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Apple sells 3 million new iPads in 3 days

It already happened. The console industry has not recovered from the fallout of October 2009. Meanwhile, billions of (mostly "new") dollars are being spent on Facebook gaming which didn't exist 5 years ago, the App Store which didn't exist 5 years ago, and indie games which had no respect or broad awareness 5 years ago.

The landscape has changed. Nobody exactly knows the way forward. You might consider it a problem. I consider it opportunity.

Why do people think that Nintendo= console industry ?

The only reason why we are seeing huge YOY drops is because Wii fad is over while Sony and Microsoft are selling as much consoles as they did in previous years.

And honestly you think that facebook is draining money from gamers market? Do you see Call of Duty crowd throwing money at Farmville ?
 

Burai

shitonmychest57
This thread is amazing. I don't think I've ever seen so much baseless hysteria and hostility caused by a games device before.

Once upon a time Atari and Nintendo released drastically inferior consoles that put the shits up the creators of superior arcade gaming experiences and arcade operators. It was a slow and drawn-out death but it happened all the same.

The game is about to change again and people don't like it.
 
Are the market caps of traditional game publishers not mostly down from 5 years ago? Are the market caps of mobile publishers not mostly up? Have social, mobile and download not expanded the market?

He might be using "extreme" examples, but I don't think the overall message is flawed.

He's cherry picking a specific time period and then for some reason changes the time period when he's talking about Microsoft and Sony's profits from gaming since if he used that same time period Microsoft has made about 3-4 billion dollars.

He's not giving out incorrect information, he is just abusing the data to fit his agenda and the overall message is flawed because the market caps of the newer companies like Zynga are purely based on growth potential due to how new the business is. Should be comparing revenue for all the big publishers and the newer companies and maybe he'd have something worth talking about.

edit-Also like how he completely ignores the success of the PS3 and 360 over the last couple of years. That doesn't fit into the narrative so I guess we can't talk about a console peaking in it's 7th year on the market doing something no other console has.
 

Sorc3r3r

Member
Awesome sales, but without proper controls,buttons and sticks, the game experience will be limited in depth and genres, imho.
It's about needs , no doubt a lot of people are satisfied in their gaming needs with the ipad, and more so the newer generations, i began playing in the great '80s, my gaming vision is very far from what i device are offering right now.


 

numble

Member
Who? Casuals? Web social gaming and Wii were catering to them just fine.

Web social games make even less money than 99 cent games. And they have ads all over the place. I don't see how Apple convincing people to pay money instead of playing free flash games actually hurts the industry.
 

Mario

Sidhe / PikPok
Why do people think that Nintendo= console industry ?

Er, what? Read my post below. Fall of the Wii didn't help, but it was mid 2010 before that happened.

Mario said:
Global financial crisis hit in October 2009 which started a panic by game publishers who cancelled a bunch of in development projects (EA cancelled over 20) in order to try and restore their market cap (the only way they could do it was cutting operating costs). With projects pulled, developers started laying off people immediately, some publishers too. In December 2009, games retail had the biggest month ever at the time, but it also had more releases in a single month than ever before (around 300). There were big winners, but massive losers. The pie was bigger but it went to fewer titles, a symptom of competition, limited shelf space, splintered platforms and commercial used sales. The GFC amplified the effect of what was going to be a tough Christmas period.

The results of this became apparent in early January 2010, which resulted in more layoffs and spending freezes at publishers. Some publishers like Capcom and Konami centralised portfolio decision making back to Japan, slowing down already cumbersome greenlight processes even further. Some developers were hanging on until GDC, but with poor results and publishers taking a wait and see attitude before kicking off or restarting projects, the lack of work was a killing blow. Dozens of console developers closed down over the 2 years from here. A few publishers disappeared too, and a few are still on the brink from this time.

What was getting greenlit was done so on reduced budgets and shorter timeframes, waiting until the last minute to identify opportunities and minimising the outlay on projects before seeing a return. Developers in the middle got squeezed as more work was outsourced to Eastern Europe and parts of Asia. Activision cut the middle out of their portfolio entirely, relying on a few top tier franchises and everything else being handled by their value group, Activision Minneapolis.

The console industry was devastated and it has not bounced back from this.



And honestly you think that facebook is draining money from gamers market? Do you see Call of Duty crowd throwing money at Farmville ?

Er, no. I'm saying the opposite. Facebook is bringing in new gamers and money.
 
Web social games make even less money than 99 cent games. And they have ads all over the place. I don't see how Apple convincing people to pay money instead of playing free flash games actually hurts the industry.

Read the thread. 99 cents is not a sustainable price point for the long term. That's bad for the industry.
 

numble

Member
Read the thread. 99 cents is not a sustainable price point for the long term. That's bad for the industry.

Your argument is that free social flash games on the web is a better way to serve that market?

Finally, the #2 App Store market is China, where consoles like the Wii aren't even sold.
 

Foffy

Banned
Great presentation, I agree with that and he's put in historical case studies to support his view.

He's subtle in trying to teeter things in his favor. I was confused when I saw it but when he made a comparison between 2005's phone capabilities to consoles, he seemed to pick franchises that had PS3 entries and used images from those games to cater the argument that the console race is slow on building on power. I'm quite sure God of War 3 and Gran Turismo 5 were not PS2 games, let alone released in 2005. He also ignored the rebound the 3DS has had, but specifically highlighted Michael Pachter as the key person to highlight that Nintendo is in disarray.

I find arguments like this hard to accept neutrally when the presenter has already chosen a side, so no shit he's going to defend it to justify that decision. Are people surprised by this?
 
.
iOS serves a new market that weren't going to pay $40-60 for games in the first place. You argue that web social gaming and the Wii should serve them.

I was arguing that casual gamers had an avenue of games being made for them. That didn't have anything to do with good or bad for the industry. Just that they were being addressed in some fashion.
 

numble

Member
I was arguing that casual gamers had an avenue of games being made for them. That didn't have anything to do with good or bad for the industry. Just that they were being addressed in some fashion.

Isn't it better for the industry that these people are now paying for games instead of playing free flash games?
 
Isn't it better for the industry that these people are now paying for games instead of playing free flash games?

It's not that simple. How do we know those people aren't just playing free iOS games? It's not as black and white as you are trying to ask here.
 

amrihua

Member
I can understand phones which people get with contracts but how/why do people replace tablets every year?

I've been replacing my iPad every year since the original. The how is very simple, I just make an order and it arrives to my place after whatever time it takes. Buying from Apple's online store is very straightforward. The why, is also easy, it is cheap enough that I can buy a new one every year without even registering on my balance sheet.
 

numble

Member
It's not that simple. How do we know those people aren't just playing free iOS games? It's not as black and white as you are trying to ask here.
Are you saying that the people buying iOS games would've been purchasing console games to begin with?

What about the iOS games sold in China, where consoles and handhelds aren't even sold? The top 3 apps sold in China are Modern Combat by Gameloft, Where's My Water, and Fruit Ninja. These people wouldn't have been buying console games because they can't buy them outside of the marked up gray market.

I don't think its as black and white as you are trying to put it, either.
 

Mario

Sidhe / PikPok
It's not that simple. How do we know those people aren't just playing free iOS games? It's not as black and white as you are trying to ask here.

In November, one of our paid 99c games was at #6 in the Top Overall US charts. It was making great money. That game has a corresponding free version which has cut down functionality. The free version was making 3 times as much money as the paid version in ad revenues.

What is wrong with "free" exactly?
 

SmokyDave

Member
It's not that simple. How do we know those people aren't just playing free iOS games? It's not as black and white as you are trying to ask here.

I bet I can trace your lineage right the way back to King Canute.


In November, one of our paid 99c games was at #6 in the Top Overall US charts. It was making great money. That game has a corresponding free version which has cut down functionality. The free version was making 3 times as much money as the paid version in ad revenues.

What is wrong with "free" exactly?
Now that is interesting.
 

MontTrain

Banned
I've been replacing my iPad every year since the original. The how is very simple, I just make an order and it arrives to my place after whatever time it takes. Buying from Apple's online store is very straightforward. The why, is also easy, it is cheap enough that I can buy a new one every year without even registering on my balance sheet.

Yeah if the rest of the console manufacturers want to impress me, have preorders delivered to my door on launch day for free shipping.
 

amrihua

Member
Wait. Why is this in the gaming section?

are we gonna get stories of android sales in the gaming section, too?

EDIT: what.... 7 pages and a mod hasn't moved it?
I now demand android/facebook sale stories also get put in the gaming section or else gaf is owned by apple fanboys.

You are in no place to demand anything. iOS is a gaming platform, Android is not, at least not in any significant way that is worth mentioning.

What is wrong with "free" exactly?

Ads?
 

Foffy

Banned
You are in no place to demand anything. iOS is a gaming platform, Android is not, at least not in any significant way that is worth mentioning.

What? Why is one considered a game platform and the other is not when they're in the same market?
 

amrihua

Member
newipadbom.png


http://www.maximumpc.com/article/news/apple_continues_make_huge_margin_new_ipad

Jesus Christ, dat profit. I dare anyone to say they aren't overpricing this goddamn thing.

Why do some people assume R&D is free? There is a lot of hours of design and engineering and testing that went into the iPad before the 1st one was made.

What? Why is one considered a game platform and the other is not when they're in the same market?

Maybe the number of games or the amount of 3rd party support?
 
In November, one of our paid 99c games was at #6 in the Top Overall US charts. It was making great money. That game has a corresponding free version which has cut down functionality. The free version was making 3 times as much money as the paid version in ad

That's pretty awesome.
 

SmokyDave

Member
If "dudebro" and "PC master race" are bannable offences and this kind of posts aren't, I don't want to live on this board anymore.

Ride it out. I figure we've got 6 more months before people resign themselves to the obvious: it's a valid games platform.

What a horrible pill to have to swallow. More choice! Tiered pricing! Free updates! It's all so horrible!
 

Maxim726X

Member
Why do some people assume R&D is free? There is a lot of hours of design and engineering and testing that went into the iPad before the 1st one was made.

So they've basically made at least a billion in profit in the first few days of release.

What other company on the planet can boast that kind of return, ever?
 
That's pretty awesome.

Not surprising at all really. I would imagine most developers would prefer people download the free games w/advertising as opposed to the $.99 version w/o advertising. The latter is a one time sale, while the former will continuously generate a stream of cash flow from advertisers. The more people who play the free version with advertisements, the more money the developer will accumulate because the impressions would be higher and advertisers will naturally pay more for more impressions
 

amrihua

Member
So they've basically made at least a billion in profit in the first few days of release.

What other company on the planet can boast that kind of return, ever?

How did 3 million units translate to 1 billion dollars profit? If Apple makes $200 on every unit sold (unrealistic) then they would have made 600 million dollar in profit. But that's moot because it doesn't take into account the initial cost of developing the iPad. Apple employs 60,000 and none of them are as assembly workers.
 

Foffy

Banned
Maybe the number of games or the amount of 3rd party support?

That's a silly reason. The 32X and Wonderswan are game platforms, even if they have a small number of games and had a lack of third parties making games for it.

If iOS is considered a game platform because it has games on it now, the same applies to Android in principle, even if it's not as successful or rich in content.
 

numble

Member
So they've basically made at least a billion in profit in the first few days of release.

What other company on the planet can boast that kind of return, ever?

Apple's gross margins are clear in their financial reports (44.7% last quarter), and their margins are lower than Microsoft (73% last quarter) and Google (65% last quarter).

Unlike Microsoft and Google, Apple has to pay for retail stores and retail employees to man those stores, including on-site warranty replacements instead of having people ship it to a depot and wait a couple of weeks to get their devices back.
 

amrihua

Member
That's a silly reason. The 32X and Wonderswan are game platforms, even if they have a small number of games and had a lack of third parties making games for it.

If iOS is considered a game platform because it has games on it now, the same applies to Android in principle, even if it's not as successful or rich in content.

I can't claim to be able to draw the line at just the right mark however the way I see it is similarly to why Windows was considered a gaming platform but Mac wasn't. With software platforms (OSes) it isn't as clear cut because they weren't purpose made for gaming. And also the 32X and Wonderswan were from a bygone era. In that time context they were gaming consoles.
 

Haunted

Member
Someone really needs to find a solution to the no-button conundrum before sceptical GAFers can take touchscreen-only devices seriously as a possible replacement for their main gaming systems. Competent graphics and high production values (while keeping prices low) are already going a long way to reconcile gamer's fears, but the limited controls are still a major barrier.


edit: obviously applies to console only people
 
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