Spin to win: Microsoft and Sony talk NPD results

by Ludwig Kietzmann { Dec 14th 2007 at 5:00PM }

SPIN ON:

There you are, beloved reader! Blessed are the words that attract your attention and become cornered by your inquisitive corneas! We have plenty of them lined up for you in this celebratory article which examines the post-NPD press so gracefully released from the dwellings of Microsoft and Sony. In short: the holidaze have brought out the best in everybody, with giant corporations joining hands and prancing around a gigantic pile of cash, shaking the very earth with their financial frolicking. In two paragraphs:

A keyword for Sony in November is "momentum," its $399 wrecking ball finally crashing through a wall of consumer apathy to reach 466k units sold, marking "a 285% increase over the previous month's sales." In other words, "PS3 had the biggest October to November sales increase of any hardware platform." The brand as a whole also enjoyed great success, with "PlayStation hardware unit sales" soaring past 1.5 million units. Don't forget the software either, as "PlayStation had three software titles in the top ten list across all consoles," including Guitar Hero III, Assassin's Creed and Call of Duty 4.

Software proved equally popular on Microsoft's Xbox 360, with four titles landing in the software top ten, compared to "three on the Wii and two on the PS3." Aided by the infamous attach rate of 6.9 games per system, "total consumer dollars spent for holiday shopping" sent $763 million to Microsoft. The Wii and PS3 received $587 million and $364 million respectively. Third-party software providers couldn't be more pleased.

SPIN OFF:

Oh, it's you. Since we don't want you to spot any blaytent misspellings in this post, we hope your attention is drawn to something else (like our ads, which you should totally click on). If not, you might interested to see some interesting interpretations of November's NPD results, courtesy of Microsoft and Sony. In short: the holidaze has made everybody better off in pocket, but not necessarily in position. In two paragraphs:

A keyword for Sony this month is "momentum" which, alphabetically, appears quite a bit before "victory." Sony's $399 wrecking ball finally crashed through a wall of consumer apathy to reach 466k units sold, marking "a 285% increase over the previous month's sales." There's no question -- this is good news for Sony. Unfortunately, the manufacturer's just knocked down a wall in a neighborhood being utterly flattened by the competition's wrecking crew. The system did enjoy the "biggest October to November sales increase of any hardware platform," but only in terms of percentage. In terms of actual units sold, the PS3 actually had the lowest increase between October and November -- a rise of 345k compared to the Wii's 462k and the Xbox 360's 404k. The PlayStation brand as a whole may be bringing in the money, but PS3 developers need to see more of their games perform well. The third-party PS3 titles that managed to make it (we can't believe you didn't buy Uncharted!) were considerably outperformed by Xbox 360 versions, though that's to be expected given the disparity in current install base.

That plays into Microsoft's "software software software" mantra, continuously shouted to drown out all the grunting that comes with fighting one's way out of second position (for a second consecutive generation). Software keeps publishers on board and great games in the hands of consumers, but it's become clear that defeating Nintendo is going to require some Herculean effort on the part of the Redmond giant. November was kind to Microsoft, but it highlights the need for balance between those hardcore users (who push the attach rate up to 6.9) and the less enthusiastic public (currently playing Wii Bowling). That $763 million in revenue is also nothing to sneeze at (unless it's used to purchase an enormous quantity of feathers), but it doesn't seem quite as big a blow against the Wii's $587 million when Microsoft's systems and games are notably more expensive.

[Note: We have yet to receive NPD commentary from Nintendo, though it's hard to imagine why they would even bother spinning the favorable facts.]

Tags: NPD, Spin

Reader Comments (Page 1 of 2)

Fernando Rocker @ Dec 14th 2007 5:08PM

Nintendo will come with his spin when they finish counting all the money.

So, maybe next year.

copa @ Dec 14th 2007 5:27PM

Howard Stringer, however, has offered his revised spin:

"Yesterday, I stated that the PS3 was infinitely more fun than the Wii. Upon further review of the numbers, it appears that the Wii is, in fact, slightly more than twice as fun than the PS3."

gonk @ Dec 14th 2007 5:12PM

i can't believe the 360's attach rate isn't higher. I just keep buying more games

kinshadow @ Dec 14th 2007 5:23PM

It's balanced out by warez users and people who only play Madden

Fernando Rocker @ Dec 14th 2007 5:12PM

And still, Sony had to drop price, twice in less than a year (now is cheaper than the 360 Elite), give free movies, give free games, free gift cards...

Imagine if Nintendo do the same thing... a $150 Wii with Wii Sports and Mario Galaxy included... the sales will be the double. But they don't need to do that.

gonk @ Dec 14th 2007 5:16PM

i know. they'll probably drop the price to $199 late next summer though

Fernando Rocker @ Dec 14th 2007 5:18PM

And Nintendo have not played the different color Wii card yet.

Imagine a black Wii, a red Wii, a blue Wii, with lower price. Sales will skyrocket.

Fernando Rocker @ Dec 14th 2007 5:20PM

Or a pink color Wii for the girls in Valentine (if you can find one)

ViagraFiend @ Dec 14th 2007 5:26PM

I think this is a good sign that our favorite industry is doing well no matter what system.

I hate you people for saying the same shit over and over. Cant you say something funny every now and then? Seriously, if someone says something funny, everybody has to copy it over and over until its just annoying.

Example:
1) If the PS3 had any games...
2) The Wii is just 2 gamecubes duct taped together...
Theres more but I'm pissed so I'm going to go beat a midget.

Fernando Rocker @ Dec 14th 2007 5:31PM

Viagra

No one is saying any of those jokes @_@

Noshino @ Dec 14th 2007 5:39PM

Fernando,

Nintendo is almost always the one to begin the different colored consoles...or may I remind you of the OMFG-MORE-THAN-IN-A-RAINBOW colors of the DS?

meh, Nintendo SHOULD have by now lowered the price of the Wii from a TECHINAL point of view, but then again, they only lower the prices when they see competition...businesses =(

RPGJock @ Dec 14th 2007 5:56PM

@Fernando,

Your never going to see you beloved Wii drop down to 200 until one of the big boyz drop down to $250. Chances are that will be 360 since Sony would have to chop off $150 off the price tag for that to happen. I can see Microsoft going down to $230 in the summer and Sony following suit to drop to $329 to stay competitive. But until you see a surplus of Wii's on shelves, forget the price drop.

BPM - The Revenge @ Dec 14th 2007 6:21PM

@Fernando:
No, I don't think sales would be doubled if the price dropped and was bundled with Galaxy. In fact, it'd be just the same as it is now: sold out at almost everywhere.
Doesn't matter how advanced (or not) the hardware is, they can only make so many so fast.

But in the eventual event of a sales slump, yes, such a bundle or price drop would elevate sales. New colors, too.

I must say that an Enamel Navy Wii would look great. It'd go nicely with my DS Lite. :)

@Noshino:
Price drops are more of a reaction than anything else. You think if PS3 was selling better than it is, Sony would've dropped the prices? Of course not! We'd still be seeing $500/$600 PS3s right now. But the market said, "No, that's too much!" and they dropped the price.
Want a Wii, but don't want to pay $250 for one? Vote with you wallet: don't buy one. Wait for the price to drop. It will, eventually.

ViagraFiend @ Dec 14th 2007 6:25PM

@ Fernando

I know. It was off topic. I was just ranting about overused jokes period, not those exact jokes. I punched a midget so I feel better now. Tired jokes commence...

TXCrowe @ Dec 14th 2007 7:14PM

Fernando,

Its not "SONY" giving away free movies , its any Blu ray player.
AND
if you buy ANY HDdvd player you get the SAME DEAL.

Spin,indeed.
Moron

eugene @ Dec 14th 2007 7:15PM

sales would be exactly the same, even if nintendo dropped the price 99 bucks and added a kitten. Why? Because every wii made is sold as soon as they're logged into inventory.

hell, I was at my local gamestop yesterday and there were nine people just standing around, waiting for the UPS delivery.

kojo87 @ Dec 14th 2007 5:20PM

i like how all their top ten titles are multiplatform. i dont have a PS3 and i have GHIII for Wii and CoD4 for PC. i plan on getting Assassin Creed when it comes out too.

i didnt buy a PS3 and get to experience these great games. looks like i saved/didn't piss away $400.

joeyg @ Dec 14th 2007 5:37PM

if your on a pc, why are you crapping on sony?

why not just say you didn't piss away any $$$ on any console?

Noshino @ Dec 14th 2007 5:43PM

joeyg,

where have you been? bashing the PS3 automatically makes you look cooler and thus feel better about yourself, why do you think so many people on the net do it?

Matters @ Dec 14th 2007 7:06PM

What are you complaining about Noshino? It was the same last generation when Sony fanboys thought it was cool to bash on Nintendo fanboys. Hell now they're using the same excuses with the PS3 that Nintendo fans used with the GameCube.

You dicks can dish it out but you sure as hell can't take it.

Noshino @ Dec 14th 2007 8:04PM

Matters

fyi, I enjoyed both my N64 and PSoneand the same with my NGC and PS2.

No, I was actually pro Nintendo, hell, I was excited as hell when they announced the back then "Revolution", but then as more information started to be shown, I lost my interest bit by bit...til I lost it completly

It's Nintendo's choice to reuse old technology and sale as new, or may I say "revolutionary", for both the DS and Wii that made me go against them...

Also, most people I know where both pro Sony and Nintendo, both being arrongant corporations....yet we weren't "dicks" about it, so yah, whatever you say that makes you feel better about your console of choice being on the top, hopefully it boosts your self steem

PhrawzT @ Dec 14th 2007 5:20PM

Where are all the colored Wiis that were shown all through out the development phase? I've wanted a black one or at least a black remote ever since I first saw the Wii.

ViagraFiend @ Dec 14th 2007 5:22PM

I bought a black case and it looks pimpin.

x876543 @ Dec 14th 2007 5:29PM

Nintendo already stated that to keep production levels high to meet demand they couldn't change the color. Sounds silly since it's a year later, but they need to keep the units as much the same to stream line the process. Adding a color might not sound like much but 1.8 million units a month is a lot, and that is up from 500K last year.

Shagittarius @ Dec 14th 2007 6:02PM

Someone has jungle fever.

the_game_master @ Dec 15th 2007 1:30AM

I'm still waiting for Nintendo to release the Wii systems that support DVD playback. They planned on pushing DVD support at launch but have pushed it back.

Mr Khan @ Dec 14th 2007 5:26PM

What's to spin? They all did good

...They just didn't beat Nintendo

Eddie @ Dec 14th 2007 5:52PM

Is it funny to anybody else that the hddvd vs bluray fight is the exact inverse of xbox vs ps3?

Kassu @ Dec 14th 2007 5:57PM

I just want to shout this out, not defending PS3 (Anti-Anti-fanboy shield of the flame - Equipped) - You all say that the PS3 is expensive. You know, here in the middle of flocking nowhere, the WII goes for like 430 bucks, all the Wii games start at 75 bucks and well, the 80 Gig PS3 costs roughly a 1000$. The games are 100+ each.

I don't know, if the rest of Europe gets banged in the butt like this too, but whatever.

Sony's response was just a big shitstained bag of MEH :-/

gonk @ Dec 14th 2007 6:06PM

what do ps3's go for in that expensiveland you live in?

gonk @ Dec 14th 2007 6:07PM

oh nm, you tucked it in at the end

what was your point again? everything is marked up there?

Kassu @ Dec 14th 2007 6:10PM

I lost my point halfway through the thing, i guess...

But, i'll try - In the USA, saying that the PS3 is too expensive just couldn't count as an argument. And it's not like the people make less moneys there.

But the PS3 stil deserves it's last place. Especially here, at expensiveland.

Mr Khan @ Dec 14th 2007 6:22PM

Estonia (that's where you're from, right?) will get less severely raped for this once EU integration gets a little stronger

Of course, there's natural bias against it, being a former Soviet republic and all, albeit an unwilling one

BPM - The Revenge @ Dec 14th 2007 6:27PM

It's a matter of relative costs.

Last gen, the most expensive mainstream system was $300 (PS2 and Xbox). That went fine with most people's wallets.
This gen, we're seeing the pricetag upped: $400 (360 Pro launch), $480 (Elite launch), $500 and $600 (PS3 20GB/60GB, respectively). This comes off as being expensive to the average customer. And why sales are low for both systems compared to their predecessors at this point in life.

Wii, on the otherhand, falls into the comfortable price range for most, hence why it's selling like waffles that sell like hotcakes. Hell, it's already outsold GameCube's total sales in Australia and Japan (Europe, not certain; Americas, not yet)!

playwhutyalike (fried my washer) @ Dec 14th 2007 6:17PM

Seriously, let's hold some hands.

I won't suck your lifeforce, promise.

Okay, maybe just a little sucky-sucky. Um, nevermind.

samfish @ Dec 14th 2007 7:14PM

mmm, get your little jelly Metroid ass in my pants!

Yeah, that's it...work the balls! WORK THE BALLS!

Noshino @ Dec 14th 2007 8:07PM

Peach...balls? is that why you don't have the full picture? sigh, truth hurts...

hvnlysoldr @ Dec 14th 2007 10:23PM

I look forward to the snapshot ability of Brawl. Metroid sucking on the females to be broadcast to everyone. Although Nana might freeze you first.

RPGJock @ Dec 14th 2007 6:24PM

Yea I may get flamed for this comment but I have to stop and saying something about the "Wii" and all its so called glory. Now it has done fantastic to say the least but I really feel that the Wii success can be its undoing. Let me tell you a little story...

There was this other "fad" system back in 1979 that my dad couldn't wait to get and was playing night after night with his friends when he did. It was the rage for those three years and it was constantly sold out year after year. It was to revolutionizing home entertainment. Oh it had it competitors with more powerful machines but everybody new the name of the best and it popularity had grown that even the old knew of it. Old pinball companies and proggramers jumped in making game for the little machine. Problem is with no real product control over the games that came out for it, it went from the penthouse to outhouse. Game companies that were making games for it went bankrupt because the market was oversaturate with crap games and people stopped buying them. The company tried to reinvent systems and change its focus but it was to late, the damage was done. No one really trusted the name really again. If wasn't for this small watch company in Japan that starting make a gaming computer....

Fast forward 26 years and look what is going on with Nintendo. If they don't get hold of what is being put out for their system and stop the shovelware that is starting to plague the system, they are going cost us all in the long run. Think about it....

Mr Khan @ Dec 14th 2007 7:34PM

The only difference is quality control

Sure a lot of shit games get on the system, but you still need a Nintendo license to do it, you didn't need a license for the 2600 period

Also, any negative impact will be balanced out by the core Nintendo fanbase (the ones buying the games, and the core that developers are targeting with a sprinkling of quality wares) and the fact that the competition is doing something totally different anyway

RPGJock @ Dec 14th 2007 8:22PM

@Mr Khan

True, you need to license the game to sell it on Nintendo systems (legally) but because Nintendo struggled with developers from the last two generations, they have loosen the rules on who can make the games for the system and how often you can release a game. They use to have a very strict release policy back in the day in fear of the "Atari" effect to the system.

As core gamers being the regulators for the system, if you don't buy the core games or even the game that are very inventive, then you don't become the target market. Actually in any market, the goal is to get 10% of the target to buy the product. Anything above that is gravy. Yea you can have high hopes like Haloz and Mario but most companies always plan on at least 10% to purchase the game. So in the end what sound better, 3-4 mil. "core" gamers or 10 to 15 mil "non core" gamers. Companies always go after the numbers, they are in it to make a profit. That why you hear companies like Capcom and Square going off on Sony for not having a higher system sells. They know that even if their game is great (in their eyes) its possible that only 10% of the owners will buy it.

Slaziman (B-B-BRUSHED WITH FAAAAME) @ Dec 15th 2007 4:35PM

The difference is that now we have the internetz to check if a game is good or not, on the 2600 you had to rely on word of mouth mostly.

Saiyangirl13 @ Dec 14th 2007 6:45PM

you do realize that it was nintendo that tried to fix the shovelware problem and in the end got ditched for sony. nintendo's doing fine the ps2 had the same problems, that's the pros and cons of success.

RPGJock @ Dec 14th 2007 7:02PM

The shovelware didn't happen until late in the PS2 success. Not right out the gate like we are seeing for the Wii.

Its funny that Nintendo and Sony have literally switched places when its comes to this generation of home consoles. Gamecube was better than the PS2 in power but lack support from third party support. Now the PS3 a beast, begging for third parties not to abandon them yet and the Wii is got people making games for them that you never even heard of before.