or other 1st party software. It's fine if you know people that have a Wii just for 1 or 2 games, but that really doesn't help the Wii out, outside of the hardware sale, does it? Videogame creators don't care about people that buy a Wii for a free, or near free game, because the games THEY have to make cost money, and if the consumer isn't willing to PAY for that game, they won't put the software out, will they?



It's not that these friends of mine only have 1 or 2 games (they've only owned the system for a few weeks, after all), it's that those specific games are Wii Sports and Wii Play. According to your method, their attach rate is literally 0, which is silly, especially when I can go over to their houses and play on their Wii with them, which would be impossible if they hadn't bought any games. It completely warps the attach ratio to simply ignore  Sports/Play.

Also, your evaluation of software revenue is jilted. For both the 360 and PS3, development costs are much higher, and those aren't factored in to your equation: for the PS3 in particular, Blue Ray discs actually do cost considerably more than a DVD9, so that needs to be factored in too. Generally though, I think we should simply leave this portion of the calculations out of it -- not because it isn't relevant, but because there is so much to calculate already that including this is simply too complex, especially given that we can't even agree on the attach rates of the consoles in the first place. 

And I still would be curious to know how you reached the conclusion that the Wii's attach rate in Japan is just "okay." At this point in its lifespan, it's well ahead of the PS3 (35 percent higher) and at approximately the same place as the 360 (the 360 is 8 percent higher, but systems that sell more slowly tend to have higher attach rates per system, and the 360 is selling much more slowly there).  If the Wii's attach rate is okay... what's the PS3's attach rate like? Terrible? Abyssmal? 

 



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mrstickball said:
But again, in terms of software revenue, which one is better, which shows what the consumer is buying:

1 million games a month at $60 USD or
750,000 games a month at $50 USD + 500,000 a month at an average of $20 USD.


Again, look at Japan, where Sports isn't bundled: The attach ratios are about half of that as they are in the US. This obviously shows people aren't adopting 3rd party, or other 1st party software. It's fine if you know people that have a Wii just for 1 or 2 games, but that really doesn't help the Wii out, outside of the hardware sale, does it? Videogame creators don't care about people that buy a Wii for a free, or near free game, because the games THEY have to make cost money, and if the consumer isn't willing to PAY for that game, they won't put the software out, will they?

A great example: Big Brain Academy. It's totally inline with the casual selling Wii Sports and Wii Play, but it's at #34 overall, and has sold under 90k units LTD, and is dropping badly! Why is that? Everyone here has said price. Nintendo hasn't been able to sell a game like that in the US very easily at such a high price, which leads the the strong assumption of mine that the only reason some things are selling (Wii Play) is merely because it's cheap, and everyone wants a real cheap game. So again, it leads to the arguement that the tier ratios for the Wii are somewhat deceptive. Again, bolstered by the fact that original 3rd party and 1st party full-price titles have not done very well compared to other historically dominant systems, and even the Wii's competition. This is huge, because it could be part of the reason that few 3rd parties have announced major IP franchises to goto the Wii - the sales just aren't there!

Likewise, we can take NGS versus RE4. RE4 has done very well, selling just around 200,000 units in US + Japan. NGS has sold around half of that (in a few week's less time). But again, extrapolating data puts NGS at a more favorable outcome: RE4 is $30USD, and NGS is $60USD, and similar prices in Japan. The PS3 also has half the LTD sales of Wii hardware in both countries.

So again, to a 3rd party, what is more enticing there with those kinds of sales? I'm just merely trying to remove myself from the picture and think like a businessman, and considering revenue and consumer trends before just the "Wii: 400k software sales this week" number.
Going through a few of your points, Big Brain Academy is a lame example isnce its such a half assed game it's no surprise its sold so little. Had the game been budget priced like its handheld it would have done great. I understand that that is kind of your point, that "full-price" games aren't selling on the wii... but to see that that is true, let's see some good full-price games.
(US only)
Twilight Princess: 1.8 million
Super Paper Mario: 610,000
Warioware Smooth Moves: 590,000
Rayman Raving Rabbids: 500,000
Sonic And The Secret Rings: 270,000
These games are all full-price still and none of these numbers are poor by any means. It just shows that if a company makes a game for the wii, instead of crapping out a cheap port, it'll move units, even at regular price.
As for RE4 vs NGS... RE4 is a port with no graphical updates whereas NGS seems to be a complete overhaul. You mean to tell me that RE4 selling more at a lower price... with likely a FAR smaller production cost, is less business savvy than selling less at a higher price of a game with a much greater production cost?
Which business school did you attend?
As for the OP... this seems like pure flamebait.

 

 




Again, bolstered by the fact that original 3rd party and 1st party full-price titles have not done very well compared to other historically dominant systems, and even the Wii's competition. This is huge, because it could be part of the reason that few 3rd parties have announced major IP franchises to goto the Wii - the sales just aren't there!

Likewise, we can take NGS versus RE4. RE4 has done very well, selling just around 200,000 units in US + Japan. NGS has sold around half of that (in a few week's less time). But again, extrapolating data puts NGS at a more favorable outcome: RE4 is $30USD, and NGS is $60USD, and similar prices in Japan. The PS3 also has half the LTD sales of Wii hardware in both countries.


The "no 3rd parties have announced major franchises" is a straw man: the reason why no major third party franchise titles have been announced for the Wii is because they were already in development when the system began to explode. Honest question -- which major third party franchise should be on the Wii? Let me list the ones I can even think of:

GTA
Devil May Cry
Resident Evil
Metal Gear
Dragon Quest
Final Fantasy
Tekken
Medal of Honor
Kingdom Hearts
Need for Speed
Madden

Am I missing any 3rd party franchises you would call "major"? I can't think of any. Of these, the three with quick development cycles (Madden, Need for Speed and Medal of Honor) have seen iterations on the Wii, and both Madden and Medal of Honor are being custom-tailored for the Wii now, as was announced at E3. Of the others, all but Dragon Quest were obviously in development for the PS3/360 before the Wii was launched, let alone before it became a phenomenon! The real question is -- of the titles that have begun development in the last 6 months, which system has seen the most activity? The answer is the Wii, especially when one considers exclusives (almost all 360 games have also been announced for the PS3, which effectively means the PS3 and 360 combined have to compete against the Wii alone). This can be seen rather easily here:

http://www.gamingtarget.com/article.php?artid=7064

In the last 3 months, the Wii has seen more net exclusive titles announced (13) than the 360 and PS3 combined (11), and I expect that figure to continue to accelerate as the system pushes past the 360 and further past the PS3.

Lastly, your RE4 comparison is especially unfair, given that RE4 is on its fifth version in the last 3 years, the second on a Nintendo console, while Ninja Gaiden Sigma is only on its second, and the first on a Playstation. Not a reasonable comparison at all, I'm afraid.



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