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NYT: Wii gamers plentiful, but less likely to buy more titles
Leo Chan - Monday, April 21st, 2008 | 11:17AM (PT)


Nintendo's Wii continues to enjoy stellar sales figures on a monthly basis, but this is only really guaranteed for the hardware and accessories. Outside of a few flagship first party titles, North American Wii software sales don't always enjoy the same numbers, and The New York Times reasons this may well lie behind the one asset which Nintendo covets the most: the players themselves. While Nintendo gets new Wii gamers by the bucketload, their crowd is also the least likely to purchase new titles for their console on a regular basis, compared to PlayStation 3 and Xbox 360 gamers.

Nintendo is tapping into a new breed of gamer, one not so entrenched into gaming as a hobby. While the company has succeeded in charming "non-gamers" which so effectively boosts the Wii userbase, this market can also be a double-edged sword. Once they've got the titles they need, non-gamers are not necessarily as keen/savvy in purchasing further Wii games, especially those which aren't geared towards the casual gaming crowd. To exaberate the potential issue, the Wii already comes bundled with Wii Sports in North America, the one Wii game which non-gamers could be content with for the rest of their gaming days.

"You don’t see a lot of titles that reach 30 to 40 percent of the installed base," said a Lazard Capital analyst, Colin Sebastian. "My in-laws in Texas have a Wii sitting on their living-room floor next to the TV, which to me is kind of amazing. They have Wii Sports, a Brain Age game, Wii Play. That’s about it."

This adds up to Wii getting the hardware sales, but a smaller software tie-in ratio for consoles sold as well. Wedbush Morgan analyst Michael Pachter estimates the average Wii gamer purchases 3.7 games a year, while the average PlayStation 3 owner goes for 4.6 games. Xbox 360 gamers are the most likely to purchase new titles for their console at 4.7 gamers per year, one more game annually compared to Wii owners.

Pachter also believes game publishers are to blame for lagging Wii software tie-in ratio. For better or worse, the Wii has cemented itself as a casual gaming machine in the eyes of the general public, and publishers will need to start looking behind traditional advertising avenues in the gaming industry if they want to translate the large Wii install base into sales.

"The kind of person that buys a Wii is not the same kind of person that buys a PS3 or an Xbox," said John Greiner, the chief executive of Hudson Entertainment, the North American arm of Hudson Soft. "You have to be very specific when you design a game and target not only the gameplay mechanics for that user, but also the marketing for that kind of a product launch."

In Nintendo's defense, they enjoy the benefit of loyal, longtime fans who drink up the history of the company and all its key franchises. Fanboys aren't enough to start bringing software sales in line with the hardware, however, especially given the new industry heavyweights in the North American market. (e.g. Grand Theft Auto, Halo, etc.)  It should be said that Mario Kart Wii is the only other title, aside from the upcoming video game adaptation of the Iron Man motion picture, expected to be capable of even denting Grand Theft Auto IV's super armor when it launches later in April.  Of course, GTAIV is still on course to being the biggest game yet this year.


NYT: Wii gamers plentiful, but less likely to buy more titles Image 1

Alternate Source: New York Times

Section: Console Games, Nintendo Consoles

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Comments:

April 21st, 2008 11:45AM(PT)
shadywh0
Fortunately for me I own all 3 Next Gen systems. And to a shock I own more Wii titles (15) than the other 2 systems; the 360 I own 13 titles and for the PS3 I own just 1. And they are not crapware games I own for the Wii either.
April 21st, 2008 1:49PM(PT)
cirej2000
I would definitely agree that there are many more Wii owners with only 1 or 2 titles than you would see on the PS3 and 360 (in the North America Marketplace). That'll definitely have an impact on the overall attach rate. So this isn't a surprise.

However, with games like Guitar Hero III, Umbrella Chronicles and RE4 remake selling well for the big guys like Capcom & EA. And with a company THQ jumping on board in a big way with the Wii (core and casual games alike), you can't help but see that with the Wii, a 3rd-party can see that all they need to do is hit the mark with 5% of the Wii userbase and they'll be able to approach 1 million in sales. That, coupled with the lower cost of development can translate into the risk of Wii development being lower and lower.

If there are 1 to 5 million core gamers out there for the Wii and growing it makes sense to develop casual and core games for the little white box.
April 22nd, 2008 1:35PM(PT)
JT gAnGstA
I will agree that the wii has made itself known as the "casual" machine. Even now, I see the wii as more for bringing in new gamers than supporting its longtime fans.

But that doesnt mean it doesnt support its fans. Games like RE4 and Brawl are made for gamers- as well as LOZTP, Mario Galaxy, Metroid Prime 3, etc.

These are the gamers that will continue to support the system, and as long as it has this support, AS WELL AS bring in new gamers with its casual ware, it will more than likely always be first in the console war.

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