Nintendo World Report Forums

NWR Interactive => TalkBack => Topic started by: WindyMan on January 29, 2005, 06:13:32 AM

Title: DS Hardware Selling Well; Software Sales Slow
Post by: WindyMan on January 29, 2005, 06:13:32 AM
That's what they get for including a free demo, making it multiplayer-friendly, and having GBA backwards compatibility.

Worldwide, more than 2.84 million Nintendo DS systems have been sold, a little less than half of which (1.39 million) are here in the States.  Because of the phenomenal demand, Nintendo has raised its hardware sales expectations to 6 million DS units shipped out by the end of their fiscal year, which is March 31.  That's a million more than previously expected.


The bad news is, DS games are not selling nearly as well as Nintendo would have liked.  Only 5 million games have been bought up by DS owners around the world, which is far less than the 15 million Nintendo was expecting.  Their software expectation mark has been lowered to 10 million because of the lack of sales.


The features of the DS are leading to its poor game sales numbers.  Players are playing the included PictoChat and Metroid Hunters Demo, taking advantage of the single-card wireless multiplayer feature, and playing GBA games on the DS.  With game variety still a little slim, DS owners are happy with what they've got at the moment, apparently.

Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: KDR_11k on January 29, 2005, 06:39:52 AM
That's no issue in Japan, the DS comes without the demo there...
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Hostile Creation on January 29, 2005, 07:13:11 AM
I'll try to help them out when Yoshi comes out.  Anyway, I expect over time this problem will be a resolved.  People will inevitably want more stuff.  Pity that it was a problem in the first place, though.
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: Flames_of_chaos on January 29, 2005, 07:30:07 AM
Well on the bright side is that DS software sales are beating PSP software sales.  The only problem with the DS software right now is the lackluster selection and that could be another key factor to this so people will stick to their mario 64DS, their GBA games on the DS the demo and pictochat. But I think software sales will pick up soon when the rest of the games will come out.
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: Avinash_Tyagi on January 29, 2005, 08:11:36 AM
I expected this to happen, as I recall this was the same problem sony faced when it first released the PS2, the fact that only a few of the games so far can be called excellent, coupled with the prescense of bundled apps and BW compatibility garunteed this result.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Ian Sane on January 29, 2005, 08:23:30 AM
It's obvious why the software sales are weak.  The current lineup SUCKS.  Most early adopters are likely using their DS mostly to play GBA games.  If one wants to get a GBA or update from the original model the DS is the best choice because it's going to continue to be supported for the next few years.  I know a lot of people who didn't own a Playstation who felt that the backwards compatibility of the PS2 was worth buying the system for because it let them play the games they missed and new games for the next few years.  If I didn't have a GBA I would have considered getting a DS at launch.
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: WindyMan on January 29, 2005, 08:40:26 AM
Quote

Originally posted by: Lord_die_seis
Well on the bright side is that DS software sales are beating PSP software sales.


In Japan, the PSP has sold over 500,000 hardware units and over 1.3 million software units.  Strictly on the hardware-software tie-ratio, the PSP has sold more games for the amount of systems sold.  So technically, the PSP is doing better in selling games.

Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: Avinash_Tyagi on January 29, 2005, 09:00:06 AM
Well I would hope it was selling some games, it doesn't have a bundled game and chat application along with BW comp.

If it wasn't selling software then it would beg the question:

Are people paying $200 dollars for a paperweight?
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Gamefreak on January 29, 2005, 09:47:26 AM
Well many people just buy things early cause it's new tech. I have these cousin's that are twins... one of them bought a DS just cause it was new, and didn't buy any games for it. The other wanted to wait since there aren't good games out. (that's what i'm doing)
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: MarioAllStar on January 29, 2005, 10:14:40 AM
I recieved my DS on launch day, and while I wish there were more games for it, I'm satisfied with my purchase. I'd rather buy it early and get the good new games as they come out than wait for one really big must-have and then catch up later. I think that new, better games will start coming out a lot more soon. We'll have Wario Ware in just a couple weeks! (And the new video of Mario Kart from that convention held in Paris is very good looking)
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: joshnickerson on January 29, 2005, 10:50:14 AM
Wow, Mario Kart looks pretty good.

And I think the DS software sales will pick up once the Pokemon DS MMORPG comes along...
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: foolish03 on January 29, 2005, 12:14:56 PM
Nintendo is oblivious to the outside world.  "The features of the DS are leading to its poor game sales numbers. Players are playing the included PictoChat and Metroid Hunters Demo". The reason for this is becasue it has no games.  DS owners are forced to play those simply because there arent that many titles out.  It seems nintendo still lives in its own little mushroom kingdom I hope they can get a clue come next generation.  By the way I do enjoy my DS.  Im currently playing minish cap on it(got nothin else)....  
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: CHEN on January 29, 2005, 01:00:58 PM
The age old "Nintendo needs to wake up" argument again, eh? All I have to say is that every hardware launch has its peaks and downs. The number of quality of titles is indeed an issue, mainly because of half-assed developed games, but this should pick up soon when the PSP is getting released in NA. It seems Nintendo is anticipating this and therefore thinking of measures to counter this.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Caillan on January 29, 2005, 01:17:19 PM
Quote

Nintendo is oblivious to the outside world.


More likely they're putting the same crap in their press releases that every other company does. When faced with a choice of either 'the DS is selling poorly becuase it has few good games' or 'DS owners are happy with what they've got at the moment', which would you expect Nintendo to choose?
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: TheYoungerPlumber on January 29, 2005, 01:21:37 PM
I think in a bizarre way poor sales is good news.  It shows that Nintendo made the right choices with backwards compatibility and people are interested in the system's features (otherwise they wouldn't have bought it, now, would they?) What's more, most seem satisfied with their purchase, even with the slim game selection.  Once Nintendo and 3rd parties pump out new games, this should all go away.

I think we'll see the same pattern with the PSP in the states: many people will wind up buying it primarily for a portable mp3 player.
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: ootler on January 29, 2005, 01:39:07 PM
That hindsight permits us to see naivety, both our own and others is long understood.
Luckily I prepare for everything incorrectly with my misapprehension of misinformation.
It's an old, old story with a predictable outcome taking everyone by surprise as always.
Those who say they saw it coming suffer from a malignant narcissism or two.
Thankfully, no one has ever been right about anything.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Caillan on January 29, 2005, 01:46:50 PM
Quote

I think in a bizarre way poor sales is good news.


Perhaps, but software sales and tie-in ratios are more important than hardware right now, becasue both companies are trying to convince third parties to develop for their device. The features will be good in the long run, but right now it's more important for Nintendo to ensure the DS will be hobbling long enough for them to be properly used.  
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: Savior on January 29, 2005, 03:26:54 PM
Quote

The bad news is, DS games are not selling nearly as well as Nintendo would have liked.


Make better games then...  Mario 64 DS and Feel The magic were by far the only two must haves out of the whole launch lineup.... So Nintendo can only blame themselves.  


Quote

primarily for a portable mp3 player.


I disagree, you cant fit enough mp3s on a 32 MB Card
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Deguello on January 29, 2005, 09:30:52 PM
"Make better games then... Mario 64 DS and Feel The magic were by far the only two must haves out of the whole launch lineup.... So Nintendo can only blame themselves. "

YEAH!  Damn Nintendo for not developing good third party games!
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: KDR_11k on January 29, 2005, 09:41:13 PM
I disagree, you cant fit enough mp3s on a 32 MB Card

But you can buy a larger one. Of course with Memory Sticks that's going to be expensive, if they had bought a Play-Yan they could use the vastly cheaper SD-cards.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: ruby_onix on January 29, 2005, 11:30:46 PM
So the DS's worldwide tie ratio is 1.76 games-per-system. And the PSP's worldwide (meaning Japan-only) tie ratio is about 2.6.

Quote

Perhaps, but software sales and tie-in ratios are more important than hardware right now, becasue both companies are trying to convince third parties to develop for their device.

Nope. The tie ratios don't mean squat to the third parties. All they care about is the DS's 5 million software vs the PSP's 1.3 million. And the DS's 2.84 million hardware vs the PSP's 500k. If anything, I think a low tie ratio shows that there's still untapped potential in the installed base.

The tie ratio is mostly good for figuring out profit. And that's pretty much meaningless here, because Sony's going to take a (deliberate) bath on the PSP no matter how good their tie ratio is, and nobody seems to care that Nintendo seems to make more money than God, even when they fail. The only race anybody seems to care about anymore (including the third parties) is the "installed base" race.

Quote

And I think the DS software sales will pick up once the Pokemon DS MMORPG comes along...

Unless it moves hardware units. In which case, the tie ratio would go down. But, considering that Nintendo probably earns money on the DS hardware, does anyone think that would possibly be a bad thing?


Some random thoughts:
Both of those tie ratios are currently really crappy. A typical home console tends to have a tie ratio of around 6-10, and handhelds get something like 4. If Sony thinks they can "revolutionize" handhelds and afford to lose as much money on them as they do on home consoles, they have a long way to go. (Really though, they don't. They just want to pay people to move from Nintendo's "ghetto" into Sony's shiny new neighborhood, at which point they'll show their true slumlord colors.)

Hardcore people buy lots of games. "Casuals" don't carry an entire entertainment center around with them. They buy one game, slap it in the unit, and just carry that unit around. The two groups balance each other out, more or less.

At 500k $200 units, the PSP is obviously "more hardcore" and "less casual" than the 3 million $150 DS units (of course, Sony's low production capabilities have something to do with that).

The tie rate always grows as people who've had the unit longer get more games (even the casuals eventually replace their single games), but it simultaneously gets brought down by new people buying units. Early hardware spurts turn into higher tie ratios later on.

The casuals can slap two games into the DS. Can we even measure what that's doing for the GBA? I expect to hear a lot of "the GameBoy is a legend and it doesn't count" statements coming from fanboys in the coming years.

The DS needs more triple-A games in assorted genres. But the third parties need to stop treating the DS like a watered down, yet "gimmicky" version of a home console. The touchscreen is sub-par when used as an analog stick. But it's great when used as a touchscreen.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Caillan on January 30, 2005, 12:09:37 AM
Quote

Nope. The tie ratios don't mean squat to the third parties. All they care about is the DS's 5 million software vs the PSP's 1.3 million.


Remember that the PSP and DS both have unit shortages, and becasue the DS has more units out the current sales figures artificially favour the DS. By the time a game that is starting development now is released, shortages will have been alleviated and the handhelds' sales will be based on true demand.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: KDR_11k on January 30, 2005, 03:11:35 AM
Both of those tie ratios are currently really crappy. A typical home console tends to have a tie ratio of around 6-10, and handhelds get something like 4.

Tie ratios increase over lifetime. This short after launch tie ratios above 2 are probably already awesome. I mean, there are barely more than two good games for both systems available! I'm a really active buyer and I have one game for my DS with only one other on my "buy" list. Well, okay, it's not out here yet but I'd get those games via import if there were any must-haves.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Polemistis on January 30, 2005, 05:52:24 AM
What? The PSP has been released? Wow I havent heard anything around school or anything about it. I've seen "cool" people at school with the DS though. SO YAY FOR THE BIG N!!
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: KnowsNothing on January 30, 2005, 06:33:17 AM
That's to be expected, Polemistis, unless you live in Japan
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: Rize on January 30, 2005, 07:05:33 AM
The Dreamcast had unit shortages at one time if I remember correctly.  Don't take that as an indication of future success.  Unlike with the PS2, by the time units come available, Nintendo may have taken all the wind out of Sony's sails.  One thing I'm confident of is that Nintendo will have a lot more units to go around a lot faster than Sony will.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: ssj4_android on January 30, 2005, 10:13:00 AM
Is there still a DS unit shortage? Meijer advertised DSes in their sale. They had 15% off, so I got a DS for less than $130 (w/o tax). Well, it did say something like 30,000 chain wide, and I went in the morning, and I saw 6 or so more.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: ruby_onix on January 30, 2005, 01:05:40 PM
On the subject of "shortages", these (Japanese) numbers were posted in another thread.
Quote

Sold / Shipped
Nintendo DS = 1,657,684 / 1,800,000
Sony PSP = 608,906 / 800,000

This would indicate that there are 142,316 DS units sitting on the shelves in Japan, and that it's had a 92% sellout rate.

While the PSP has 191,094 sitting on the shelves, and a 76% sellout rate.

Of course, Sony has supposedly ramped up their production lately, but still, it looks funny when you see the mainstream media constantly ooohing and ahhhing over the PSP, saying it must be doing amazing, because it's sold out, while at the same time they just dismiss the Nintendo DS.
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: Infernal Monkey on January 30, 2005, 01:22:13 PM
Everyone's buying a DS then picking up copies of Chuck Rock from Game Gear to play on it, I'm sure of it. I have my sauces. BIG RED.

"Why does my Chuck Rock not work? I shall never buy another game for this system now, I am rage"
"Would you like to play Metroid Hunters death match with me?"
"NO I'M GOING TO EAT SOME TILES FROM THE BATHROOM"
"k"
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: Shift Key on January 31, 2005, 01:22:53 AM
INFERNAL, YOUR SAUCES LIE! MUSTARD TOLD ME THAT THEY'RE ALL BUYING COOL SPOT BECAUSE IT WAS COOL TO BE A CANDY WITH LIMBS BACK IN THE 90s. EVERYTHING WAS COOL THEN!

Man I miss that game.
Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: Avinash_Tyagi on January 31, 2005, 03:39:30 AM
Quote

Of course, Sony has supposedly ramped up their production lately, but still, it looks funny when you see the mainstream media constantly ooohing and ahhhing over the PSP, saying it must be doing amazing, because it's sold out, while at the same time they just dismiss the Nintendo DS.


By now you should realize that when it comes to Nintendo the mainstream media is required to say only negative things.

Title: RE:DS Hardware Selling Well; Software Sales Slow
Post by: ShyGuy on January 31, 2005, 06:16:07 AM
Quote

THEY'RE ALL BUYING COOL SPOT BECAUSE IT WAS COOL TO BE A CANDY WITH LIMBS BACK IN THE 90s


Actually, I believe that is the red spot from the 7up cans, not a piece of candy.  
Title: RE: DS Hardware Selling Well; Software Sales Slow
Post by: vherub on January 31, 2005, 10:56:19 AM
where's the historical perspective?
where's the software sold when the backwards-compatible gba was initially released?
what's the buying pattern of the typical handheld owner and on what did nintendo initially base their 15 million estimate that they would be so far off the mark?