US and UK analysts of the videogame industry tip Nintendo, with its Wii and DS, to be worst hit by recession – because its new base of casual gamers will stop buying games sooner than hardcore gamers, diverting their money elsewhere. UK analysts also point out that Sony’s PS3 will suffer from being at a higher price than its rival consoles. While US analysts have focussed on the fact that Microsoft has, at least for 2008, got the better exclusive franchises for the Xbox 360, with Gears Of War 2 leading the charge.

Electronic Entertainment Design And Research (EEDAR) analysis of November US sales figures show that of Sony PS3-exclusive titles, only Resistance 2 sold many consoles (and not so much in the UK). And PSP sales have fared even worse. Meanwhile, with Gears Of War 2 and Left 4 Dead Microsoft have two console-exclusive sales drivers for its Xbox 360.

EEDAR’s predictions for Animal Crossing: Let’s Go To The City are that it will only sell 200,000 units in the US. Better than most analysts expected, but still not a stand-out title. Despite that, the Wii will continue to lead sales.

In the UK, talking to The Guardian, Piers Harding-Rolls, for Screen Digest believes: “Consumers become more price-sensitive under these conditions and the PS3 is expensive, so they may delay their purchase or even buy a different console.” But Harding-Rolls also doubts the Wii’s ability to survive the credit crunch undented: “We are not sure how the recession will affect more casual consumers. These are more likely to view gaming as a discretionary luxury.”

Nick Gibson, Games Investor Consulting, agrees: “As the market has become more casual-gamer focused, it will be more susceptible to the economic rhythm. Nintendo therefore would be the most susceptible.”

Are you cutting your games-buying budget to survive the credit crunch? Let us know at the usual spot…

  • http://blog.omio.com EJStyleS

    What of the 800,000 Wiis sold in A WEEK during Black Friday?

    If all of those new owners alone buy one game, then they’d be okay, right?

    Last I heard, it was Sony shedding 8000/16000 jobs, and the 360 has only JUST started being profitable for Microsoft, whilst Nintendo profits on every single Wii sold.

    Let alone games on the Wii being priced cheaper and are targeted more toward kids, who have no sense of the credit crunch.

    Last time analysts said anything, it was that the Wii was a fad and the PS3 and Xbox 360 would rule this Xmas. I know there is only one console hard to come by at the moment…and I dare you to find a copy of Wii Fit!

  • http://www.gravatar.com Simon Munk

    EJ, you make a good point on analysts talking out of their crystal balls. But at the same time, one of the key problems with the Wii is that it sells so little in the way of software – the vast majority of people who own one, own a tiny handful of games for it and don’t rush to buy more.

    Nintendo don’t lose money now on each console, but that may change as manufacturing costs for just about everything are going up currently. Then, without adequate software sales they’re in trouble.

    And the analysts, I think in this case rightly, point to the Wii’s more fickle, less focussed audience as a potential issue then.

    Either way, as we’re talking about the future, who knows what might happen? We wait to see with interest.

  • http://Www.MogCast.coM Mog

    So of course its not like all the other 2008 PS3 exclusives aren’t helping the “Worldwide” sales of the ps3 at all (thats right, worldwide, not just American)

    The American is a biased economy to ever compare console sales and game sales figures to, Just the same as the Japanese economy is also a Biased economy.

    The only economy that you can really ever use for sales comparisons is the European economy, or putting it more simple, the PAL units are the only units you can use for any kind of comparison.

    Mog
    http://Www.Mogcast.coM

  • Tertium

    Looks like those predicitions about Nintendo were bout as wrong as can be.

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