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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Sony, Next Big Software Company?Sony, Next Big Software Company?

Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.

floppyThis leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)

The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.

The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)

Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?

Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.

If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.

Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?

Episode 737: Nintendo At It AgainEpisode 737: Nintendo At It Again

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Another podcast live on YouTube. You can check the original broadcast here.

Stalker 2 needs 150GB of SSD space, the makers of Black Mesa reveal their new project, which has absolutely nothing to do with Half-Life; Rogue Point is a co-op tactical shooter set in a world ruled not by aliens, but by corporations. Stellar Blade‘s Nier: Automata DLC drops later this month and Microsoft has now confirmed Spyro Reignited Trilogy hits Xbox Game Pass on the 12th November.

  • Palworld developer reports Nintendo’s suing over 3 Pokémon patents for only $66,000 in damages
  • Death Stranding launches on Xbox

Let us know what you think.

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