Nintendo Wants More Wii and DS Sales

At E3 Reggie Fils-Aime let the world know he wasn’t satisfied with the sales progress of the Wii or DS in 2007 and hopes Nintendo can do better this year. Perhaps Nintendo is playing the humble card? No doubt they bragged about their 10 million sales of the Wii and 20 million sales of the DS but quickly followed it by saying they’re not satisfied.

Or, is this a threat?

Nintendo has built some steep competition while both Sony and Microsoft scoff at their product and tell everyone its a novelty and it doesn’t really “count” in this next-generation console battle. It doesn’t count… really?

Perhaps Microsoft and Sony are right; maybe every Wii owner that wanted a PlayStation 3 and/or an Xbox 360 purchased their console too. There may be some truth to that as hardcore gamers may purchase a Wii for many reasons:

  • They want every console so they have the widest array of game purchases
  • They’re hardcore nature forces them to spend money on all products
  • They want to get their kids in on gaming early, to grow them up in their image
  • Mob mentality, if everyone has a Wii you must as well!
  • The technology is cool and you want to be there for its inception

It seems they don’t feel a threat because Wii is a non-gamer console and thus attracts a different crowd… yet they’re both mimicking some of the motion sensing in their own controllers and playing nice towards “casual games” and non-gamers of late. Maybe their not threatened, but impressed?

Fils-Aime isn’t impressed with their sales figures, perhaps because he expected a higher degree of Wii sales by now, but the fact that people cannot purchase them two years into production has hurt sales figures. Although 10 million units sold is an impressive figure, knowing you had such higher potential if the product was actually on the shelves has to hurt a bit of your pride.

The DS sales were impressive considering the product has been in the market for awhile and is easier to find (minus the holiday rush). We’re not sure why he’s not satisfied with the figures, but inspiring a higher degree of DS sales will require some work. Perhaps this is why they’ve gone with the GTA Chinatown approach; using the GTA name to grow their DS sales figures?

It will be interesting to see how Wii does through the next few quarters and if sales slow down now that we’re a few years into the product. What was the last home console Nintendo owned to get this high of a demand?

Perhaps none.

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Xbox 360, PS3 and Wii: Who’s Winning And HowXbox 360, PS3 and Wii: Who’s Winning And How

People see facts and figures constantly and brush them off as, well, facts and figures. But, when people see charts and graphs they “oooh” and “aaaah” over them because the visualization is easy to understand. Now, thanks to the NPD Group and Deutsche Bank, people are seeing some pretty graphs about the console battle. These show just how well the race is going on all fronts of the war.

Hardware Sales chart, via gamedaily.com

Although the data is fairly small the colors show it all, the Wii crossed over the Xbox 360 numbers in unit sales and hasn’t stopped since the launch. Here we are, on the third holiday season since the Wii launch, and people still cannot find them in stores. Shortage? Doubtful. Considering the massive sales numbers and the fact that they did take the 360 in numbers it seems the supply just can’t meet the over-the-top demands, but why is the demand so high for the little Nintendo bundle of joy? People just can’t get enough Wii.

The Xbox 360 has much to brag about as well, they’re not first in the race but their nearest next-generation graphic console, the PlayStation 3, isn’t even close. The chart shows them both rising in much the same way, with the same “pops” along the sales chart but in a completely different scale. Since Microsoft doesn’t want to consider Wii a competitor, they’re clearly winning the war in their eyes.

Oddly enough, one of the big pops in Xbox 360 sales where around the PS3 launch. Perhaps these consumers were waiting for both consoles to launch before making a decision? More than likely, it was holiday related and had little to do with the PS3 launch but it is fun to ponder anyway.

What about software sales? We’ve heard the Wii has little to offer in terms of games while the 360 wipes the floor with the competition.

Software sales charts, via GameDaily.com

To our surprise, the Wii is rocking the sales figures in terms of software but still doesn’t compare to the Xbox 360. Microsoft pulls out 93-million units while Nintendo takes home a modest 73-million units in software… yet again Sony doesn’t show up to the fight. Looking at November 2007, you can see the Wii jumps significantly in unit sales, no doubt related to the Super Mario Galaxy launch — once they hit that figure they never looked back and continued to climb.

Although a few of us expected Sony’s PlayStation 3 to make huge progress this year, each month they have marginal growth is causing their competitors to excel beyond anyones imagination. We’re starting to wonder how well Sony’s “10 year plan” is going to work out with their competitors taking advantage of the market now when, in 10-years, they will be sitting on their pile of cash to re-invest in the 8th generation of consoles.

(Thanks, GameDaily)

Microsoft Shoots for Number Two In Console WarMicrosoft Shoots for Number Two In Console War

Microsoft recently announced their price cuts on the Xbox 360, effective today, but what is motivating them? Microsoft’s not going to make much additional money by passing off the savings to the customer but they will, more than likely, sell a bunch of great new Xbox 360‘s to a new crowd of gamer.

Motivation? Sony.

“I’m not at a point where I can say we’re going to beat Nintendo,” says Don Mattrick, senior vice-president of Microsoft’s Interactive Entertainment Business. Indeed, Nintendo is likely to run away with the lead in the current generation of console gaming, leaving Microsoft and Sony to battle for second place. (businessweek)

Who would have thought Sony and Microsoft would be battling out this generation for second place while Nintendo breezes through with their Wii console and a handful of games with mediocre game reviews? Don’t answer that, it’s a rhetorical question. If you saw this coming and you’re not on the marketing or project planning for one of these console makers you better prep your resume!

The battle isn’t cooling, Microsoft drops their price to compete with their big competitor Sony which also brings it closer to the price tag on the Wii getting two bird with one stone. The reason Wii is winning is clearly due to its broad demographic of grandpa and grandma non-gamers along with hardcore gamers who have to collect all the consoles and younger gamers that want to fit the trend.

Microsoft’s clearly shooting for second place by installing more units into the consumers home as possible. They’ve got a great library of first person shooter titles, a few RPG’s and RTS titles and the typical contraversial titles like GTA and Saints Row with more hot blockbusters (read: Gears of War 2) arriving soon.

I see this as a great opportunity for casual game developers to get into the Xbox Live Arcade market and start making themselves (and Microsoft) some money off the new gamers that will buy their first Xbox 360 for $199 and up. Microsoft’s getting closer to the low-budget gamer crowd with their price cuts so it would be great if they can take advantage of that market with lower cost titles as well.

If you’re a game developer looking for console stick time and you want to grab the attention of a large pool of gamers, the Xbox 360 isn’t a bad start!

While Microsoft isn’t aiming at Nintendo just yet, there is no doubt Nintendo will be in their sights if they can smoke the pants off Sony in the near future (by this holiday).

Activision: Cleaning House, Losing StudiosActivision: Cleaning House, Losing Studios

Now that Activision has merged up with Blizzard all under Vivendi it’s time to consider what to do with all the additional overhead, management, internal studios and sheer amount of people working on projects within their organization. In other words, it’s time to trim the fat and get leaned out for the long haul.

This isn’t unexpected news, the only way to grow more effective as a large company is to remove some of the access baggage that can slow you down and let your competitors take control. This is a sad job which nobody takes pride in (most normal people anyway) but it could mean the difference between rising to the top and sinking like a brick.

“We are focused on improving efficiency across the combined organization and are concentrating on businesses where we have leadership positions that are aligned with Activision Publishing’s long-term corporate objectives,” Activision Publishing CEO Mike Griffith said in a statement. (gamespot)

It’s important to be aggressive as a large company, just like you would be as a startup company. There is a reason startup companies grow into powerful competitors that win, grow and eventually become (or be purcahsed by) larger companies.

As part of this move some staff will be migrated to new projects, persumably reporposed into other divisions or allowed to find new jobs somewhere else. This is called “realignment” by those in the management organization, and currently those up for realignment are:

  • Radical Entertainment (Prototype, Crash of the Titans)
  • High Moon Studios (The Bourne Conspiracy, Darkwatch).
  • Massive Entertainment (World in Conflict, Ground Control)
  • Swordfish Studios (50 Cent: Blood on the Sand, Cold Winter)

These realignments along with other organizational changes will effect a few working game titles:

  • Brutal Legend
  • Ghostbusters
  • Wet
  • Chronicles of Riddick: Assault on Dark Athena
  • World at Conflict: Soviet Assault
  • 50 Cent Blood on the Sand
  • Zombie Wranglers
  • Leisure Suit Larry: Box Office Bust
  • Several Xbox Live Arcade titles

At this point we’re not sure which, if any, will continue to be developed under Activision and which will be sold off to other companies or retired. Surely, those money making titles will be sold off if Activision has no plans to finish them.

Again, it’s hard to consider this a bad decision. This is a decision of growth over having too many “Cooks in the kitchen” making soup. It’s better to have rock solid titles of epic proportions than a large pool of mediocre titles with minimal sales and bad reputations, and that’s why they spend a lot of time in the office working on this and having a type of  office chair for long hours on a computer is really helpful in this area.

It’s not that the titles they’re questioning are necessarily bad, but are not the leading titles in their space and are should be either given a stronger team to work on them or retire them entirely. To build a stronger team with passion and direction it might be best to sell the franchise(s) to other organizations so they can do it right with time and attention to detail.

(Thanks, gamespot)