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Wii U being outsold by original Wii

Wii U being outsold by original Wii

Wed 30 Oct 2013 8:00pm GMT / 4:00pm EDT / 1:00pm PDT
Hardware

Pachter says Nintendo forecasts are too optimistic, says Wii U "is the wrong product for consumers"

It's been a year since Nintendo stopped making Wii games, but the system and its software continue to sell. In fact, Wii hardware and software are selling better than Wii U consoles and games through the first half of Nintendo's fiscal year.

In Nintendo's first-half earnings report (the six months ended September 30), the company today revealed that it sold 470,000 Wii systems worldwide since April, compared to 460,000 Wii U systems. The disparity on software sales was considerably greater, with 14.90 million Wii games sold worldwide for the period. With a much smaller installed base (3.91 million compared to the Wii's 100.3 million), the Wii U managed to sell 6.3 million games in the half-year.

In a note to investors today, Wedbush analyst Michael Pachter pointed to Wii U's struggles as one reason not to buy into Nintendo management's sales projections for the back half of the year. While Pachter acknowledged the second half has a more compelling lineup of Wii U games and potential system sellers, he was skeptical that they would be enough to achieve the 8.54 million Wii U sales (more than twice its existing installed base) Nintendo had projected. Those numbers are simply unattainable without another price cut for the system, Pachter said.

"We think that Nintendo has a very low probability of meeting its Wii U forecasts, as it expects the installed base to more than triple by year-end, with very bullish software guidance layered on top. We think the Wii U is the wrong product for consumers, and although we believe that Nintendo faithful will buy the console if it is the only way they can play beloved Nintendo software titles, we think that there are fewer of these faithful than management is counting on to hit its full-year guidance."

17 Comments

Adam Campbell
Associate Producer

1,119 889 0.8
If they weren't so confused they could be buying the WiiU.

Posted:5 months ago

#1

Christian Keichel
Journalist

418 566 1.4
Popular Comment
It's been a year since Nintendo stopped making Wii games, but the system and its software continue to sell. In fact, Wii hardware and software are selling better than Wii U consoles and games through the first half of Nintendo's fiscal year.
So what? The PS3 was outsold by the PS2, the Nintendo 3DS was outsold by the Nintendo DS, that's the way things work. The new hardware is expensive, the number of available titles on the old consoles is fantastic and games can be bought very cheap for the old consoles. Of course the extremely successful predecessor outsells it's new successor in the beginning. The only way to avoid this is to take your old console from the shelfs, like NIntendo and Microsoft did with the Gamecube and the XBox.

Source:
http://www.digitalspy.co.uk/gaming/news/a96023/ps2-outsells-ps3-by-4m-in-2008.html
http://techcrunch.com/2011/07/14/nintendo-ds-still-outselling-3ds-two-to-one/

EDIT:
I wonder, why this article concentrates on Pachter's investors note today, completely ignoring his statement on the incoming results from yesterday. Pachter's estimates yesterday were extremely off, he wrote
We expect another miss in Q2. Nintendo is likely to report Q2 results below our estimates for revenue of 155 billion yen (up 33 percent year-over-year) and EPS of 7 yen, compared to consensus for revenue of 139 billion yen and EPS of (29) yen.
In fact, the revenues Nintendo reported were 196 billion, I don't know why his prediction about mid- and longterm developments should be any better, then his predictions about short term developments.

Source:
http://www.gonintendo.com/boards/viewtopic.php?t=126018&p=895959

Edited 3 times. Last edit by Christian Keichel on 30th October 2013 8:56pm

Posted:5 months ago

#2
Best example of how flawed their marketing message has been. Funny how the media has avoided reporting the number of returned Wii-U systems from buyers who thought it was a add on to their Wii!!

Posted:5 months ago

#3

Steve Goldman
Journalist.

82 92 1.1
Who cares, ps3 was being outsold by ps2 for 3 years.

DS outsold 3ds for the first year. Nobody cares

Posted:5 months ago

#4

Paul Jace
Merchandiser

770 1,005 1.3
This isn't surprising at all. Now if the Wii is still outselling the Wii U a year from now(despite getting very little or no new software at all) then it will be a much more interesting story.

Posted:5 months ago

#5

Daniel Hughes
Studying PhD Literary Modernism

410 455 1.1
@ Paul

Given Nintendo are in the process of winding down Wii production, that would be a very interesting story!

@ Christian

While Pachter was obviously off the ball with his revenue prediction, at this point it's hard to see how Nintendo can hit their 9 million target with Wii U. They need to shift 8.54 million systems in six months, which would require an insane upswing from current sales levels. Don't get me wrong, I expect the situation to improve and Wii U to have a fairly strong Christmas quarter, but I can see them being several million units shy of their target. Unless Mario Kart 8 is coming in February or March, but even then, it's more of a long-burn success than an instant smash hit.

Posted:5 months ago

#6

Jim Webb
Executive Editor/Community Director

2,210 2,051 0.9
Popular Comment
With the exception of the Wii over the Gamecube, I can't think of any new hardware that was not being outsold by its predecessor during the first year on the market. This is normal. It's expected. It should only be news when it doesn't happen.

Kevin, do you have any figures for the media to actually report regarding that subject? I sure don't. In fact, I don't know any media outlets that are sitting on those numbers. And I guarantee you that if they did have them, they'd run it as their main headline for the day.

Posted:5 months ago

#7

Thomas Dolby
Project Manager / Lead Programmer

319 253 0.8
Popular Comment
Well if Pachter is predicting bad things for Nintendo, now's the time to invest!

Posted:5 months ago

#8

Dave Herod
Senior Programmer

517 731 1.4
With the exception of the Wii over the Gamecube, I can't think of any new hardware that was not being outsold by its predecessor during the first year on the market.
Xbox 360 vs Xbox?

Posted:5 months ago

#9

Jim Webb
Executive Editor/Community Director

2,210 2,051 0.9
Dave, in the US, Xbox was still outselling the X360 for a good portion of the launch year. Not certain about Europe. Though in Japan the X360 did indeed overtake the Xbox rather easily.

Posted:5 months ago

#10

Christian Keichel
Journalist

418 566 1.4
@ Jim and Dave
Here in europe, the original XBox never sold well (with the exception of the UK) and MS dropped the original XBox here almost immediately after the 360 launch.

Posted:5 months ago

#11

Jim Webb
Executive Editor/Community Director

2,210 2,051 0.9
I thought that might be the case. That sits among the exceptions then. Generally, the predecessor console outsells the successor console for at least the first year. Sometimes longer as the PS2 did over the PS3.

Posted:5 months ago

#12
This is expected of all new platforms. Especially considering that the Wii has a price drop shortly after the release of the Wii U.
I think the general confusion between it and it's predecessor didn't help...

Posted:5 months ago

#13

Nick Parker
Consultant

264 124 0.5
Yes, predecessors do outsell new gen for the first year (s). Xbox was an exception because Microsoft decided to kill off production of the Xbox (Nvidias last Xbox GPU was produced in the same month as launch of 360) more or less at the same time as the release of the 360. Sony has the longest lifecycle tail because of its success in PAL regions emerging markets (Eastern Europe, Middle East, Africa and India) which continue buying legacy consoles beyond the date that Western World regions go into decline. Microsoft has recently (in the last two years) invested in these emerging markets and is now enjoying the fruits of its labours in the twilight years of the 360. I would say that these fortunes are reversed in Central and South America where Microsoft invested locally earlier than Sony.

Posted:5 months ago

#14

Aleksi Ranta
Product Manager - Hardware

247 96 0.4
At the end of the day, Nintendo has had a free run in the "nextgen" console space for a year now, it hasnt been selling well.
i think we can all agree on that. Now with the increased competition incoming, there isnt much on nintendos radar that will have a positive impact on sales, other than seasonality. I just dont know how anyone could even try to put a positive spin on this....

Posted:5 months ago

#15

Steve Goldman
Journalist.

82 92 1.1
DS outsold 3ds. Argument done for why this doesnt matter

Posted:5 months ago

#16

Benjamin Kratsch
Freelance Journalist

13 5 0.4
Well, Nintendo can still cut the price down: 199 $ and they might have a chance if they finally deliver real sequels, not just HD remakes. But times will get much tougher for Nintendo, because my guess is that third party publishers are currently thinking about which platforms they want to support in the future. CoD sold next to nothing on WiiU and Nintendos own development teams can't deliver in time.

Posted:5 months ago

#17

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