theBishop said:Maybe it is. On the other hand, Wii is coming after the huge success of the DS, 20 million Gamecube owners, and a low price tag. We all know how rabid Nintendo fans can be. Wii is pretty much a perfect storm for mass adoption among the existing fanbase.
Obviously there is going to be a lot of overlap, but I think the PS2 owners are not the same group. I wonder what happens after Wii sells to the Nintendo hardcore.
I do not believe a system that is impossible to find in stores is selling significant numbers to grandparents and soccer moms. At least not in the US.
dammitmattt said:There is a LARGE difference in celebrating a company being successful and celebrating a company raping you in the ass.
As any company should, Nintendo values money over all else, including its customers, so it's hilarious to see the hardcore Nintendo fan cheerleading record profits, especially given that Nintendo could care less about that consumer. If they actually valued the consumer as much as people think they do, the Wii would be cheaper, the games would be cheaper, the Wiimote would be cheaper, and it would have more tech inside. On top of that, they could do all of this and STILL make profit.
I think Nintendo's business model is fascinating and I applaud them for all of the steps they have taken to get to this point and for all of the success they have had, but Jesus Christ, Gahiggidy & gang, get off their cock.
Tobor said:Why would Sony unveil a knockoff if people "got by just fine" with the Dual Shock? Either it is good enough, or it isn't.
Chiggs said:The Wii has already won, huh? That might be a tad bit presumptuous. No doubt it is a force, but already won it has not.
And I'm not trying to sound like Yoda in that last sentence, either.
schuelma said:Sigh..so I take it you subscribe to the Luke Smith theory that the Wii is selling to the Zelda crowd right now? Do you really think the controller and Wii Sports isn't having a significant impact among non and lapsed gamers? I mean these sales are insane and could be even higher...and you really think its just the Nintendo fanbase?
Tobor said:You might want to take a look at a Sunday morning line at Target and Best Buy some time. You might be surprised. It's not N-fans with link t-shirts lining up anymore.
theBishop said:#2: Casuals/Non-gamers are buying the Wii in droves
PiiS2 effect: high potential. Playstation is arguably a better-known brand name than "Wii" or "Nintendo". $130 < $250 combined with lots of Wii-alike games (lets face it, Wii Sports is not a difficult game to develop) and Guitar Hero would definitely make inroads on Nintendo.
theBishop said:A good point. Here is what I view as possible explanations for Wii's sales followed by the impact of a PS2 Wiimote knockoff:
#1: Nintendo's existing fanbase is buying the Wii in droves
PiiS2 effect: insignificant. Sony can't supply Mario, Zelda, Metroid, therefore, no sale.
#2: Casuals/Non-gamers are buying the Wii in droves
PiiS2 effect: high potential. Playstation is arguably a better-known brand name than "Wii" or "Nintendo". $130 < $250 combined with lots of Wii-alike games (lets face it, Wii Sports is not a difficult game to develop) and Guitar Hero would definitely make inroads on Nintendo.
#3: Existing gamers (not Nintendo fanboys) are choosing Wii as their next-generation console
PiiS2 effect: Moderate-high potential. If gamers want Wiimote-esque controls and they can get them in the console they already own along with most of Wii's 3rd party support, that is a problem for Wii. Furthermore, it encourages developers to continue using their unoptimized PS2 engines for their Wii ports, which REALLY hurts Wii's image among existing gamers.
dammitmattt said:I would also like to seriously challenge the assertion that more Nintendo profit = more Nintendo games. That is wishful thinking, and it doesn't explain the same orgasmic pleasure that many (or most?) Nintendo fans take in the lack of profits on the 360 and PS3 sides.
especially given that Nintendo could care less about that consumer
and it would have more tech inside
Tobor said:Are you going to keep parroting this even though no one in this thread is acting that way? It just makes you sound stupid.
He's talking about re-packaging the PS2 with a Wii-style controller (not SixAxis, an actual Remote-shaped single-hand wand, presumably with pointer capabilities).schuelma said:Not being a dick here, but I honestly don't understand your point ...I've been trying to say this already but maybe I'm not making myself clear- don't the N.A and Japan numbers basically tell us that the PS2 isn't really affecting the Wii to any significant extent?
dammitmattt said:For some reason, a certain segment of the forum takes an orgasmic level of pleasure at the thought of Nintendo profitting. I've never seen anything like it and it absolutely baffles the mind.
As consumers, this behavior makes NO ****ING SENSE.
dammitmattt said:Did you just join the forum yesterday? Have you never visited an NPD thread?
I agreeTobor said:PS2 owners are buying the Wii right now. Believe it. You don't sell 360,000 units in April to Gamecube owners and non-gamers alone.
I think this is the biggest cause of confusion here. People need to remove graphics from the equation to understand what's really going on.Pureauthor said:Your first mistake lies in the assumption that they can eventell that hardware-wise, the Wii is 'limited'.
Your second mistake lies in the assumption that they would care in the first place, even if they could tell.
Your third mistake is completely ignoring the Wiimote.
Deku said:it's not on the cover of the American Fortune though and Fortune in Asia is read mostly by professionals and business types. I don't see how any of your theories matter.
There is probably some statistical correlation between the truly mainstream media being late reporting a social or business trend and covering it just before the market shifts, but this doesn't seem like it You're desperately grasping for something here.
And a cursory search of the Fortune database found this. Dated Feb 21 2005
I'm Still waiting for Apple and iPod to implode. I must be really close now.
schuelma said:Not being a dick here, but I honestly don't understand your point ...I've been trying to say this already but maybe I'm not making myself clear- don't the N.A and Japan numbers basically tell us that the PS2 isn't really affecting the Wii to any significant extent?
James Surowieki said:IN PRAISE OF THIRD PLACE
Fifteen years ago, the video-game industry was ruled by one player, Nintendo. The company had machines in a third of American homes, and it was Japans most profitable electronics company. The title of a 1993 book summed up the situation: Game Over: How Nintendo Conquered the World. Then the Sony PlayStation arrived, and everything changed. Today, Sony is the dominant force, and its chief rival is not Nintendo but Microsoft, which makes the Xbox. Two weeks ago, the début of Sonys PlayStation 3 was greeted by crowds of hysterical consumers anxious to get their hands on the new console, billed as the most powerful gaming machine ever. When Nintendos new console, the oddly named Wii, appeared, a few days later, there were excellent reviews and expectations of good sales, but no more talk about world conquest. If Sony and Microsoft are the major-party nominees, Nintendo is more like a cool third-party candidate.
You might expect, then, that Nintendo would be struggling to stay afloat. After all, the prevailing wisdom is that companies need to be market leaders, or face disaster. This approach was famously institutionalized by Jack Welch, who, when he took over as C.E.O. of G.E., laid down a rule that he described as a central idea of his tenure: the company would quit any business in which it was not No. 1 or No. 2. The lesson that people took away from this was clearthird place is for losers. First prize is a Cadillac Eldorado, Alec Baldwins character says in the film Glengarry Glen Ross. Second prize is a set of steak knives. Third prize is youre fired. Nintendo, though, has not just survived out of the spotlight; it has thrived. It has five billion dollars in the bank from years of solid profits, and this past year, though it spent heavily on the launch of the Wii, it made close to a billion dollars in profit and saw its stock price rise by sixty-five per cent. Sonys game division, by contrast, barely eked out a profit and Microsofts reportedly lost money. Who knew bringing up the rear could be so lucrative?
Sony and Microsoft are desperate to be the biggest players in a market that, in their vision, will encompass not just video games but interactive entertainment generally. Thats why the PlayStation 3 and the Xbox 360 are all-in-one machines, which allow users not just to play video games but also to do things like watch high-definition DVDs and stream digital music. Sony and Microsofts quest to control the living room has locked them in a classic arms race; they have invested billions of dollars in an attempt to surpass each other technologically, building ever-bigger, ever-better, and ever-more-expensive machines.
Nintendo has dropped out of this race. The Wii has few bells and whistles and much less processing power than its competitors, and it features less impressive graphics. Its really well suited for just one thing: playing games. But this turns out to be an asset. The Wiis simplicity means that Nintendo can make money selling consoles, while Sony is reportedly losing more than two hundred and forty dollars on each PlayStation 3 it sellseven though they are selling for almost six hundred dollars. Similarly, because Nintendo is not trying to rule the entire industry, its been able to focus on its core competence, which is making entertaining, innovative games. For instance, the Wii features a motion sensor that allows you to, say, hit a tennis ball onscreen by swinging the controller like a tennis racquet. Nintendos handheld device, the DS, became astoundingly popular because of simple but brilliant games like Nintendogs, in which users raise virtual puppies. And because Nintendo sells many more of its own games than Sony and Microsoft do, its profit margins are higher, too. Arguably, Nintendo has thrived not despite its fall from the top but because of it.
Nintendos success is not an anomaly, either. The business landscape of the past couple of decades is replete with companies that have flourished as third wheels, and with companies that have struggled to make money despite being No. 1 in their industries. (Today, would you rather be Honda or G.M.?) And while its true that in many industries there is a correlation between market share and profitability, one doesnt necessarily lead to the other. A recent survey of the evidence on market share by J. Scott Armstrong and Kesten C. Green found that companies that adopt what they call competitor-oriented objectives actually end up hurting their own profitability. In other words, the more a company focusses on beating its competitors, rather than on the bottom line, the worse it is likely to do. And a study of the performance of twenty major American companies over four decades found that the ones putting more emphasis on market share than on profit ended up with lower returns on investment; of the six companies that defined their goal exclusively as market share, four eventually went out of business.
The point is that business is not a sporting event. Victory for one company doesnt mean defeat for everyone else. Markets today are so bigthe global video-game market is now close to thirty billion dollarsthat companies can profit even when theyre not on top, as long as they arent desperately trying to get there. The key is to play to your strengths while recognizing your limitations. Nintendo knew that it could not compete with Microsoft and Sony in the quest to build the ultimate home-entertainment device. So it decided, with the Wii, to play a different game entirely. Some pundits are now speculating, ironically, that the simplicity of the Wii may make it a huge hit. Nintendo wouldnt complain if that happened. But, in the meantime, third prize is looking a lot better than steak knives.
theBishop said:I think it could have a huge impact... if Wiis were on the shelf.
If a potential Wii buyer has to go to a gaming message board to track down rumored Wii shipments, drive to the store before it opens and stand in line, that person is not a casual gamer.
theBishop said:Right, in scenario #2, PS2 as it is, has no effect on Wii's success because Wii's success is coming from people who either never played videogames, or stopped playing games a long time ago.
So if they walk into a store and there's Wii Sports at one Wii Kiosk and PiiS2 Sports at another, and one system costs almost twice as much, which are they going to buy?
The types of games Nintendo is pushing to this market (Nintendogs, Brain Training, Wii Sports, etc) would be easy as hell to knock off. It would be shameless, and messageboard people would cry foul, but its not like this audience reads messageboards.
dammitmattt said:Did you just join the forum yesterday? Have you never visited an NPD thread?
I see more people like you bitching about it, actually. So what does that say? Who's worse? The people cheering on a company they like, or the people screaming out "How dare you!" because they're just bitter?dammitmattt said:Did you just join the forum yesterday? Have you never visited an NPD thread?
The Sphinx said:He's talking about re-packaging the PS2 with a Wii-style controller (not SixAxis, an actual Remote-shaped single-hand wand, presumably with pointer capabilities).
theBishop said:Right, in scenario #2, PS2 as it is, has no effect on Wii's success because Wii's success is coming from people who either never played videogames, or stopped playing games a long time ago.
So if they walk into a store and there's Wii Sports at one Wii Kiosk and PiiS2 Sports at another, and one system costs almost twice as much, which are they going to buy?
The types of games Nintendo is pushing to this market (Nintendogs, Brain Training, Wii Sports, etc) would be easy as hell to knock off. It would be shameless, and messageboard people would cry foul, but its not like this audience reads messageboards.
Tobor said:Guitar Hero 3 is coming to Wii already, so this is a non issue.
(1) Wii sports may be easy to copy, but the controller is not as easy as you may think. I won't take this seriously until I see how the controller looks and plays. Sixaxis will not cut it here.
(2) Finally, Wii has already sold 6 million and rising. How will Sony catch that? The PSwii wouldn't release until when? This Fall? Probably too late, even at a cheaper price point.
(3) More than likely, this is a controller-game package they are working on.
Starchasing said:Nintendo profit = at least the same amount of games and more consoles to come in the future.
Profits dont go straight to new games. They can be diverted to so many things, like returns to investors, reserves, rebuying stock... there are many options.
Also consumers tend to have an interest in the long term well being of a company if the goods they bought are used in the long term. I would never buy a car from a company with strong financial problems, because they can cut jobs on the client service department. Or they can dissapear altogether.
We had one example in Spain here recently. One investment fund went down and investors are claiming their money back, but everything is gone.
You could say almost the same thing for a console. You dont want your console maker to drop support for your machine in 2 years. You want it to last as possible.
I am happy for Nintendo because:
1) The more friends buy one the more people i have to exchange games with
2) The more console sells more third party support and hopefully diversity
3) I like the direction Nintendo is taking regarding to games
That is one big stupid thing to say. Companies make money because they care about their costumers, delivering the right product at the right price. I guess you dont like the Wii and that makes it harder for you to understand this simple matter. You can look at any succesfull company and say the same. Apple is making millions because they are delivering a product almost everyone desires (ipod) at a price people are ready to pay.
Believe it or not, tech is a non issue for Wii owners. If it were so they would not bought it to begin with. You seem to be in a market where graphics matter, well, you are in the minority. Nintendo is shooting for the majority, and for every person like you there must be at least 6 persons that dont even know what mhz is.
Tobor said:FUD FUD FUD. has not shown != can not be shown, and you ****ing know this.
dammitmattt said:I actually strongly disagree with you here.
That person is not a gamer at all. You just defined Mrs. Soccer Mom, who actually was half of the line I was in at launch.
Link said:I see more people like you bitching about it, actually. So what does that say? Who's worse? The people cheering on a company they like, or the people screaming out "How dare you!" because they're just bitter?
Rancid Mildew said:It's very petty bringing your personal quarrels from another thread into this one to discredit people having a very civilized discussion.
theBishop said:1. Agreed. It would have to be a shameless ripoff of the Wii controls. It would have to be so close that 3rd parties could use essentially the same code between both systems.
2. I don't think this fall would be too late. Wii really only has two games with "Wii" branding. They probably won't have more than 3 coming this fall. Sony could have the EyeToy team (or whoever) buzzing right now on half a dozen PiiS2 games in time for a holiday release.
3. If I was managing it, i'd have two packs. One is like Wii Play (Controller + game), except the game has Sports and Random stuff together. The other is a remodeled PS2 in a friendly-looking box with the above package included.
theBishop said:well, is Mrs. Soccer Mom standing in line because she wants to play the Wii or because JuniorSamusFan64's birthday is coming up?
Thoren said:More Mumbo Jumbo about how the Wii sells alot of units and is teh awesome from people who's gaming experience doesn't go past "oh ya I like Mario"
dammitmattt said:Why would I be bitter? I stood in line outside Target for 8 hours in 30-40 degree weather to get a Wii, Zelda, and Rayman on launch day. I enjoy my Wii, especially when I have friends over. I'm just not convinced it's the sole future of gaming, like so many people are. I really hope and believe there is room in the market for both Wii-like experiences and traditional gaming experiences.
This thread is essentially about Wii's profits, which my posts are related to.
Tobor said:I 100% agree with you. It just remains to be seen if Sony can do all these things. The friendly looking redesign of the case would be essential as well. That is part of the Wii's appeal.
More importantly does Sony have the stomach to fight on essentially 3 fronts? It would be pretty unprecedented.
Adding all that in plus R&D on the new design and equipment means $99 is pretty much out of the question. $150 maybe? They could go as high as $200 and still be in good shape.
I'd imagine it would be a tough sell to investors as well; they'd be splitting the market and providing a new focus for third parties who could be working on titles for the PS3. Not that they couldn't put a positive spin on it (profits certainly speak loudly), but it does undermine their philosophy to this point, which has been all about being the technology leader.Tobor said:More importantly does Sony have the stomach to fight on essentially 3 fronts? It would be pretty unprecedented.
Fortune said:While game consoles typically attract youngish males with an antisocial streak . . .
jey_16 said:Key Points:
- Wii is really popular and is sold out a lot (even at NOA Company store)
- Wii Remote is cheap to make
Accelerometer: $2.50
Basic Memory Chip: $0.25
Audio Amplifier: $0.50
Data Converter: $0.50
Rumble Pack: $2.50
Bluetooth Chip: $2.00
Audio Translator: $2.00
Cmagus said:people are still surprised its outselling the other two? uh hello its $250.00 of course it would sell more i bet if the Ps3 or xbxox 360 was 250.00 it would sell just as well.
JB1981 said::lol
Wiitard said:In an industry where momentum is everything, crowing somebody who has all the momentum as victor is not presumtious.
Tobor said:How about this then Matt. If you want to know why people are "orgasming" over Nintendo profits, then make a thread and ask. Since no one here is doing that, we can't give you an answer. Fair enough?
I really don't get posts like this. From your post history, you clearly hate the Wii, yet you'd want to see Sony do the exact same thing Nintendo is currently doing. Would this make you feel better? The experience being the same, but with the company you prefer's logo being on the side instead? Why don't you try playing games instead of brand names?theBishop said:1. Agreed. It would have to be a shameless ripoff of the Wii controls. It would have to be so close that 3rd parties could use essentially the same code between both systems.
2. I don't think this fall would be too late. Wii really only has two games with "Wii" branding. They probably won't have more than 3 coming this fall. Sony could have the EyeToy team (or whoever) buzzing right now on half a dozen PiiS2 games in time for a holiday release.
3. If I was managing it, i'd have two packs. One is like Wii Play (Controller + game), except the game has Sports and Random stuff together. The other is a remodeled PS2 in a friendly-looking box with the above package included for $99.
Tobor said:You think a Sixaxis breakdown wouldn't look similar?
Maybe it's because only 17% of U.S. households have an HDTV?dammitmattt said:A less confrontational topic - why do Nintendo fans settle for what Nintendo gives them instead of expecting more? I'm a fan of Nintendo games, but I really, really wish I could enjoy them in HD resolutions with better graphics and good online support. Why are Fortune and the hardcore Nintendo fans giving Nintendo a free pass here?