Slashdot Mirror
Wii Is the New US Console Leader
stoolpigeon writes with this snippet from an AFP story carried by Google: "Nintendo said Thursday that its globally popular Wii has become the top-selling video game console in the United States, a crown coveted by rivals Microsoft and Sony. Market-tracking firm NPD Group reports that 666,000 Wii consoles were sold in the United States in June, raising the total sales count in the country to nearly 10.9 million units." I'd rather play board games than video games, but the Wii Fit makes one of these tempting anyhow.
Dam all you bastards buying them out every time I try to get one!
This, combined with the popularity of the Nintendo DS, should be proof enough that normal people want to play games, not brag about their system's capabilities.
I'm not trying to troll, not at all--I own a Wii and no other current-generation consoles.
But where's the games! The Wii has so much potential, with its unique controller, and yet, I find so few games interested in playing.
I don't care about top-notch graphics. If I want that, I'll play my PC. What I do want are actual quality games instead of more shovelware. Where are they?
I wonder how many of these sales are due to people playing Wii Sports alone? I'm rather underwhelmed at the Wii's selection...
Oh, andoOnline gaming especially is important to me, and they really dropped the ball on Super Smash Bros. Brawl--the online is terrible, something reminiscent of 56k gaming, almost, just with better graphics. I haven't played the Wii's iteration of Mario Kart, which I probably should rent, but I have a feeling it's not much better (although, feel free to enlighten me on this).
This Bloomberg article also gives the numbers for PS3 and 360s in June. 405,500 and 219,800, respectively. Which is more interesting to me. The way people talk about the hard times the PS3 is having, I was surprised that it is outselling the Xbox.
Free the Quark 3 from asymptotic confinement! Bring your charm! Don't get down! All colours and flavours welcome!
Hi, Grandpa! What are you doing on Slashdot?
Shouldn't the title be "Wii Are the New US Console Leaders"?
Thanks, I'll be here all week.
Nintendo is brilliant for turning their backs on the gamers that supported them for decades and designing games for grandma.
They owe no loyalty to anyone. They're a company and they exist to make money. As it stands, they're doing that. Also, I'd say it's not really that they've turned their backs -- the games aren't much different from the goofy stuff from the N64 or GC days. They just lost a lot of third party support after the GC took such a beating by the PS2, and haven't regained that. Their inhouse games -- Mario, Zelda, Metroid -- are still good. (Actually, I liked this generation Zelda *more* than I liked any since the SNES.)
They're also brilliant for releasing a "next gen" console with last gen hardware specs for 250.
Yeah, how *dare* they not be just like their competitors and offer something different and affordable.
And it works great because grandma and grandpa have no clue about how graphics or processing power can improve their gaming experience.
Yeah because games *sucked* until this generation. Just out of curiosity -- how old are you? Anyone who has been a Nintendo fan "for decades" remembers 8-bit shit graphics.
Means they make raw profit on every machine sold
They don't have a choice. They're not part of a massive conglomerate that can subsidize their gaming unit until it comes out of the red -- they have to make money on hardware sales.
Hell, even of the more regular gamers I know, they have wii's for two games only. Mario and Smash.
Metroid, Zelda, Mario Kart? Basically the other three in the five series' that have been Nintendo staples (and some of the only games worth playing that were exclusive to Nintendo) since the N64 days? (Okay, so no Metroid then... but the other four, yes.)
So, for third party developers, it's still better to make titles for a PS3 or 360.
Yeah, ignoring the leader by miles -- great strategy. They should make PSP games, too, and not DS games -- right? So what if it wins?
The reason the Wii isn't doing well with third party? They lost a lot of support over the previous two generations -- their fault, given the way they behaved toward developers in the past -- and nobody had anything big planned for the Wii. Then it took off and developers are either pushing out crap or working on something decent, or quietly praying the other two catch up.
One of the underlieing assumptions of the Invisible Hand is that a rise in price will immediately bring production up to a new equilibrium. Of course, this is really an abstraction that makes the thought experiment work; in the real world, Nintendo can't immediately increase production to meet increased demand, because it takes time to build new manufacturing facilities. It's also not worthwhile to invest in new facilities to serve a short-term spike. Big investments like that have to pay off for the long haul. Since it was expected that the Wii would start making demand last spring, it wasn't worth too much effort to increase manufacturing rates. (I suspect WiiFit created a new demand spike which threw off that prediction.)
So if they can't meet demand, the Invisible Hand says they should increase the cost. This pads their profit margin, allowing them to reinvest into building facilities to build more Wiis, and then sell later at a cheaper price when manufacturing ramps up. This is also the best strategy for retailers (even if they were a monopoly), since it pads their margins just as much. So why hasn't this happened?
Nintendo has a long term need to maintain its brand image. If it sold the Wii at $300 or more (which is where the eBay price suggests the equilibrium price is at), it would be competing around the same price point as the XBox 360. Since the Wii is (let's face it) less powerful than the 360, many would perceive this as evil price gouging. At launch, the 360 was already considered too expensive (though many considered it cheep when the PS3's price was announced). Brand perception may be more important than a short term profit increase.
Not a typewriter
I can't tell if you are joking or are serious, but since there are people who actually think the way you do, I will respond to your points for their sake and hope you aren't too offended if this was just sarcasm.
What I wonder is why the free market isn't able to meet Wii console demand. Under the normal conditions the price would rise to reduce the demand until there are some units sitting on the shelves because they are too expensive, after which the manufacturer would increase the supply and lower the prices while still keeping supply-demand in equillibrium.
There are numerous examples of products throughout the years that were both cheap and sold out. The reason the companys making them didn't raise the prices as you descibe is because this would create ill will with their customer base and likely cost them in the long run. This isn't to say however that the free market doesn't respond as you describe its just not Nintendo or the retailers who have binding agreements with Nintendo that are letting the market find the price - its places like ebay; anyone who wants a wii could have one immediately if they are willing to pay the current going rate on auction sites.
Since none of this is happening, I suspect the monopolist manufacturer manipulates the prices and supply such that there is an artificial shortage
While Nintendo has a "monopoly" on manufacturing wii's, its makes as much sense to call it a monopoly as it would to call Apple a monopoly for being the only one making Macs; they both are products in a larger marketplace, and customers have plenty of other choices.
either to 1) undercut the competitors by keeping the prices too low,
All evidence is that Nintendo is the only game manufacturer unwilling to sell hardware at a loss. This is completely contradictory to your statement. Further it is not illegal or unethical to sell a product that everyone knows has cheaper components (than its competitors) for a cheaper price.
2) to generate hype by the perceived scarcity of the resource: "hey, if these consoles are so popular I gotta get me some" (which counts as false advertizing)
While its not impossible that Nintendo has done this, don't you think its a bit idiotic to accuse Nintendo of purposefully creating shortages in a discussion that began with the title "Wii is the New US Console Leader". (doubly so when that now make the wii the leader in every region)
Monopolists need to be fined or broken up!
Sure, but what does that have to do with Nintendo?
I'm sorry, but your $.02 is now worth only $.015