Gaming Consoles: The Head or Long Tail Theory

Are we starting to see a decline in demand for gaming consoles or will Sony, MS and Nintendo cash-in on the long tail theory on the PS3, Xbox and Wii, respectively.

The long tail theory to those that are new to the business world is a concept of frequency distribution. In "long-tailed" distributions a high-frequency population is followed by a low-frequency population which gradually "tails off" asymptotically. The events at the far end of the tail have a very low probability of occurrence. Companies cash-in the long tail by extending markets, with the PS2 being the perfect example.

In this article, the author questions why there are plenty of consoles available for sale at their local Best Buy. He/She questions if its a sign of the times and the economy we face or is their a decline in demand for gaming consoles. The author ponders if the Wii has reached its end or is it finally not popular even to the casual gamer?

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MIA3516d ago

Its not the end of the Wii. Yes there is a decline but thats not a surprise. I have seen Wii's in shelves since this past spring. Its not as popular as it was, everything dies off. People like to buy things that are Hot and they get their fix and then they wait for the next "IT" item. It went from the Wii to the iphone to now the Blackberry Storm. No surprise here buddy!