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NPD May 2012 Sales Results [Up4: Max Payne 3, Dragon's Dogma, Ghost Recon]

Skiesofwonder

Walruses, camels, bears, rabbits, tigers and badgers.
I have a really bad feeling about next gen. Someone tell me I'm overreacting and the industry will be fine.

It's looking bad, especially if both Sony and Microsoft release similar, but more powerful, consoles to what is already offered. Also, I'm starting to get the feeling that the Kinect-craze is dying now. I'm thinking a lot of people are being burned by shitty software (Star Wars being a recent big one).

I think WiiU will do well out the gate, a lot of things are lining up for them. Generation fatigue, shitty fall, only hot new gaming item on the verizon, and big titles at launch. But early next year is the big question mark; I seriously doubt it will still be setting the market on fire (like Wii did) by then.
 

rpmurphy

Member
I expect next gen to focus on ~30-40 franchises that sell 3+ million copies, and everything else is digital.
Their faces when they find out that digital won't save them as they continue to leave their current bad development practices and poor production strategies unfixed.
 
Good, maybe this will make MS and Sony bring out new consoles sooner, rather than later.
I'm guessing their next gen plans are mostly set in place at this point. Doubtful they can rush things enough to launch with the Wii U and the last thing either MS/Sony wants to do is to botch their launch while the other hits it out of the park.
 

Mooreberg

is sharpening a shovel and digging a ditch
I think people largely are overreacting to these numbers.
I'm not surprised at all with the hardware, just how barren the software schedule has been. Publishers keep releasing games in deadlock with one another but then don't capitalize when there is room. Spring has been great this gen prior to this year.

I would hold back gloom and doom until we see how Wii U does.
I'm curious as to what Wii U doing well or doing poorly means at this point. Do Microsoft and Sony see Wii doing poorly and think it is time to strike and move the development footprint up to current (PC hardware) standards? Or do they use it as a reason to wait until 2014?

Likewise, if it does well it could send a message that they need to wait until whatever hardware they have coming out needs to be cometitively priced. Sony cannot make the same mistake again of releasing a device before it is financially sane to so so.

Interesting (but potentially ludicrous) times ahead.
 

Kusagari

Member
This year has also been sparse in big games. Diablo 3, Max Payne, Mass Effect and lol Raccoon City were the biggest so far.

Last year had Dead Space 2, Pokemon Black and White, Crysis 2, Mortal Kombat, Portal 2 and L.A. Noire up to this point.

Not even really comparable before May with Diablo and Max Payne. This has just been a shitty year in general.
 

Cheebo

Banned
Why are people blaming the economy? The economy is doing a lot better in 2012 than it was in 2008-2010. And not to mention this wouldn't explain stuff like iPad selling record breaking amounts (for comparison iPad averages 4-5 million a month).
 

mozfan12

Banned
I think people asking for next gen systems to improve sales are not looking at the reality of the situation. The economy is bad, people don't have jobs, therefore they dont have money to spend on a 360, PS3, Wii, 3DS, or Vita. I can't imagine people will be down to plunk 500, 600, 700 dollars on a new machine.
 

Kai Dracon

Writing a dinosaur space opera symphony
It's looking bad, especially if both Sony and Microsoft release similar, but more powerful, consoles to what is already offered. Also, I'm starting to get the feeling that the Kinect-craze is dying now. I'm thinking a lot of people are being burned by shitty software (Star Wars being a recent big one).

I think WiiU will do well out the gate, a lot of things are lining up for them. Generation fatigue, shitty fall, only hot new gaming item on the verizon, and big titles at launch. But early next year is the big question mark; I seriously doubt it will still be setting the market on fire (like Wii did) by then.

Lack of a "Wii Sports" may be what harms WiiU's ability to sustain launch momentum. Nintendo Land is being treated as a "Let's Play" game which is meant to introduce people to the platform concept. But Wii Sports was more than an introductory demo package. It was a real game that had lasting value for the audience it was aimed at. It kept the hype and word of mouth going.

If they don't show up with something akin to that, I'd suspect that's where the trouble will lay.


I think people asking for next gen systems to improve sales are not looking at the reality of the situation. The economy is bad, people don't have jobs, therefore they dont have money to spend on a 360, PS3, Wii, 3DS, or Vita. I can't imagine people will be down to plunk 500, 600, 700 dollars on a new machine.

The average person, even average gamer, doesn't like having to buy new hardware. They just want good games. They jump to new hardware when there's no choice really; all the good games have moved on.

This extended generation has been bemoaned by the enthusiast who wants fresh graphics and more powerful hardware. But it has been a boon to everybody else due to the economy. Truly great games just keep on coming out, year after year and they don't require a hardware upgrade to play.

If anything I wonder about the length of the generation breaking the expectation of upgrades in the mind of the mass market. Will people be even less inclined to jump on an upgrade on day 1, or in year 1, after having been conditioned that you don't need a fresh box after four years to keep playing the leading games? Add to this that so many games today focus on multiplayer and are more or less 'services'. People are still going to be playing MW3 or Black Ops 2 when Xbox 720 comes out, and will keep doing so. I believe we saw something of a microcosm preview of this effect at the start of this gen where a significant number of people just kept playing Halo 2.... except that kind of game is now much, much bigger on consoles with multiple franchises in the multiplayer competitive genres.

For all that people are down on Nintendo for how they're presenting WiiU so far, I am going to be very interested to see the marketing tactics for MS and Sony regarding their next consoles. I wonder if there will be a dramatic shift in tone compared to how this gen was marketed initially, at least on Sony's part. One cannot help but recall the sheer hubris and arrogance in Sony's marketing of the PS3 - there was an all but built in assumption that they ruled the world and that PS3 would arrive like a nuclear bomb being dropped, decimate everyone else instantly, and end competition.
 

Kagari

Crystal Bearer
Why are people blaming the economy? The economy is doing a lot better in 2012 than it was in 2008-2010. And not to mention this wouldn't explain stuff like iPad selling record breaking amounts (for comparison iPad averages 4-5 million a month).

iPad is seen as a device that can do a lot more than the current gaming consoles, it's portable and to be quite honest... it's a status symbol right now.
 

Cheebo

Banned
I think people asking for next gen systems to improve sales are not looking at the reality of the situation. The economy is bad, people don't have jobs, therefore they dont have money to spend on a 360, PS3, Wii, 3DS, or Vita. I can't imagine people will be down to plunk 500, 600, 700 dollars on a new machine.

Then why are they buying tablets in record setting amounts? People are burring their heads in the sand if they blame the economy.

iPad is seen as a device that can do a lot more than the current gaming consoles, it's portable and to be quite honest... it's a status symbol right now.

It also proves people have money for luxury electronic devices. They just aren't using them to buy video games anymore.
 

John Harker

Definitely doesn't make things up as he goes along.
People who say "It's not the economy, look at Apple" do not fully grasp the concept of 'disposable income.' These are luxury items. The economy is a huge factor; people have less money to spend on luxury, so therefor they have less choice in how to spend their disposable cash. Consumers simply feel that the iPad provides more value for their money than owning an iPad AND gaming. If things were better, you'd buy more. It's not like you'd buy nothing at all.

People are going on less cruises and visiting amusement parks, too, to save up for their iPads (even concert sales tickets are down, just as another example). You'll see fewer devices do much much better than a broader entertainment portfolio all doing 'very well.' It's a funnel.
 

Tookay

Member
I have a really bad feeling about next gen. Someone tell me I'm overreacting and the industry will be fine.

I don't think you are. We're finally feeling the effects of a shit economy, the death of the mid-tier developer, high game prices, lack of excitement as this gen wears on, and dearth of original content. None of these are going to get better next-gen.

People who say "It's not the economy, look at Apple" do not fully grasp the concept of 'disposable income.' These are luxury items. The economy is a huge factor; people have less money to spend on luxury, so therefor they have less choice in how to spend their disposable cash. Consumers simply feel that the iPad provides more value for their money than owning an iPad AND gaming. If things were better, you'd buy more. It's not like you'd buy nothing at all.

Exactly. Ipad and other similarly hyped multi-application items are sucking all the figurative air out of the room, especially in a stagnant economic situation.
 

Krilekk

Banned
I think people asking for next gen systems to improve sales are not looking at the reality of the situation. The economy is bad, people don't have jobs, therefore they dont have money to spend on a 360, PS3, Wii, 3DS, or Vita. I can't imagine people will be down to plunk 500, 600, 700 dollars on a new machine.

The US economy is built upon credit card transactions. I.e. paying with money you don't have yet. And bad economies have never influenced the entertainment industry, actually it's the other way around. The worse it gets, the more people want to be distracted by fun and pleasures.

Of course hardware sales go down seven years into the generation without any price cuts. And software sales aren't bad. We're in the middle of a big shift towards digital distribution and that simply isn't tracked by NPD. If the few numbers we do get from time to time are any indication the digital revenue more than makes up for what retail loses. We've had almost 2 million copies of Minecraft in May on 360. That's 40 million revenue. Times change, the industry as such is very healthy.
 

Yopis

Member
Wow seems like a two fold problem imo.

Games are devalued everything goes on sale so fast why be in a rush. People wait for sales and sometimes forget just lose interest. Sony having so many price cuts (PS3 first few years) are going to hurt them next cycle.

This gen got stale. My game purchases have gone way down. Its all the same at this point. These systems are old let them die.
 

1-D_FTW

Member
iPad is seen as a device that can do a lot more than the current gaming consoles, it's portable and to be quite honest... it's a status symbol right now.

I don't buy that as the sole reason. The ipad is the elephant in the room the industry wants to ignore. The era of people paying 60 dollars for middling software is over. Yet the big 3 continue to base their entire business around it. And then they complain about the economy to explain terrible hardware sales (when the alternative hardware is flying off shelves, in the same economy, with a substantially higher price tag).

This is the canary in the coal mine and if they don't address things, next gen is going to be a bloodbath for them.
 

Tookay

Member
I don't buy that as the sole reason. The ipad is the elephant in the room the industry wants to ignore. The era of people paying 60 dollars for middling software is over. Yet the big 3 continue to base their entire business around it. And then the complain about the economy to explain terrible hardware sales (when the alternative hardware is flying off shelves, in the same economy, with a substantially higher price tag).

The alternative hardware appeals to a wider demographic than the 10-25 yr old FPS gamer.

Given the branding difficulties Nintendo has faced with 3DS, it's astounding to me that they're calling their next console WiiU.

Agreed. People only have so much room in their technological/cultural consciousness for branding variations without getting confused.
 

C4Lukins

Junior Member
It has been a slow year, but I think this generation is going to do fine through at least April of next year. I suspect things will get really dire after that until the new consoles launch.
 

mooreupp

Member
The economy was much worse in 2008-2010 and sales were record breaking month after month.

For the bang they offer videogames are a cheap entertainment option.

I think the economy is a very big factor here, but not the only one. Even if we assume it's better now than in 2008-10 (I think looking deeper into the numbers reveals something very different, but this isn't the forum for that), the saving/credit many people had in 2008 when things started to get bad is gone now. Even if the economy is slightly better now, it's still been not good for quite awhile now and that eats into a lot. There's also rising prices on things people have to buy like gas and medicine, which leaves less disposable income.

Beyond that, we have consoles which instead of reacting to that and getting cheaper are more expensive than their predecessors at this time. I think if Sony decided to do a very small update and launch the PS4 at $200, they'd easily win next generation over an much more advanced X-Box at a higher price (I'm less sure about Nintendo in spite of rooting for them).

Obviously we also have a merging of gaming devices with other technology and social media sites which is a further blow.
 

ccbfan

Member
Bad numbers all around but the most disappointing are the two handhelds.

The consoles have an excuse at least. They should be in their twilight years at $100 dollars.

The handhelds though are just terrible considering they're less than 1.5 years old. Smartphones are destroying the market.

Vita is dead. That's it no if and or buts. Its dead.

3DS is struggling along even after the huge price cut. At least they have 2 potential saviors. NSMB2 and Pokemon. People have always said the 3DS can fight the onslaught of the IOS because IOS can't have Pokemon and Mario. Well we're about to find out.
 

Somnid

Member
If anything market saturation can also describe it. I say this because the people who think of buying consoles now are not the people that can afford tablets and the people with tablets probably have these consoles. These things are 6+ years old, have each sold a ton of units and just don't have the newness they once did.

Let's put it this way, 360 was released before Apple even knew what an iPhone was.
 

mozfan12

Banned
The US economy is built upon credit card transactions. I.e. paying with money you don't have yet. And bad economies have never influenced the entertainment industry, actually it's the other way around. The worse it gets, the more people want to be distracted by fun and pleasures.

Of course hardware sales go down seven years into the generation without any price cuts. And software sales aren't bad. We're in the middle of a big shift towards digital distribution and that simply isn't tracked by NPD. If the few numbers we do get from time to time are any indication the digital revenue more than makes up for what retail loses. We've had almost 2 million copies of Minecraft in May on 360. That's 40 million revenue. Times change, the industry as such is very healthy.

I don't disagree with this but my question is whose to say that new hardware from MS and Sony would revive the market. We've seen the launch of two handhelds and both have seen and continue to have rough times or sell below expectations. One can blame the lack of software, but as others have said, we are living in the age were money is tighter, and people instead of jumping to video game specific consoles or handhelds are going to Ipads and the like.
 

Skiesofwonder

Walruses, camels, bears, rabbits, tigers and badgers.
Lack of a "Wii Sports" may be what harms WiiU's ability to sustain launch momentum. Nintendo Land is being treated as a "Let's Play" game which is meant to introduce people to the platform concept. But Wii Sports was more than an introductory demo package. It was a real game that had lasting value for the audience it was aimed at. It kept the hype and word of mouth going.

If they don't show up with something akin to that, I'd suspect that's where the trouble will lay.

Agreed. While we are only aware of 6 (?) of the 12 minigames in NintendoLand, it really doesn't look to be the same system moving game that Wii Sports was from the beginning. Though maybe it really is a title you have to experience to fully understand. Maybe we are underestimating it, but I doubt it. I do see some of the novelities/social features of the WiiU potentially being a dark horse. If stuff like panorama view, NFC, unversal control/streaming, and Miiverse are much more expanded upon then we currently think, then I could see those being features that could sell casuals on the system.

But Nintendo really needs a strong line-up for 2013 to keep momentum, especially early 2013. Also, it makes little sense to not turn those concepts shown at E3 2011 for Wii U Sports into an actual game. Surely that is a summer title coming up.
 

Dalthien

Member
I don't think you are. We're finally feeling the effects of a shit economy, the death of the mid-tier developer, high game prices, lack of excitement as this gen wears on, and dearth of original content. None of these are going to get better next-gen.
I'd throw in the shit-tastic trend of retailer specific in-game preorder content, unending DLC, limited edition in-game content, etc. Honestly, large numbers of people are just getting more and more turned off by the idea of plunking down $60 only to feel as though you're only getting half a game.

It milks more and more money out of your die-hard customers, but it turns away ever-increasing numbers of more average customers who figure they might as well just wait to pick the game up for $20 since they're not getting a full game at $60 anyway.
 

Foffy

Banned
I really hate these low handheld numbers , I don't want a touchscreen only future.

The DS didn't explode until 2006, and it launched in 2004. People expecting a new platform to suddenly start breaking records, when the games industry tends to follow a cycle, is a bit weird. Software is a major force in hardware sales, and a new platform is always starting at square one. In time, I'm sure Vita and 3DS sales will pick up noticeably, but what both need are software to do it. Nintendo may have franchises that easily put it above the Vita, but the games we're getting this year are not their driving forces for hardware sales, outside of NSMB2. The Vita's in a much worse position as I see nothing for the rest of this year to change its course.
 

Haint

Member
A $400 box that plays the exact same games isn't a magical solution.

The reality is, even if everyone can't afford to buy launch hardware, it gives people something to be excited about/look forward to, keeps it in the public consciousness, and keeps public interest high. As it is, 7 year old hardware does none of that. It actually creates an air of staleness that makes the entire industry smell outdated and on the way out. Truthfully, they may very well have created a situation here that's a self fulfilling prophecy we will never recover from.
 

ZenaxPure

Member
3DS really isn't surprising, actually more than I'd figure consider there hasn't been any huge game for months now. As cool as Kid Icarus is, it's not exactly Mario, Pokemon, etc.

This year has also been sparse in big games. Diablo 3, Max Payne, Mass Effect and lol Raccoon City were the biggest so far.

To be fair based on these numbers and estimations from past NPD Max Payne 3 didn't even sell that much more than FF13-2... or even Amaluar.
 

C4Lukins

Junior Member
I don't disagree with this but my question is whose to say that new hardware from MS and Sony would revive the market. We've seen the launch of two handholds and both have seen and continue to have rough times or sell below expectations. One can blame the lack of software, but as others have said, we are living in the age were money is tighter, and people instead of jumping to video game specific consoles or handhelds are going to Ipads and the like.

The competition in the handheld market has changed significantly, it is impossible to compare it to consoles. Mobile gaming plus Tablets on devices that do so much more then handheld gaming systems are in very direct competition. Consoles versus tablets, not so much. Consoles are still a battle for the living room, and the kids bedroom. There is overlap but not nearly to the extent of gaming handhelds.
 
Really hopeful for indie development and the "smaller risk" games. Though something like Fez took 5 years to make. Kongregate, Newgrounds and online marketplaces [mobile and console-based] are due for more exposure.

If they get it or not is another question.
 

DR2K

Banned
At my local Future Shop store,during the d3 and Max Payne 3 launch, clerk asked if anybody was here to pickup Max Payne 3, which was answered by laughs.

Because they were waiting in line for a PC game or because they thought they'd be able to play it out of the box?
 

KorrZ

Member
I wonder if L.A. Noire harmed the Rockstar brand a little.

Overall reception to Max Payne 3 seemed to be pretty lukewarm right away when it launched. L.A. Noire had insanely positive buzz until a week or two into it's release when people got deep into the game. Maybe people just don't want a linear action game from Rockstar?

edit: Should probably clarify, when I say "lukewarm" I mean for a Rockstar game.
 

Hcoregamer00

The 'H' stands for hentai.
The DS didn't explode until 2006, and it launched in 2004. People expecting a new platform to suddenly start breaking records, when the games industry tends to follow a cycle, is a bit weird. Software is a major force in hardware sales, and a new platform is always starting at square one. In time, I'm sure Vita and 3DS sales will pick up noticeably, but what both need are software to do it. Nintendo may have franchises that easily put it above the Vita, but the games we're getting this year are not their driving forces for hardware sales, outside of NSMB2. The Vita's in a much worse position as I see nothing for the rest of this year to change its course.

I would like to add that a 3DS revision with better battery life and nicer aesthetic design will greatly improve the console's sales.

There are many people (like me) who want a 3DS, but we want Nintendo to use the fruits of technology to give us a nicer product.
 

Halvie

Banned
iPad is seen as a device that can do a lot more than the current gaming consoles, it's portable and to be quite honest... it's a status symbol right now.

status symbols must be getting pretty damn cheap if an ipad is supposed to be one
 

kswiston

Member
I wonder if L.A. Noire harmed the Rockstar brand a little.

I doubt it. Outside of GAF (which is not really representative on anything close to mainstream tastes), I think that L.A. Noire was relatively well liked. Max Payne was not a sandbox game like most of the past Rockstar titles. AAA Sandbox games seem to be a close second in popularity to AAA First Person Shooters this generation.
 
For people placing this solely on the economy, one word: ipad. Look at its sales. It's not affecting everything.

At one point, these same consoles were sailing along unaffected by the economy. It took until well over a year after the crash for console sales to take a hit. They were the source of a lot of speculation then as to why they were doing so well when everything else was doing badly. Then they cooled off, but electronics in general didn't, and smart phones took off. People want the latest hot thing, and these consoles are not new and exciting any more. They're old, they offer games that are mostly sequels, and they're not as cheap as they should be at this point.
 

Synless

Member
40$ games for handheld game is the first thing which needs to change
Not if the handheld game is worth a shit. It might have made sense to have cheap handheld games in the DS, GBA, and GB days (which they never were cheap) when development costs to make those shit looking games was cheap. PSP, 3DS and especially Vita games take an actual budget.
 
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