Counting the Game Industry’s Gold

Like most industries, the gaming industry is bound by the conventional economic wisdom that you must spend money to make money. Historically, that’s meant taking a loss on every game system sold (with the notable exception being most Nintendo consoles) in order to tap into selling game after game to console owners. This measure of success is known as the “attachment rate” or “tie ratio.” A somewhat (November 2008) dated Gamasutra chart shows that the Xbox was in the lead, with 6.6 games/system sold, followed by the Wii at 5.5 and the PS3 at 5.3.

This statistic has historically been a powerful metric for measuring market penetration and overall success for a console. After all, what’s the point of selling a console if you can’t sell game after game? But as with many things in today’s integrated media world, the lines have blurred and traditional metrics don’t necessarily tell the whole story. →  Take your stinking paws off me, you damned dirty article.

News We Care About Update

You don’t catch someone by running slower (than they are running)
Eurogamer is one of my favorite sites but they’ve hit on one of my many pet peeves – inaccurate sales language. In Japan, the PS3 has been doing a little bit better lately while Wii sales have been slowing down. Eurogamer describes this as Sony catching up to Nintendo.

The Wii is actually pulling away from the PS3 at a less dramatic pace but every week it outsells its competition, the Wii is indeed putting more distance between it and the PS3. In order for Sony to even begin to catch up, more PS3s need to be sold than Wiis.

I think this stuff may actually be calculus, which would possibly explain why so many paid writers can’t grasp sales shifts. →  Rayman Reading Rabbids

Pachter predicts the PS3 is fucking awesome

Sony is something special. Any other console with the combined hardware and software sales of the PS3 would be considered solidly in third place. Somehow when it’s Sony in third, however, it is simply a strategy to take advantage of a grandiose ten year plan. Imagine how violently you’d have laughed had Microsoft announced a ten year plan for the Xbox.

Predictions from analysts and insiders are only now slowly starting to show that the PS3 may not come out on top this generation. The initial prognostications from ’06 can be forgiven but many refuse to treat Sony like another console maker.

The newest example is in this gamesindustry.biz article. Analyst Michael Pachter has gone on record saying, “There was likely some substitution of Xbox 360 for PS3 purchases, due to recent price reductions for the Xbox 360 and the bundling of the console with two free games,” and “In addition, we believe that PS3 sales are being impacted by lower demand for HD televisions as a result of the recession.” →  Please sir, can I have some more?