25Jan 2013

Xbox 360 will be this generation's best-selling US console - DFC

Analyst pins lion's share of blame for stagnant market on "Nintendo's collapse"

We don't normally write up analyst reports at this end - as members of the OXM community tirelessly observe, anybody can make educated guesses. But in the case of the following from DFC Intelligence, we're happy to make a shamelessly partisan exception. The group has been crunching recent NPD numbers, and predicts that the Xbox 360 will eventually become this generation's best-selling videogames console in the US.

"Riding an undercover $50 price reduction at retail, Microsoft reported that Xbox 360 sales reached a total of 1.4 million units sold during the month of December in the U.S (Microsoft cited NPD Group data)," the report begins. That performance marks the 24th straight month the console has topped sales charts.

"Microsoft also claimed that seven of the Top 10 games for the month were Xbox 360 titles. Consumers spent more than $1.27 billion on Xbox 360 hardware, games and accessories during December. By comparison, Nintendo announced that the Wii U moved more than 460,000 units at retail as well as 475,000 Wii units, during the month.

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"November and December Wii U sales combined topped 890,000, totaling $300 million. Nintendo says those Wii U sales are ahead of numbers tallied by the original Wii back in 2006 ($270 million). Sony Computer Entertainment of America did not comment on December sales numbers."

"The NPD Group collects hardware and software video game sales data from major U.S. retailers," it goes on. "In late 2010, NPD decided to no longer report hardware sales publicly, thus leaving it to individual companies to provide their own take on the numbers.

"When NPD releases sales figures on the second Thursday of the month it has been the habit of Microsoft, Nintendo and Sony to make statements spinning the numbers in the most favorable light possible. For most of 2012, the only company with much to talk about was Microsoft.

"Amazingly Microsoft didn't have to do much exaggerating as in its seventh full year on the market the Xbox 360 had a stellar performance," continues the report. "For its generation, the Xbox 360, not the Wii, will end up as the number one selling console system in the U.S.

"Shockingly it was in the later years of its life that the Xbox 360 really took off. The success of Microsoft and the Xbox 360 during the past two years highlights a radical changing of the guard in the game industry. Much has been made about a steady video game sales decline in the past three years. In reality the decline has mainly been due to the aging console systems and more importantly because of Nintendo's collapse.

"Unlike Microsoft, Nintendo has been in a major downward cycle, much of it self-inflicted. Nintendo's spin for the Wii U focused on how it made more revenue than the Wii at launch. Of course, the Wii was supply constrained at launch and sold at a lower price so that is not surprising. The reality is that many Wii U systems were sitting unsold on shelves at year end.

"Consumers love games more than ever but a new order of game providers is resulting in market shifts that are proving painful for Nintendo and other established game companies."

If anyone needs me, I'll be wallowing around in this massive basin of smug. It should probably be noted that the US is Microsoft's heartland - the real challenge, some would argue, is cracking Europe and Japan.

Comments

15 comments so far...

  1. I don't think Nintendo really have anyone but themselves to blame if the Wii U isn't selling as well as it should do, for exactly the reason the 3DS didn't.

    To follow years of DS, DS Lite, DSi, DSi Lite, DS XL etc iterations of the same console you can't release the follow up with an almost identical name and wonder why people didn't realise it was a different machine. The original WiiU announcement was so confused that most professional journalists where reporting it as a new peripheral for the Wii, followed by days of contradictory reports about it's status and I strongly suspect the buying public are equally confused. Wii did well because it reached an untapped market, but that same market aren't going to buy the WiiU because they are waiting for the Wii 2.

    Memo to Nintendo: Numbers may not look as pretty as obscure naming trends, but almost everyone can get behind "bigger number means better"

  2. I always found it hard to believe Nintendo sold more Wii consoles than Xbox in Europe, It definitely isn't because of poor sales in the UK, I know quite a lot of people with 360s

  3. You make a very good point there Cunning. I've never been much interested in the Wii anyway but I can quite honestly say I don't really know what the WiiU is, I thought it was just a Wii upgrade in the way that the Elite was to the Xbox 360.

    Admittedly, I see the word Nintendo on a news article I very rarely read it, perhaps I'm a Philistine but I see Wii and think casual, not for me, because I'm.. ahem... a 'hardcore' gamer (whatever the hell that means! Hate the term to be honest.). Besides, one console and a PC take up enough time already, another would just put me in hospital!

  4. I think this issue for the Wii U is that so much fuss was made about the controller (which is impractical to sell individually making local multiplayer awkward at best) that most people didn't realize it was a home console and not some iPad clone.

    The Wii was hamstrung among "hardcore" gamers because the casual approach was causing the machine to fly off the shelves. And love or hate the Wii and it's motion controls it did change things in this generation, without the Wii, there would be no Move or Kinect (of course in my opinion they both suck just as hard as the Wii remote and solidified my hatred of motion controls)

    Another thing, the 360 was always going to be the best selling by virtue of being out the longest and the first iterations being akin to a console made of toilet paper so some people have probably ended up buying several over the years.

  5. The wii was a good little machine with some great games, hit the niche point of being cheaper and having a majority in the casual market so it sold well.

    I'd be surprised if they could get anywhere near the same sales again though.

  6. I used to be all about the Nintendo consoles,I have the Snes (still works after 20 years) The N64 and The Gamecube...but when I saw the graphics on the Wii and the amount of childish games I decided to seek my gaming fix elsewhere. As a mature Gamer (Im 26) The Xbox360 was the only console that stood out. Ill admit in recent months Ive been tempted to pick up a cheap Wii as I have noticed it has some great JRPG's and the Xbox's lineup is pretty lackluster in that department. Couldn't care less about getting a Wii U... as it seems Nintendo are a generation behind in terms of Console power and just rely on gimmicks.

  7. there is a good reason the wii has pee'd over the xbox's sales for years, as the ds et al have done with the psp and vita. nintendo have family games, fun family games ans as many people there are loving call of duty, many MORE like wii board games, mind games and the odd gem of a hardcore classic that goes unnoticed elsewhere. i dont see any kind of demise here, its a different market. lets not forget kinect and move only exist due to the nunchuk remotes that sony amd microsoft 'laughed' at before the wii was released. i own all platforms so not biased.

  8. I used to be all about the Nintendo consoles,I have the Snes (still works after 20 years) The N64 and The Gamecube...but when I saw the graphics on the Wii and the amount of childish games I decided to seek my gaming fix elsewhere. As a mature Gamer (Im 26) The Xbox360 was the only console that stood out. Ill admit in recent months Ive been tempted to pick up a cheap Wii as I have noticed it has some great JRPG's and the Xbox's lineup is pretty lackluster in that department. Couldn't care less about getting a Wii U... as it seems Nintendo are a generation behind in terms of Console power and just rely on gimmicks.

    If you're a huge fan of Nintendo's major franchises, then a Wii should be a cheap way to have some fun. Be warned though, it will look terrible on a modern TV, even with the Component Video cable. Metroid Prime Trilogy, if you can get hold of a copy, is the best Wii game ever, IMO. It includes the two Gamecube MP games remixed for the Wiimote and Metroid Prime 3, which is the biggest, if not quite best, of the three. Mario and Zelda also had solid new series entries on the Wii.

  9. I know this site is completely Xbox-biased, which is obviously fine, but it always surprises and disappoints me when people are so desperate for other technology to do badly. It just seems a very immature attitude to take, i'm sure everyone here has incredibly fond Nintendo memories from throughout their life, and to be smug at the fact they are suffering is unfair. Would anyone get any enjoyment out of football is Man Utd if they were the only football team?

  10. I know this site is completely Xbox-biased, which is obviously fine, but it always surprises and disappoints me when people are so desperate for other technology to do badly. It just seems a very immature attitude to take, i'm sure everyone here has incredibly fond Nintendo memories from throughout their life, and to be smug at the fact they are suffering is unfair. Would anyone get any enjoyment out of football is Man Utd if they were the only football team?

    As an arsenal supporter I'm going to have to say yeeeeno, not at all.

    I've only played skyward sword on the new tv msbhvn, it seemed ok but had to set it to move (which changed some stuff) but even then only played the end of it. Is it really not that good on new tvs?

  11. It still looks terrible to me, even with the enhancements that Movie mode adds. If you want to see how good a Gamecube/Wii game can look in 1080p, might I suggest you look at this: http://youtu.be/89Bxc47-cFs

  12. If you're a huge fan of Nintendo's major franchises, then a Wii should be a cheap way to have some fun. Be warned though, it will look terrible on a modern TV, even with the Component Video cable. Metroid Prime Trilogy, if you can get hold of a copy, is the best Wii game ever, IMO. It includes the two Gamecube MP games remixed for the Wiimote and Metroid Prime 3, which is the biggest, if not quite best, of the three. Mario and Zelda also had solid new series entries on the Wii.

    Not really into Nintendo's big name games anymore, Huge JRPG fan though, Xenoblade Chronicles and Pandoras tower are appealing to me and wouldnt mind a play of the Skyward Sword Zelda game.

  13. I know this site is completely Xbox-biased, which is obviously fine, but it always surprises and disappoints me when people are so desperate for other technology to do badly.

    Agreed, and as a rule we don't take pops at the Loyal Opposition in this way. I just feel a bit mischievous today, is all. Blame the manflu.

  14. I have a WiiU it's a great little machine really enjoyed playing Nintendo Land with the family over Christmas. Yet I do find it quite funny how power wise it still struggles graphically next to my 7 year old Xbox 360 :lol:

  15. what a wonderfully unbiased report: xbox will eventually be this or that. like the other report saying the 720 will be wonderful because of this or that. anyone checked wikipedia, interesting read: http://en.wikipedia.org/wiki/List_of_be ... e_consoles i know this is an xbox website but credit where credit is due please for the wii, unless you count the wii as 'last generation' in which case its even worse for microsoft.