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Forums - Nintendo Discussion - Pachter's third party question to the hard core gets the usual responses

famousringo said:

I've seen some people on these boards assert that they think Nintendo license fees are higher

They're not.  Well, not in real value, but they are proportionately (again, due to different MSRPs).

DS fees are a bit higher (versus PSP) due to manufacturing costs though.  Bizarrely, I've also heard that UMD and PSN royalty fees are identical, which makes absolutely no sense to me (no manufacturing/inventory costs, just servers/bandwidth). :/



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Oh Pachter, how we all love to talk about you...

Seriously, this guy's quickly becoming the most famous (or infamous) and most talked-about person in the entire gaming community. Why the HECK does everyone keep talking about the guy non-stop? Seriously, he's not that interesting imo...



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Hardcore games are like Demon's Souls and Ninja Gaiden Black. They're hard. Core games are everything else that people call hardcore.



I like Enterbrain's crazy president's term: "game-like game"



Some thoughts on the OP and various comments.

A lot of casual games have sold well on the Wii without much PR as Legend 11 points out. But in almost every case, these sales occurred earlier in the console's life when the game selection (and competition) were substantially less.

Also, Txrattlesnake is right that the Wii's technology (and to a lesser extent its demographics) work against it for "core" titles. In other words, for many of those who are apt to play such titles, they will get them on the PS3 and/or X360 rather than the Wii.

The challenge for the Wii is to invent non-graphic ways for the games on its system to be better. That makes it difficult for cross-platform endeavors. But it also opens up a world of possibilities for stylized games using limited movement (not waggle). As a result, the core games should be more like NMH than BC2.

Finally, this whole line of discussion seems strange. Asking NeoGAFers about the Wii is like asking about the Yankees in Boston. It just ain't the right place to go.

Mike from Morgantown

(For those not familiar with North American Major League Baseball, substitute one highly successful sports franchise and the location of its chief and also highly successful for rival for these two).



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

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Legend11 said:

I was just reading Michael Pachter's post on NeoGAF in which he discusses third party game sales on the Wii and then asks NeoGAF, as a hard core site, what third parties need to do to have more success on the system.  The responses are predictable to say the least since this topic has been discussed nearly to death on message boards like this one but I just wanted to point some things out that may lead to some interesting discussions.


The first is the notion that advertising is to blame for the poor reception of third party hard core games as a whole on the Wii.  So I have to ask, isn't a hard core gamer by its very definition a person more into gaming?  They're the people on video game message boards, video game websites, gamestop regulars, or at the very least they tend to discuss video games with their friends.  So it seems strange that they would require more advertising than casuals that tend to be oblivious to release dates and most upcoming games.  I mean who here didn't hear of MadWorld before it came out?  Yet there are games with almost no advertising or word of mouth that sold far more than it.  So perhaps it's really simply the demographics of the Wii that is to blame.


Another thing I noticed is that the advice given by people in Pachter's thread really doesn't make sense.  If I were to ask what a third-party should do to have success on the 360 I'm sure many would say to make a FPS.  Yet in Pachter's thread the near unanimous advice is to invest more in the kinds of games that are currently selling less on the system.  Instead of giving the advice of making a decent to good casual game on the Wii and advertising the hell out of it the advice is to make a more expensive core game and advertise the hell out of it.  This is akin to giving advice to 360 third parties to create casual games for that system and advertising the hell out of them.  At the end of the day you have to ask if maybe third parties aren't the ones that don't get it.


Also another thing Pachter mentioned and that I agree with is that the split between hard core and casual gamers on the Wii may be far greater than originally thought.  The millions of systems that have been sold thanks to Wii Sports and Wii Fit obviously have had an enormous impact on the demographics of the system.  If half (or more) of the Wii userbase really is female it starts to make sense why some of those games aren't selling to what would be expected based on the installed base.  The Wii really is a different beast and perhaps the best advice for third parties is to make the kind of games many people on boards like this one deride and to work hard at making them take off.

Well that is a completely misinformed argument haha.  Don't get a lot of these lately... wait who am I kidding I get them all the time.  "Hardcore gamers" as you and they put it is I assume to be the traditional core gamers although I'd disagree with the definition.  A few poor assumptions are that they are ALL well-informed, ALL buy lots of games, and ALL talk on message-boards, frequent game stores, or discuss with friends.  Keyword is ALL.  Do you think us that talk on these kinds of site are a majority?  Have you been in a Gamestop recently?  The majority of people I see coming through  my store that people like you would call "hardcore" I'd say don't talk on internet forums, started gaming as a kid maybe with the NES but only got big into gaming with the PS2, and probably couldn't tell you what Chrono Trigger is. 

The point is, people like us on these forums are a minority within the "hardcore" minority.  Generally these gamers are just like mainstream gamers/casual gamers in nature but just buy a few more games maybe due to gaming as a kid or higher monetary income.  But they probably don't know a game is coming out til a few weeks before it comes out.  They don't read reviews (they ask me at the store haha).  Point is hardcore gamers aren't gaming nerds.  They just aren't.  There is a small amount of them that are but for the most part (accept for Japan) they just buy more games than your normal customer.

How do you reach them?  You advertise and market.  That is how these games get noticed by them and that is why they buy them.  Whether or not demographics are same or different on the Wii is irrelevent, the actual core gaming base (people like you and I) are not a majority or even a plurality in any sense on any of the consoles and handhelds.  We don't make these companies money either.  We work at the game stores, talk online, read reviews, but the rest don't.  The rest either learn about it from us or they reached by extensive marketing and advertising.  So that is why that point is the best point, because if those PS360 games didn't get the marketing they did they would have similar issues... hell go look at the ones that did and you'll see why. This is an industry and your money make is how well you sell it.  Quality doesn't hurt but you sell it with getting people to know it exists and like what they hear or see (hype). 

The Wii is no different and it needs the same thing.  That is why the Nintendo games succeed and a few 3rd party efforts succeed.  But why the likes of most of them don't.  Of course there are your "in-store" successes that sell off box-art, name, or retailers "selling" them (games Deca Sports for example), but for the most part to sell outside of the core gamers, you have to let them know it exists and why they should buy it.  The core gamers will read the reviews, be well-educated on it, and know from day 1 (just like the Japanese gamers) but for the most part the rest in America and Europe will not have that luxury.  Whether you consider the people who bought Halo or Call of Duty or even some RPGs nowadays is your personal opinion, but the majority of them are not like the people on these forums (although thanks to Facebook and  MySpace popularity I think they are starting to leak over).



It doesn't really matter if one's definition of "hardcore" games don't sell too well on Wii. Nintendo has it's own strategy and if third party developers can't make something sell then it is their fault. The only thing that needs to be said is that they need to make better quality games and let the quality sell the game not depend on advertising. It also doesn't help when Nintendo makes better games than most third parties. The only third party game made for the Wii which I think should have sold more would be Little King's Story. Almost all other games have sold what they should have.



I just want to make something clear: The types of gamers who go on websites and look up game reviews is a VERY SMALL NICHE. For example, I go on gaming websites (obviously) but my two brothers and several other males do not. My neighbor only heard of Uncharted 2 2 weeks ago, and he loves it.

There are people who buy the latest FPS but do not go on gaming websites. The advertisements are what get their attention; it isn't exclusive to the casual/non-gaming/upstream demographic.



Leatherhat on July 6th, 2012 3pm. Vita sales:"3 mil for COD 2 mil for AC. Maybe more. "  thehusbo on July 6th, 2012 5pm. Vita sales:"5 mil for COD 2.2 mil for AC."

famousringo said:
jammy2211 said:
In my view it's just no third party dares risk big bucks on a Wii project, to try and emulate the Mario Kart come NSMBWii 'bridge' appeal that Nintendo pull off so well. The finances are hard to justify - Wii games generate them ~$10 less then a HD game per sale, which after you count in costs reduces the profit per copy by 33% compared to a HD game. Throw in the Wii markets tendancy to buy games at reduced prices, and it doesn't look so rosy.

Nintendo throw a ****ton of money at the advertising budget, and it results a ton of sales. No third party has really dared try this approach outside of a Wii Fit / Wii Sports rip offs, because the figures don't add up, and they can invest just as much money in a HD project where they know the market will snap up a game with guns, warfare, blood etc.

Third parties have typically always invested the money after they know the potential for success is there. Until then they'll just keep making Wii game after Wii game, hoping one will randomly be a break through success, similiar to Just Dance.

I think you're raising some very good points, I really do, but I always wonder where that extra $10 goes. I doubt it all goes to the publisher. I've always assumed that the retailer gets a cut, since the retailer markup is usually a percentage of the wholesale price. I'm also guessing that the hardware manufacturer gets a slice in higher license fees to pay for those hardware subsidies. Manufacturing and distribution should be pretty even.

I've seen some people on these boards assert that they think Nintendo license fees are higher, but that makes no sense to me when the HD consoles are dependant on third party software licensing to make a profit while Nintendo earns a profit on everything they sell.

Anyway, not disagreeing with the gist of your posts, I just think your details are a little exaggerated.

In reality it'll be $8-$9 less profit per copy, but it's just easier to estimate it as $10 unless you're really wanting to get into the financials. Retail obviously takes a smaller cut out of a cheaper game, and licensing fees are based as a % of the products RRP, so is likely less for the Wii as a number.

 In my opinion if what I've put is exhaggerated, it's that I make the picture better then it is for publishers - on every console.  The reality of a video games financials imo is a much less rosier picture then alot of people want to believe, emphasised that only 20% of released games actually go on to make profit, and 4% of all games that enter production.



anyone ever stop to think that maybe these casual games are just too hardcore?

I mean it would only make sense if by definition hardcore games are games that are expected to sell.

Then a game comes out and it sells and it continues to sell then perhaps that game is now hardcore?

That made a lot more sense that saying games that don't sell do sell... if anyone else is confused it's ok, I think you'd have to be god, high off your arse or a marketer to figure out what the heck was described above.



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