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Media Create Sales: Week 25, 2014 (Jun 16 - Jun 22)

I think in terms of demographics, and I'd rephrase this to say that everyone but males 16-35 are leaving consoles in the west. Children of both genders, elderly men, middle aged women, elderly women, and so forth. Nintendo happened to have most of those other consumer demographics recently, but they didn't always.
I really don't think elderly men and women, nor middle-aged women, or even women in their early thirties at that, constituted any major part of the console market as the primary users of the systems in question, or at least not the early phase of any adoption cycle. Outside of the Wii.

Tweens and younger perhaps, someone is presumably still buying Skylanders and Disney's Infinity. And I don't think it's unfathomable that boys under 16 are playing annualised Call of Duty and Assassin's Creed though.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
To be honest is that surprising? Look at the games released for consoles in the west, which at least seems to get games, they are focused on one small demographic. Combine that with hardware prices above what I think made Wii strong.

WiiU is 300 USD in USA, that is 50 USD above Wii.

Why Microsoft thought it was a good idea to launch at 500 USD after the fiasco that was 599 for PS3 is for me a large question.

Even if PS4 has a better price than Xbone, it is still not at a casual pick up price at 399 USD.

Why would anyone that is a casual gamer, maybe buying one to three games a year buy a console for above 300 USD? Mobile is winning casual gamers due to software price and types and that they do not need to spend more money on hardware.

I think another factor playing a role in this, or that will play a role in the long term, is the online paywall: mobile / PC doesn't have anything like that. And Pacther's theory about online paywall making much more difficult that one buys both consoles is one of the last things I've heard from him which has a point and isn't insane XD
 
I think in terms of demographics, and I'd rephrase this to say that everyone but males 16-35 are leaving consoles in the west. Children of both genders, elderly men, middle aged women, elderly women, and so forth. Nintendo happened to have most of those other consumer demographics recently, but they didn't always.

I think it might be too early to say that. It's not like PS2 or X360 were blue ocean consoles during their early years. They chased the same teen - young adult male market that especially PS4 is targeting currently. Then during later period of their lifecycle when both consoles had gone trough various price drops to get price more affordable to masses there was Kinect for X360 that gave it new life and Singstar/Guitar Hero etc for PS2. Wii has pretty much been only console that has targeted those demographics from day one. Sure maybe those demographics are mostly gone this time but they have never been really the first target for Sony and Microsoft.
 
Development costs and longer cycles it is the main problem, I think. I

mean, during the fourth generation, gaming was doing fine when the overall console install base was 80m~.

The HD obsession promoted by the west developers is what killed the Japanese console market and is slowing affecting the west too, sans the dead of the "not
Indie neither AAA" games.
 

jeremy1456

Junior Member
in all seriousness someone should make a chalkboard for PS4 in Japan

it will be interesting to see what saves it, we know something has to even 2 yrs from now

I don't think there's enough Japanese a centric games announced to even fill the chalkboard.

The situation is more dire than even that of the Wii U.
 

Nirolak

Mrgrgr
I really don't think elderly men and women, nor middle-aged women, or even women in their early thirties at that, constituted any major part of the console market as the primary users of the systems in question, or at least not the early phase of any adoption cycle. Outside of the Wii.

Tweens and younger perhaps, someone is presumably still buying Skylanders and Disney's Infinity. And I don't think it's unfathomable that boys under 16 are playing annualised Call of Duty and Assassin's Creed though.

For the most part I feel the people who came in with the Wii were the ones who went out the door, which is a very sizable audience certainly, but they're not the enthusiast core pushing GTA V up to 33 million copies or making Watch Dogs the fastest selling new IP of all time.

It's like movie theaters as well. There's less and less people going, but the amount they pay is going up and it's centralizing around teenagers and young adults with a secondary yet still very large market for children's movies.
 

DNAbro

Member
Are there any good write ups on why this is happening/happened? I know the rise of smart phones and higher development costs have hurt console developers but is that it?
 

sense

Member
man the pessimism in here is kinda crazy. bookmark this post if you want but by end of next year i am positive a lot of you will be singing a different tune regarding ps4 being dead. a lot of big announced japanese games will most likely be out by then and there will be a lot of new big games announced as well for 2016 and beyond. mgs 5, ffxv, kh3, bloodborne, next tales, next yakuza, deep down, resident evil, plus niche games from marvelous, falcom, nippon ichi, gung ho, from. arc systems, persona 5 port etc... this is not even counting sceja that could have gravity rush 2, last guardian at some point and other games/collaborations. western third party games like cod, gta, uncharted(first party) do decent numbers as well.

not saying they are all multi million sellers and any one game is going to significantly push ps4 sales but they all add up and ps4/xbone(lol) are the only consoles they will be available to play on. you guys just need to give it some damn time.
 

robjoh

Member
I think another factor playing a role in this, or that will play a role in the long term, is the online paywall: mobile / PC doesn't have anything like that. And Pacther's theory about online paywall making much more difficult that one buys both consoles is one of the last things I've heard from him which has a point and isn't insane XD

Yeah, might be true. It is one of the clear reasons why I am not buying a xbone or a PS4. Also one of many reason why a WiiU will be a present to my self when I finish my PhD.
 
I don't think there's enough Japanese a centric games announced to even fill the chalkboard.

The situation is more dire than even that of the Wii U.

If we don't have titles a chalkboard would be empty so western games would have to fill it.

I doubt that Sony is going to ignore PS4 as much as they ignored Vita so I still want tp see some interesting Japanese games on it

that is the main reseason I pre-ordered a white one
 

Meier

Member
Yo-kai Watch is insane. How is this not being localized? I see a sequel is coming out in a few weeks.. I wonder if they're wondering if they should have delayed it a month or two or what.
 

Gaus

Banned
So this is my greatest fear...

You know how the PS Vita is doing OK in Japan but not so good every where else? And all we're getting now is Japanese games? ( which I'm fine with )

If the PS4 does good everywhere else BUT Japan, are we not going to get Japanese games? ( please say no )
 

Opiate

Member
I really don't think elderly men and women, nor middle-aged women, or even women in their early thirties at that, constituted any major part of the console market as the primary users of the systems in question, or at least not the early phase of any adoption cycle. Outside of the Wii.

Right, consoles grabbed them last generation, and they proved a fast growing, highly profitable market segment. Unfortunately, iOS and Android outcompeted them for this very significant new market, and consoles quickly lost them. This is why consoles are contracting.

Tweens and younger perhaps, someone is presumably still buying Skylanders and Disney's Infinity. And I don't think it's unfathomable that boys under 16 are playing annualised Call of Duty and Assassin's Creed though.

Absolutely, they are. Just less of them proportionately than there were in 2004. Every 14 year old playing games at that point as playing on consoles.
 

jeremy1456

Junior Member
man the pessimism in here is kinda crazy. bookmark this post if you want but by end of next year i am positive a lot of you will be singing a different tune regarding ps4 being dead. a lot of big announced japanese games will most likely be out by then and there will be a lot of new big games announced as well for 2016 and beyond. mgs 5, ffxv, kh3, bloodborne, next tales, next yakuza, resident evil, plus niche games from marvelous, falcom, nippon ichi, gung ho, from. arc systems, persona 5 port etc... this is not even counting sceja that could have gravity rush 2, last guardian at some point and other games/collaborations. western third party games like cod, gta, uncharted do decent numbers as well.

not saying they are all multi million sellers and any one game is going to significantly push ps4 sales but they all add up and ps4/xbone(lol) are the only consoles they will be available to play on. you guys just need to give it some damn time.

Your post basically read 'these games will save the PS4:

MGS
FFXV
KH3
Secret PS4 Game 1
Secret PS4 Game 2
Secret PS4 Game 3
Secret PS4 Game 4
Secret PS4 Game 5

Wow, just look at that lineup ;)
 

Aostia

El Capitan Todd
WiiU at least started with some strong games.

PS4 has nothing worth mentioning in Japan.

PS4 is doing worse because of no games

Well, we are 17 weeks after launch, aren't we? Wii U had nothing, zero games at all, for months, plus very few games announced coming. I think that, if we accept to compare the different launch periods, other factors are very similar
 

Nirolak

Mrgrgr
Are there any good write ups on why this is happening/happened? I know the rise of smart phones and higher development costs have hurt console developers but is that it?

Japan is a very mobile society and the types of games they like don't need the horsepower of a console to work perfectly fine.

Like there's an obvious huge benefit to a game like GTA with using a controller and having a ton of horsepower, so people who like that type of game are highly incentivized to go invest a bunch of money in a system to play it. Similarly first person shooters benefit notably from precision controls, higher framerates, and more detail.

In Japan however, much of the gaming audience - even among enthusiasts - is perfectly fine with things that can be done with ~PS2 level hardware. This is why after the PS2 faded we saw developers move to the DS and PSP, and then primarily to PSP, and then primarily to 3DS, as they're all on target for the needs of what's popular without raising costs beyond what's necessary (both in terms of hardware for consumers and development for publishers) as well as embracing Japan's mobile lifestyle.

Nowadays phones are also easily capable of PS2 level games (but lack precision controls), and very capable of DS level games while maintaining a small download size and a fairly equivalent control scheme. Given that almost everyone already owns a smartphone in Japan, this way you can target just about the entire potential market for notably low development costs while also fitting most of what consumers want in terms of taste and portability.

Or, tl;dr, phones are capable of offering what most of the audience for games in Japan (including a lot of enthusiasts) wants in a way that they aren't in the West, so they can eat much harder into the hardware market. The 3DS pretty much fits every need that a phone can't, so there isn't a reason to get a console (or even a Vita) unless you're dying for a particular game on one.
 

Shizuka

Member
Well, we are 17 weeks after launch, aren't we? Wii U had nothing, zero games at all, for months, plus very few games announced coming. I think that, if we accept to compare the different launch periods, other factors are very similar

Nintendo's games have the greatest legs of all japanese gaming.
 

Opiate

Member
For the most part I feel the people who came in with the Wii were the ones who went out the door, which is a very sizable audience certainly, but they're not the enthusiast core pushing GTA V up to 33 million copies or making Watch Dogs the fastest selling new IP of all time.

It's like movie theaters as well. There's less and less people going, but the amount they pay is going up and it's centralizing around teenagers and young adults with a secondary yet still very large market for children's movies.

It's also how markets tend to collapse, Nirolak. Unless it's a catastrophic instantaneous collapse, most markets contract slowly this way, and either die or are consumed. The less invested consumers go first, causing contraction, which causes revenue stagnation, which causes production process changes, which causes further contraction.

I don't think most would point to the movie industry as particularly healthy right now, but even if we use it as our examples, films have massive secondary means of revenue generation. If console manufacturers can milk consumers as effectively as the movie industry milks someone going to see Transformer Wars of Extinction Explosion 7, then stabilization is certainly possible, but the gaming industry is still pretty far from that and even then, I still wouldn't describe the market as "healthy."
 

Nirolak

Mrgrgr
It's also how markets tend to collapse, Nirolak. Unless it's a catastrophic instantaneous collapse, most markets contract slowly this way, and either die or are consumed. The less invested consumers go first, causing contraction, which causes revenue stagnation, which causes production process changes, which causes further contraction.

I don't think most would point to the movie industry as particularly healthy right now, but even if we use it as our examples, films have massive secondary means of revenue generation. If console manufacturers can milk consumers as effectively as the movie industry milks someone going to see Transformer Wars of Extinction Explosion 7, then stabilization is certainly possible, but the gaming industry is still pretty far from that and even then, I still wouldn't describe the market as "healthy."

Oh I'm not disagreeing. I think we actually have seen the blockbusters cannibalize all the smaller games already, and honestly I feel f2p on PC is eating into a number of games as well.

The people who sit around all day playing Dota, LoL, or Hearthstone are often the same target audience for console games.

A lot of publishers are sitting around thinking about how to get their content out in more formats and turn them into services for this reason, so they can pick up consumers wherever they go.

I don't think that Take-Two sits around porting GTA, Max Payne, and XCOM to iOS because they think these are going to be astronomical money makers as much as practice for a potential future in which "consoles" are phones, tablets, and set top boxes that are hooked to a TV.

However, I don't think this is a short term or even medium term shift as much as a long term one, whereas the casual shift has long since happened.
 

sense

Member
Your post basically read 'these games will save the PS4:

MGS
FFXV
KH3
Secret PS4 Game 1
Secret PS4 Game 2
Secret PS4 Game 3
Secret PS4 Game 4
Secret PS4 Game 5

Wow, just look at that lineup ;)

lol w.e if you don't think the next tales, yakuza, resident evil isn't going to happen or not going to be on ps4 you will most likely be in for a shock.
 

Sakura

Member
So this is my greatest fear...

You know how the PS Vita is doing OK in Japan but not so good every where else? And all we're getting now is Japanese games? ( which I'm fine with )

If the PS4 does good everywhere else BUT Japan, are we not going to get Japanese games? ( please say no )

Is it?
 

Kandinsky

Member
Your post basically read 'these games will save the PS4:

MGS
FFXV
KH3
Secret PS4 Game 1
Secret PS4 Game 2
Secret PS4 Game 3
Secret PS4 Game 4
Secret PS4 Game 5

Wow, just look at that lineup ;)
He is right tho, those games will come to PS4 eventually, just like they did for PS3.
 
This is why consoles are contracting.
Have contracted... and have begun trending positively again, at least in terms of hardware unit sales, on a trailing twelve-month basis, assuming we're not just talking about the Japanese market right now. I'm sure we've had these discussions before, and the reality is what it is. The systems as they are now aren't competing for the elderly or the middle aged woman and they really can't. But I don't really know yet if they need to be competing for the middle aged woman right now. The historical MO has been to compete for alternative audiences later in the cycle, which may or may not work going forward.
For the most part I feel the people who came in with the Wii were the ones who went out the door, which is a very sizable audience certainly, but they're not the enthusiast core pushing GTA V up to 33 million copies or making Watch Dogs the fastest selling new IP of all time.

It's like movie theaters as well. There's less and less people going, but the amount they pay is going up and it's centralizing around teenagers and young adults with a secondary yet still very large market for children's movies.
I think it's a good analogy, and I think you've posed it before. The number of wide releases from the major studios has reduced dramatically; they're just making bigger bets. And the revenue in the film industry is roughly flat but being distributed across these fewer releases, from memory. Apparently this blockbuster strategy approach is ultimately more successful. Which is presumably why, in the same way as other forms of media, video game publishers are following a suit - consolidating on fewer brands, bigger name talent/franchises and investing heavily in those, rather than dividing their resources evenly between many projects.

I think the problem is the "also-rans" are still needed, in both the film and game industry to maintain that strategy - test cases for future success.
 

Nirolak

Mrgrgr
Have contracted... and have begun trending positively again, at least in terms of hardware unit sales, on a trailing twelve-month basis, assuming we're not just talking about the Japanese market right now. I'm sure we've had these discussions before, and the reality is what it is. The systems as they are now aren't competing for the elderly or the middle aged woman and they really can't.I think it's a good analogy, and I think you've posed it before. The number of wide releases from the major studios has reduced dramatically; they're just making bigger bets. And the revenue in the film industry is roughly flat but being distributed across these fewer releases, from memory. Apparently this blockbuster strategy approach is ultimately more successful. Which is presumably why, in the same way as other forms of media, video game publishers are following a suit - consolidating on fewer brands, bigger name talent/franchises and investing heavily in those, rather than dividing their resources evenly between many projects.

I think the problem is the "also-rans" are still needed, in both the film and game industry to maintain that strategy - test cases for future success.

The closest we have these days I feel are basically things like premium cable/streaming services like Netflix, where they make higher end boutique content for audiences that would have once went to the theater for it instead, and digital distribution games and f2p titles in gaming, where they fit audiences that are no longer filled at retail.

Stump once noted to me that late in his career, Roger Ebert noted that he would switch to being a television critic if he wasn't so near retirement as the movie market had largely become mainstream mulch as an example of this.

Basically direct-to-consumer is what seems to be working versus having to go through the barriers of retail with all the risk and dead weight costs involved.
 

BadWolf

Member
Is the console market really contracting or just returning back to its pre-Wii self?

The Wii brought in a new audience that resulted in overall growth but this new audience was lost in the very same generation.
 

Eolz

Member
lol w.e if you don't think the next tales, yakuza, resident evil isn't going to happen or not going to be on ps4 you will most likely be in for a shock.
I don't think anybody is saying those games aren't coming to PS4. Just that they won't do that much of an impact.
 

Opiate

Member
Have contracted... and have begun trending positively again, at least in terms of hardware unit sales, on a trailing twelve-month basis, assuming we're not just talking about the Japanese market right now.

They are still contracting, as best as I can tell. YoY sales are up, however. The important thing to distinguish is short term trends vs. long term ones.

I think it's a good analogy, and I think you've posed it before. The number of wide releases from the major studios has reduced dramatically; they're just making bigger bets. And the revenue in the film industry is roughly flat but being distributed across these fewer releases, from memory. Apparently this blockbuster strategy approach is ultimately more successful. Which is presumably why, in the same way as other forms of media, video game publishers are following a suit - consolidating on fewer brands, bigger name talent/franchises and investing heavily in those, rather than dividing their resources evenly between many projects.

It's not necessarily more successful, just far easier to control. A market with lower end production may actually be more profitable, but it also lowers the barriers to entry and allows competitors to come in. Once you've whittled the market down to 4 or 5 big players, those 4 or 5 big players have a vested interest in preventing anyone else from becoming competing with them. In short: the big players may trade profitability for stability.

I think the problem is the "also-rans" are still needed, in both the film and game industry to maintain that strategy - test cases for future success.

Diversity is also needed. If we are looking from the perspective of someone who loves GTA and Uncharted and Madden on consoles, having people who also like Nintendogs or Singstar or Wii Fit around and in large numbers is actually important. In the short term, these audiences may seem like they're a distraction, or an annoyance -- in reality, though, markets tend to be most stable when they appeal to a wide variety of audiences with a wide variety of interests. It's not impossible to set up a market which only interests a single demographic, but it's less easy and less stable long term. When markets contract, they tend to start by losing everything but their core demographic; at that point, the market is vulnerable both to disruption and consumption by outside forces.
 

Kandinsky

Member
I don't think anybody is saying those games aren't coming to PS4. Just that they won't do that much of an impact.

Look at what PS3 was during the same time and look at what it is now, it's not that hard to figure out that the PS4 will be 'successful'.
 

Soriku

Junior Member
I don't think anybody is saying those games aren't coming to PS4. Just that they won't do that much of an impact.

Umm...why not? The PS4 is in dire straits now because there's nothing really worth playing for Japanese people. Once those games and any other games come, there will be more reasons to buy a PS4, and you should see the baseline increase. See: every system ever.
 

Sakura

Member
Is the console market really contracting or just returning back to its pre-Wii self?

The Wii brought in a new audience that resulted in overall growth but this new audience was lost in the very same generation.
...Wouldn't that be a contraction?
 

Soriku

Junior Member
Assuming whatever happened last gen will happen again this gen seems like a really bad bet.

Whether the PS4 catches up to PS3 or not debatable, but you're going to see the baseline increase once there are more games, revisions, and price cuts. It's just logical.
 

Opiate

Member
Is the console market really contracting or just returning back to its pre-Wii self?

The Wii brought in a new audience that resulted in overall growth but this new audience was lost in the very same generation.

The problem is that consoles are built on a growth model. Cost of development keeps relentlessly increasing. The market was expected to expand with it. Compare it to movies again here: the film industry has been increasing, mostly through expanded interest in territories like China and other developing nations. If Hollywood movies were still only appealing to US and Western European audiences (markets they mostly maxed out decades ago), they'd be in serious trouble. Even now, they're only treading water.
 

phanphare

Banned
Look at what PS3 was during the same time and look at what it is now, it's not that hard to figure out that the PS4 will be 'successful'.

so we should just take for granted that the PS4 will eventually be successful because of what the PS3 did? there's nothing different between then and now that could possibly change that?

I'm not saying the PS4 is guaranteed to fail, or anything of the sort, but it's certainly not guaranteed to succeed either.
 

Sakura

Member
Yes but not in the same doomed sense since an audience entered and exited the stage that was never there to begin with.

Things went back to normal basically.

What is "normal"?
And let's be real here, the Wii U is not doing Pre Wii numbers. It's below the Gamecube even is it not? And I'm personally not confident the Xbox One will match 360 numbers, and I don't see the PS4 picking up the slack from both. So I think there is more of a contraction than just the Wii casual audience leaving.
 

Principate

Saint Titanfall
Whether the PS4 catches up to PS3 or not debatable, but you're going to see the baseline increase once there are more games, revisions, and price cuts. It's just logical.

The question is what sort of increase look at the Vita a platform far "healthier" than the PS4 and likely to sell more than it overall due to it's portable nature and look at precisely what it's currently selling. If the future baseline is 13k in it's third year then whoopity do... PS3 never really sold great but I don't see in this current market outlook even the ps4 selling "that" good plus the PS3 benefitted from an exceptionally long generation.
 

Soriku

Junior Member
The question is what sort of increase look at the Vita a platform far "healthier" than the PS4 and likely to sell more than it overall due to it's portable nature and look at precisely what it's currently selling. If the future baseline is 13k in it's third year then whoopity do...

PS4's going to have more major titles so we'll see.

Vita was doing 20k+ not too long ago though.
 

BadWolf

Member
The problem is that consoles are built on a growth model. Cost of development keeps relentlessly increasing. The market was expected to expand with it. Compare it to movies again here: the film industry has been increasing, mostly through expanded interest in territories like China and other developing nations. If Hollywood movies were still only appealing to US and Western European audiences (markets they mostly maxed out decades ago), they'd be in serious trouble. Even now, they're only treading water.

That makes sense but at the time the consoles seem to be staying their normal course (not really growing but at the same time not really contracting) even in the face of the mobile and facebook etc. gaming explosion. So its not like they are there and just not growing but they are doing so with stronger competition from other things.

The big budgets are getting out of hand though, that's true.

What is "normal"?
And let's be real here, the Wii U is not doing Pre Wii numbers. It's below the Gamecube even is it not? And I'm personally not confident the Xbox One will match 360 numbers, and I don't see the PS4 picking up the slack from both. So I think there is more of a contraction than just the Wii casual audience leaving.

Normal as in pre-Wii. There was a graph posted in the last NPD thread showing that things aren't much different now if the Wii was removed from the equation when comparing to previous generations.

And really, is it the market becoming weaker or do people just not want a WiiU? That product had failure written all over it from day one imo.
 

KtSlime

Member
lol w.e if you don't think the next tales, yakuza, resident evil isn't going to happen or not going to be on ps4 you will most likely be in for a shock.

Tales of can be on any system, there is no guarantee the next major one will be for PS4, if I were Bandai I'd target PS3/smartphone. Biohazard interest in Japan has been in decline since Capcom turned it into western bro shooter. Ryu ga Gotoku could probably sell a couple PS4s, but the next one will likely be cross generational again. FFXV is vaporware, and IF it ever comes out, it will be so late that it won't help the PS4 much. FF games generally don't. It can bump up the numbers a bit, but they are so front heavy, that if there isn't the stock, it can't move them.

I don't think anybody is saying those games aren't coming to PS4. Just that they won't do that much of an impact.

Yeah, I don't see them having much of an impact. If MK8 can't improve Wii U sales by much, why would people think less relevant games will for the PS4?

Umm...why not? The PS4 is in dire straits now because there's nothing really worth playing for Japanese people. Once those games and any other games come, there will be more reasons to buy a PS4, and you should see the baseline increase. See: every system ever.

There is a shelf life. If the PS4 takes too long to become valuable enough to purchase, it won't ever. Every day it waits, handhelds get more powerful and the PS4 looks more expensive. They will probably have to do a price cut even before there is anything worth buying at this rate.
 

Kandinsky

Member
so we should just take for granted that the PS4 will eventually be successful because of what the PS3 did? there's nothing different between then and now that could possibly change that?

I'm not saying the PS4 is guaranteed to fail, or anything of the sort, but it's certainly not guaranteed to succeed either.

I honestly believe its success is guaranteed, third parties need it.
 
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