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Forums - Sales Discussion - Does the Wii prove that the HD razor/blade model is flawed?

alephnull on 28 December 2009

Is nintendo really doing that much better when you measure market share by revenue?



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Squilliam on 28 December 2009

I believe they have over 50% of the market hardware revenue if I recall correctly.



Tease.

alephnull on 28 December 2009
Squilliam said:
I believe they have over 50% of the market hardware revenue if I recall correctly.

How is that possible when they have about 50% market share by unit sales and those units go for about half the price of a ps3/360?



Xoj on 28 December 2009
alephnull said:
Squilliam said:
I believe they have over 50% of the market hardware revenue if I recall correctly.

How is that possible when they have about 50% market share by unit sales and those units go for about half the price of a ps3/360?

and most of the time bundled with accesory.



Squilliam on 28 December 2009
alephnull said:
Squilliam said:
I believe they have over 50% of the market hardware revenue if I recall correctly.

How is that possible when they have about 50% market share by unit sales and those units go for about half the price of a ps3/360?

If you're talking everything then the DS is the answer.

If you're talking about 'just home consoles' then it really depends whether you include hardware accessories or just the units themselves because they sell a lot of physical hardware between Wiimotes, motion + and balance boards to go with their Wiis. To include it would skew the results towards the Wii and to exclude it would skew the results towards the other consoles.

Because im sleepy as a rough figure due to the price cuts etc I would say its about 35-40% on the pure hardware alone.

 

 



Tease.

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alephnull on 28 December 2009

So the revenue number referenced includes peripherals?



alephnull on 28 December 2009
Squilliam said:
alephnull said:
Squilliam said:
I believe they have over 50% of the market hardware revenue if I recall correctly.

How is that possible when they have about 50% market share by unit sales and those units go for about half the price of a ps3/360?

 


 

Squilliam said:

If you're talking everything then the DS is the answer.

Well, you can't really include the DS because 1) MS doesn't sell a handheld and 2) I don't think Sony sells the PSP under cost.

Squilliam said:

If you're talking about 'just home consoles' then it really depends whether you include hardware accessories or just the units themselves because they sell a lot of physical hardware between Wiimotes, motion + and balance boards to go with their Wiis. To include it would skew the results towards the Wii and to exclude it would skew the results towards the other consoles.

If accessories skew the numbers that much, then the key to the wii's success would seem to be in squeezing revenue out of addons.

Squilliam said:

Because im sleepy as a rough figure due to the price cuts etc I would say its about 35-40% on the pure hardware alone.

Understandible. 35-40% is hardly domination.



Alterego-X on 28 December 2009
KylieDog said:
To use your razor blade example most Wii owners are type of person who buys a Gillette razor and after buying a few blades for a while they want a new razor they go and buy a Braun because it looks cool at the time. HD owners are the type who when they want a new razor they ditch their old Gillette and buy they newest Gillette to replace it.

Sony/MS are building a base set of customers for future consoles where as Nintendo has to hope is can get lucky and get the customers to stick with them next time. They got lucky with motion controls proving popular and catching some eyes but next gen Sony/MS will no doubt from the start offer something to match whatever Nintendo releases so Nintendo isn't gonna be as unique anymore.

Extraordinary claims require extraordinary evidence.



alephnull on 28 December 2009
RolStoppable said:

In which way is revenue relevant to the topic at hand? I am curious.

Revenue is really the only measure of popularity that matters. The problem is both Microsoft and Sony had major unanticipated cost overrun disasters. Microsoft had RROD. Sony was hit by both major upheavals in the fab industry and diode shortages.

Their business models would seem to be perfectly sound as long as they can contain major cost explosions next time.



Xoj on 28 December 2009
RolStoppable said:
KylieDog said:
RolStoppable said:
KylieDog said:
To use your razor blade example most Wii owners are type of person who buys a Gillette razor and after buying a few blades for a while they want a new razor they go and buy a Braun because it looks cool at the time. HD owners are the type who when they want a new razor they ditch their old Gillette and buy they newest Gillette to replace it.

Sony/MS are building a base set of customers for future consoles where as Nintendo has to hope is can get lucky and get the customers to stick with them next time. They got lucky with motion controls proving popular and catching some eyes but next gen Sony/MS will no doubt from the start offer something to match whatever Nintendo releases so Nintendo isn't gonna be as unique anymore.

So in other words, "core" gamers are loyal customers while "casuals" are not?

I said nothing of core or casual gamers.  Wii has done well this gen because motion controls grabbing new gamers and it is the only console to have any.

But you doubt that these new gamers could develop any loyalty to Nintendo or that they at the very least would like to play sequels to games like Mario Kart Wii. Right...

Another thing that I didn't quite catch the first time is you saying that Sony and MS will offer something to match Nintendo right from the start. How can you be so sure about that, if 1. Nintendo usually is good at keeping secrets and 2. Nintendo usually launches last. For all we know Nintendo could come up with something completely new and Sony/MS wouldn't have the time to match Nintendo's offerings in time, because that simply can't be done within six months.

not casual gamers, nintendo have it fanbase, due mario and zelda, but loyalty doesn't reallly exist for the casual market, consumer will continue buy your product as you please them, but the market nintendo have right now it's unpredictable, they found a gold recipe for casual games.

before ipod everybody had a CD player walkman from sony, now sony ericcson revived the brand with walkman phones, and now every phone have a decent mp3 players outselling ipod by tons.

 

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