Slashdot Mirror
Nintendo, Sony Take Big Financial Hits
The Installer writes with news that Nintendo is seeing a significant financial downturn to match the general slowdown in the rest of the industry. "Sales of the once unstoppable Wii console have tumbled for the first time since its launch three years ago, sending the gaming giant's quarterly profit down 61 percent." Meanwhile, Sony is feeling the pain as well; the company sold 500,000 fewer PS3 consoles than in the previous quarter, and PSP sales saw an even bigger drop. Interestingly, Sony also revealed that the manufacturing cost of the PS3 has now dropped 70% since it was released. The drop in sales has caused the resurgence of rumors about console price cuts.
Will Nintendo lay people off in a "Wiistructuring?"
Nintendo's the only one not surprised by this. They didn't have a single major release, save for maybe Wii Sports Resort (which came out when, 2 days ago?), this year. By Christmas they'll release New Super Mario Bros. Wii and next year brings Mario Galaxy 2, possibly a Wii fit expansion or whatever they're doing with the pulse sensor, and lo and behold, those months will do ridiculously well for the Wii, and the year afterward, on the same month, analysts will worry about Nintendo's downfall when the sales aren't as high due to a lack of major titles.
It's the same dumb shit with Hollywood. Half a dozen studios release films in June with quarter-of-a-billion budgets+marketing campaigns and when all of those types of films don't come out 'till August the next year, there's an article about how the film industry is failing, all because it's easier to make up "Sky is falling" predictions than to actually wait a whole fucking fiscal year and take into account the number major releases that hit a particular year.
Games and film have 2-3-year production cycles, and many times projects get delayed. The money still comes in (albiet with a higher cost due to the delay, which, for better companies, tend to result in more revenue for a better product), but as it doesn't come in steadily, it gives "analysts" plenty of fuel to predict doom whenever there is none.
If I hadn't already bought a Wii, I wouldn't buy one either. I'm disappointed with the game line up. 3 years have passed and I can name 3 games that I'm glad I bought. I can also name off a dozen names I deeply regret having ever bought/rented.
Back in the 80s and 90s, any schmuck could decide to go make a game. With enough dedication and talent, he could really make something awesome, too. I mean one day Robyn and Rand Miller decided to sit down and make a game. And that game (Myst) was the best selling game for the better part of a decade.
Now, it takes millions of dollars for the spoiled consumer to even *consider* playing a game. So now we see less and less games being made by the inspired and talented, and more and more games being made by corporate committee.
As time marches on, I have a feeling we'll see a (relative) dieing out of the multimillion game and the rise of the $10-20 household device game. (Cellphones and computers to be specific.) It takes inspiration and talent to make a good game, not millions of dollars of art assets.
Context matters.
"Meanwhile, Sony is feeling the pain as well; the company sold 500,000 fewer PS3 consoles than in the previous quarter, and PSP sales saw an even bigger drop."
500,000 units is just a number; losing a sandwich is less of a tragedy if you had two of them to begin with. FTFA:
"Sony did release console sales numbers for the period, which also painted a bleak picture. Quarterly worldwide PlayStation 3 sales dropped from 1.6 million units in the first quarter of the past fiscal year to 1.1 million units in the most recent fiscal quarter, while PSP sales plummeted from 3.7 million units to just 1.3 million units. VAIO sales and profitability were also down, though Sony did not offer specific figures."
So selling 500,000 fewer units this quarter in this context means that Sony has sold approximately 30% fewer units than last quarter.
Old consoles aren't selling as if they were cutting edge. Fascinating.
Between installing malware on it's customers' machines, using draconian DRM, constantly trying to shove proprietary crap down our throat [...] I have decided that Sony can go @#$% itself.
What console doesn't use "draconian DRM"? What video game published by a major label isn't "proprietary crap"?