Finally, the mainstream press uncovers the problem with the Wii

The Nintendo Wii has been incredibly and unexpectedly successful, outselling its more capable Xbox 360 and PS3 opponents. There's just one problem, and this is what I've been pointing out all along: When you target the non-gaming market as Nintendo is doing, you're not attracting real gamers. You're attracting looky-loos. And looky-loos don't buy games. Ladies and gentlemen, I present the dark underbelly of the Wii platform: No one is buying any Wii games. That doesn't make for a healthy market for anyone but the console maker.

Nintendo sits atop the home video-game market. Its Wii, though less technologically advanced than Microsoft’s Xbox 360 or Sony’s PlayStation 3, continues to outsell those machines and is now in more than 20 million homes.

So why are retailers having so much trouble selling Wii games?

Take Super Smash Bros. Brawl. It was one the most hotly anticipated video games of the year; it sold more than 1.4 million copies during the first week of its release, in early March, and broke records for Nintendo of America.

But sales dropped more than 90 percent over the first four weeks ... Some major retail chains — including Wal-Mart and Toys “R” Us — have already begun bundling the Smash Bros. game with Wii machines for sales online, a sign that the base of hard-core gamers who went looking for the game has been depleted.

"We sold a couple thousand copies in the first week," said Xavier Pervez, assistant manager at a GameStop in Fairfield, Conn. "It’s dropped off significantly now, maybe 100 in each of the last couple weeks."

Over the first three months of the year, only three other Wii titles broke the list of top 10 best-selling games ... Guitar Hero, for example, sold 2.2 million copies for the Wii, but 2.8 million copies for the Xbox 360 and almost 5 million for two versions of the PlayStation.

[Wiii] gamers are content with the games they have, often going no further than the Wii Sports game that comes with the machine. They don’t buy new games with the fervor of a traditional gamer who is constantly seeking new stimulation.

The average Wii owner buys only 3.7 games a year, compared with 4.7 for Xbox 360 owners and 4.6 for PlayStation 3 owners.

When I deride the Wii, I do so as a gamer, not as a mainstream consumer who must buy whatever is hot at the time and then never actually use it. The Xbox 360 certainly has its problems--I'd point very quickly the Red Ring of Death reliability issues that have dogged the hardware--but it's a real gaming machine, as is the PS3. The Wii is not. So it's successful, obviously. But that doesn't mean it's any good. And in my opinion, it's not any good. It's a toy.

Update:  VGChartz, the source of the Wii game title sales mentioned above, says the NYT misinterpretted their data. This doesn't change my central point, however: The Wii is a toy, not a serious video game machine, and is not of interest to real gamers.

Discuss this Article 30

Ocean
on Apr 21, 2008
You mystify me the way you make these terms up. A 'real gaming machine'? Just stop it already. You're moving the goalposts. 1 game less per year. Wow. Great blog post. >>The average Wii owner buys only 3.7 games a year, compared with 4.7 for Xbox 360 owners and 4.6 for PlayStation 3 owners.<<
Hastin Zylstra
on Apr 21, 2008
Paul, I have to agree on most parts, however: At the current price point of $250, it CAN be just a toy. Yes, many people STILL see the Wii as the 'Wii Sports' machine, and I honestly think that bundling it inside was the most double-edged sword that they could have done. I love Brawl, and the Wii, but there's just not enough coming the 3rd party to make me want to buy games for it. Espeically when they are STILL crappy PS2 ports (Rock Band anyone...), or stripped down games that also come on the 360. The problem is, is that the Wii has a niche, an that niche game comes in the box.
Ocean
on Apr 21, 2008
Theres no problem here. It's just that people who consider themselves 'real gamers' are insulted that their platform (or platformS) of choice are behind in sales to what they call a toy. How dare Nintendo change the rules!
pthurrott
on Apr 21, 2008
Ocean, I guess I get that you're a Nintendo fan boy or whatever. And that's fine. But the Wii just isn't interesting to hard core gamers, sorry. And while I understand there's a bigger market out there of more traditional consumers, as a gamer, I just couldn't care less. About the Wii or that market.
Ocean
on Apr 21, 2008
Why are you name-calling? I don't own one. It's a game machine just like the 360 and PS3. People are buying it to play *games*. Thus it's currently leading this generation of the video game wars. Dividing the market into 'hard-core" and "casual" is done *only* to try to diminish what Nintendo has done and is doing to MS and Sony. More validation: Both MS and Sony are now trying to get more involved in the casual game market and are thinking about motion controllers. Theres a gaming market, and Nintendo is winning it: with both it's console and its portable systems. In my book, that validates the Wii. You ought to cover it objectively.
MLomasIcomm
on Apr 21, 2008
The assesment that the alternative market of Wii-owners are people who aren't buying games may well be correct - but that doesn't mean they never will. Remember, they were the market that would 'never' buy a console - but now they have. Could it possibly be that whilst Nintendo has sucessfully figured out how to market a games console to market that wouldn't ordinarily buy one, the games producers and stores have yet to figure that part out themselves? It's simply no good targetting the Wii market with ports of games that hardcore gamers want - to develop for the Wii is to develop for a totally different target market - if the stores and producers want to tap that market, they need to take a different approach. Saying that this is a flat market with no potential is missing the point - sorry.
Spidubic
on Apr 21, 2008
The Wii is just plain fun. Nintendo looked at the market, took a chance, and in the end created a huge success. That is what happens when something is plain, simple, and a whole load of fun.
lars.henriksen
on Apr 21, 2008
The low game sales come from one obvious reason (as is mentioned by MLomaslcomm): Game studios are porting games to the Wii that aren't made for the Wii. I bought COD4 (one of all time favourite games) for the Wii and haven't played it more than a couple of hours. Why? It's not fun to play on the Wii! Wii games are supposed to be games that involve some kind of activity (like those found in Wii Sports) - not just pointing at the screen and flicking your wrist (whoever came up with that should not develop games). When the game studios develop games for the Wii, Wii owners will buy the games - no doubt.
Ocean
on Apr 21, 2008
These comments are turning against Paul...
Faisal_A
on Apr 21, 2008
I'm not sure why characterizing the Wii as a toy is such a bad thing. Aren't toys supposed to be fun? Isn't that what the Wii aims to achieve? I know I certainly have enjoyed using it. Everytime Paul or some other tech writer characterizes the Wii as a toy, it's usually in a very condescending manner, as if the product, and by extension, the users of the product, are idiots for choosing the "wrong" platform. I find this to be very insulting. Despite not agreeing with Paul on some things, I really do enjoy reading the blog. Just not when I'm being insulted for being a child-like Wii user.
joe-dokes
on Apr 21, 2008
Paul, You can't do math. Let's see Nintendo makes money on EVERY Wii sold. Nintendo is selling the Wii at a rate Nearly Triple that of the 360. 721,000 units vs. 262,000 units. Thus, even though Nintendo sells less games per console it can still expect to sell 2.66 Million games compared to 1.2 Million games for the Xbox 360. Hmmm. Let's see nearly three times the consoles, over twice the number of games sold. Making profit on every console, making a profit on every game, has a failure rate in the single digits compare to almost 30% for early consoles. Wow Paul you're right the Wii is just failing pathetically. Finally, introduced gaming to an entire new section of the population. If I were an investor I know which company I would buy. Regards Joe Dokes
Hastin Zylstra
on Apr 21, 2008
@joe-dokes: Yes, while Nintendo makes a load of change, it isn't good for 3rd parties. Crap, low budget games (like 'Carnival Games') sell like crazy, but good, expensive well thought out games (such as 'No More Heroes'), barely make a profit. I understand the appeal of the console (I own one), but it just leads to more ports and crappy games when it comes to 3rd party.
lotsamystuff
on Apr 21, 2008
Attention, all Wii owners: Paul doesn't think you're "real". Apparently you can't be a "real" gamer unless you fit his narrow definition/profile/stereotype. This anti-Wii jihad Paul's been on since its introduction is ridiculous. He makes rabid Mac fans look tame by comparison. So Wii owners buy one less game a year than owners of other consoles. Wow. Better sell your Nintendo stock now! The sky is falling! joe-dokes, you coudn't have said it better. But once again, Paul's spinning a useless statistic to try to prove a point.
brandon.pope
on Apr 21, 2008
A few people here are making good points and if you combine them you actually start to see the real picture: Yes, the Wii's price point allows it to be more of a toy to more people that the powerhouse gaming machines. As such there is a huge market for the Wii, one that traditional gammers are included in only if they choose to have a second console for fun. The Wii is fun, but it will lack in software sales because of the market it tries to reach. Little kids will play the same game forever, and they don't have the money to go and drop 40 bucks every few months when the latest and greatest comes out. @joe-dokes no one said the Wii was failing, all that was said is that the Wii is going to have some trouble selling the volume of games as Nintendo would like it to @lotsamystuff the way in which Paul defines the traditional or "hardcore" gamer is pretty accurate. Now, if you play video games at all, then you are a video gamer. Its that simple. However the term gamer doesn't refer to someone who picks up mario galaxy once a month and thats it. It refers to those individuals who do and have been playing games for years. It is as much a specific market as the non-gamers who buy the wii (or in most cases have their parents buy them a Wii). These people have very high expectation in many specific genres and the expectations for production value, quality and truthfulness to the classics in that genre grow all the time. This is a separate audience.
Ocean
on Apr 21, 2008
If they buy one less game per console, but sell twice as many consoles...seems like there isn't a problem with software sales to me.
brandon.pope
on Apr 21, 2008
@ocean The number of consoles sold means nothing for the success of the console itself. Firstly, the console needs games to be played on it. This means that 3rd party developers must feel that there is money in developing for the console. This is the reason the PS3 got off to such a slow start. There was interest, but no major console sales to entice developers to make games, and no games means less consoles sold. It is a vicious cycle. The Wii has the console sales down, but this new issue it that owners aren't buying very many games. The fact that there are more Wii's out there than xbox 360 or PS3 or whatever means little in determining the success of the console itself.
cesjr
on Apr 21, 2008
"The average Wii owner buys only 3.7 games a year, compared with 4.7 for Xbox 360 owners and 4.6 for PlayStation 3 owners." Based on Paul's breathless blog post title, I was expecting a LOT bigger difference than that. Actually I think that's great news that the Wii is selling so many games when it obviously is directed more toward casual gamers. those of you looking to Paul for insight on consumer tastes and trends should look elsewhere. Paul is a geek. Nothing wrong with that. But most geeks can't see the world other than through geek eyes. Normal folks apply a different set of considerations to their buying decisions. LIke for game consoles, they don't care much about frame rates and pixel counts. They care more about things like, oh, the family budget and family fun.
brandon.pope
on Apr 21, 2008
@cesjr The last part there is very true. "they don't care much about frame rates and pixel counts. They care more about things like, oh, the family budget and family fun." I completely agree. The one other point I would try and make here is this: The title of the post is saying there are "problems with the Wii". Now, the Wii is a gaming console, and it also aims for an untraditional market. Now you said that Paul is a geek (that very well may be, but as I haven't met the man...). The truth of the matter is that most gamers, at least the ones who would be interested in "frame rates and pixel counts" , are geeks as well, AKA Paul's audience. Your average consumer who buys the Wii strictly for its value and fun factor is not going to be surfing the blogosphere any time soon, and so the headline that the Wii has a problem should be taken with a grain of salt. Maybe it should have read "Finally, the mainstream press uncovers the problem THAT PEOPLE WHO READ THIS KIND OF BLOG HAVE with the Wii" but since the people who read this blog are, well, reading this blog already, it seems redundant to remind them in every headline.
lotsamystuff
on Apr 21, 2008
It's not just the headline, "brandon.pope", it's the hyperbole that Paul uses to disguise this "news", specifically: " I present the dark underbelly of the Wii platform: No one is buying any Wii games." Instead of reporting the truth (i.e., "Wii owners buy 22% fewer games per console than XBox owners"), Paul spews forth the nonsense that "no one is buying any Wii games", when in fact, they are. His description of Wii owners as "looky loos" is as elitist and condescending as it is wrong. Of course, when someone points this out to Paul (as "ocean" did, above), Paul derides him/her as a "Nintendo fan boy or whatever". Nice. Paul, you're too smart for this kind of silliness. So you don't like the Wii. We get it. Why the vendetta?
joe-dokes
on Apr 21, 2008
"The fact that there are more Wii's out there than xbox 360 or PS3 or whatever means little in determining the success of the console itself." What the hell are you smokin'? The fact of the matter is the Wii is still nearly a year and a half after introduction still in short supply. The fact is, they are selling far more software titles than either the 360 or the PS3. The fact is that being the no. 1 console does make it a success. According to Paul F'n Thurrott everything is about market share. Except when it comes to the 360. When it comes to the 360 things like US market share suddenly become important. When it comes to 360 the number of software titles becomes important. Yet, when it comes to the Mac its higher US market share? Meaningless. Higher number of software titles sold per machine? Meaningless. As Paul likes to say, I deal in FACTS. The fact is the 360 is barely outselling the PS3 in the US, and is getting spanked by the PS3 worldwide. The fact is the 360 is getting spanked by the Wii nearly 3 to 1 in the US. The fact is the Xbox franchise has consistently lost money for MS. The fact is the Wii is selling over twice as many software titles than the 360. The fact is Paul only deals in FACTS when it suits him. Regards Joe Dokes
befuson
on Apr 21, 2008
The mainstream press, or Paul or whomever can say whatever they like about Nintendo and the Wii. While you're all doing that, the Big N will be at the bank, happily depositing their oodles and oodles of cash. After all, what is the metric for "winning" the console wars? Last I checked, it was about money, not some arbitrary attach rate or what have you. - B
DRWAM
on Apr 21, 2008
If Paul was really out to take out the Wii, then he would have called them out on Nintendo's intentional shortage, to increase interest, and Ebay's profit. That is horrible. Two people died in separate fights over the Wii because of it. How many millions is a human life worth? I treied the Wii and think that it sucks. I certainly prefer XBox, which Microsoft services very well when they have problems [at least in my round of friends]. Heck, MS sent me the wrong upgrade for Office and insisted on sending me the correct upgrade, free and refund my shipping, and keep the more expensive upgrade [worth about $360 I think]. THAT'S SERVICE!
brandon.pope
on Apr 21, 2008
@joe-dokes Firstly, beginning an argument with "what are you smokin'?" discredits your entire argument about 10-fold from the start so that said: "The fact is, they are selling far more software titles than either the 360 or the PS3. The fact is that being the no. 1 console does make it a success." Can I see that statistic cited somewhere that they are selling more software titles than either the 360 or the PS3? Thx. "The fact is the 360 is barely outselling the PS3 in the US, and is getting spanked by the PS3 worldwide. The fact is the 360 is getting spanked by the Wii nearly 3 to 1 in the US. The fact is the Xbox franchise has consistently lost money for MS. The fact is the Wii is selling over twice as many software titles than the 360. " Ok. Say these figures you threw out are legit (remember what I said about 10-fold), these would be worldwide figures. Ok. That is almost completely irrelevant to this discussion. Know the audience of this blog. It is not schoolboys in Japan. The audience for this kind of blog is mostly tech-savvy Americans. We all know market trends differ over seas. That doesn't make the reality of what happens in this country any less real. For example, the UMPC. Now Microsoft can say that their partners have sold x-million UMPC's and therefore the concept and products are a success. Now we all know that that isn't the case, at least not in this country. UMPCs are failing miserably here, yet they sell very well in Japan and eastern europe. Just because something sells well worldwide doesn't mean that it is relevant in the US (thats the country Paul lives in, and the one in which his main audience resides, and the one where the Wii is not selling significantly fewer software titles)
brandon.pope
on Apr 21, 2008
Oh and by the way, any big ticket item being in short supply is rarely accidental.
joe-dokes
on Apr 21, 2008
Okay Brandon, I'll do the math slowly and carefully, I'll even show my work. The average Wii user buys 3.7 games per year. The Wii sold 721,000 units in the last quarter. Thus, 721,000 X 3.7 = 2,667,700 games, Thus based upon sales of the last quarter Nintendo can expect to sell 2.66 Million games for the units over the next twelve months, for just the units sold in the last quarter. The average Xbox user buys 4.7 games per year. The Xbox sold 262,000 units in the last quarter. (Many are sitting unsold on store shelves, unlike the Wii which is still selling them as fast as they can make them.) Thus 262,000 X 4.7 games per unit = 1,231,400 games for the units over the next twelve months. If we take the sales of 2,667,700 games sold for Wii and divid it by the 1,231,400 games sold for the Xbox we get an answer of 2.166 (I did round). Thus, since 2.166 is just over 2. I chose to argue that over the next twelve months the Will will outsell the Xbox by a ratio of 2:1. As you can see even though the Wii has a slightly lower sell through, because it is out selling the Xbox by nearly 3:1, Nintendo can expect the Will to sell more games than Microsoft can. comprende? Regards Joe Dokes
brandon.pope
on Apr 21, 2008
Again, you are looking at worldwide figures. However, if you were to run the same simulation on US figures you would probably arrive at a similar result. I see your point, but one thing you aren't looking at is the fact that there was a HUGE initial push for this thing, and that push will slow down (as the push for all hot items does). Contrary to what you got above, I would expect to see the Wii sales slow as a new popular toy comes down the pike. It always happens. And the XBOX and PS3? Well they will continue to sell at a nice steady pace, with little spikes here and there for huge titles.
mdsharpe
on Apr 21, 2008
I agree entirely with Paul on this!
Avro
on Apr 22, 2008
The 4 bestselling Games at present in the UK are: Grand Theft Auto4 (Xbox) Grand Theft Auto4 (PS3) Mario Kart (Wii) Mario & Sonic at the Olympic Games (Wii) (source Amazon) Doesn't look like the Wii is doing to bad. ;-)
subzerohitman721
on Apr 23, 2008
What Paul and others are trying to say is that there are still lingering questions about the longevity of the Wii Console. Anyone who has worked in the gaming retail side of business will tell you the money isn't in the consoles themselves, but in the games they sell and the volume that the games sell. The Wii can sell millions and millions of console units. If they aren't getting the game sales with the same fervor that people bought the console, then the buzz about the Wii becomes a moot point. Microsoft is way ahead in game units sold and that my friends is where the money is. I'm sure as the Force Unleashed, GTA IV, Ghostbusters, SvR 09, etc.. hit the market, Xbox sales will still outnumber the Wii sales. They will have more titles that gamers want and the Wii will always get that first week gain. But then 90 percent dips and selling one game unit less vs the Xbox or PS3 will eventually add up to big bucks. That will also impact advertising to retailers when Microsoft shows that its more profitable to push its games vs Wii games. Also since Xbox games are constantly rated higher in terms of game reviews and quality, that will also factor in which games get the Gamestop, Wal-Mart, Target, etc advertising push. Perhaps the Wii is the victim of its own success. A lot of hype and not enough substance to whether the storm of the video game industry. Has any of the Wii games hit Halo 3 levels? No. Gears of War? No. I can go on and on. I think the Wii has become the must have pop culture status symbol and not the game changer in people's attitudes about gaming it has been hyped up to be. Since game sales has always been the ultimate factor in how successful a console is, 90 percent drop offs in sales can doom any great console, no matter how fun the games are.
takethepain
on Apr 25, 2008
From http://www.vgchartz.com/ In a recent article by the New York Times, VGChartz was used as a source in the article. We at VGChartz would like to first thank the New York Times for the citation but sadly we feel that the information was misinterpreted and ended up presenting sales numbers incorrectly. According to the article, game sales for the Nintendo Wii are apparently quite poor. Super Smash Bros. Brawl dropped 90% in America, citing our numbers as evidence, while ignoring overall sales for America and all sales in Japan. At the current moment Super Smash Bros. Brawl has sold—between both America and Japan—a total of 4.9 million units. Another thing that disproves that Nintendo Wii software sales are poor is that in our latest data release the Nintendo Wii sold 2,664,929 pieces of software worldwide and 1,205,770 pieces of software just in America. The article also states that because retail chains like Wal-Mart and Toys-R-Us have started to bundle Super Smash Bros. Brawl indicates poor sales. This is generally not true. When retail chains bundle games it is not always due to poor sales but rather high sales and wanting to make customers think they are getting a better deal while making more money than they typically would if they sold the console and game(s) separately. Again thanks to the New York Times for the citation but hopefully this article will give a better understanding on how the market is truly performing for the Nintendo Wii. No Paul, wii software is selling just fine.

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