Mixed News for Nintendo, Microsoft
If you were to just look at downloadable content this week, Wii and 360 owners would have a lot to cheer about. Virtual Console downloads include the (under-appreciated) Legend of the Mystical Ninja and the original Castlevania. Xbox 360 owners can finally sink their teeth into the board-game spectacular that is Settlers of Catan. Classic titles Millipede and Centipede will also be on offer via Xbox Live Arcade. Unfortunately, there are some less cheery things to discuss as well. Virtual Console sales are down, apparently, and some analysts are questioning whether Nintendo's success may be bad for the industry overall. As for the 360 ... the Elite may be bringing back some old problems. 'Red Rings of Death' have already been reported with the just-released consoles, and DRM issues with Live Arcade titles on the 'upgraded' system are making some new owners frustrated.
I don't understand why there's this psuedo-FUD regarding the VC sales by everyone carrying this article. Sales are not down. What he's pointing out is that VC sales have not been growing proportional to the skyrocketing sales of the Wii console.
My guess is that the average user isn't going to care a whole ton about the VC. The hardcore gamer might because they are trying to play games they never got to play before or are trying to consolidate their retro catalog legally into one location. I would be willing to be that the initial buyers for the Wii were in-fact hardcore gamers or previous gamers, not necessarily the soccer moms and grandma's who are now starting to actively seek the system for themselves. These newcomers to the system probably have less interest in the VC than in buying the Wii mostly for Wii Sports and a couple other titles. Finally, anyone who's been following the VC lineup knows that signal to noise ratio hasn't been incredibly high. There's a handful of must-haves on that list, but there's a lot of games waiting in the wings for some reason or other (my theory is to help keep gamers going if there's a big drought of Wii games).
A better description of what's happening is that sales are slowing or plateauing, not "down". I don't think Nintendo and its partners really care anyways. 1.8 million units sold with price tags >= $5 and only bandwidth costs to consider is nothing to scoff at.
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