Azuardo said:
They could not have predicted these Europe sales, though, so how would they have known to smash out such titles in time? Nor do they have the time at this second to get any new Zelda or Mario out there until the end of the year. If anything, it's going to make them rush out stuff like Wii Fit U ASAP. I honestly don't know how they are going to counter these sales in Europe, since they are far worse than sales of the system in the rest of the world. I'm guessing a price cut by the summer will be the start of things if nothing improves.The recent PS3 > 360 report in WW sales, I've been reading it might not be 100% accurate. But I haven't looked into it properly. But thought I would mention, since you brought it up.
As I understand it, North America has the largest video games market, and Japan has the smallest, making Europe more or less the wild card. Nintendo is underperforming in the UK, but I don't think they're underperforming so badly in the UK that the whole company would go under.
Jacob4000 said:
Nintendo's figures are for the "Americas", as in Canada, the US, and Mexico. The figures for DFC are for the US only. So not necessarily a discrepancy here. Unless I'm missing some other detail?
Then DFC's figures would only be correct if they are assuming there are zero sales for the Wii through the next four years and mean that several million of the current Wii sales are from Canada and Mexico, which I'm sure a few million are, but I think nearly all of those are from the US. Again, their numbers only work when you make a lot of random assertions.
I'd also like to point out that generational transition is certainly a weak point for them, but this isn't their first transition. It's the first one where they've lost profitability though. Whatever is blamed doesn't change the significance of that.
This is true. It does however depend on how much they're losing, and the answer is not a lot. One game purchase entirely counteracts the profit lost by the sale of a console (for the competitors I think it was 5-6 but I may be wrong), and again, we can assume that the Deluxe Set isn't sold at a loss at all considering its US cost is the price of one game higher than the Basic Set. They're losing money on the Wii U, but they're not losing much, and while they're new to losing at all, I don't think they're going to completely bungle this to the point of bankruptcy.
The only point I'm comparing is that for years the Wii outsold the 360 in the US by a wide margin. That isn't happening anymore. Not even close. The Wii is regularly far outstripped by the 360. When the leader goes from 1 to 2, that's a big shift. Whatever is to blame is frankly irrelevant (especially since this article is merely talking up hardware sales), the reality is the Wii's fall is notable, especially in the face of the relative staying power of the 360. The Wii U can't really be blamed for this either -- this trend started long ago.
That's where I take issue though, the leader hasn't gone from 1 to 2. The Wii is still the generation leader, and by a massive margin. By my Google, the Xbox 360 only sold roughly 4 million units more than the Wii last year, rounding up. Even if we assume the same will continue, it wouldn't put the Xbox at a higher number than the Wii by 2017. And we have no reason to assume the same will continue.
I never said Nintendo is uniquely in a poor position -- the industry as a whole is in tough shape.
I know, I said that, in response to groups like DFC and Michael Pachter using language like Nintendo is being "crushed", "dominated", "in a tailspin" etc. They aren't, they're doing better than their competitors in a time where it's bad for everyone. I was saying the only case that could be made is that if the industry as a whole fails, Nintendo is the only big 3 company to fall with it. But there's no indication that the industry as a whole will fall, so these forecasts are irrelevant.
I'm only countering the notion that everything is fine and dandy. When you lose profitably, your stock tumbles from its previous highs, and your brand new systems aren't selling at the pace you'd like, you can't say things are going super well.
You're right. I didn't mean to make things seem like they're super great, because they aren't. But they aren't even in the same ballpark as bad as a lot of US investors and reporters are claiming they are.
Perspective may help prevent the onset of panic over these developments, but it doesn't change the fact that these aren't wonderful times for Nintendo right now. End of Nintendo time? They have far too much money banked for that to happen, and the 3DS will ultimately prove to be a success for them. Not end of Nintendo time, but not the heady days of just a few years ago either.
This is basically what I was trying to say. The perspective part being that DFC's forecast relies entirely on an extremely skewed perspective that doesn't reflect how things actually are.
Okay we're losing focus here. You've shifted from the US market to the entire worldwide sales picture.
Again, because DFC is, for whatever reason, pretending the market outside of the US simply doesn't exist, and that's a very big factor because Nintendo is doing the best outside of America by leaps and bounds.
Speaking only of the US Market; I don't see how your notes about the 360 sales are detrimental. Which way would you rather have momentum? Nintendo's way where it went gangbusters early and now is limping forward painfully, or Microsoft's where they're actually picking up steam as the generation goes on? Right now MS is rolling smoothly into the next generation without really a concern. Nintendo launched the Wii U out of necessity because of flagging Wii interest.
An interesting question. I would have to answer that I'd want it Nintendo's way if I were Nintendo, and Microsoft's way if I were Microsoft. The reason for this goes back to the market; Microsoft is the leader when it comes to the PC world. They can afford to perform absolutely terrible in the video games market for five years and then bounce back. Nintendo is only in the games market, they can't afford to suck for five years and then start doing okay, they're better off making a huge profit that slumps when the whole industry slumps and then releasing a new console, just as they are doing.
In short, I don't think either company is doing anything wrong on that front. They're both where they need to be, though the numbers could look better for everybody.
As for worldwide PS3 vs 360, I believe the two are roughly in-step worldwide. But since we're talking about the US market, the 360 is the dominant system. Japan is obviously a different story, and Europe might be as well. Speaking globally, Sony has also done a pretty good job shifting momentum from a system that appeared doomed to dramatic failure, to one that remains competitive.
The 360 is the dominating system. Not the dominant. It's several million units away from that, and even by DFC's warped numbers, there's little reason to believe it'll get there in the next four years, and I think the 360's sales will drop massively in two years when Microsoft releases a new console.
Sony has performed pretty well. They've been on an extremely slow but extremely steady incline for pretty much the whole generation.
Yeah I don't expect them to disappear by any means. I also expect them to become profitable again very soon. The 3DS is making money, and while the Wii U is sold at a loss, it's not a significant loss and it's one that's easily recovered by software sales. Assuming the strength of the Yen doesn't sink them in the long run, Nintendo will be fine.But I also believe this generation (i.e. the Wii generation) is an outlier in terms of Nintendo's market position. I don't think they'll have the number one selling piece of hardware for the Wii U generation.
I don't think they will either. Nintendo dominated Sega by having the best games. They dominated MS and Sony by having revolutionary hardware. The Wii U so far has neither (it's close on the latter, but it's more of a natural extension of what they did with the Wii than it is something new and never-before seen). I think at best we'll see Nintendo pulling a Sony this generation and at worst repeating the GameCube, but either way still handily carried by the handheld market they dominate with an iron joystick thumb.
( Edited 15.01.2013 15:30 by justonesp00lturn )