Forums - Sales Discussion - Retail sales plummet, electronics down 27%

General economic theory: Price elasticity.

If you decrease the price of a normal good you would expect to earn greater revenue.

Laymans terms!



Tease.

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sega4life said:
Tyrannical said:

http://online.wsj.com/article/SB123025036865134309.html

And obviously video games are not down, so in case you were curious of the definition of "recession proof"

 

 

 

One of the main reasons why Video games sell so well during hard times is the lasting appeal, or ones money's worth.

Instead of buying Movie tickets for the family in excess of say $35.99: 4 people + Drinks + Popcorn etc etc.. or going out to other places that cost money for just a few hours.

People would rather buy a video game that they can play with the family at home for hours on end.

 

 

         And yet, movie sales are way up. I know that might have been example, off the top of your head, but I don't think it's very accurate. I don't think most people look at it that way. Usually when some one goes to see a movie, their more interested in having a night out. Maybe they want some time to be with their spouse or maybe some time to hang out with their friends, but either way it's usually more about having some time away from the family, than it is about having family time. I know that's a little cold, but I think that's a lot closer to the truth.

         Another thing worth noting is that, hardware is also up a lot. You can certainly see quite a few movies, for the cost of 1 game console. Since, going to a movie is lot more of a spur of the moment thing, then not, buying a console is probably not going to seem like a good alternative.

         I'm not sure if that last line is there, to try and justify the Wii's strong lead, but either way if there's any truth to it, it spells serious trouble for HD gaming. Ninty already had a stranglehold on blue ocean gaming in general, with or without a recession, but if family gaming is specifically what's going to matter to most of the consumers, from here on out, then there's not really any competition, at all. Sony's failing hard at appealing to families and MS isn't doing a much better job. Even the way they advertise, almost completely isolates their products and puts an ostracising stigma on their userbases. For awhile now, they've been going after a niche market, not just aggressively, but almost exclusively. Any attempts they have made at capturing family audiences, has been mostly coming off as hollow, forced, unnatural, and maybe even a little desperate. Sometimes to the point of being patronizing.

         If the recession is really having that effect, expect Ninty's weekly % to get significantly larger down the road. The economy is going to get a lot worse, before it starts to get better and that light, at the end of the tunnel is a long way away. I'm not trying to be harsh. I'm just trying to make realistic assessment. Something few people seem to do, on here. Ofcourse, it's just my perspective on the situation. So, if you completely disagree, don't get worked up. Just take it with a grain of salt.

         

 



MaxwellGT2000 said:
outlawauron said:
FreeTalkLive said:
Squilliam said:
outlawauron said:

He's 16 now, ya know.

Does that mean he can buy beer?

 

 

According to the law?  No.  But the law says he can in 5 years.

He can not. But in here in the fine state of Louisiana you can drink it at 18, but can buy it at 21.

God bless democratic laws that make sense.

/sarcasm

Really why can't you buy it at 18?  I really believe the driving age should be 18 and drinking 16, you're less likely to be a drunk teen driver if you don't have a car to drive ;) cause laws don't stop teens from drinking but hey whats the point in having a car if you can't drive it eh? (make some laws that make sense!)

 

You will never understand Louisiana politics. They are quite different from every other state.

You can't buy at 18 to prevent drinking at college parties, but you can drink being that you are an adult if you know someone who is older than you. This way you can drink wine at weddings, etc.

Driving at 16 is very important as it relieves families of the job of bringing kids to school.



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Squilliam said:
General economic theory: Price elasticity.

If you decrease the price of a normal good you would expect to earn greater revenue.

Laymans terms!

 

 Actually I believe that is an "ordinary good", a "normal good" is when demand shifts based on changes in income not price, an ordinary good is when demand shifts based on changes in price of good, the difference is that a normal good is always an ordinary good, but an ordinary good can be either a normal good or an inferior good

 

Found this handy table

 

Income change                                                                   Price change
                       Normal good              Inferior good                                     Ordinary good           Giffen good
Income up      Consumption up        Consumption down       Price up        Consumption down   Consumption up
Income down Consumption down   Consumption up            Price down   Consumption up Consumptiondown



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)