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Forums - Sales Discussion - Wii sees 1,700% increase in sales on amazon

arsenicazure on 29 September 2009

blah... I dont think non wii worshipers were holding off the console for $50... nintendo probably let out a shitload of stocks just before the price cut..



Doubt is not a pleasant condition, but certainty is absurd.

owner of : atari 2600, commodore 64, NES,gameboy,atari lynx, genesis, saturn,neogeo,DC,PS2,GC,X360, Wii

5 THINGS I'd like to see before i knock out:

a. a AAA 3D sonic title

b. a nintendo developed game that has a "M rating"

c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business

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gurglesletch on 29 September 2009

Interesting reasoning Avinash_Tyagi




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Loud_Hot_White_Box on 29 September 2009
Avinash_Tyagi said:
Loud_Hot_White_Box said:

Wii will also see a healthy bump in units sold overall, obviously.

And it IS about price, not just blue ocean, not primarily that people are rewarding Nintendo for supposedly having 'better' games...sales are in large part a function of price, because price is one major component of value.  And when PS3 came down into the near-Wii price range, well, Wii had to vacate if they wanted to maintain a strong 1st place position in home console sales.


  Except that's not why Nintendo did the price cut, they did it because of their concerns about not meeting sales projections, not Sony, althought I think they could have met it without the price cut, but that's neither here nor there, look at PS3 sales, they are falling, even without the price cut Wii was around 180-190K a week, the PS3 would have fallen below that very soon, in fact it may have been around that level last week, we'll know when the numbers come in, no Nintendo was worried they wouldn't be able to move 26 million by march so that's why they price cut.

Nintendo is primarily concerned with profitability, obviously, and in the new pricing environment determined that by selling more units because of a lower price, and then selling software, they would be more profitable.  This is so even though they will be making $50 less per console sold.  They don't want to lose momentum and mindshare, as that would be disastrous, and the new price is the remedy.  I bet their sales projections took likely price cuts (from all 3 companies) into account, and of course Nintendo wants to beat the projections.

If Wii sales don't plateau at a higher level after the Wii price cut, only then could one say that price is not a primary sales driver.



Avinash_Tyagi on 29 September 2009

You can't really make that argument, because Software is coming out this fall, so any plateau could be attributed to a stronger software lineup rather than price.

Yes Nintendo is concerned with profitability, but you can't sell more than you have in stock, and Wi has been sold out every holiday since launch, and possibly would have been sold out this holiday as well, so even with the price drop they may not more more just because they won't have any more to move.



 

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)

Loud_Hot_White_Box on 29 September 2009
Avinash_Tyagi said:
You can't really make that argument, because Software is coming out this fall, so any plateau could be attributed to a stronger software lineup rather than price.

Yes Nintendo is concerned with profitability, but you can't sell more than you have in stock, and Wi has been sold out every holiday since launch, and possibly would have been sold out this holiday as well, so even with the price drop they may not more more just because they won't have any more to move.

If that were true, the supply limitations themselves could prevent them beating their sales projections, so no need to drop price to meet sales projections.  Anyway, yeah, even the plan to drop price to meet sales projections admits that a drop in price gooses sales.



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Avinash_Tyagi on 29 September 2009
Loud_Hot_White_Box said:
Avinash_Tyagi said:
You can't really make that argument, because Software is coming out this fall, so any plateau could be attributed to a stronger software lineup rather than price.

Yes Nintendo is concerned with profitability, but you can't sell more than you have in stock, and Wi has been sold out every holiday since launch, and possibly would have been sold out this holiday as well, so even with the price drop they may not more more just because they won't have any more to move.

If that were true, the supply limitations themselves could prevent them beating their sales projections, so no need to drop price to meet sales projections.  Anyway, yeah, even the plan to drop price to meet sales projections admits that a drop in price gooses sales.


  No it only means that they think they need it to grease sales, and that they wouldn't sellout without the price cut, personally I think they would be better served with new bundles, like an NSMB Wii bundle and maybe a Wii Sports resort bundle, rather than the price cut.



 

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)

Alby_da_Wolf on 29 September 2009

^^
Even if the cut was by no means necessary, yet, if Nintendo manages to increase HW sales BEFORE Xmas, it will have huge sales also on SW. XMas sells more SW than other periods. New HW owners naturally tend to buy more SW than old ones, as they have to build their game library from scratch. Combine the two things and the argument on SW sales is absolutely sensible. This doesn't exclude your argument about meeting HW sales prediction, it's sensible too. Think of it, if Nintendo had MORE THAN ONE REASON for the cut, it becomes even more the right thing to do.



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Wii_Master on 30 September 2009

Guys there is another way of explaining how wii sales will be after price cut:

Wii Sales now: 200K

Wii Sales after: 360K(First Week), 250K(Average After Price Drop)



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