July NPD Unit Sales: Wii On Top… Again

Believe this, Nintendo and their Wii console takes another month as top seller. The only product that moves more hardware than the Wii is the DS. As a gamer, it’s hard to understand how the Wii product continues to sell like this with the least supported game library on the planet.

The DS is completely understandable as it has a huge library of games, is more cost effective, comes in pretty colors and can save you tons of arguments and fighting from your kids on a long trip. In many ways the DS is synonymous with peace and quiet. What does the Wii offer us? Wii Sports and a new control scheme along with a few hit titles from Nintendo but little else for now.

I’ll be the first to admit, I thought this would be Nintendo’s chance to turn it all around and get the third parties involved. They have everything going for them in terms of sales, third party developers should be pushing out games each month considering the craze factor of the hardware. This just isn’t true.

More than likely, in this generation, the Wii isn’t really just considered a “kids console” but a console for non-gamers. The difference is obvious in their sales numbers, there are a lot of non-gamers so the console sales are through the roof! However, non-gamers don’t really spend a lot of money on games (after all, they’re non-gamers). It’s a catch-22, Nintendo finally drives huge volume in console units but still cannot manage to get third parties cranking because their sales attach rate (number of games sold per console) is way too low. At least they’re making money!

Nintendo will be the first (and only) to admit their game sales figures are through the roof, much like the console itself, but they’re not breaking out third party numbers. They can easily push the statistics up when considering Wii Play and Mario Galaxy as part of their “sales numbers” when talking about overall attach rate.

Also in the news, PlayStation 3 takes a huge drop off in sales, still beating the Xbox 360 however. They’re heading back to their normal sales figures now that Metal Gear Solid 4‘s frenzy is dying down.

Now, the figures (thanks 1up):

  • Nintendo DS: 608,000
  • Wii: 555,000
  • Playstation 3: 225,000
  • PSP: 222,000
  • Xbox 360: 205,000
  • Playstation 2: 155,000

So there you have it! Wii smokes the competition, PS3 starts to normalize down to where the 360 is at, and the PS2 is still a statistic even though it’s older than many Wii gamers are.

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PlayStation 3: Not About Quantity, About ProfitabilityPlayStation 3: Not About Quantity, About Profitability

The Xbox 360 price drop rumors flow like water and it’s all but officially been announced at this point. What about PlayStation 3 and their price? No.

Nobuyuki Oneda, the Sony’s chief financial officer said, “our plan is not to reduce the price. Our strategy is not to sell more quantity for PS3 but to concentrate on profitability.” (gamespot) This makes complete sense coming from their chief financial officer, as their motivation is to make money, not lose it.

The question remains, how will they actually make money if they’re no longer in the race for competitive market prices? Considering game licensing must Net them some amount of profit Sony’s idea seems to be the exact opposite of their original PlayStation method: saturate the market and sell them all games.

So far we’ve seen very few “need to have” games for the PlayStation 3 console while Xbox 360 continues to build a substantial library and Wii continues to break sales records for apparently no reason. When a game publisher has to decide on a platform to launch a new game, why would they choose the one that doesn’t care to be competitively priced in the market? The one that doesn’t care about quantity of sales?

Sony intends to reverse the entire razor blade philosophy where one sells a cheap razor and charges users for the blades over and over again. Their take on this concept is to sell really expensive razors and put out small half-quality blades. Is that a good market strategy at this point?