NEWS

Analyst: Nintendo is Saving Market From Recession

Rob Crossley's picture

By Rob Crossley

January 12, 2009

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Nintendo’s Wii and DS software will account for over 50 percent of all games sold in December across America, saving the game industry from the “full wrath” of the recession.

This was the conclusion made from analyst group Electronic Entertainment Design and Research (EEDAR) in its US December sales preview.

Speaking ahead of the upcoming NPD results for December, Jesse Divnich – the group’s director of Analytical Services – adds that “in terms of pure dollar and unit growth, Nintendo’s systems are expected to lead the way by an unprecedented amount.”

Nintendo’s Wii is expected to have sold 3.2m units in a single month. If NPD confirms, it would be the highest monthly unit turnover for any single console since records began. Divnich believes that, had supply met demand in the US, sales for the Wii would have been north of 4 million. The DS follows closely behind, with EEDAR projecting it will have sold around 3 million units.

That boost in Nintendo hardware sales has helped the industry grow by some 14 percent in 2008, according to the group, foretelling an exceptional rise in the game market in the face of a global recession which has paralysed numerous other business sectors. “We expect software sales for December 2008 to come in at $2.7 billion,” Divnich says. 

And though Microsoft's Xbox 360 is expected to also enjoy a rise in sales (up 19 percent over last year), EEDAR predicts that both of Sony's systems will experience a drop.

PS3 sales could fall as far as 12 percent from last year, Divnich calculates, leaving the console with 700,000 units sold throughout the lucrative Christmas month; less than half of what the 360 is expected to take. The PSP, meanwhile, should sell some 880,000 units; less than a third of what the DS is thought to have sold.


toadwarrior's picture

Looks like the estimates are right since they're reporting that the Wii sold 3.25 million up 500,000 from his estimate.

pwnt.

OmegaVader's picture

good job, Nintendo. Whoda thunk they'd ever come this from since the Gamecube?

But hey, how bout some love for the hardcore fanbase this year...eh?

in-game_wisdom's picture

I am glad Nintendo is doing well. I have not been extremely satisfied with their first-party offerings in 2008, but at least there is a strong line-up of interesting third-party projects for Wii this year, MadWorld and Sin & Punishment 2 included. Sega is especially keen on supporting the platform, and maybe Sega is not what it was 10 years ago, but its place remains deep in the hearts of all hardcore players old enough to remember. DS has its share of coming goods, too: Dragon Quest IX, GTA: Chinatown Wars, new Professor Layton (I hope), Infinite Space. It will be a tough year for PSP.

Dan_Chippendale's picture

I'm shaken to the core... My PS3 has saved me from the recession.. It has shown me what decent games can be and prompted me to sell my Wii. Buying PS3 games and not having a Wii means I don't spend my money on crap games anymore.. *puts on flame proof suit*

toadwarrior's picture

Yeah the PS3 is the perfect recession system seeing how there are no games to buy so you'll save loads of money.

Top_Dollar's picture


toadwarrior said:
Yeah the PS3 is the perfect recession system seeing how there are no games to buy so you'll save loads of money.

E. Zachary Knight's picture

Sorry that you will be missing out on some awesome games this year.

http://www.edge-online.com/features/the-year-ahead-wii-games

Peter_Pesic's picture

These are only predictions, so we'll see how good they were compared to the NPD numbers that should be coming out later this week or next, but if the Wii Music sales predication is correct, that's just sad. An utterly garbage game like that is no way to represent video games to people that have no clue about games.

As well, it's been said a million times, but the Wii Remote bundle with Wii Play has no business being in the software chart. It's a general purpose hardware accessory with an application that demos the functionality.

toadwarrior's picture

Seeing how MS and Sony aren't growing the market and in fact shrinking it seeing how we have less variety and genres than in the 16-bit days I think it's clear that most people don't want to play shooters featuring homo erotic space marines and WWII sims.

Despite raising game prices and nickel and diming everyone to death with micro transactions this industry still can't really stay afloat except for Nintendo.

It makes much more sense to cater to alot of people buying fewer games than a tiny little niche market buying loads of games because you'll lose sales a lot quicker when people move on.

This sort of rubbish killed PC gaming and it'll kill console gaming too because in the end everyone is going to get tired of the same old crap being shovelled out onto the 360 and PS3. The fact is western developers are shit so as Japan loses influence expect to see console gaming take a dive and to be honest Microsoft would probably rather do that and moving gaming back to the PC where they hold a monopoly.

Americans are great at doing movies but they suck at making games. It's no surprise the most Japanese system is doing the best.

These may only be predictions but I bet they're close. After all Nintendo has consistently done better than everyone else. Why would december be any different? Especially when the economy is crap and they have the best value deal.

Jesse_Dylan_Watson's picture

Oh come now. Wii Music isn't that bad. It's not really a gamer's game, but there are those who love it, mostly toddlers, and to play it with them is rather fun. It may not "look" as cool as Rock Band, but it's the same core concept. You're not actually playing music in either game; you're aping and following timing instructions.

Jesse_Dylan_Watson's picture

Hurray for shovelware?

Rob Crossley's picture