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NPD December 2011 Sales Results [Up5: Star Wars: The Old Republic Sales]

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
See, Nintendo, this is what happens when you don't release anything of value for like 10 months.

Nintendo eventually fell to the same problem that third parties ran into on Wii. Failing to release worthwhile games for a long time causes core gamers, WHO WILL KEEP PLAYING GAMES WHETHER OR NOT YOU PUT THEM OUT, to abandon the platform for the places where the games are. Then when you DO release a great game, the audience has moved on and there's no one left to sell to.

This is why, if you have games that you can release and a large hole in the schedule, even if they're only traditionally for a niche audience, you need to release those games. There were essentially no Nintendo games of interest to the Nintendo core for A YEAR. Between Donkey Kong Returns and Skyward Sword, LITERALLY a year passed (in NA, at least.) November 21 to November 20. MAYBE you could count the Kirby game, but that only gives you an eleven month drought instead of a year. Meanwhile, they were sitting on games like Xenoblade, Last Story, or even things like Disaster or Regenleiv. Sure, it's likely none of those games set the world on fire, but you need something to keep gamers paying attention to your platform. Mindshare is 100% gone at this point, and it's poisoning the well for the WiiU.

Again: They're killing off the Wii to avoid brand confusion with Wii U. There's no other excuse for not supporting the Wii.
 

Acheron

Banned
We are talking about people spending less money on games, revenue is all that matters to prove that statement false.

As per the NPD gaming spend is barely above where it was in 2007, pre-crash and pre-iPhone. Which indicates in real-terms there's been a contraction. Secondly, this year NPD has stated non-traditional gaming spend has surpassed retail. So how exactly is doubling down on the gamebox model going to do anything?
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
Except that isn't the case. As other people have said it's only down because this console cycle is coming to an end and the Wii isn't selling insane amounts...It's still a large market than it was last gen so all this talk about the traditional game industry dying is rubbish. People need to understand correlation =/= causation. Smartphones and tablets aren't eating into the traditional games market anymore than PCs ever were or are

OK--I'd buy that explanation for console sales...IF software sales were steady/increasing. They're not.
 
As per the NPD gaming spend is barely above where it was in 2007, pre-crash and pre-iPhone. Which indicates in real-terms there's been a contraction. Secondly, this year NPD has stated non-traditional gaming spend has surpassed retail. So how exactly is doubling down on the gamebox model going to do anything?

We are talking about the entire gen, not this specific year. This gen has had growth in both dollar and unit terms compared to the previous one.

Billions of dollars of non traditional spending is getting spent on these gamebox, it's not either/or

I think phones are contracting the handheld industry, I don't think there is much proof that the home console space has been impacted with any severity at the moment.
 
Hold up a minute, Vita's dying, all the main consoles are down. Ergo GAF thinks people want new more expensive consoles? Huh?

Yep, it's time. Vita's three weeks into a new launch in one market that's being owned by 3DS and it's predecessor, and the other consoles are long in the tooth. And if MS tries to ride Kinect too long they put themselves in a similar position as Nintendo when it comes to the casual market.
 

Acheron

Banned
We are talking about the entire gen, not this specific year. This gen has had growth in both dollar and unit terms compared to the previous one.

Billions of dollars of non traditional spending is getting spend on these gamebox.

Nobody, except maybe the console makers (due to R&D spend) give a flying fuck about "generations". This generation started in 2005, there has been the world's worst economic catastrophe since the Great Depression and the emergence of smartphones and tablets in the last seven years. The world has changed, so while in 2007 we could project gaming spend to be over $30 billion it's still languishes under $20 billion.

Whatever intent or belief that the games industry had about the model of its growth died in 2008 due to the emergence of the smartphone and the Great Recession.
 

Guevara

Member
Nobody, except maybe the console makers (due to R&D spend) give a flying fuck about "generations". This generation started in 2005, there has been the world's worst economic catastrophe since the Great Depression and the emergence of smartphones and tablets in the last seven years. The world has changed, so while in 2007 we could project gaming spend to be over $30 billion it's still languishes under $20 billion.

Whatever intent or belief that the games industry had about the model of its growth died in 2008 due to the emergence of the smartphone and the Great Recession.

Kind of this. There's still room for 5 game platforms, it's just that two are going to be iOS and Facebook/Social/etc. Look at all the EA vets jumping ship to Zynga.

I don't know which will fail, but only three of the following (Wii U, Xbox720, Ps4, Vita, 3DS) have room to succeed. It looks like the 3DS will be one of them for sure.
 
Nobody, except maybe the console makers (due to R&D spend) give a flying fuck about "generations". This generation started in 2005, there has been the world's worst economic catastrophe since the Great Depression and the emergence of smartphones and tablets in the last seven years. The world has changed, so while in 2007 we could project gaming spend to be over $30 billion it's still languishes under $20 billion.

Whatever intent or belief that the games industry had about the model of its growth died in 2008 due to the emergence of the smartphone and the Great Recession.

People aren't going to keep buying the same console. Generations clearly matter when talking about the 21% decline in hardware revenue.
Bright spots came from HD console software sales, which were up 9 percent in 2011
Doesn't even factor in the huge growth in the hd console digital revenue. The home console industry isn't in some massive decline, it's just running out of people who haven't bought hardware already.
 

seady

Member
Two 3DS games on the chart is pretty impressive.

Especially considering this is a all-platform-combined chart, and that the 3DS is a "failing" system with barely 9 months of life on the market since its debut (compare to other system's 5-6 years of systems sold on the market).
 

Rhindle

Member
The headlines on this are a bit misleading.

Both X360 and PS3 sales are up substantially over 2011 for the holiday season as a whole (Nov + Dec). They just went overboard with the sales rebates in November, and basically pulled a bunch of December sales into November.

Software sales are also up significantly over 2011.

So really it's just Wii sales that have tanked, as expected. The console business is alive and well.
 

Acheron

Banned
People aren't going to keep buying the same console. Generations clearly matter when talking about the 21% decline in hardware revenue.

Doesn't even factor in the huge growth in the hd console digital revenue. The home console industry isn't in some massive decline, it's just running out of people who haven't bought hardware already.

So where I have trouble understanding is, hardware revenue is declining but software revenue is doing okay. Conclusion: We need new hardware!

Total Units
Fouth Generation HW: 100M~ now
Fifth Generation HW: 144.5M now
Sixth generation HW: 195M~ when "next gen" started (about 30M higher now)
Seventh Generation HW: 207.5M now

The market hasn't seemed to be keeping up with the growth rate expected of it, even giving the seventh generation the most favorable comparison possible.
 

user_nat

THE WORDS! They'll drift away without the _!
So where I have trouble understanding is, hardware revenue is declining but software revenue is doing okay. Conclusion: We need new hardware!

Total Units
Fouth Generation HW: 100M~ now
Fifth Generation HW: 144.5M now
Sixth generation HW: 195M~ when "next gen" started (about 30M higher now)
Seventh Generation HW: 207.5M now

The market hasn't seemed to be keeping up with the growth rate expected of it, even giving the seventh generation the most favorable comparison possible.

What consoles are you using for the 6th and 7th gens?
 

Slime

Banned
Sony pulled out about half of their heavy hitters last year, and they still couldn't even hit a million in December. I find it hard to believe that they'll ever repair the damage they've dealt to their brand this gen.
 
So where I have trouble understanding is, hardware revenue is declining but software revenue is doing okay. Conclusion: We need new hardware!

Total Units
Fouth Generation HW: 100M~ now
Fifth Generation HW: 144.5M now
Sixth generation HW: 195M~ when "next gen" started (about 30M higher now)
Seventh Generation HW: 207.5M now

The market hasn't seemed to be keeping up with the growth rate expected of it, even giving the seventh generation the most favorable comparison possible.

I would say the reliability of consoles now does factor in. I owned 3 ps2's (phat which I replaced with slim that eventually broke and was replaced again) and 2 Xboxs. This gen I am still on my first of each console.

Anecdotal I know....but I do think it has a rather large effect. My guess would be 10%.
 

LOCK

Member
So where I have trouble understanding is, hardware revenue is declining but software revenue is doing okay. Conclusion: We need new hardware!

Total Units
Fouth Generation HW: 100M~ now
Fifth Generation HW: 144.5M now
Sixth generation HW: 195M~ when "next gen" started (about 30M higher now)
Seventh Generation HW: 207.5M now

The market hasn't seemed to be keeping up with the growth rate expected of it, even giving the seventh generation the most favorable comparison possible.

I blame hardware prices.
 
People predicting the doom/stagnation of gaming are ignoring the MASSIVE amount of dollars going into iOS/Android, facebook/social, digital sales and virtual goods (not just games, but DLC and microtransactions; I spent like $250 on League of Legends this year).

The traditional console and retail business, while still currently huge, will be an increasingly shrinking portion of the pie from now on. These sectors are relatively stagnant or growing only modestly, the big growth is elsewhere.
 

Cipherr

Member
So where I have trouble understanding is, hardware revenue is declining but software revenue is doing okay. Conclusion: We need new hardware!

Total Units
Fouth Generation HW: 100M~ now
Fifth Generation HW: 144.5M now
Sixth generation HW: 195M~ when "next gen" started (about 30M higher now)
Seventh Generation HW: 207.5M now

The market hasn't seemed to be keeping up with the growth rate expected of it, even giving the seventh generation the most favorable comparison possible.

Gen 6 at 226m? I thought it was 10m or so less than that. Where are we getting these numbers? And considering a 7 year runoff of this gen, Im not seeing how the trending is supposed to be so negative even looking at those numbers. If the next gen starts next Christmas with the WiiU, and 7 years from that point this gen does another 15+million and adding in all of 2012 hardware numbers, we will still see growth easily.

But my main thing is 226m for Gen 6, where are we getting that from? Because if we use the numbers I last heard for Gen6, then it drops dramatically. By like 10-15 million, and that all of a sudden shoots a shitload of holes in the 'consoles arent growing' theory, because the growth from 6 to 7 will be quite similar and very healthy.
 

user_nat

THE WORDS! They'll drift away without the _!
6th: only PS2, GC and Xbox (DC owners likely double dipped)
7th: 360, Wii, PS3

Can't figure out how you got that total for the 6th gen then. At least the 30m more part anyhow.

This gen will be about 10m or so more once Nintendo and Sony release new shipment data.
 

kswiston

Member
I want numbers for MW3, Skyrim and BF3.

I am curious to see if MW3 is still ahead of BLOPS after December, and whether Skyrim pulled ahead of BF3 in LTD sales.
 

Acheron

Banned
People predicting the doom/stagnation of gaming are ignoring the MASSIVE amount of dollars going into iOS/Android, facebook/social, digital sales and virtual goods (not just games, but DLC and microtransactions; I spent like $250 on League of Legends this year).

The traditional console and retail business, while still currently huge, will be an increasingly shrinking portion of the pie from now on. These sectors are relatively stagnant or growing only modestly, the big growth is elsewhere.

A good assumption. My point is the dedicated game box is a beast that is going to go away. If we lasted another two to three years it may no longer be inconceivable to have cloud services from MS or Sony deliver a new generation off games through existing devices. Unlikely to happen this gen, too much invested, but I feel whatever comes out next is the last gamebox ever.
 
Should Nintendo release a camera add-on that's similar to Kinect, but more functional with the WiiU if Microsoft lags in releasing the Xbox 3? That seems like a move that could really kill Microsoft's casual business.
 

I'm an expert

Formerly worldrevolution. The only reason I am nice to anyone else is to avoid being banned.
When everyone says stuff is "awful", you simply mean in sales-age terms, right? Because any time a console sells 1 million units I'm very happy as an owner of that console knowing there's a potential 1 million new players to play with. Heck, even a game selling a few hundred thousand is great for the consumers. So I don't get why everyone gets so doom and gloom if the PS3 sold 90k less than Wii. Because Sony might drop out of the hardware race? Fair point, but as an owner of their systems I have absolutely zero issue with them being 3rd place as long as they keep putting out quality stuff - which they do. I mean, one million of ANYTHING is a lot. That's just me being Joe Consumer though.
 

kswiston

Member
But my main thing is 226m for Gen 6, where are we getting that from? Because if we use the numbers I last heard for Gen6, then it drops dramatically. By like 10-15 million, and that all of a sudden shoots a shitload of holes in the 'consoles arent growing' theory, because the growth from 6 to 7 will be quite similar and very healthy.

Forget shipment numbers

NPD Dec 2004 said:
Xbox = 1,044,000
PS2 = 989,000
Gamecube = 814,000

The last holiday season of last gen before 360 launched. Console sales are well under this December's results, despite the Xbox having received Halo 2 that November, and the consoles being 3-4 years old instead of 5-6 years old.

The following year:

NPD December 2005 said:
PS2: 1.5 million
GCN: ~470,000
Xbx: ~ 415,000
X360 ~ 280,000
 
A good assumption. My point is the dedicated game box is a beast that is going to go away. If we lasted another two to three years it may no longer be inconceivable to have cloud services from MS or Sony deliver a new generation off games through existing devices. Unlikely to happen this gen, too much invested, but I feel whatever comes out next is the last gamebox ever.

My first reaction to that statement is that it's pretty radical, and my second reaction is that I have no idea what it means. What minimal threshold of features/specifications does a device have to meet to be a 'gamebox' to you? The fact that the thing we plug into our tvs to play our games will probably be able to do more and more things in addition to games means the extinction of the 'gamebox' exactly when? It must be after xbox 360, since we still have the last gamebox ever to go, but beyond that I'm completely lost.
 

Acheron

Banned
My first reaction to that statement is that it's pretty radical, and my second reaction is that I have no idea what it means. What minimal threshold of features/specifications does a device have to meet to be a 'gamebox' to you? The fact that the thing we plug into our tvs to play our games will probably be able to do more and more things in addition to games means the extinction of the 'gamebox' exactly when? It must be after xbox 360, since we still have the last gamebox ever to go, but beyond that I'm completely lost.

I mean that probably we have one more hardware cycle before the idea of a dedicated game computer under your screen that needs to be refreshed to keep up with technology is unlikely. Streaming services and cloud computing will deliver content to a receiver box under your TV. It won't be expensive, it might even be completely free, but the services on it will be the products.
 
Should Nintendo release a camera add-on that's similar to Kinect, but more functional with the WiiU if Microsoft lags in releasing the Xbox 3? That seems like a move that could really kill Microsoft's casual business.

The camera in the controller supposedly already has some level of Kinect functionality.
 

Derrick01

Banned
Poor Sony, couldn't even beat a dead console. We should start preparing now so we're not hurt as bad when they eventually announce they're going 3rd party.
 
Poor Sony, couldn't even beat a dead console. We should start preparing now so we're not hurt as bad when they eventually announce they're going 3rd party.

I expect Sony to create a new term and go 4th party. They will make a bunch of awesome games, just won't release them on any hardware so that people can play them.
 

saichi

Member
So what do we think the next step in PS3's 10 year plan should be?

Sony cut the price in 2011 by $50, but sales are down significantly year over year:

1.21M in December 2010 (down 11% compared to December 2009)
~936K in December 2011 (down ~23% compared to December 2010)

A couple of Sony suits mentioned recently about targeting the female market a bit more, didn't they?

but Sony had its best November ever. all hope is not lost!


Avatars. Say you will about what MS did to Rare, but putting them in charge of Avatars and Kinect Sports was the most marketable use of their talents. They were able to add more detail to avatars with HD without losing the cartoon charm of Miis. Combining them with the dash board and Live made everything look more accessible.

Kinect became Wii HD while Move ended up a gamer's accessory.

can't help but agreeing on this.
 

donny2112

Member
The last holiday season of last gen before 360 launched. Console sales are well under this December's results, despite the Xbox having received Halo 2 that November, and the consoles being 3-4 years old instead of 5-6 years old.

PS2 was in severe shortage at the time. This December was still higher just looking at those three, but the PS2 shortage is worth mentioning, since it makes the difference not as big.
 

Gadfly

While flying into a tree he exclaimed "Egad!"
This in particular is unfortunate for Microsoft not because 1.7m is a bad number, but because Y2Y increase (mostly) and beating the expectations every month since slim lunch might have given them a false sense of security that might come back to haunt them.
 

antonz

Member
There was some shooting in the foot with the crazy deals in November. They basically did psuedo price cuts with the crazy giftcard deals etc.

That setup for a weak December when things went back to normal. Sure price drops will be nice but its not going to have the dramatic effect people might expect.

This Gen is aged beyond its usefulness and its going to just continuing going downhill from here
 

Kenaras

Member
Hardware numbers are just shockingly low all around. Judging by the numbers in the predictions thread, nearly everyone expected substantially higher sales.

Oh, well. Maybe Microsoft will finally get around to doing a price cut. I was convinced they'd do one last year, but I never expected them to maintain their sales momentum so long. (Been waiting on a price cut before picking up a slim.)
 

user_nat

THE WORDS! They'll drift away without the _!
Hardware numbers are just shockingly low all around. Judging by the numbers in the predictions thread, nearly everyone expected substantially higher sales.

Oh, well. Maybe Microsoft will finally get around to doing a price cut. I was convinced they'd do one this year, but I never expected them to maintain their sales momentum so long. (Been waiting on a price cut before picking up a slim.)

Part of the problem is November was so good, so people expected a normal December increase and big predictions resulted.
However, it now seems that November was good at the expense of December.

Wii decline is terrible either way though, but had to happen sometime.
 

Maximilian E.

AKA MS-Evangelist
This in particular is unfortunate for Microsoft not because 1.7m is a bad number, but because Y2Y increase (mostly) and beating the expectations every month since slim lunch might have given them a false sense of security that might come back to haunt them.

I think MS is fine with this, they still have great possibilities this year to go all out with different price points/bundles etc. They should lower the price before announcing a new hardware though..
 

Karma

Banned
Hardware Note:
-“Hardware was particularly hard hit in December. Normally, we see sales increase from November to December on an average sales per week basis (keeping in mind December is a 5-week retail month as compared to November which is a 4-week retail month). The 3DS and the DS were the only platforms to realize a unit sales increase versus November, which is highly unusual since typically all platforms enjoy a lift in the biggest month at retail.”

How is the PS3 at 936K if this is true? Should be below 900K. Also, the 360 could not be over 1.7 Million either.

Edit: I see it is on a weekly basis.
 

sphinx

the piano man
It's weird that nobody considers this is probably the longest a generation has lasted and that fatigue must be settling in. I think people are overreacting.
 
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