Analyst says Nintendo is to blame for declining video game sales. Huh?

Infendo

stock dropWith video games sales in the United States starting to take a tumble, Doug Creutz of Cowan and Company offered his two cents as to why this is happening: Nintendo is to blame.

Creutz states:

“Everybody needs to realize that the Wii software segment is trending down 50 percent year over year, and has been for the last 12 months. That is a massive decline. There’s no way you could not have a decline overall with that big of a decline in that portion of the software.”

“Ten years ago, Nintendo largely catered to kids and Nintendo fanboys. There was about a five year period they could expand their market beyond that, and now I think they’re back to the kids and Nintendo fanboys again. It’s not a bad market but it’s not a market that’s going to grow enormously.”

For as many analytical observations of the video game industry’s up-and-down monthly profits that I’ve seen, it seems to be a huge stretch to blame Nintendo for declining sales. Sure, one could say that Nintendo created a slight shift this generation in the form of motion and casual gaming, but are they really the culprit? Discuss!

Harrison Milfeld is a writer, editor, and freelance journalist from Missouri. Ever since he could walk, Harrison has been an avid fan of the world of Nintendo. For years, he has purchased every one of the company's subsequent products (yes, including the Virtual Boy and eReader). It wasn't until he was a young teen when he bought a PS2 that he began to embrace cross-console relations, a decision he doesn't regret. When he's not gaming, Harrison is looking to break into the magazine journalism industry and realize his dream of becoming a features reporter.

10 Comments

  1. What he’s trying to say is that, if you take out Nintendo out of the total video game sales, the trend remains stable year by year. The only place where the decline is happening is in Wii sales where it quickly reached high growth in the first years, now only to decline because of lack of support. Everthing else is stable and or growing like the Xbox 360. So yeah, the blame for the “decline in sales” is true only if you make graphs and numbers of the total game sales of everything and call it “gaemz”.

  2. It’s at the end of its life-cycle, of course video game sales are going to decline. They always do after five years or so, and after growing the market so much, Nintendo is to blame for larger numbers, not percentages. It’s important not to take this as, “Oh, fewer sales, better blame Nintendo because that’s the cool thing to do.” In fact, if anything, it is acting as a testament to how much Nintendo has accomplished this generation.

  3. nintendo was sooo successfull in thepast few years that their current sell through of product can not match their recent success and that because of that sharp decline in the sales of nintendo products, they are responsible for the overall decline.

    This article should be deleted. What the analyst said is pretty much true and it makes this site look alittle ignorant. i love infendo, donct get me wrong but when someone writes an article because they dont understand it, well that just seems silly

  4. Sam – The post is meant to dissect the analyst’s statements and see the trends. I’m not blind to what Wii sales have been going through the past 2-3 years. One company in this day and age cannot be responsible is what I’m stating. If you read the site that much, then I suggest going to the archives and read some past articles about declining video game sales.

  5. Agreed with other commenters. A pitfall of putting all VG sales into one bucket is that one company’s diminishing sales can make it appear as if the industry as a whole is contracting.

    Maybe you don’t like the word “blame,” but when 360 & PS3 game sales are stable, and Nintendo’s are declining, then yes, big N is the cause of the industry’s aggregate decline.

  6. Reinhold – True. Sony and Microsoft’s software itself has kept it afloat. Lack of software of the Wii just seems like a broken record at this point in this generation.

  7. The word blame does have a negative ring to it. The best way to see it is that there is way less shovelware being sold on the home consoles. Hopefully all the casuals have moved on to the app store type casual gaming scene leaving the Wii U and 3DS free from such crap. Like the guy says, it looks as if Nintendo will be back to selling games to the kid friendly and fanboy market, and hopefully some casual to core converts as well. I think this is excellent news. The less casual shovelware crap being sold at retail the better. That bubble has burst. Everyone now knows they are better off paying a small digital fee for a simple puzzle game than paying full price for a boxed version. The whole industry is better off this way in my opinion.

  8. He’s wrong simply because he’s assuming Nintendo is the direct cause for the decline. No, Nintendo’s success only masked the decline the industry was suffering even while the Wii was doing well. In fact, I recall somewhere saying that sales for PS3/Xbox 360 games would have led to the industry doing worse than last generation if the Wii hadn’t been a success.

    So while I guess the lack of games on Wii caused the consoles sales to go down, they haven’t hurt the industry in any sense, the industry was already having problems previously.

  9. I want to remind, unbiased, that RADIATION BOYCOT went into effect. Be careful of agumented web bots fake fan, Beware of shifting websits. They have been frustrating our launch. RADIATION IS A FAN BASED BOYCOT DEMANDING CORE GAMER WANTS.

  10. The entire industry rises and falls with Nintendo.

    That is all.

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