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Businesses The Almighty Buck PlayStation (Games) Wii XBox (Games) Entertainment Games

Games Industry Sees 12 Billion in Sales For 2006 181

Gamespot is reporting that, with the NPD numbers in, we can finally put the debate about last year's winners and losers to rest. Overall, the industry was the winner, with a record-breaking $12.5 Billion in sales last year. December accounted for almost $4 Billion all by itself. In software, the usual suspects prevailed. Madden topped the chart with 2.8 Million in sales for the PS2 version of Madden 07. Right behind was New Super Mario Bros. on the DS, with some 2 Million in sales of its own. On the console side of things ... well, as Kotaku points out 'everyone is a winner' this year. Microsoft, Sony, and Nintendo have all put out press releases declaring themselves the winner of the Holiday console wars. The sad reality, though, is there can be only one. According to the NPD numbers, between the launch of the new consoles and the end of the year, some 1.1 Million Nintendo Wiis were sold with 687,300 PS3s following closely behind. Microsoft trails with its numbers from 2005; it sold 607,000 consoles in its launch year. Don't feel too bad for Microsoft, though. They sold 1.1 Million 360s in December. The article points out this means Microsoft met its '10 Million in sales' goal for the end of 2006.
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Games Industry Sees 12 Billion in Sales For 2006

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  • Price (Score:5, Insightful)

    by HappySqurriel ( 1010623 ) on Friday January 12, 2007 @11:16AM (#17573494)
    Riley also thought the PS3's high price--$499 for the 20GB model, $599 for the 60GB--wasn't as large a factor as many have made it out to be. "I think price plays a role there, but remember during the holiday season people have deep pockets," he said. "Kids know what they want, and if they tell mom to go buy a PS3 and she comes home with a Wii, they won't be happy."

    Honestly, when it comes to console sales I don't think price has that much of an impact on early adopters because it is a planned purchase; something which is budgeted for and anticipated months in advance. Where price becomes a factor is that most console purchases are not planned and happen when one or two popular games are sold; when someone watches an advertisement on TV and goes out to buy a PS3 with Metal Gear Solid or Final Fantasy they will (mostly) be anticipating a price of $300 or $400 for the system and game combined.

  • It's all relative? (Score:5, Insightful)

    by antialias02 ( 997199 ) on Friday January 12, 2007 @11:19AM (#17573522)
    I'm still scratching my head as to how 687,000 is "closely behind" 1.1 Million. (400,000 consoles is nothing to shake a stick at.)
  • Comment removed (Score:3, Insightful)

    by account_deleted ( 4530225 ) on Friday January 12, 2007 @11:22AM (#17573568)
    Comment removed based on user account deletion
  • by Anonymous Coward on Friday January 12, 2007 @11:22AM (#17573588)
    retailers. For instance, amazon.com it seems got screwed when it came to its wii allotment. I can't find one online retailer that is selling either the wii or ps3 at retail(the ones above retail are "used" for instance on amazon). It seems like both Sony and Nintendo passed them up to go with brick and mortar stores.
  • by RichPowers ( 998637 ) on Friday January 12, 2007 @11:26AM (#17573680)
    The PlayStation 2 sold 1.4 million units in December. The PS2 has a great library of games (many of them discounted) and there are still plenty of new releases to look forward to (Rogue Galaxy comes to mind). The Interweb is full of all these geek debates about PS3 vs. Wii (and they are fun, don't get me wrong), but the PS2's success is do, in part, to its vast game selection. That, IMHO, will always be more important than tech specs. Hopefully, though, the new consoles will have a more robust game selection in the coming months.
  • by MooseMuffin ( 799896 ) on Friday January 12, 2007 @11:28AM (#17573700)
    Well, they did reach the 8 million subscriber mark http://www.blizzard.com/press/070111.shtml [blizzard.com] and have their first expansion coming out next week, which a good percent of those 8 mil will buy. I imagine Blizzard is fairly comfortable with their financial situation right now.
  • by gravesb ( 967413 ) on Friday January 12, 2007 @11:28AM (#17573706) Homepage
    Its not really fair to make any comparison right now. Until all produces can ship to meet or exceed demand, its impossible to make any kind of accurate comparison. Also, initial success doesn't necessarily mean long term success. The WII may appeal to people now because its unique, but it has to show that its control scheme is more than just a gimmick to hold onto its appeal. I certainly hope that it does, as it would encourage more innovation in general, but its far to early to crown a champion, or even a leader, at this point. Wait until at least next Jan, if not the year after that.
  • by Thansal ( 999464 ) on Friday January 12, 2007 @11:34AM (#17573846)
    ummm

    Disclaimer: I am a nintendo Fan, however I will try to stay unbiased.

    1.1Mill Xboxen sold in Dec (just dec, remember, both the PS3 and Wii were launched in Nov) says that they trounced the PS3. However (yes, you can see the glee in this Nintendo fanboy's eyes) the Wii is giving the 360 a run for its money with 1.1mill units sold in Nov/Dec.

    Also that says the Wii's launch sales trounce the 360's, however you do have to remember that the 360 had a HORRIBLE launch when it came to product avalability, where the Wii is having an abundance of production (though they still sell out).

    My prediciton?
    Unless Sony pulls their act together (gets some GREAT games out FAST), it is goign to be a running war between the 360 and the Wii. Also I am willing to bet we will see Wii on shelves faster then we did for the 360, but simply b/c their production is going much better then the 360 did at launch.
  • by jimbob666 ( 1050308 ) on Friday January 12, 2007 @12:02PM (#17574356)
    2 Million New Super Mario Bros. sales on DS speaks volumes. Games don't need to be over complicated and cost $ millions to produce. Keep it simple yet very playable!
  • by Lisandro ( 799651 ) on Friday January 12, 2007 @12:16PM (#17574632)
    Sheeze, can we put this to rest already? It seems that, for the last couple of console generations, all that people care about is who won and who lost. Number of shipped consoles vs. sold ones, launch date numbers, millons invested in advertising, etc. Nevermind the endless drooling over polygons per seconds, CPUs, memory controllers and the works. People live and die by these numbers, claiming that company X is the winner of this generation while company Y is in the brink of bankruptcy.

    Come on guys. I can understand (barely) this kind of insaness from fanboy sites, but please, can we move forward? If you like consoles, why do you care beyond which one is more fun to play, or has more games that appeal to you? Do we really have to get into the pissing contest of which one sold an extra 10 units this month? I mean, is it relevant? Is it even interesting? If you like consoles, you have not one, nor two, but three excellent options to chose from, and that's it. I'd like to see more discussion about games rather than units shipped, Blu-ray vs. HD-DVD or whatever is trendy this week.
  • by Chris Burke ( 6130 ) on Friday January 12, 2007 @12:39PM (#17575070) Homepage
    Okay, put down the Sony-brand crack pipe which only smokes Sony-brand proprietary crack.

    If what you're after is marketshare, then selling out is irrelevent if the number of units you sold was not enough to get you the marketshare you needed. If I had one Burke-brand computer to sell, and someone bought it, could I claim Dell, who still has ample supplies, was losing to my hot seller?

    Microsoft selling 1.1 million units without selling out is a good thing, as it means their production is ample and there is still strong demand for the console. At over 10mil units sold, they have a substantial lead in the console wars, giving them all-important momentum. There is no rational way to say that Microsoft isn't winning right now.

    Wii had decent production, but the fact that they sold 1.1 million consoles and were sold out is a bad thing, as it means more people wanted to buy the Wii but couldn't, artificially limiting their market share. Each console they produce now is going to satisfy the backlog -- I have a couple family members whose Christmas present was "the promise of a Wii when we can get one". While this means in the longer term they have decent potential marketshare, they're still stuck way behind Microsoft and they are not going to be able to catch up any time soon as production continues to limit sales. Though at least they sold more than Sony.

    Sony had terrible production, and sold fewer consoles than everyone else. Being sold out is a bad thing as they are now in 3rd place. Unless their production suddenly shifts into impossible-mega-drive to make up the extra 500,000 units they didn't have to sell this Christmas, their position in 3rd place is solidified through most of 2007. The worst news for Sony, though, is the reports that they aren't sold out any longer and PS3s are sitting on shelves, meaning there weren't enough "we'll buy one as soon as it becomes available" to take up the new production and help them make up lost ground. There could be a lot of reasons -- though only Sony-brand crack could make you believe that price wasn't a major one -- but if this trend continues and Sony doesn't do something, then you're looking at the loser of this generation. Certainly, as of right now, they are behind.

  • Re:Nifty (Score:2, Insightful)

    by The PS3 Will Fail ( 998952 ) on Friday January 12, 2007 @12:47PM (#17575300) Journal
    "Are the pointless features that they add in just to get you to buy the game actualy good?"
    If you don't enjoy the games in the first place, why is it that you think you're a good judge of whether the additional content is enjoyable?
  • by Lisandro ( 799651 ) on Friday January 12, 2007 @12:55PM (#17575492)
    Which has nothing to do with units shipped, launch sales, hardware specs and assorted crap. If you want to know which console will be "super popular", wait until the next-next gen consoles are released and pick the one that did the best in the previous one for $50. That's the only sure way.
  • Re:Price (Score:3, Insightful)

    by Chris Burke ( 6130 ) on Friday January 12, 2007 @01:04PM (#17575722) Homepage
    Yeah price isn't a big deal for that tiny fraction of people who can be called early adopters. People buying consoles as Christmas gifts for their families do not fit that mold -- again except for a tiny fraction. And they do often budget and plan for Christmas months in advance, but that does not mean that they can afford to budget $600 -- they're budgeting because they have limited funds. A lot of people doing this will plan to buy a cheaper console because $600 is too much.

    And as far as the quote about kids telling mom to buy a PS3, I can tell you that may happen but most of the time mom is going to ask how much one of these PS3 gizmos cost, and when the kids say $600 she's going to tell them no way, and the kids will either settle for a cheaper console or go without. I think I know which way most kids would rather go.

  • by Crasty ( 1019258 ) on Friday January 12, 2007 @01:59PM (#17576974)
    Another system that sold just over 10 million units... Sega Dreamcast. So 10 million hardly makes you a winner. Sony's numbers are artificially inflated by the ebay factor. Yes they sold the systems, but they also were not all sold to end users. Sony is not doing as well as it would like you to believe, and people generally aren't going to warm up to spending $600 for a console once the "wow it's new" factor is gone. X360 has the best base, and Nintendo is doing quite well. It's safe to say businesswise, Sony has already put itself in a big hole this round. However if PS3 does make Blu-ray the medium of choice, it will have been worth it in the end.
  • by MeanderingMind ( 884641 ) on Friday January 12, 2007 @02:17PM (#17577278) Homepage Journal
    Assuming $600 is trivial.
  • by pyrois ( 856739 ) on Friday January 12, 2007 @05:07PM (#17580880) Homepage
    I love Sony, and I think the PS3 is awesome. I'll definitely buy one when I can muster up 600 washingtons. There's just one thing I've noticed from listening to my friends and people on forums.

    A $600 system can never have a "system seller" game.

    This is not to say the system won't sell, but $600, as mentioned many times before, just isn't an impulse buy. Even the Xbox 360 at $400 for the premium version is a difficult "walk in and buy for Gears of War" system. One game just isn't enough.

    The Wii, at $250, is definitely in the impulse buy range. If I see one on the shelf, I wouldn't even hesitate to pick it up, along with Zelda, and purchase it.

    The PS3, at $600, for even semi-hardcore gamers, is just not an item that one can justify purchasing because one REALLY good game came out. When Halo 3 comes out for the 360, it will sell systems. If Halo 3 came out exclusively for the PS3, the price would be prohibitively large enough that people might still say "I think I'm going to wait for the price drop," or "I'll wait until it has another good game that I want."

    On the other hand, Sony has done a good job of selling through all their units until Christmas. Pricing is correct when there is a readily available of supply for purchase, yet enough to match production levels. If they gradually drop the price of the system, interest may rise again to the point of sell-out. But really, who wants that? In many ways, I kind of wish the Wii were $300. Then maybe I could actually buy one without paying $400 for it off eBay.
  • Re:Nifty (Score:2, Insightful)

    by The PS3 Will Fail ( 998952 ) on Saturday January 13, 2007 @12:32PM (#17591824) Journal
    "I never meant to imply that absolutely nothing was added between Madden games, but that in my opinion the changes were small and trivial because I'm a technical type who doesn't value the changes."
    What exactly do you mean by "a technical type"? Are you saying that you are analyzing the feature set and estimating the difficulty of the creation of that feature set?

    "In short, because what people like me find impactful in video games rarely shows up significantly in Madden's new feature set each year there is criticism of it and the people who buy it. It is not without warrant, because we don't want to see the proliferation of feature sets we are wholly uninterested in. Perhaps it is rather unfair and not an understanding position to take, but it is not without reason."
    Because I don't enjoy Final Fantasy games and do not play them, when a new one comes out, I don't jump on Internet message boards and insult people who do enjoy Final Fantasy games and complain about how they're all the same. Do you know why? I don't play the games so I don't feel as though I can evaluate what has changed between the latest release and the previous release. Why is it that people who don't play Madden can't show the same restraint? I just don't think you're in any type of position to make a judgement here.

The key elements in human thinking are not numbers but labels of fuzzy sets. -- L. Zadeh

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