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Old 04-25-2009, 07:44 AM   #1
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Wii sales declining.

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Originally Posted by GameDaily
Responding to the worse-than-expected March video game sales, Wedbush Morgan analyst Michael Pachter talked a bit about the Wii's software sales. While the tough comparison with last March's Super Smash Bros. Brawl did make it a challenging month, he felt that Wii software sales still could have fared better.

"...this year, the company had Wii Fit ($49 million) to help offset a somewhat weaker lineup. Also, given that the installed base of Wii consoles has doubled in the past year, we find it remarkable (and somewhat disconcerting) that Wii software sales were actually down year-over-year in March, dropping by $72 million, or 26%. The decline was approximately equal to the difference between Super Smash Bros. and Wii Fit, suggesting that Nintendo software sales were flat year-over-year on an adjusted basis, notwithstanding a doubling of the installed base," Pachter explained.

As for the overall industry, Pachter would seem to agree with NPD's Anita Frazier, who yesterday reminded everyone that the sky is not falling. Pachter pointed out that March was in fact the third highest in terms of sales in the U.S. game industry's history. However, because of the decline, investors will likely react negatively.

"We expect negative market reaction to the sales data. Overall sales were down double-digits for the first time since May 2006, and the year-to-date trend of 2% gives credence to conservative publisher views about the year. We expect investors to trim positions in most video game publisher and retail stocks, and think that lingering concerns about the economy will limit share price appreciation until we see a reversal to positive sales growth," he said.

Pachter doesn't think the industry will see significant growth again until August.

"As we parse data for the balance of the year, we notice that comparisons remain difficult through July. The April comparison (including... Grand Theft Auto IV) is positive 69%, with May at positive 41%, June (the second highest non-holiday month in history) at positive 61%, and July at positive 41%. Fortunately, there is a relatively solid lineup of titles planned for this Spring and Summer, including UFC, Harry Potter, The Sims 3, EA Sports Active, Tiger Woods, X-Men, Transformers and Splinter Cell. While we don't expect every month to be up, we do not expect a negative double-digit performance the rest of the year," he noted.

"With that said, it would be nave to be pollyannish about the data. Negative sales can only mean that consumers bought fewer games this year than last, and will be read by many as a signal that the recession is upon us. It would be equally nave to conclude that everything will reverse later in the year. However, as we look at the release schedule for the balance of the year, we are confident that the hard core consumer (who never left) will continue to buy games, and we think that a more robust offering of casual games, coupled with the introduction of Wii MotionPlus and a slew of new content designed for the Wii, will lure the more casual consumer off of the couch and into retail stores," he added.
Thoughts?
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Old 04-25-2009, 11:11 AM   #2
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I feel nintendo has nothing to worry about. Supply and Demand says the sales have decline sometime. lol the higher they are early the harder they will fall later.

The nintendo investers need to have patience and they will continue to make money.
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Old 04-25-2009, 09:29 PM   #3
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They've sold 50 million Wiis. That's ALREADY more than the Super NES sold. Nintendo have nothing to worry about.
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Old 04-25-2009, 10:09 PM   #4
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Economy playing a role in this. n so what. wii still rules
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Old 04-25-2009, 10:58 PM   #5
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They could stop selling consoles now and still win the war. Most likely

Supply and demand. What suprises me is that the business analysts are making a big fuss over what happens all the time, almost like they are suprised. damn Sony-sponsored business news.
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Old 04-26-2009, 01:00 AM   #6
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Quote:
Originally Posted by SegaSlayer33 View Post
They could stop selling consoles now and still win the war. Most likely

Supply and demand. What suprises me is that the business analysts are making a big fuss over what happens all the time, almost like they are suprised. damn Sony-sponsored business news.

He speaks the truth!
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Old 04-26-2009, 01:14 AM   #7
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I think that's because everyone already has a Wii now.
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Old 04-26-2009, 01:15 AM   #8
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Supply and Demand.
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Old 04-26-2009, 01:17 AM   #9
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Nintendo could stop over-hyping huge games like Brawl and ACCF. Fans like me were getting worked up for an awesome games, and I feel that they were total letdowns. They just don't put the quality in games like they used to =/

I don't doubt it that their sales are going down, considering that not a single good DS game has been released in a while, and most of the casual Wii gamers have been pacified with Wii Sports and Wii fit.
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Old 04-26-2009, 01:53 AM   #10
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Quote:
Originally Posted by Doopliss View Post
Nintendo could stop over-hyping huge games like Brawl and ACCF. Fans like me were getting worked up for an awesome games, and I feel that they were total letdowns. They just don't put the quality in games like they used to =/

I don't doubt it that their sales are going down, considering that not a single good DS game has been released in a while, and most of the casual Wii gamers have been pacified with Wii Sports and Wii fit.
Fire Emblem: Shadow Dragon, Final Fantasy Crystal Chronicles: Echoes of Time, Suikoden Tierkreis, Valkyrie Profile: Covenant of the Plume, Rhythm Heaven, Pokemon Platinum, Grand Theft Auto: Chinatown Wars, Henry Hatsworth in the Puzzling Adventure, and Avalon Code all disagree with you.
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