Wiiconmics -- The Crisis of the Old Order

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liquidShake

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#1 liquidShake
Member since 2006 • 412 Posts

Anyone who has passed Economics in High School knows this common knowledge -- consumers are not smart.

I'm tired of sheep rejoicing around their coveted sales figures. Take a bitter taste of reality: high sales does not mean a quality product. It only takes a superficial glance at the Wii's cheap price tag and kid-friendly waggle mechanics and parents are sold. Unfortunately, great games are not included.

While Nintendo may be rising from the slump that was the Gamecube, it is the sentiment that they have inadvertently induced is what should trouble gamers; the new aim for the 'casual' market. There is no lighter way of putting this, we gamers are a minority. Our interests are of little concern to the business leaders of X, whether it be Nintendo, Sony, or Microsoft. Because of this, we will inevitability see a shift in general gaming. AAA titles that sport convoluted stories and old-school difficulty are not properties that cater to the casual audience. Instead we will see games change more into the Wii-esque games. Casual-friendly, Wii-wagglin', mini game overdosed games will flood the market.

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goblaa

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#2 goblaa
Member since 2006 • 19304 Posts

Nintendo simply made a product that the consumer wanted. They read the market properly.

Sony and MS made a product that the consumer does not want. They read the market incorectly.

Nintendo is making all the money, MS and Sony are not.

That's how buisness works. You have to compete, and creating a product that does not speak to the consumer will fail. That's why bad companies with bad products go out of buisness.

If Sony and MS want to compete, they should make better products. Same goes for developers.

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PBSnipes

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#3 PBSnipes
Member since 2007 • 14621 Posts
Yeah but if you've taken High School econimics you also know consumers aren't stupid, they generally know when they're being screwed and a poorly concieved product rarely works out. If your product is popular, you're doing something right. The Wii is to gaming what the iPod is to portable music players, both are inferior in terms of quality (Wii with graphics, iPod with sound quality) and both gained popularity mostly by their exclusivity and their unique control method. And we all know how the iPod worked out, 75-90% market share, or for those of you who haven't taken any economics classes, every CEO's wet dream.
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yodariquo

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#4 yodariquo
Member since 2005 • 6631 Posts
This is such a ridiculous notion. Gears of War - 5 million+ copies sold. OMG, people love Wii Sports, screw 5 million sales, we need the casuals! This "hardcore" crowd is the one spending the most money. There are a LOT of software sales to be made from them.
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deactivated-59d151f079814

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#5 deactivated-59d151f079814
Member since 2003 • 47239 Posts

This is such a ridiculous notion. Gears of War - 5 million+ copies sold. OMG, people love Wii Sports, screw 5 million sales, we need the casuals! This "hardcore" crowd is the one spending the most money. There are a LOT of software sales to be made from them.yodariquo

I fail to see why games such as wii sports are a bad thing? Shouldn't there be a huge variety in the choices of our games we play.. I do not want to be playing Gears of War games every day just like I do not want to be playing Wii Sports every day.

When I play on my PC, I play numerous titles.. Alot of times I play simple shooters to relax, other times I'll play complicated RTS's or RPG's. I don't understand what the problem with this is.. Odviouslly this isn't true when games such as Paper mario, Zelda, Resident evil 4 are doing so well and they are pretty hardcore in alot of respects.

I agree though that mini games do need to shave off alittle, but it is far too early to say anything about it.. REMEMBER.. Many third party devs weren't really thinking about making exclusive games for the Wii till 3 or 4 months after release when they realized how popular it is.

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theburg

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#6 theburg
Member since 2005 • 976 Posts
If anything, all the casual games will help fund MORE hardcore games. Hardcore gamers are only constrained by the amount of good games that come out. Casuals have more of a "1 game every X time period" mentality. I think that at some point in the future, the casual/hardcore ratio will be such that it will be less profitable to make hardcore games but for now and for the next couple gens, it is a good thing IMO.
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jg4xchamp

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#7 jg4xchamp
Member since 2006 • 64057 Posts
we hardcore gamers by more games than casuals. spend more money than casuals. are the sole reason why playstation, nintendo, and microsoft are around to this day. do u think casuals will be 6 games a year. or 10. hardcore gamers will. do u honestly think all those casuals bought rayman, wii play,wiisports, mario party, and warioware, and will buy brain age, my sims, etc. no they bought the wii and did nothing. some bought more games. other said meh.

hardcore gamers keep the consoles going. not casuals. they may buy the hardware. but hardcore gamers by more games.
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NobuoMusicMaker

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#8 NobuoMusicMaker
Member since 2005 • 6628 Posts

Nintendo simply made a product that the consumer wanted. They read the market properly.

Sony and MS made a product that the consumer does not want. They read the market incorectly.

Nintendo is making all the money, MS and Sony are not.

That's how buisness works. You have to compete, and creating a product that does not speak to the consumer will fail. That's why bad companies with bad products go out of buisness.

If Sony and MS want to compete, they should make better products. Same goes for developers.

goblaa

Making gimmicks =/= reading the market and long term sales.

If Nintendo actually read the market, they would know of High Definitions rise in consumers' choice. They blatantly ignored the market.

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deactivated-59d151f079814

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#9 deactivated-59d151f079814
Member since 2003 • 47239 Posts

we hardcore gamers by more games than casuals. spend more money than casuals. are the sole reason why playstation, nintendo, and microsoft are around to this day. do u think casuals will be 6 games a year. or 10. hardcore gamers will. do u honestly think all those casuals bought rayman, wii play,wiisports, mario party, and warioware, and will buy brain age, my sims, etc. no they bought the wii and did nothing. some bought more games. other said meh.

hardcore gamers keep the consoles going. not casuals. they may buy the hardware. but hardcore gamers by more games.jg4xchamp

How do you describe casuals.. Now adays more and more people are playing more games on the pc and console. Video games in the United States have become pop culture every where. Just because they won't buy the game doesn't mean friends and family won't either as gifts.

In areas such as Japan and Korea it has become deep ingrained culture where spending large sums of money and playing large sum of hours is completely normal.

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goblaa

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#10 goblaa
Member since 2006 • 19304 Posts
[QUOTE="goblaa"]

Nintendo simply made a product that the consumer wanted. They read the market properly.

Sony and MS made a product that the consumer does not want. They read the market incorectly.

Nintendo is making all the money, MS and Sony are not.

That's how buisness works. You have to compete, and creating a product that does not speak to the consumer will fail. That's why bad companies with bad products go out of buisness.

If Sony and MS want to compete, they should make better products. Same goes for developers.

NobuoMusicMaker

Making gimmicks =/= reading the market and long term sales.

If Nintendo actually read the market, they would know of High Definitions rise in consumers' choice. They blatantly ignored the market.

Yeah, I guess that's why Sony and MS are doing sooooo welllll. :roll:

High slaes means the product offers what the consumer wants. Low sales means the opposite.

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Hoffgod

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#11 Hoffgod
Member since 2006 • 12229 Posts
Anyone who has passed Economics in High School knows this common knowledge -- consumers are not smart.liquidShake
Speaking as an Economics major, you are wrong. Consumers are not stupid. Just because they have different preferences than you doesn't mean they're stupid. They do what they think will get them the best amount of utility for the amount they're spending. It's a simple cost-benefit analysis, and if they get a different amount of utility from something than you, it does not make them stupid or wrong, it makes them a different market segment. And if you think companies will just ignore the hardcore market, you are dead wrong. The hardcore segment makes up under 3% of the gaming market, but they buy like none other. The average hardcore gamer buys about 4.5 games per month. That's a lot of games. That is just way too big of a market to pass up. Will there be a market realignment towards more casual games? My guess is yes, but because the hardcore market has been oversaturated. The old business plan is to target casual consumers by appealling to the hardcore and then spreading by word-of-mouth. It only works for a few games. So, they're just targeting casuals immediately. It's a more efficient and cost effective business plan for their aims. But that's just the thoughts of an Econ Major. Don't let me stand in the way of your high school economics education.
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jg4xchamp

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#12 jg4xchamp
Member since 2006 • 64057 Posts

[QUOTE="jg4xchamp"]we hardcore gamers by more games than casuals. spend more money than casuals. are the sole reason why playstation, nintendo, and microsoft are around to this day. do u think casuals will be 6 games a year. or 10. hardcore gamers will. do u honestly think all those casuals bought rayman, wii play,wiisports, mario party, and warioware, and will buy brain age, my sims, etc. no they bought the wii and did nothing. some bought more games. other said meh.

hardcore gamers keep the consoles going. not casuals. they may buy the hardware. but hardcore gamers by more games.sSubZerOo

How do you describe casuals.. Now adays more and more people are playing more games on the pc and console. Video games in the United States have become pop culture every where. Just because they won't buy the game doesn't mean friends and family won't either as gifts.

In areas such as Japan and Korea it has become deep ingrained culture where spending large sums of money and playing large sum of hours is completely normal.

its a fine line though with casuals. with hardcore gamers if u make a great game. 8/10 times its a million seller. 1/10 times its a 4 million plus seller. and 2/10 times it flops in sales or does less than expected. 360s biggest advantage is its software sales. wii hasnt gained to muc on 360s software sales. which the 360 dominates very,very,very well. Hardcore gamers will get there games just like casauls. and more to the hardcore gamers because we buy more games.
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WhoaNellie32

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#13 WhoaNellie32
Member since 2007 • 271 Posts
wasn't there a news article on this site a few days ago stating hardcore gamers make up the majority of video game sales in the industry? I may be mistaken, but I'm pretty sure there was, and if so, wouldn't companies take this information into consideration when deciding what markets and gaming demographics they predominately want to put their money and resources in? If anything, I doubt companies would turn their backs on such a large, loyal, informed, and profitable fanbase....?
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RahnAetas

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#14 RahnAetas
Member since 2003 • 1834 Posts

As a graduate of high school economics I can tell you about the theory of Supply and Demand! No wait... that's too advanced. I'll tell you about Demand! People demand a product and they go out and try to obtain it. Right now the demand for Wiis > PS3 & 360 combined.

Next time we can talk about Suppy!

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PBSnipes

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#15 PBSnipes
Member since 2007 • 14621 Posts
[QUOTE="goblaa"]

Nintendo simply made a product that the consumer wanted. They read the market properly.

Sony and MS made a product that the consumer does not want. They read the market incorectly.

Nintendo is making all the money, MS and Sony are not.

That's how buisness works. You have to compete, and creating a product that does not speak to the consumer will fail. That's why bad companies with bad products go out of buisness.

If Sony and MS want to compete, they should make better products. Same goes for developers.

NobuoMusicMaker

Making gimmicks =/= reading the market and long term sales.

If Nintendo actually read the market, they would know of High Definitions rise in consumers' choice. They blatantly ignored the market.

If you honestly think that the lack of 720p or higher is going to be a factor in Wii sales, I don't know what to say. I have my Wii hooked into a 56" Samsung DLP that has problems with jaggys on the best of days so the Wii looks terrible, and I still don't mind. Casuals won't care if the games don't look great, as long as their fun, which last time I checked was the reason we played games.

The Wii is a great example of Nintendo reading markettrends,just look at the price compared to the competition. In Canada you can buy two Wiis (about $280)for aboutthe price of a 360 and a game ($560). As I said before, graphics aren't a huge factor, certainly not as important as price. Nintendo made the tradeoff of graphics for a lower price, and not only is it working, but they managed to sell for a profit from day one and still be immensly successful.

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Zhengi

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#16 Zhengi
Member since 2006 • 8479 Posts
[QUOTE="sSubZerOo"]

[QUOTE="jg4xchamp"]we hardcore gamers by more games than casuals. spend more money than casuals. are the sole reason why playstation, nintendo, and microsoft are around to this day. do u think casuals will be 6 games a year. or 10. hardcore gamers will. do u honestly think all those casuals bought rayman, wii play,wiisports, mario party, and warioware, and will buy brain age, my sims, etc. no they bought the wii and did nothing. some bought more games. other said meh.

hardcore gamers keep the consoles going. not casuals. they may buy the hardware. but hardcore gamers by more games.jg4xchamp

How do you describe casuals.. Now adays more and more people are playing more games on the pc and console. Video games in the United States have become pop culture every where. Just because they won't buy the game doesn't mean friends and family won't either as gifts.

In areas such as Japan and Korea it has become deep ingrained culture where spending large sums of money and playing large sum of hours is completely normal.

its a fine line though with casuals. with hardcore gamers if u make a great game. 8/10 times its a million seller. 1/10 times its a 4 million plus seller. and 2/10 times it flops in sales or does less than expected. 360s biggest advantage is its software sales. wii hasnt gained to muc on 360s software sales. which the 360 dominates very,very,very well. Hardcore gamers will get there games just like casauls. and more to the hardcore gamers because we buy more games.

Actually, I don't think the 360 sales are really that hot when compared to the Wii's. Considering there is still a couple of million difference between the two, the Wii software sales have been pretty good. In fact, if you go by attach rate, they're pretty similar with the 360 being around 5.4 games and the Wii at 4.9 games. So you don't even have that argument to lean on.

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deactivated-59d151f079814

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#17 deactivated-59d151f079814
Member since 2003 • 47239 Posts
You people have to at least admit how bad ass it would have been if you used Wii controls for a game like Condemned.
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PBSnipes

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#18 PBSnipes
Member since 2007 • 14621 Posts
You people have to at least admit how bad ass it would have been if you used Wii controls for a game like Condemned.sSubZerOo
Yeah, its called Manhunt 2 with a M rating.
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deactivated-59d151f079814

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#19 deactivated-59d151f079814
Member since 2003 • 47239 Posts

[QUOTE="sSubZerOo"] You people have to at least admit how bad ass it would have been if you used Wii controls for a game like Condemned.PBSnipes
Yeah, its called Manhunt 2 with a M rating.

I suppose but isn't manhunt 2 a third person game?

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PBSnipes

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#20 PBSnipes
Member since 2007 • 14621 Posts

[QUOTE="PBSnipes"][QUOTE="sSubZerOo"] You people have to at least admit how bad ass it would have been if you used Wii controls for a game like Condemned.sSubZerOo

Yeah, its called Manhunt 2 with a M rating.

I suppose but isn't manhunt 2 a third person game?

I think, but other than some minor details it will be the exact same game.
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Rev2221

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#21 Rev2221
Member since 2003 • 369 Posts

I kind of agree with you OP. The WII is very low quality. Nintendo makes a butt load of $$ on each console because there is nothing expensive about the console yet it costs $250. I'm convinced consumers are buying this thing for two reasons... one of which- it's different. Nothing like this has been made by a big named video game company (excluding DS). The second reason consumers love it is because of the simplicity. There ain't anything complicated about the system at all. Even the design is simple. You put in a disk and point the wii mote at what you want to do. Then you use the wiimote to do it.

Though I think the system is ultimately inferior to the other two... I'm glad it's getting praise and high sales. Nintendo needed this shot in the arm after the n64 and cube's low sales. Competetion is good for the market. What did it get us just recently? A nice $100 ps3 price drop. And whats going to come after that? Undoubtly a nice 360 price drop. Can't wait.

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Hoffgod

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#22 Hoffgod
Member since 2006 • 12229 Posts
You people have to at least admit how bad ass it would have been if you used Wii controls for a game like Condemned.sSubZerOo
Actually, I just beat Condemned tonight, and awesome as it was, I couldn't help but think how well the combat would work on the Wii. Hey, Monolith! Get someone workin' on that, will ya?
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goblaa

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#23 goblaa
Member since 2006 • 19304 Posts

[QUOTE="liquidShake"]Anyone who has passed Economics in High School knows this common knowledge -- consumers are not smart.Hoffgod
Speaking as an Economics major, you are wrong. Consumers are not stupid. Just because they have different preferences than you doesn't mean they're stupid. They do what they think will get them the best amount of utility for the amount they're spending. It's a simple cost-benefit analysis, and if they get a different amount of utility from something than you, it does not make them stupid or wrong, it makes them a different market segment. And if you think companies will just ignore the hardcore market, you are dead wrong. The hardcore segment makes up under 3% of the gaming market, but they buy like none other. The average hardcore gamer buys about 4.5 games per month. That's a lot of games. That is just way too big of a market to pass up. Will there be a market realignment towards more casual games? My guess is yes, but because the hardcore market has been oversaturated. The old business plan is to target casual consumers by appealling to the hardcore and then spreading by word-of-mouth. It only works for a few games. So, they're just targeting casuals immediately. It's a more efficient and cost effective business plan for their aims. But that's just the thoughts of an Econ Major. Don't let me stand in the way of your high school economics education.

Thank-you. This pretty much sums up what's going on in video games right now. Developers are actually letting other people enjoy video games, God forbid. How dare they!

Hardcore gamers need to calm down and stop acting so selfish. Instead of 100% hardcore games and 0% casual games being made, it's getting closer to 50/50. Were getting more players and more variety.

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hiho24

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#24 hiho24
Member since 2005 • 4052 Posts

Anyone who has passed Economics in High School knows this common knowledge -- consumers are not smart.

I'm tired of sheep rejoicing around their coveted sales figures. Take a bitter taste of reality: high sales does not mean a quality product. It only takes a superficial glance at the Wii's cheap price tag and kid-friendly waggle mechanics and parents are sold. Unfortunately, great games are not included.

While Nintendo may be rising from the slump that was the Gamecube, it is the sentiment that they have inadvertently induced is what should trouble gamers; the new aim for the 'casual' market. There is no lighter way of putting this, we gamers are a minority. Our interests are of little concern to the business leaders of X, whether it be Nintendo, Sony, or Microsoft. Because of this, we will inevitability see a shift in general gaming. AAA titles that sport convoluted stories and old-school difficulty are not properties that cater to the casual audience. Instead we will see games change more into the Wii-esque games. Casual-friendly, Wii-wagglin', mini game overdosed games will flood the market.

liquidShake

I picture the casual consumer to be like floaties. The more they buy the less likely Nintendo is to sink. People seem to foget that the GameCube had many solid 1st party titles. The Hardcore audience who bought the GC bought those 1st party titles. The luxury that Wii has now is the prospect of possibly gaining more solid AAA titles. Never the less if that fails to happen, we still are expecting the great AAA Nintendo titles. Thats why diehard Nintendo fans buy the console in the first place!

I personally believe that many 3rd party games are showing promise however, the Wii certainly is in a good position this time around.

As for the lack of quality games by 3rd parties, its common knowledge that 3rd parties weren't ready for the Wii. I expect to see great 3rd party titles coming up in 2008.