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Reggie - Wii Channels, dev costs & last week being their biggest sales week ever

botticus

Member
JoshuaJSlone said:
Wow. I imagine the biggest week would be launch week. If I'm remembering the end of November 2006 NPD correctly, Wii had very close to one week counted, so that week would've accounted for pretty much all of 476K.

Then again, the wording of that doesn't make clear that it means purely Wii sales, even though it comes in a Wii discussion. "The company had its biggest sales week" could mean adding in DS, or it could mean including all software revenue, or *shrug*.
So if we assumed he was talking Wii-only, we'd be looking at almost a million sold in two weeks. Hard to say for sure, since the writer is the one who put the "therefore Wii is hard to find" statement immediately following, not necessarily Reggie.
 

Link316

Banned
perfectchaos007 said:
But how will sales compare to Sony's 300% increase?

its most likely below that cause this is a PR war and they wouldn't have missed a chance to 1up Sony if they were able to
 
The Wii launched Nov 18th, I believe. That gives it just 8 days of NPD tracking its first November. They sold 476k that 'month'. But how much was day 1, and how much the following week? Does day 1 'count' as its own week?

Its highest average week based on NPD monthly reporting since then was last month at 130k.

If they have the supply, it'll very easily do double or even triple that in November.

...in other words, these stupid PR numbers don't tell us a damn thing. As usual, they'll sell whatever they shipped.
 

Mamesj

Banned
Miniboss1232 said:
Lost Planet hit $40 million with marketing included.

You have to remember that Reggie was including marketing in with the dev costs, which is probably how it should be anyways.


I thought it was $20 million with marketing and the development of the Framework engine...
 

birdchili

Member
laserbeam said:
. 476k is the launch week total

a two million unit November? or do we need to be more careful how we're parsing that statement...

on the channel front it seems that they've only hinted at what is possible, though it seems that nintendo isn't going where they need to go if they were legitimately interested in making a set-top box (photo channel changes come to mind)...
 

bill0527

Member
Gahiggidy said:
But, what's to stop them from supporting all 4 platforms?

Extra time and resources it takes to come up with a totally different game than the other 3 platforms. Everything from the graphics to the way the game plays because of the controller has to be built ground up for the Wii, and they've got no way to spread the risk around because the Wii is such a unique platform.

The bigs like EA and Activision do it by porting over PS2 versions - see Tiger Woods. They don't have to budget anything for graphics, and they can spend a little money working on a control scheme.
 

ziran

Member
Attack You said:
Aside from a few key products, I often wonder how deadly efficient Nintendo is at developing a game. Must be frustrating to collaborate with them if you don't have your shit together on a molecular level.
Yeah, they sound like a difficult, exacting company to work with.


Mudhoney said:
I wonder if those game development costs he throws out there are an average. A lot of the stuff on Wii certainly seems pretty cheap, while games like Metroid and Galaxy I'm sure cost a bit more to make than the rest.


Why is that article even talking about Wii as a set-top box in the first place? Nintendo has a TV-Guide channel, which in no way implies that Nintendo is turning Wii into a set-top box, or intend to do so. So discussing it is really pointless. It's like the people writing that article didn't even read what they wrote before headlining it.
Oh yeah, you're right, discussing Wii becoming a set top box is pointless in the sense there is nothing concrete on the table from Nintendo to suggest this direction. However, this is just a forum, i.e. the perfect place to discuss, speculate and (over) analyse this kind of thing ;)


rage1973 said:
It will be really interesting to see how many Wiis Nintendo was able to send out. I am thinking in the neighborhood of 700 to 800k. I really did look everywhere and they are nowhere to be found. Most of the employees and Best Buy and Circuit City had no idea when their next shipment was either. I bet they could have easily sold 1.5 million in November if they could have just gotten more units out.
IIRC Reggie said they would have at least double what was available last year, so ~1 million for Nov and ~1.2 million for Dec, but that could change.


Luckyman said:
I think biggest PS2 costed way past 10M. So if they want to up the quality on Wii..
For the Nintendo systems I think Reggie's talking about internally developed titles in these costs, with no licensing fees. So, Wii titles could come in over $10 million, iirc Ubisoft said Red Steel cost $12 million.


JoshuaJSlone said:
Wow. I imagine the biggest week would be launch week. If I'm remembering the end of November 2006 NPD correctly, Wii had very close to one week counted, so that week would've accounted for pretty much all of 476K.

Then again, the wording of that doesn't make clear that it means purely Wii sales, even though it comes in a Wii discussion. "The company had its biggest sales week" could mean adding in DS, or it could mean including all software revenue, or *shrug*.
I took it to mean the biggest total revenue across all products the company has had in a single week, but you're right, it's not clear.
 

Gahiggidy

My aunt & uncle run a Mom & Pop store, "The Gamecube Hut", and sold 80k WiiU within minutes of opening.
Tieno said:
Technical limitations, unsuitable controller and different userbase.
Well, besides the differant controller, I don't see how its not possible considering they put the same games on both the ps2 and the Xbox last generation.
 

GhaleonEB

Member
If they kept production at these levels after the holidays, I think they'd just keep on selling. The Wii is really a phenomenon.
 
bill0527 said:
He really kind of owns himself with this argument because developers spread this cost around to 3 different platforms now - PC, Xbox 360, and PS3. Between those 3 platforms, its not hard to sell a million copies total and make money unless your game just totally sucks. This is why you still don't see third parties giving the Wii much of anything but lip service. Publishers can spread their risk out over 3 platforms rather than putting all of their eggs in the Wii basket.


Not hard to sell a million? Tell that to 90+% of games that don't come close. And no, not all of them suck.

But these cost and ROI numbers are BS anyway. There was another thread about it, but here are a few highlights: not all games cost that much, not all of them need to sell that much, development costs get spread over multiple games and versions of games, etc.

If those numbers were true, the videogame industry would be dead.
 
Gahiggidy said:
Well, besides the differant controller, I don't see how its not possible considering they put the same games on both the ps2 and the Xbox last generation.

The vast interstellar distances between wii and 360/PS3 don't compare to the small walk across the yard that was the PS2 to xbox gap. But you know that.

Unless you're talking last gen looking content like GH3.
 

felipeko

Member
C'mon people talking about "3 plataform = less risk"?

Soon Wii userbase will be bigger than 2 of those 3 plataform together (the other being PC don't really help), and it will be a hell a lot cheaper to develop.. How can it be riskier?
 
Leondexter said:
The Wii launched Nov 18th, I believe. That gives it just 8 days of NPD tracking its first November. They sold 476k that 'month'. But how much was day 1, and how much the following week? Does day 1 'count' as its own week?
Xbox was November 15
PS3 was November 17
GCN was November 18
Wii was November 19
X360 was November 22

so it does seem its first NPD counted as one full Sunday-Saturday week.
...in other words, these stupid PR numbers don't tell us a damn thing.
Pretty much. Still vague.
Acosta said:
I wonder how they manage to keep cheaper development costs in Wii compared with PS3 and 360...
Lowering the ceiling on technical possibilities, mostly. Reusing old equipment/tools. Though I have no doubt Reggie is selectively using numbers to make Wii seem even cheaper.
Xzbeat said:
FFXII? Really? $50 million for a PS2 game? Wow.
Even the PS1 FFs got into the dozens of millions.
 
botticus said:
So if we assumed he was talking Wii-only, we'd be looking at almost a million sold in two weeks. Hard to say for sure, since the writer is the one who put the "therefore Wii is hard to find" statement immediately following, not necessarily Reggie.
They could also be just talking about the YTD record.
 

birdchili

Member
felipeko said:
Soon Wii userbase will be bigger than 2 of those 3 plataform together (the other being PC don't really help), and it will be a hell a lot cheaper to develop.. How can it be riskier?
game-buying habits of wii owners are pretty hard to figure out right now?

also: making great controls is a pretty big task that's been done very few times so far. with a standard pad, you can benefit from years and years of other people's mistakes.

this is a risky gen all around for devs/pubs.
 

felipeko

Member
birdchili said:
game-buying habits of wii owners are pretty hard to figure out right now?

also: making great controls is a pretty big task that's been done very few times so far. with a standard pad, you can benefit from years and years of other people's mistakes.

this is a risky gen all around for devs.
I can agree with it all... But Wii is a lot less riskier than PS3/X360.. I mean, look at Elebits and Dewy's... I didn't hurt Konami, did it?
Wonder what would happen if a PS3/360 game bomb that much...
 

laserbeam

Banned
felipeko said:
I can agree with it all... But Wii is a lot less riskier than PS3/X360.. I mean, look at Elebits and Dewy's... I didn't hurt Konami, did it?
Wonder what would happen if a PS3/360 game bomb that much...

Pretty Sure lair falls into the Epic Bomb category. Aside from an Art of Lair exhibit at some museum factor 5s website hides lair in a corner on another page. Its front page lists all the Star Wars games made for Nintendo and pictures of them
 
bill0527 said:
Extra time and resources it takes to come up with a totally different game than the other 3 platforms. Everything from the graphics to the way the game plays because of the controller has to be built ground up for the Wii, and they've got no way to spread the risk around because the Wii is such a unique platform.

The bigs like EA and Activision do it by porting over PS2 versions - see Tiger Woods. They don't have to budget anything for graphics, and they can spend a little money working on a control scheme.

But the Wii is low risk. If they want to spread it, they can spread it to the PS2. But the Wii in and of itself is a low risk platform.
 

felipeko

Member
laserbeam said:
Pretty Sure lair falls into the Epic Bomb category. Aside from an Art of Lair exhibit at some museum factor 5s website hides lair in a corner on another page. Its front page lists all the Star Wars games made for Nintendo and pictures of them
But Sony paid for this game..
 

laserbeam

Banned
felipeko said:
But Sony paid for this game..

Yep thats alot of money to swallow. Factor 5 Estimated it would cost 50 million to get the game made and put onto shelves. So if thats the case Sony probably has a very bad view of Factor 5 atm.
 

XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
The 20-50 million dollar budgets that Reggie is stating sounds about right. Have you seen how much bigger game teams are getting? A team of 50 people is around 4-5 million a year in just salaries and benefits (I'm averaging out salaries here to around 70k a head - see Gamasutra's salary survey for more specifics - and estimating about another 12k a head for benefits but this can go a lot higher depending on what a company will pay for).

Then there's publisher support for marketing, sales, QA, etc - the people actively working on a project will be billing to that budget. That's probably another 2-3 mil a year. So in terms of just headcount, in 2 years you already hit the 10 million mark.

Throw in equipment costs for PCs, general IT support, developer equipment, and vendor support. We haven't even touched on overhead for paying the basic stuff like rent for the office a dev team is leasing or the electric bill and what not. 20+ million dollar budgets shouldn't be that surprising. Which is why companies want to release these high-budget games over multiple platforms - it can increase costs by quite a bit, but you're more likely to at least break even as you have a bigger userbase to try and cover sales.

So for a Wii developed game to cost between 5 - 10 million, you'd have to have a team size below 25 people, a development schedule less than 2 years, and not go totally crazy on marketing costs. You can probably get away with this on the other platforms as well, but you'll have much higher development costs due to the difference in equipment cost.
 

ziran

Member
I don't think there's necessarily a problem with the dev costs of multiformat PS3/360/PC games, because many are selling well, the problem is going to be the increased losses from those games that bomb and some of the PS3 exclusives.
 

birdchili

Member
CrisKre said:
I believe nintendo will sell 950k this month. If they where able to ship more ill be VERY surprised.
worldwide they've been quoting the 1.8million/month for a few months now. i believe they said ten days on the boat from china to north america, and no more than a few days extra for trucking... even assuming that there was no stock saved up for rabid buy season, why wouldn't a minimum 1.8units/month worldwide be expected for the next while?
 

1-D_FTW

Member
maynerd said:
BTW I have still yet to see a Wii in stock in a store.

Stop at Targets on Tuesday. I've done this three or four times and they've had Wiis. My sister also got a Wii at Target a couple Tuesday ago.

Actually stopped today and they had 6 (5 if you count the one they sold while I was there.) Was tempted to purchase it and Mario Galaxy and then ebay it for nice profits before Christmas. But I didn't feel like risking an ebay chargeback for such a small net profit (200?). My true feelings came through today. I just don't want another one. I'll eventually borrow a Wii and play Galaxy that way.
 
1-D_FTW said:
Stop at Targets on Tuesday. I've done this three or four times and they've had Wiis. My sister also got a Wii at Target a couple Tuesday ago.

Actually stopped today and they had 6 (5 if you count the one they sold while I was there.) Was tempted to purchase it and Mario Galaxy and then ebay it for nice profits before Christmas. But I didn't feel like risking an ebay chargeback for such a small net profit (200?). My true feelings came through today. I just don't want another one. I'll eventually borrow a Wii and play Galaxy that way.

You can Craigslist Wii's.
 

Deku

Banned
laserbeam said:
Yep thats alot of money to swallow. Factor 5 Estimated it would cost 50 million to get the game made and put onto shelves. So if thats the case Sony probably has a very bad view of Factor 5 atm.

Here's a mental exercise. Even in bizarre universe where Sony somehow captures the entire price of the $60 lair as profit, they would need to sell 833,000 copies of the game just to break even.
 
bill0527 said:
He really kind of owns himself with this argument because developers spread this cost around to 3 different platforms now - PC, Xbox 360, and PS3. Between those 3 platforms, its not hard to sell a million copies total and make money unless your game just totally sucks. This is why you still don't see third parties giving the Wii much of anything but lip service. Publishers can spread their risk out over 3 platforms rather than putting all of their eggs in the Wii basket.


Well it seems its their loss, giving the wii basket is full of golden eggs....
 

Acosta

Member
JoshuaJSlone said:
Lowering the ceiling on technical possibilities, mostly. Reusing old equipment/tools. Though I have no doubt Reggie is selectively using numbers to make Wii seem even cheaper.

I was being sarcastic more than other thing. Nintendo is making more money than anyone putting less investment effort than its rivals. Yes, this is business and all that but I don´t find that "right" in my book (let me stress my).

But that is my vision as a gamer that would have gladly payed 400 or 500 $ for a Nintendo console in the same league that PS3 and 360. It´s obvious I´m part of a minority, so my opinion is worthless.
 

Deku

Banned
Acosta said:
I was being sarcastic more than other thing. Nintendo is making more money than anyone putting less investment effort than its rivals. Yes, this is business and all that but I don´t find that "right" in my book (let me stress my).

But that is my vision as a gamer that would have gladly payed 400 or 500 $ for a Nintendo console in the same league that PS3 and 360. It´s obvious I´m part of a minority, so my opinion is not meaningful at all.

That's highly arguable. Their business model allows for low cost development. As a result third parties trying to catch up and fill their catalogs with Wii software in time for the annual shareholders meeting are having to put a lot of half assed efforts out. It's not Nintendo's problem.


They took the risk, and are being rewarded for it. Wii could have bombed as badly as the Dreamcast. In fact, it shares a lot in common with the Dreamcast.
 

laserbeam

Banned
Deku said:
Here's a mental exercise. Even in bizarre universe where Sony somehow captures the entire price of the $60 lair as profit, they would need to sell 833,000 copies of the game just to break even.

and as far as we can tell its barely sold 300,000 worldwide
 

Zer0

Banned
Gahiggidy said:
Well, besides the differant controller, I don't see how its not possible considering they put the same games on both the ps2 and the Xbox last generation.

i think the difference BETWEEN the ps3/360 vs the wii is much bigger than ps2/xbox
 
Acosta said:
I was being sarcastic more than other thing. Nintendo is making more money than anyone putting less investment effort than its rivals. Yes, this is business and all that but I don´t find that "right" in my book (let me stress my).

But that is my vision as a gamer that would have gladly payed 400 or 500 $ for a Nintendo console in the same league that PS3 and 360. It´s obvious I´m part of a minority, so my opinion is worthless.

They have to get closer to the other two next time.....that's for sure, they should concentrate in the wiimote next....though....
 
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