simExchange: Nintendo is Changing the Industry

A report today from Jesse Divnich at the simExchange says Nintendo has turned casual games and gamers into the primary forces driving the videogame industry. Using data from the holiday 2007 shopping season, the firm said that one factor in the industry's growth has been a larger-than-expected next-generation adoption rate among casual gamers. (GameDaily, 01/09/08)

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Here are sections and highlights from the simExchange analysis on January 9, 2008:

Industry Sales and GameStop:
• GameStop is likely to shatter their own original internal estimate of only a 7% to 9% increase in comparable same store sales for their fiscal fourth quarter.
• Otherwise, retailers in general have had a rough holiday season with most posting dismal holiday figures.
• The catalyst for the industry's explosive growth, casual gamers, has played only a minor role for GameStop stores.

Casual Gamers:
• Typically, casual gamers are the last group to purchase the newest console systems. This generation has broke the trend as casual gamers flocked to purchase the Nintendo Wii and DS.
• The DS selling over 2.9 million units in one month broke the record previously held by the PS2 at 2.6 million units in December 2002.
• This rapid adoption rate among casual gamers is expected to continue in 2008 as advertising campaigns expand to non-conventional media markets.
• The simExchange considers the casual market to be GameStop's biggest opportunity due to their current lack of market penetration into casual/family sector.

American Publishers Struggle with Casual Games:
• American publishers lack understanding of the casual and family market, something Nintendo has clearly mastered.
• Although American publishers will still experience growth as the core gaming market grows, American publishers must venture beyond the status quo and into the casual market to become successful.

Spreading out AAA titles in 2008:
• The cannibalization of sales between competing AAA titles in 2007 likely affected industry decision makers as 2008 is looking to be a more spread out year for blockbuster titles.

Price Points to Stay at a Premium:
• The current $59.99 premium price will remain unchanged.

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wiizy3968d ago

yes they are. innovation is what counts.. like to see what they are drawing up for wii2.. the control needs to be a touch base playing minority report.... i still want the analog stick somewhere though..

BrianC62343967d ago

By the end of 2008 Nintendo will be changing the gaming industry again. When the Wii tanks and all those casual gamers don't buy any games. Already we're seeing articles on the Web begging Wii gamers to buy more games. While the Wii itself is selling the games just aren't. The reason? Casual gamers aren't real gamers. They don't buy many games. So okay, the Wii is selling well. But if you're a third party developer is it a good platform to make games for? No. You want real gamers to buy your game.

I guess if these companies want to sell more games on the Wii they could sell them for $9.99 at the grocery store checkout.

KeiZka3966d ago

Yet Wii attach rate is up there with PS3's, meaning that Wii has moved more hardware AND software when compared to PS3. Funny thing that. I doubt your "tanking" theory quite a bit.

ChickeyCantor3967d ago

With green images instead of red =D!!!!!1
j/k but i wouldnt be suprised XD if its true

LinuxGuru3967d ago

Boorrrrriiiiiiiiiiiiiiinnnnngg ...

*rolls eyes*

We can all thank the Wii for making games seem like toys again.

Eretik3966d ago

1. Wii owners buy game approximately at the same rate as PS3 users.
2. Except fanboys nobody cares about hardcore gamers. As nobody cares about nerds.
3. Casual gaming is the only possible gaming style for adult gamers(obly exceptions adult nerds - they can play hardcore).