Top selling console of 2008

Cdubneeddeal

Diamond Member
Oct 22, 2003
7,473
3
81
Nintendo with MS trailing behind - Sony ailing.

No software? No problem.

Despite early predictions that 2008 would be the year Sony regained momentum in the bitter video game console wars, it turned out to be false hope. Industry leader Nintendo stayed ahead of the pack all year, thoroughly dominating both the home console and handheld hardware markets with their Nintendo Wii and Nintendo DS systems, respectively.

According to NPD Group, Nintendo flat-out owned the all-important month of November by selling over 2 million Wiis, better than twice as much as the next closest competitor, Microsoft's Xbox 360 (836,000). And at over 1.5 million DS systems sold, Nintendo tripled the output of Sony's PSP (421,000). While those numbers weren't nearly that high through most of 2008, the general order -- Nintendo, Microsoft, Sony -- held strong throughout.

Wii Ascendant

But this was hardly a banner year for Nintendo in terms of software. The biggest games -- Super Smash Bros. Brawl, Mario Kart Wii and of course Wii Fit -- came relatively early in the year, and their biggest holiday release, Wii Music, has been labeled something of a dud. Miffed that the company was focusing too heavily on catering to its relatively new mass-market audience, the usually loyal Nintendo fans complained about a lack of core games. Meanwhile, Microsoft and Sony enjoyed a wealth of blockbuster games all year long, including top-sellers Grand Theft Auto IV and Fallout 3. So how did Nintendo compete, much less lead the way?

By finding a new niche, of course. While gamers lament the deluge of cheaply made games (dubbed "shovelware") aimed at capitalizing on the Wii's mainstream popularity, many of those titles speak to their broad audience and support the company's new directive. Nintendo knows on which side its bread is currently being buttered, and while Microsoft and Sony battle for the hearts and minds of the core gamers, Nintendo is content getting their moms to play, too. And their moms often have a lot more money.

Microsoft, on the other hand, found itself in second place by keeping its eyes on the prize: core gamers willing to shell out for great downloadable content. The recently released "New Xbox Experience" system update has nearly tripled sales over Xbox Live Arcade, while huge releases like Gears of War 2 and Fable II cemented their status as the go-to console for most gamers.

New Xbox Experience

As the newest kid on the block, Microsoft is less concerned with catching Nintendo than they are with kicking Sony's butt, which is pretty much exactly what they're doing. Take, for instance, the November NPD numbers for Activision's best-selling first-person shooter, Call of Duty: World at War. The 360 version of the game sold an impressive 1.4 million copies -- over twice that of the PS3 version (597,000). It's hard to play catch up when you're getting beaten that badly.

As for Sony, well, they just can't catch a break. The company scored a major coup when Blu-ray officially trounced HD-DVD in the hi-def format war, but few believe the technology will catch on with consumers. Strong sales of big-time exclusive Metal Gear Solid 4 were promising, but the troubled launch of their 'Home' network coupled with relatively weak holiday sales (only Resistance 2 cracked the Top 10 list in November, all the way back at number 9) cramped their style. The once-promising PSP is getting whomped by both the DS and Apple's surging iPhone. Did a witch cast a spell on these guys or what?

Hopefully next year will bode better for the one-time king of the consoles, but for now, they'll have to get used to the view from the back of the pack.

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nealh

Diamond Member
Nov 21, 1999
7,078
1
0
My wife who hates video games asked for a Wii(dec 21..I got her one at ToysRus)

she loves just the incduded sports games....

Nintentdo who very smart and lucky??..they went after "untouched" market the non-core gamer...

gotta admit the Wii is fun....really crappy grahpics but the cartoon look is kinda of charming too
 

Fardringle

Diamond Member
Oct 23, 2000
9,200
765
126
while Microsoft and Sony battle for the hearts and minds of the core gamers, Nintendo is content getting their moms to play, too. And their moms often have a lot more money.

Exactly right. My wife and kids would never want to play any of the shooting/war games that are targeted at the "core gamer". However, do play the Wii Sports/Wii Play games regularly. We enjoy playing them together and it's an incentive to get up and move around a bit. My 8-year-old enjoys the Wii Fit excercise and balance games as well. I also agree that a lot of the Wii titles are disappointing and some are just plain pathetic, but there are many "gems" as well.
 

Looney

Lifer
Jun 13, 2000
21,938
5
0
Do they have a list of most profitable console (including game sales/royalties)? That would be a much more interesting number i think.
 

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: Looney
Do they have a list of most profitable console (including game sales/royalties)? That would be a much more interesting number i think.

I would guess the list would be in the same order. Wii no doubt makes a lot more per console than the Xbox 360; even though the 3rd party game sales aren't so great on the Wii, Nintendo sells an assload of first party games.

I believe Xbox 360 has been selling for more than what it costs to build one for a while now, and even factoring in the warranty costs I doubt they're losing as much per console as Sony (Sony is losing $50 per console). Xbox 360 game sales dwarf PS3 game sales, so MS gets a lot more from royalties. Microsoft also nails you on additional costs - proprietary accessories, paid Xbox Live, etc. They also turned their console into a virtual billboard.

Sony will probably be lucky to break even. Microsoft won't do nearly as well as they would have if they hadn't taken 3 years to fix the 360's big defect (if it's really fixed), and Nintendo will be laughing all the way to the bank.
 

nsafreak

Diamond Member
Oct 16, 2001
7,093
3
81
Originally posted by: Looney
Do they have a list of most profitable console (including game sales/royalties)? That would be a much more interesting number i think.

It's going to be the same order. For the same reasons mugs pointed out, darn it.
 

Gunslinger08

Lifer
Nov 18, 2001
13,234
2
81
I don't know why people get off on one particular console winning. I'd prefer that all 3 stay afloat for several more generations. The competition keeps game and console prices lower. Do you think Microsoft (in the past) or Sony would sell consoles at such a big loss if they were your only choice?
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
I bought a 360 recently. Wii was out because it doesn't have the hardcore games that the other two have and PS3 was never in the running--far too expensive; it would have been a non-starter with my wife. They are completely pricing themselves out of the market. Wii sells so well because it's cheap, it's #1 with kids, and #1 with females (plus some older guys like it, but that isn't its core market, obviously).
 

Kabob

Lifer
Sep 5, 2004
15,248
0
76
Originally posted by: nealh
My wife who hates video games asked for a Wii(dec 21..I got her one at ToysRus)

she loves just the incduded sports games....

Nintentdo who very smart and lucky??..they went after "untouched" market the non-core gamer...

gotta admit the Wii is fun....really crappy grahpics but the cartoon look is kinda of charming too

I'm in the same boat, my wife hates video games and asked for a Wii, should be sitting in our apartment's front office right now. I've owned one but sold it as I couldn't get into it. It has a HUGE appeal for the "casual" gamer (which is what it's marketed for). Nintendo played it smart, the Gamecube (sadly) couldn't compete with the Xbox and PS2 in the mainstream market, so they change their strategy and beat the snot out of them sales-wise.

As for the question of "which is most profitable" I'd say it's probably the same order. Sure the Wii is cheaper (overall) but it's got to be cheaper to manufacture.
 

Queasy

Moderator<br>Console Gaming
Aug 24, 2001
31,796
2
0
Originally posted by: kabob983
As for the question of "which is most profitable" I'd say it's probably the same order. Sure the Wii is cheaper (overall) but it's got to be cheaper to manufacture.

Last I heard, Nintendo was making around $6 profit on each Wii sold.
 

erwos

Diamond Member
Apr 7, 2005
4,778
0
76
Originally posted by: Queasy
Originally posted by: kabob983
As for the question of "which is most profitable" I'd say it's probably the same order. Sure the Wii is cheaper (overall) but it's got to be cheaper to manufacture.

Last I heard, Nintendo was making around $6 profit on each Wii sold.
I can't believe it's that little - it's two years later, and the thing was basically a pair of Gamecubes when it was released. Certainly, I would be shocked if they were selling it to retailers for all that much less than the retail price.

OTOH, congrats to Microsoft for finally pushing through a profitable year... without Halo.

Sony desperately needs a follow-on to the PSP, though.
 

randomlinh

Lifer
Oct 9, 1999
20,846
2
0
linh.wordpress.com
Originally posted by: erwos
Originally posted by: Queasy
Originally posted by: kabob983
As for the question of "which is most profitable" I'd say it's probably the same order. Sure the Wii is cheaper (overall) but it's got to be cheaper to manufacture.

Last I heard, Nintendo was making around $6 profit on each Wii sold.
I can't believe it's that little - it's two years later, and the thing was basically a pair of Gamecubes when it was released. Certainly, I would be shocked if they were selling it to retailers for all that much less than the retail price.

OTOH, congrats to Microsoft for finally pushing through a profitable year... without Halo.

Sony desperately needs a follow-on to the PSP, though.

Yeah, I thought they were banking at least $25/console... when the Wii was about to launch, there were rumors of coming out at $199 to really compete. But it would be a rare loss leader for nintendo. Luckily, they stuck to their guns, cause they made bank.

PS3 is failing more than I had thought it would. It's a nice combo system if you want a bluray player. Graphics wise on games I don't care too much, it's close enough between it and the 360.. but the online component is sooo far behind it's not funny. And I actually prefer the 360 controller, more comfortable to me.
 

shiner

Lifer
Jul 18, 2000
17,112
1
0
We have all 3 in our house.

The XBox 360 and PS3 are pretty close in how often they are played. Right now the PS3 probably has a bit of an edge due to my addiction to Madden and NCAA Football.

The Wii is in our exercise room and is mostly used by my wife.
 

Queasy

Moderator<br>Console Gaming
Aug 24, 2001
31,796
2
0
Originally posted by: erwos
Originally posted by: Queasy
Originally posted by: kabob983
As for the question of "which is most profitable" I'd say it's probably the same order. Sure the Wii is cheaper (overall) but it's got to be cheaper to manufacture.

Last I heard, Nintendo was making around $6 profit on each Wii sold.
I can't believe it's that little - it's two years later, and the thing was basically a pair of Gamecubes when it was released. Certainly, I would be shocked if they were selling it to retailers for all that much less than the retail price.

OTOH, congrats to Microsoft for finally pushing through a profitable year... without Halo.

Sony desperately needs a follow-on to the PSP, though.

Joystiq post about a Forbes article from Dec 1st.

While Sony and Microsoft dream of turning a profit on their consoles, Nintendo is doing just that. According to a new article from Forbes, the Big N makes $6 in operating profit from every Wii unit sold. Nearly 19 million units have been sold worldwide so far during 2008, earning Nintendo a tidy $114M in profit, taking that $6-per-system figure into account.
 

Kabob

Lifer
Sep 5, 2004
15,248
0
76
Wow, I'd have thought it was much higher than that! Shows what I know...
 

Queasy

Moderator<br>Console Gaming
Aug 24, 2001
31,796
2
0
Originally posted by: kabob983
Wow, I'd have thought it was much higher than that! Shows what I know...

Well, the one thing that we haven't heard about with the Wii is redesigns and die-shrinks. I really don't know if any significant changes have been made to the internals of the Wii like have been made to the 360 and PS3. I would have expected something. But if Nintendo really is only making $6 profit per Wii, then it is possible that they've been pretty stagnant in that regard.
 

erwos

Diamond Member
Apr 7, 2005
4,778
0
76
But every Wii brings in $6 of operating profit for Nintendo, says David Gibson, an analyst at Macquarie Securities.

That's just what some analyst thinks. It's not necessarily the reality of the situation. I'd also point out that "every Wii brings in $6 of operating profit" doesn't mean that the hardware sells for a $6 profit per unit - there could be other operating costs which bring down the number.
 

Kabob

Lifer
Sep 5, 2004
15,248
0
76
How does that compare with the loss that M$ and Sony take for their consoles? Any figures on those?
 

Injury

Lifer
Jul 19, 2004
13,066
2
81
Originally posted by: kabob983
How does that compare with the loss that M$ and Sony take for their consoles? Any figures on those?

Wikipedia says the first release of the PS3 had an estimated loss of $250.
 

smb

Senior member
Mar 7, 2000
563
0
76
i find it hard to belive nintendo leads the pack since they don't really make alot of them, or they are made in limited numbers.
 

CKDragon

Diamond Member
Jan 22, 2001
3,875
0
0
Originally posted by: smb
i find it hard to belive nintendo leads the pack since they don't really make alot of them, or they are made in limited numbers.

That is not true.
 

Injury

Lifer
Jul 19, 2004
13,066
2
81
Originally posted by: smb
i find it hard to belive nintendo leads the pack since they don't really make alot of them, or they are made in limited numbers.

No, they make plenty of them, they just sell THAT fast. First off, if Nintendo has made one hell of a hype machine, why increase production and ruin it? Second, what happens when everyone that wants a Wii finally has one? At some point, the Wii is going to start being on shelves regularly. It might not even be in 2009, but if they up production by like... 25%... then once the thing is common place they're going to have an excess of 25%, they'll have to let workers go, they'll have wasted production lines, etc. No reason to flood the market.
 
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