The Nintendo Wii will be the best selling console of the next five years
A games post by matt, posted on May 24, 2007 at 7:26 am
That’s a pretty audacious title and it’s probably going to rile up a bunch of people. And not just your general fanboy types, either. For the most part, console gamers — or, at least, the type of console gamer who likes to go online and talk about video games — tend to agree that it’s too early to make any conclusion about which console (if any) is going to dominate the market. They point out that it’s only been six short months, and cling to the belief that a combination of price drops, better marketing and the release of certain key software titles (most of which, coincidentally, end in a numeral of some kind) will cause significant shake-ups to sales figures over the next year. Conventional wisdom is that everything is still up in the air.
It’s time to get down to earth, however, and face a fact that’s always been evident when it comes to video games: the launch-window decides everything. There is no such thing as a come-back, a turn-around or an underdog story; the console people buy at the beginning of a product cycle is the console people will continue to buy at the end of the product cycle.
And, for this generation, that product is Nintendo’s Wii.
Exhibit A: The April NPD
Last month’s American sales figures need no introduction:
Nintendo DS – 471,000
Wii –360,000
PlayStation 2 — 194,000
PlayStation Portable — 183,000
Xbox 360 — 174,000
Game Boy Advance — 84,000
PlayStation 3 — 82,000
GameCube — 13,000
The overall message is obvious: Nintendo is the new Sony. Their sales in both the portable and console sphere dwarf their competitors. In its fifth full month of release, Nintendo has cemented their Wii console as the console to beat in this generation’s sales race.
Some less-than-obvious observations:
- The Wii’s sales figures in April are 360,000. Aside from being a rather coincidental ‘fuck you’ to Microsoft’s brand name, this number also represents the highest non-portable sales for any console in April ever.
- The Wii outsold the PS3 by a factor of 4.4. The PS3 outsold the Gamecube by a factor of 6.3. There is a very real chance than the PS3 will be closer competitor to the Gamecube than the Wii in future months.
- The Xbox 360 is consistently tracking below the Playstation 2 each month.
- The Playstation 3 is consistently tracking below the Gameboy Advance each month.
Exhibit B: History
There has never been a console that has launched poorly then slowly gained steam in the American, Japanese or worldwide marketplace. The best examples of any kind of ‘comeback’ with consumers would be the Super Nintendo in America — which emerged from a bloody battle with Sega to barely take the American market — and the Nintendo DS worldwide.
In the former case, the console was never trounced by its competitor. It was outsold occasionally, but only in the American and Europe territory, and only by small margins. As far as the DS goes, it’s a similar story: it enjoyed a solid launch in all territories, but sold only about on par with Sony’s PSP for most of its first year. It always maintained a bigger userbase than its competitor, however — its sales surge after the Lite redesign and the release of software like Nintendogs and New Super Mario Bros. was far more a phenomenon than it was a comeback.
Four consoles have been the undisputed winners of the video game space. All of them — the NES, the Super NES, the Playstation and the Playstation 2, launched strong. And, from there, they continue to enjoy strong sales over the first four or five months of sales, continuing toward market domination.
Exhibit C: The End Is In the Beginning
Other consoles have launched strong and faded, sure, but none of them sustained their huge sales longer than the first month or two past their release date. The Nintendo 64 was, at the time, the biggest launch of all time (and, in actuality, it sold pretty well for most of its life) but Nintendo was unable to sustain sales even in the short-term (Betting so heavily on the sales potential of Cruis’n USA was probably a mistake). Similarly, the Gamecube launch was huge, but its January was dismal. By then, the damage was done, and Nintendo never recovered.
It’s not about launching first — the Dreamcast and the Xbox 360 are evidence of that. The competition can’t begin without at least two contenders. However, history has never shown us a turn-around on the level it would take for both the Xbox 360 and the Playstation 3 to stage some sort of sales comeback at this point.
Exhibit D: Price is (mostly) irrelevant
A lot of the response to the April sales figures was a collective call for Sony and Microsoft to lower the prices of their consoles. The rationale is, I guess, that $600 U.S. Dollars for the PS3 and whatever the hell Microsoft is charging for one of their nine Xbox 360 SKUs this month is the biggest barrier to widespread adoption of these consoles.
This is incredibly short-sighted. Price is an important part of any consumer’s decision to buy anything, of course, but the PS3 and Xbox 360 are not simply attractive items that are priced outside the normal consumer’s range. They are, for the most part, undesirable items. The barrier to purchase doesn’t come at the first sight of the price tag — it comes far earlier.
The sales figures would not be much different if Sony and Microsoft had priced in the same range as Nintendo.
I’ve said this a few times on this site, but it bears repeating: The Wii was a brilliant move because it has, essentially, saved gaming from itself. The market was poised to contract after the monster success of the Playstation 2. There just wasn’t enough innovation in the pipeline — nothing new to keep consumers interested. The Wii (and DS) changed all of that.
Exhibit E: The Future
My reputation might not be worth much, but I’m willing to put it on the line over this one: Neither Sony nor Microsoft will gain greater (or even comparable) worldwide market share to Nintendo during this generation of consoles.
The writing is already on the wall, and there is no going back. The Wii, despite having more hardware available than any other console ever has had during its launch window, is still extremely difficult to find in stores. Six months after launch, supply has yet to catch up to demand.
And this is all without any Wii-specific major first-party software releases.
There is no tide to turn, there is no card left unplayed. There’s no basis, historical, economic or otherwise, for a predicted worldwide turnaround. Nintendo, after they pass Microsoft’s established install base, will not be caught.














Myles wrote:
I can’t yet nod enthusiastically along with this title until we see September’s 360 Sales. If Halo does not result in a ginormous hardware spike, I think Nintendo’s got it.
Posted on 24-May-07 at 8:18 am | Permalink
Mike wrote:
“They are, for the most part, undesirable items”
I’m not sure why this is, but I think you’re onto something. When it came time to enter this generation of consoles I went with Nintendo, not once considering the 360 or the PS3. I’m no Nintendo fanboy, and the price difference with the Xbox wasn’t much of a factor ($70 for an extra wiimote and nunchuk certainly adds to the Wii’s price).
Trying to figure out why these other consoles seem undesirable though, the only thing I can come up with is that they focus quite a bit on the online component of gaming and that just turns me off I guess. Maybe I’m scared of being trounced by cyber athletes (!) like Fatal1ty, but really I think that it’s just a dimension of gaming that doesn’t appeal to me and maybe other Wii owners as well.
Posted on 24-May-07 at 7:03 pm | Permalink
McNutt wrote:
I’ve written quite a bit on this subject, and I’m with you on almost every point. Where I disagree slightly with is on how the PS3’s price point has played a role in how this generation is turning out.
Sony is fighting and losing a two-front war. They’re bleeding hardcore, dedicated video gamers to the Xbox 360, with its comprehensive online features and its slightly lower price point. At the same time, they’ve completely priced themselves out of the casual gamer market and Nintendo - with its novel, innovative controller - has waggled in and claimed it.
Now I’m not saying that a competitively-priced PS3 would be winning the console war. I argued when the Wii launched that Nintendo’s strategy of competitive differentiation and interface innovation paired with one of the best PR campaigns the industry has ever seen would lead to a more competitive showing from Nintendo this time around. But the reason that the Wii is DOMINATING this round of the console wars thus far instead of merely winning it owes a lot to the PS3’s $600 price tag making it a non-option for casual gamers. I think we’d have a much more even three-way race had Sony gone another path.
Posted on 25-May-07 at 12:00 pm | Permalink
jim109109 wrote:
I must agree with all you’ve said, except about the price which is a factor in determining sales. For example, the Neogeo was a desirable system with many great games and fantastic graphics for the time. However, the $200-300 cartridges explained its relatively low popularity.
Posted on 11-Feb-08 at 12:02 am | Permalink
dib8rman wrote:
Your points even now hold true – there is just one thing you didn’t notice; I’m not entirely sure if this was a given back when you made this article.
I’ll start with this, people spend as much as they think something is worth – I’m sure if everyone was educated about the various functions of a PS3 it would of outsold the Xbox360 2:1 in all but America – which now in February 2008 it look like it’s poised to do.
So your totally right about the appeal thing but I’m not sure if you noticed that per month all systems are generally selling more per month. This might be due to Consoles this generation being in mainstream media quite a bit more than usual, but peoples pockets seemed to have been prepared this round.
With that said, though amazingly the only company in the black is Nintendo, I don’t think anything Sony does will change that for the next 6 months. Microsoft seems to be the dream cast of this gen – I mean I remember that time like it was yesterday, this is totally dey ja vu.
This cycle, things aren’t actually going faster – theirs just more people involved in it early, so you get bigger numbers sooner. Mainly because of this your going to see the Wii continue with the big numbers probably for a while through 2009, that is of course if Nintendo keeps marketing it right. (Wii musical is Wiifit meets Guitar Hero.)
There are so many other factors – but in the dimension your referring to price point, your right price isn’t one of them – if someone sees the PS3 as being worth it, then they will save and buy it, it would be doubtful they would go get a Wii just because its $600. (Some probably would.)
Posted on 22-Feb-08 at 12:28 pm | Permalink