Cowen & Company's Doug Creutz thinks the Nintendo Wii installed base numbers are misleading and he's not afraid to tell the world. When asked by Gamasutra which system developers are best off investing in, he said, "The choice here is really between investing for the Xbox 360 and PS3 -- since their capabilities are fairly similar -- or the Wii. I would caution investors and developers that the larger installed base of the Wii is really a bit of a red herring."
Creutz explained that while there are 19 million Wiis on the loose in the US, the combined numbers for Xbox 360 and PS3 still edge out the Wii by 3 million units. Creutz continued, "I think the Wii installed base represents, to a certain extent, fool's gold for someone looking to invest in video game development." We'll keep that in mind once we get Joystiq Publishing off the ground.
Reader Comments (82)
Posted: Apr 8th 2009 6:53PM hami83 said
Yes, well this is where Nintendo fails.
You target a casual market, you're going to get people who play games casually.
That means the large majority of Wii players get a game and probably pick at it for months on end.
You target a casual market, you're going to get people who play games casually.
That means the large majority of Wii players get a game and probably pick at it for months on end.
Posted: Apr 8th 2009 6:59PM (Unverified) said
And Bejeweled has sold over 25 million copies, and been downloaded over 150 million times (according to wikipedia).
If Nintendo fails it's not because they're targeting the wrong market.
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If Nintendo fails it's not because they're targeting the wrong market.
Posted: Apr 8th 2009 6:55PM (Unverified) said
I see what he is saying. I don't think that developing the Wii would be a mistake necessarily, but the figures for how well the system is selling is VERY misleading for game developers. Let me give you an example: two of my friends are not gamers. Cool people, but aren't really interested in the whole video game scene. However, like so many others across the country, they picked up a Wii because it's the hot thing, it's moderately fun, and it's very, very accessible. Now of the millions of people that picked up the Wii, there are bound to be a few million like me who picked up the Wii as "hardcore" gamers, who were excited for games like Galaxy and Twilight Princess.
However, excluding those, lets say 8 or 9 (basing this on sales figures for super mario galaxy via vgcharts + 1mil for the people who fall in "hardcore," but didn't pick up Galaxy), this leaves 10-11 million Wii's floating around who essentially form fluff numbers. This is where my other friends come in. Those friends who bought the Wii? Today, they have Wii sports, Wii fit, and one or two other games, neither of which are "core" games.
What does that mean? Well for developers, the numbers they see for Xbox and PS3 ownership are far more saturated with these "core" gamers. To truly compare consumer base numbers between the Wii, 360, and PS3, you have to account for these fluff numbers, the 10 million or so players who bought the wii for wii sports.
However, excluding those, lets say 8 or 9 (basing this on sales figures for super mario galaxy via vgcharts + 1mil for the people who fall in "hardcore," but didn't pick up Galaxy), this leaves 10-11 million Wii's floating around who essentially form fluff numbers. This is where my other friends come in. Those friends who bought the Wii? Today, they have Wii sports, Wii fit, and one or two other games, neither of which are "core" games.
What does that mean? Well for developers, the numbers they see for Xbox and PS3 ownership are far more saturated with these "core" gamers. To truly compare consumer base numbers between the Wii, 360, and PS3, you have to account for these fluff numbers, the 10 million or so players who bought the wii for wii sports.
Posted: Apr 8th 2009 6:58PM (Unverified) said
Gah, meant to write 8 or 9 MILLION at the top of the second paragraph. Gotta get on that edit button, Joystiq.
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Posted: Apr 8th 2009 7:06PM Mr Khan said
If you keep your development costs in check, its very easy to turn out a solid Wii game and profit. Look at the original Kororinpa: it only sold 100k, but apparently profited enough to warrant a sequel. Same with No More Heroes. Now NMH had some obviously cut corners (that shoddy overworld), but overall it was a solid game, sold decently, and scored profit and unprecedented success for Grasshopper Manufacture.
Now something overly ambitious (like The Conduit) might be riskier in that regard, but its easy to make something quality and prosper.
Now something overly ambitious (like The Conduit) might be riskier in that regard, but its easy to make something quality and prosper.
Posted: Apr 8th 2009 7:31PM (Unverified) said
It only really sold well in the PAL region.
So yeah, thanks America for saving us from invasion from Japan, and destroying the Germans' supply lines, you can have a NMH sequel in return. :)
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So yeah, thanks America for saving us from invasion from Japan, and destroying the Germans' supply lines, you can have a NMH sequel in return. :)
Posted: Apr 8th 2009 8:22PM Johnnynumber5 is powered by cell said
Mr Khan
It's apples and oranges. You are talking about a nice little profit but these developers and publisher want high risk/high reward games that can send their title into the stratosphere. Those generalizations you made are true of all the consoles. If you can keep your budget down yet still retain quality and get decent sales across THREE platforms you are going to make money. However, most of the time you build up a fan base with an original and your sequel will sell many more copies.
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It's apples and oranges. You are talking about a nice little profit but these developers and publisher want high risk/high reward games that can send their title into the stratosphere. Those generalizations you made are true of all the consoles. If you can keep your budget down yet still retain quality and get decent sales across THREE platforms you are going to make money. However, most of the time you build up a fan base with an original and your sequel will sell many more copies.
Posted: Apr 8th 2009 7:26PM (Unverified) said
Even the worth while game can't top Nintendo's heavy hitters. It could be the best game ever, but would still pale in comparison to Nintendo's titles cluttering up the retail shelves. And I'm sure that 3rd parties aren't willing to take that risk.
The Wii might have a huge install base, but particular target markets are much broader and more difficult to pinpoint. At least with the 360/PS3, a good number of players are playing the Halo's/Killzone's, while the Wii's market is consisting of all ages and sexes. It's easier for developers to know what works and what doesn't. The return on investing in the Wii might be worth it, but the risk of it not succeeding amongst a stiff competition from Nintendo's first party titles probably deter many.
The Wii might have a huge install base, but particular target markets are much broader and more difficult to pinpoint. At least with the 360/PS3, a good number of players are playing the Halo's/Killzone's, while the Wii's market is consisting of all ages and sexes. It's easier for developers to know what works and what doesn't. The return on investing in the Wii might be worth it, but the risk of it not succeeding amongst a stiff competition from Nintendo's first party titles probably deter many.
Posted: Apr 8th 2009 8:02PM Liekos said
Makes sense to me - the audiences for the consoles are completely different.
I don't usually generalize, but loosely speaking Wii gamers are typically "non-gamers" so to speak - they are the casual people that don't typically play a ton of video games. I do NOT mean the latter to be an insult, simply a comparison. Of course not a steadfast rule - but a generalization.
360 and PS3 gamers encompase a larger number of "normal" to "hardcore" gamers. More passionate about IP, more fickle, and likely to spend more time and money on the console than with a Wii. When you think of a "gamer", you typically think of someone with one/both of these consoles, no?
While there's a huge number of Wii owners - porting a 360/PS3 game onto the Wii doesn't necessarily mean success. Remember, you're catering to "non-gamers", and they don't like the same type of games. Casual games and party games are the most successful there - so it would indeed be foolish to invest the money to port a "gamer" title to the "non-gamer" platform.
The Oxygen channel (womens cable network) may get millions more watchers per day, but that doesn't mean showing a porn movie on the network will be successful.
I don't usually generalize, but loosely speaking Wii gamers are typically "non-gamers" so to speak - they are the casual people that don't typically play a ton of video games. I do NOT mean the latter to be an insult, simply a comparison. Of course not a steadfast rule - but a generalization.
360 and PS3 gamers encompase a larger number of "normal" to "hardcore" gamers. More passionate about IP, more fickle, and likely to spend more time and money on the console than with a Wii. When you think of a "gamer", you typically think of someone with one/both of these consoles, no?
While there's a huge number of Wii owners - porting a 360/PS3 game onto the Wii doesn't necessarily mean success. Remember, you're catering to "non-gamers", and they don't like the same type of games. Casual games and party games are the most successful there - so it would indeed be foolish to invest the money to port a "gamer" title to the "non-gamer" platform.
The Oxygen channel (womens cable network) may get millions more watchers per day, but that doesn't mean showing a porn movie on the network will be successful.
Posted: Apr 8th 2009 7:50PM (Unverified) said
As mentioned earlier today, the problem is that, compared to the 360 and PS3, people don't play their Wii's very much. The Wii only gets about half the playtime of 360 and PS3 per owner, on average. Why is this? Well, we could point to games, but the most obvious reason is that lots and lots of "non-gamers" went on and bought Wiis because they were a big fad and proceeded not to buy any other games than Wii Fit/Wii Sports/etc. and have now lost interest in the little white box. So those non-gamers are inflating the number of Wiis sold, but they might as well be worthless to game developers.
Posted: Apr 8th 2009 9:20PM krizoitz said
Sorry but thats biased B.S.
The reason you see people spending more time playing xbox 360 and PS3 is not because people arent' playing the Wii. Its not that its a novelty. Its not that its a gimick.
So what is the real reason?
Because the people who bought the 360 and PS3 are by and large allready gamers. They are ALLREADY people who play video games, and are people who are inclined to spend more time sitting down and playing video games! This study shouldn't surprise anyone. It just re-inforces the fact that while Sony and Microsoft were over on one side having a pissing match about which console had prettier graphics and was more powerful, Nintendo decided to make a console that was more approachable and more fun for a wider variety of people.
You can sit down and pick up Boom Blox or Mario Kart in a minute or two and be able to participate even if you have very little gamging experience. Try doing that with Halo 3 or Call of Duty.
Not saying there is anything wrong with any of the consoles, heck I spend about as much time on my 360 as I do on my Wii, but the people who keep crying "gimick" and "fad" are deluding themselves. Just because people don't spend HOURS everynight playing a game system doesn't make it a fad. Fad's by definition are shortlived, the Wii continues to sell incredibly well. Its not a fad.
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The reason you see people spending more time playing xbox 360 and PS3 is not because people arent' playing the Wii. Its not that its a novelty. Its not that its a gimick.
So what is the real reason?
Because the people who bought the 360 and PS3 are by and large allready gamers. They are ALLREADY people who play video games, and are people who are inclined to spend more time sitting down and playing video games! This study shouldn't surprise anyone. It just re-inforces the fact that while Sony and Microsoft were over on one side having a pissing match about which console had prettier graphics and was more powerful, Nintendo decided to make a console that was more approachable and more fun for a wider variety of people.
You can sit down and pick up Boom Blox or Mario Kart in a minute or two and be able to participate even if you have very little gamging experience. Try doing that with Halo 3 or Call of Duty.
Not saying there is anything wrong with any of the consoles, heck I spend about as much time on my 360 as I do on my Wii, but the people who keep crying "gimick" and "fad" are deluding themselves. Just because people don't spend HOURS everynight playing a game system doesn't make it a fad. Fad's by definition are shortlived, the Wii continues to sell incredibly well. Its not a fad.
Posted: Apr 8th 2009 7:56PM TreyIM2 said
"Fool's gold" and "red herring" pretty much sums up what I've been saying about the Wii for the longest. This dude makes sense, to me, when u look at things. Core gamers leave their Wiis to the side after the novelty wears off and casual gamers pretty much do too...unless they are using Wii Fit to get and stay in shape.
I would think Nintendo's "real base" are children who's parents only bought them a Wii ,in this gen's arena (the Wii is just old gen tied into one console, if u ask me), and even then, many a time, the parents' don't buy that many games. Then the kids usually end up playing the same 3 or 4 games over and over for months (I remember those days with my Colecovision and NES) because the parents will not just go out and buy new games like that.
I would think Nintendo's "real base" are children who's parents only bought them a Wii ,in this gen's arena (the Wii is just old gen tied into one console, if u ask me), and even then, many a time, the parents' don't buy that many games. Then the kids usually end up playing the same 3 or 4 games over and over for months (I remember those days with my Colecovision and NES) because the parents will not just go out and buy new games like that.
Posted: Apr 8th 2009 8:17PM Nobledevil Gaming Optimist said
Anyone who works at a retailer where they sell Wiis kinda knows this already. It's damn near impossible to get a "casual" "gamer" (yeah, two separate quotes) to even try buying something good when there are crap games around, let alone come in to buy a game more often than a grand child has a birthday party.
I once tried to convince someone to get Boom Blox and they instead purchased some mini-game collection because it said "30 Great Games!" on the box.
I once tried to convince someone to get Boom Blox and they instead purchased some mini-game collection because it said "30 Great Games!" on the box.
Posted: Apr 8th 2009 8:24PM (Unverified) said
The cheaper develoment and publishing costs associated with Wii games as opposed to PS3 and 360 games along with the frighteningly superior marketshare make investment in Wii development a no-brainer.
Third party software for the Wii has been performing well, and this is after the majority of it hasn't even been marketed properly. If the likes of Zack & Wiki and The Godfather Blackhand Edition had been advertised then more units would have been shifted. The latter especially is a personal disappointment to me in terms of lack of marketing and sales turnover as it's one of the best implementations of motion controls I've experienced. I can't recommend The Godfather highly enough, it's great fun.
Third party software for the Wii has been performing well, and this is after the majority of it hasn't even been marketed properly. If the likes of Zack & Wiki and The Godfather Blackhand Edition had been advertised then more units would have been shifted. The latter especially is a personal disappointment to me in terms of lack of marketing and sales turnover as it's one of the best implementations of motion controls I've experienced. I can't recommend The Godfather highly enough, it's great fun.
Posted: Apr 9th 2009 9:56AM (Unverified) said
I completely second this statement. :) Godfather Blackhand Edition is a great game. The motion controls are spot on, but its not just that they are well done; the motion controls also draw you into that game. Even though the game is "old" by gamelife standards, I would still urge anyone who hasn't bought it to pick it up. :)
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Posted: Apr 8th 2009 8:25PM (Unverified) said
Sure there may be 19 million wiis, but 5 million are soccer moms/little kids who never went beyond Wii tennis/fit etc, and another 5 million are covered in dust in closets of hardcore gamers or lost/loaned to their mom/little bro
Posted: Apr 8th 2009 9:03PM (Unverified) said
I agree. The only thing at the moment that is keeping the Wii ahead is Wii-Fit.I have seen the games coming up for the Wii for the year coming. It doesn't look good. Nothing really to get excited about. The only reason most developers invest in the Wii is that they already have bigger games out or in the works and can risk investing in the Wii because even if the game fails it's no big loss.
For example Capcom can invest in a Wii game because its heavy hitters, Street Fighter and Resident Evil 5 are already out there. Even if they make a game for the Wii and lose out because it fails, it doesn't matter. It's just a few million, while Street Fighter and resident Evil 5 rake in the big money. Do you think that companies like Capcom would take a risk on a Wii game if they didn't have the Xbox and PS3 to fall back on? Do you really think that they would expect the Wii to bring in the profit they need to fuel their business? Face it in the grand scheme of things the Wii is small potatoes. No company who wants to sell over 4 million unit and go platinum would put it on the Wii.
For example Capcom can invest in a Wii game because its heavy hitters, Street Fighter and Resident Evil 5 are already out there. Even if they make a game for the Wii and lose out because it fails, it doesn't matter. It's just a few million, while Street Fighter and resident Evil 5 rake in the big money. Do you think that companies like Capcom would take a risk on a Wii game if they didn't have the Xbox and PS3 to fall back on? Do you really think that they would expect the Wii to bring in the profit they need to fuel their business? Face it in the grand scheme of things the Wii is small potatoes. No company who wants to sell over 4 million unit and go platinum would put it on the Wii.
Posted: Apr 9th 2009 12:51AM (Unverified) said
"Do you really think that they would expect the Wii to bring in the profit they need to fuel their business?"
Ubisoft, Majesco, Hudson, XSEEDS, and Marvelous say "hello"
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Ubisoft, Majesco, Hudson, XSEEDS, and Marvelous say "hello"
Posted: Apr 8th 2009 9:47PM Ranus Studios said
I love pyrite.
Posted: Apr 8th 2009 9:52PM MNeko said
Why are these analysts inevitably Sony dicksuckers? Every time they put out one of these announcements, it's always something like "the Wii is just a fad," or "The Playstation 3 will win this console war eventually," or "The Xbox 360 gives you cancer," or "Obey Sony or die." Get with the times. The age of Sony as an industry leader is over.
Posted: Apr 8th 2009 11:54PM (Unverified) said
Qft only had the lead due to millions buying the 2 JUST for Dvd usage
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Posted: Apr 9th 2009 12:19AM RobS the 3rd said
Yeah, weren't these the guys that said Sony would crush Microsoft and Nintendo this generation?
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Posted: Apr 8th 2009 10:43PM Mabui said
I currently own own a Wii and a DS, and 75 percent of my game collections for either system are from 3rd party developers. I sometimes look at the stack of boxes and wonder if I dislike Nintendo games. I don't even own brawl -or paper mario or anything like that.
I guess I own around 12 Wii games - and 20-30 DS games. Nothing recently with the pinch on my wallet, though most of my virtual console purchases are third party as well.
Lately, my attention has shifted and I'm not exactly interested in sitting in front of a television like I used to be - so I'm only really interested in DS games, and eventually buying a PSP depending on where things go. (Not that I plan to buy DSi less I come into extreme disposable money)
I guess I own around 12 Wii games - and 20-30 DS games. Nothing recently with the pinch on my wallet, though most of my virtual console purchases are third party as well.
Lately, my attention has shifted and I'm not exactly interested in sitting in front of a television like I used to be - so I'm only really interested in DS games, and eventually buying a PSP depending on where things go. (Not that I plan to buy DSi less I come into extreme disposable money)
Posted: Apr 8th 2009 11:15PM billysea said
The fool is him for not realizing how many of those 360 n PS3 owners overlapped.
Posted: Apr 9th 2009 12:22AM RobS the 3rd said
I think most analysts are fools. Didn't all of these guys miss completely the success of the Wii, assuming Sony would once again rule all? After a miss like that you wonder why anyone listens to them anymore.
Posted: Apr 9th 2009 2:21AM zero2dash said
Nintendo knows how to make sales...
....just not any that really cater to my needs, wants, or tastes.
To each his own. If it weren't for the Homebrew Channel + community that supports it (and by Homebrew, I mean homebrew - I DON'T mean PIRATED) I would have no reason to power my Wii console on anymore.
My LG Vu gets more gameplay than my Wii. That's sad, but whatever. From time to time it's fun to play Wii Bowling.
....just not any that really cater to my needs, wants, or tastes.
To each his own. If it weren't for the Homebrew Channel + community that supports it (and by Homebrew, I mean homebrew - I DON'T mean PIRATED) I would have no reason to power my Wii console on anymore.
My LG Vu gets more gameplay than my Wii. That's sad, but whatever. From time to time it's fun to play Wii Bowling.
Posted: Apr 9th 2009 9:55AM Abk said
@ CTC XBL-supapaypamawio PSN-ctclaw
20+?? You spend that much on wii??
20+?? You spend that much on wii??
Posted: Apr 9th 2009 1:44PM Mezstizo said
The writers biggest argument is that the 360/PS3 outnumbers the Wii by 3 millions units. That may be true but how many of those 360/PS3 owners actually own both systems? Everyone I know does. Does the writer actually think that we would buy the same game for both systems. Not only that, most of the PS3 owners are Japan/Europe gamers and they like total different games than Americans do. So the numbers don't look so good now do they? What is the cost difference of development between the Wii and 360/PS3 ~let's say for COD5? That's an apple to apple comparison. Not only that 'TIME'. I hear that Dead Space Extraction has only taken a little over a year to develop. That's fast (I hope it's good) compared to the 3 to 4 years it takes for a 360/PS3 game.
Posted: Apr 9th 2009 2:48PM xGearSecondx said
Its sad that people still think of the Wii as a fad :(
Poor deluded souls
Poor deluded souls







