If you only read one business article on Nintendo this year, read this one. Author Geoff Gannon sets the record straight and has put together one of the best financial studies of Nintendo from an investor perspective that I’ve ever read, and it’s got sales numbers to boot. Interesting to note that while Nintendo’s hardware market share has been declining for more than a decade, games sold per console has actually increased, the most being for GameCube with an average of nine games purchased per system.
Some additional information tidbits:
- Americans make up 58% of total GameCube ownership (21 million).
- Investors believe the console war will be a “much closer race” this time.
- Nintendo surpasses Electronic Arts (the world’s largest game publisher) in sales, earnings, and market cap.
- Wii is turning a lot of heads in the business market.
- Nintendo has more in common with companies like Disney and Lucasfilm than it does with manufacturers of consumer electronics (e.g. “in the vault” strategy: waiting eight years to release new Metroid game between 1994 and 2002 resulting in sales success).
From the article: “Nintendo is the only company among the three console makers that began life as an entertainment company, and it shows. Microsoft is known for software; Sony is known for hardware; and Nintendo is known for games.”
[via ChaCha]
Woo! First post!"The run-up in Nintendo's stock price may be entirely due to improved investor perceptions of the company's future prospects as a result of the good press surrounding Nintendo's soon to be launched console, the Nintendo Wii."Ok, so he says "may." Still, this guy obviously didn't watch the Wii.. I mean, Nintendo conference last week, where Reggie detailed the stunning statistics surrounding the DS Lite. The Wii speculation is certainly helping, but until it is in the public's hands, the DS Lite is in the driver's seat.
Geoff Gannon? Hmm.. Make sure he doesn't have red hair and pointy ears.
It's "An Historical…" not "A Historical". The "h" is silent so it breaks the a/an rule. Otherwise, thanks for the link. 🙂
So, basically, Nintendo FTW.
Just as a side note, I believe Metroid Prime's success had more to do with the fact that it was a spectacular game than any kind of hyped-up "in the vault" strategy. Also, although I adored MP, it never achieved the blockbuster status of other games at the time like Halo, which achieved even more success shortly thereafter with Halo 2 without any kind of "in the vault" strategy.I think MP was a classic, exemplary game that would've sold a lot better on a console more successful than the GameCube, which I believe the Wii will be.
>Americans make up 58% of total GameCube ownership (21 million).Wait…does that mean that GameCube has worldwide ownership of 36 million? That would be a considerably healthier figure than I usually see bandied about online.Why do so many insist on considering the GC an "also-ran" or "somewhat disappointing" console for Nintendo if its sold closing in on 40 million?As for the "one from the vaults" strategy, if this is an important marketing tool for Nintendo, I wish they'd use it even more to their advantage. Can you imagine the level of excitement there'd be if Wii was launching with a full-on, impossibly good-looking next-gen Kid Icarus? They need to give us something as amazing as the triumphant 3D return of Samus was every couple of years or so…
Nintendo always has and always will be my favorite gaming system. Like they said earlier, they began as an entertainment company and they will always be an entertainment company. I regret not investing in it when I first caught wind of the "revolution". Although many feel that the GC was one of the weaker systems, c'mon, after setting the standards so many times, they have earned room for a slip. Sony is on it's third system, microsoft coming short with two and Nintendo blasting in with five counsoles. Nintendo has always broken the mold for gaming and everyone else just follows them.
@psw21 million was the total. 58% of that was the american take, somewhere in the vicinity of 12 million, I believe.@Anonymous aboveThe GC was a slip, plain and simple. Nintendo even said if the Wii didn't outsell the Cube, they would consider it a failure. I love Nintendo, but I did not opt to get a GC.I just recently sold my white DS Lite to buy an Onyx Lite and am looking forward to both FF3 DS and the Wii release.
Um..the "h" in historical is not silent.