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Why I Play On A SNES
April 2, 2013
1:48 pm
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RushDawg

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Going from 255 million to 300 million is 17% population growth; right in the middle of my 15 to 20% estimate.

 

Going from 44 million consoles to 79 million consoles is 80% growth.

 

The math is really quite simple.  The PS2 helped grow the market.  Period.

To argue against it is to argue against basic mathematics.  

 

Are there other factors at play such as household income, demographic trends, population growth?  Sure.

 

Did the PS2 grow the market anyways?  Of course.

 

This will be my last post defending the fact that the PS2 grew the market, since again, basic mathematics shows that it did.  You’re welcome to believe what you wish, but numbers do not lie.

Now playing: SNES - Phalanx, R-Type III, Genesis - Bio Hazard Battle, PS3 - Dragon's Crown

April 2, 2013
1:57 pm
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RushDawg

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Mongunzoo said
These are fast becoming more epic and informative than my conversations with Grimm.

 

We have GOT to do a roundtable,guys! There is nowhere else you can get this depth of discussion, and we need to start using this to our advantage! 

A roundtable is a great idea.  I’m also up for giving a podcast a shot as well.

Now playing: SNES - Phalanx, R-Type III, Genesis - Bio Hazard Battle, PS3 - Dragon's Crown

April 2, 2013
2:02 pm
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Mongunzoo
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80 percent growth if you run the numbers in a vacuum, without looking at how many North Americans were added to the population in comparison to how many gamers were added

We added 45 million People in those years, and we only added 35 million gamers, and that is not even considering the rising (but not yet peaked) trend of multi-console ownership. As a businessperson I look at this and say “That’s not good, considering the trends are now against us. We’ve got to do something.”

 

And thats exactly what Nintendo did.

 

 

 

 

Exploring the New World on Nintendo Switch. Currently Playing: Zelda BOTW, Octopath Traveler, Sonic Mania, Yoku's Island Express, Mega Man 11. Currently Watching: Marble Hornets, Luther, Black Mirror, JoJo's Bizarre Adventure Part 5. Currently Reading: Influence by Robert Cialdini.

April 2, 2013
2:04 pm
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RushDawg

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Mongunzoo said
Quality is in the eyes of the beholder. I think Bioshock is quality, but it barely sold over 3 million copies across 2 platforms. In comparison a game like COD I find boring, yet it sells close to Mario numbers.

 

I find Dark Souls engaging and Skyrim boring and derivative, yet one sells 10s of millions and the other sells 1.5.

 

I am talking about games that move systems, not games you buy once you get over the hardware hurdle. There are many good games, but to the Tier 1 and 2 Non-Customers they don’t even exist until they BUY THE SYSTEM FOR THE MEGAHIT. It takes a game like Super Mario Brothers or Halo to spur growth. What causes one game to take hold and others to only be noticed later, once you have made your purchase? NO ONE KNOWS, but guesses can be made. You mentioned crystal balls. They are often foggy but it is the job of the CEOs and publishers to “see the future”, and with so much money on the line they must get more wrong than right.

 

I’m with you when it comes to having lots of games. But if that alone was the answer the industry would not be in the shape it is in.

You are exactly right, quality is in the eye of the beholder.  It is for this reason that quantity is so important; the larger the size of your library, the more likely you are to have something for everyone (it’s just that everyone’s “something” is different).

 

That is what makes the SNES’ library so special.  If you like JRPGs, for example, I guarantee you will find something you love on the SNES.  You might not like Earthbound, you might not like Breath of Fire, but SOMETHING is bound to appeal to you.

 

Every system needs a killer app, absolutely, but that is just one game.  A killer app without a LARGE library to back it up equals a failed system.  The N64 had Mario 64; that’s a heck of a killer app.  So you buy an N64 for Mario, but what if you want to play fighting games?  Or RPGs?  Or 2D games?  There’s just not enough variety there to carry the system.

 

The PS2’s killer app was originally its DVD-playing capabilities and later became the GTA series.  But these two factors alone would not have been enough for the system to dominate like it did.  The PS2’s library is staggeringly large.  If you are at all interested in videogames, there is absolutely something for you there, regardless of genre preference.  The same cannot be said for consoles with small libraries, even if they have a killer app to help push the hardware.

Now playing: SNES - Phalanx, R-Type III, Genesis - Bio Hazard Battle, PS3 - Dragon's Crown

April 2, 2013
2:39 pm
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RushDawg

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Mongunzoo said
80 percent growth if you run the numbers in a vacuum, without looking at how many North Americans were added to the population in comparison to how many gamers were added

We added 45 million People in those years, and we only added 35 million gamers, and that is not even considering the rising (but not yet peaked) trend of multi-console ownership. As a businessperson I look at this and say “That’s not good, considering the trends are now against us. We’ve got to do something.”

 

And thats exactly what Nintendo did.

 

 

That’s a great presentation, but there’s one problem.  At 7:49 Reggie’s slides show that there were only 52 million consoles sold in North America.  We now know that the number is 79 million.  Reggie claimed that 60 million “ain’t gonna happen”; he was wrong.

 

You see, this presentation was done in 2005.  The PS2 was still very much alive and kicking at that time.  The PS3 wasn’t introduced until 2006 and the PS2 continued going strong well into 2007 (and arguably 2008).

 

Reggie was comparing end of cycle console sales for the previous generations to late-cycle console sales of the then current generation.

 

So in the end, 79 million consoles were sold compared to the 52 that were sold in 2005.  And most of those were PS2’s.  So yes, the PS2 grew the market, basic math shows this, and using a presentation from 2005 to discredit this argument is absurd.

 

I know my analysis is overly simplistic, but the PS2 sold so well that it can afford to be.  At the end of the day the PS2 grew the market.  It is far and away the most successful console ever.  

Now playing: SNES - Phalanx, R-Type III, Genesis - Bio Hazard Battle, PS3 - Dragon's Crown

April 2, 2013
3:19 pm
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Mongunzoo
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This video was used to illustrate the truth of economic trends that the PS2 operated in, not to discredit your argument.

I am not claiming that the PS2 was not a successful product; it is without dispute the most successful console to ever be released, at least for now. But that does not mean that gaming has kept up with population growth. 

 

Since We are using 2008 now, it’s only fair to both of us that I re-assess the numbers for looking at console gaming penetration. I will even throw in the total next-gen sales for kicks. (note that this is a stretch that is vastly in your favor)

95 million consoles sold in the states by 2008 when you include Xbox 360(10 mil) and PS3 sales up to2008(6 mil)

44 million consoles were sold in the states in the fourth generation.

The population in 2008 is 305 million, the population in 1994 is 255 million

50 million increase in U.S Population

51 million increase in gamer population

 

So there it is. If you can call 1 million gamers growth (and you can, technically), I guess the PS2 grew the market.

However anemic it was… 

Exploring the New World on Nintendo Switch. Currently Playing: Zelda BOTW, Octopath Traveler, Sonic Mania, Yoku's Island Express, Mega Man 11. Currently Watching: Marble Hornets, Luther, Black Mirror, JoJo's Bizarre Adventure Part 5. Currently Reading: Influence by Robert Cialdini.

April 2, 2013
3:25 pm
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RushDawg

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Once again, your argument is absurd.  If gamer growth is 1:1 population growth then that is fantastic overall growth.

 

Why?  Because gamers were never 1:1 with the population in the first place.

 

In 1994, there were 44 million consoles and 255 million people.  That’s 6 people per console.  

 

If every new person added to the population resulted in a new console sale that is phenomenal considering that the industry had previously only been able to sell to 1 person out every 6.

 

Again, this is overly simplistic, but to state that the PS2 did not grow the market (as you did) is factually wrong.  Period.  

 

And to call the growth anemic is also absurd (the growth in the console sales far outpaced population growth).

 

To expect each new person added to the population to be a new console sale is ridiculous, when that ratio didn’t exist in the past.  So to say that the PS2’s market growth was anemic is just unfair.

 

If the PS2’s market growth was anemic, then the Wii’s market growth was non-existent (following your line of reasoning).

Now playing: SNES - Phalanx, R-Type III, Genesis - Bio Hazard Battle, PS3 - Dragon's Crown

April 2, 2013
4:09 pm
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Mongunzoo
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No, its not fantastic! It’s keeping pace with society and picking up a few more along the way!

In business you don’t want to just grow with the census! If a city grows from 1 million people to 2 million and before the growth you served 600,000 and after you served 1,200,000 you are just keeping pace.

 

Thats good, but what shareholders call this is Stagnation. It’s better than decline but it’s not what they want to see. 

 

You have to look at it in terms associated with population. What that means is that through 2008 gaming GREW relative to the rate the population grew. keep in mind that as I said that is a skewed study that I purposely put in your court by bolstering it with next-gen systems. It was not an accurate number, but it did tell me that there was no decline in this time period.  

We are looking at the GROWTH FACTOR not the population as a whole.

That would look like this:

305 million

96 million gamers (AGAIN not including multiple console ownership that cuts this number by almost 30 percent according to NPD)

There’s your 1 in 6. It stayed pretty much even, maybe grew a little.

 

On the modern gaming front, 25 million 360’s +25 million PS3’s +48 million Wii”s +13 million PS2’s (taken from 2006 onward)

315 million

111 million gamers (Not including multi-console ownership which cuts this number by almost 40 percent)

 

…………………………..It’s almost the same.

 

That means that you are right. Neither grew the market (At least at this point in 2013). We will have to see if the Wii’s tale is as long as the PS2’s.

 

It is stagnation, then.

 

Edit note: Everything said since post 26 has been based off of extremely hypothetical arguments. Rush and I know this but the rest of you may not, so I am putting this not up for transparency. 

 

 

 

Exploring the New World on Nintendo Switch. Currently Playing: Zelda BOTW, Octopath Traveler, Sonic Mania, Yoku's Island Express, Mega Man 11. Currently Watching: Marble Hornets, Luther, Black Mirror, JoJo's Bizarre Adventure Part 5. Currently Reading: Influence by Robert Cialdini.

April 2, 2013
5:35 pm
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Mongunzoo
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…………………..To get us out of this circular discussion, You mentioned that gaming can also be a solitary experience.  I absolutely agree with you, though it can be argued that even then the computer-controlled enemies and allies simulate the social aspect. Do we ever really do anything alone? In movies and books they spend an insane amount of time writing characters that are relatable and believable. By the end of a good film or novel we almost feel like we have gotten to know a well-written character.

On the other hand, a game like Super Metroid benefits from a solitary experience like no other.Jaki Crush certainly has no aspects of social interaction.

 

I suppose it depends on the game type.

Exploring the New World on Nintendo Switch. Currently Playing: Zelda BOTW, Octopath Traveler, Sonic Mania, Yoku's Island Express, Mega Man 11. Currently Watching: Marble Hornets, Luther, Black Mirror, JoJo's Bizarre Adventure Part 5. Currently Reading: Influence by Robert Cialdini.

April 2, 2013
9:05 pm
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RushDawg

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Using back of the envelope math, let’s say 90% of the 44 million 16-bit machines were the only console in the home.  That means there are 40 million homes with games.  Let’s assume there are 3 people per home.  That means out of 255 million people, there are about 80 million homes.

 

So in the 16-bit era, roughly 1 in every 2 homes had a console.  Recognizing that you’ll never reach 100% penetration of all homes, that right there shows there isn’t too much growth potential for the industry in general (outside of our well discussed population growth).

 

In 2008 there are around 80 million consoles sold and there are 300 million people.  Let’s assume that 70% of the 80 million consoles are the only console in the home and there are once again 3 people per home.  Therefore 56 million out of 100 million homes have games.  

 

This means the market actually grew by about 10% in a decade; certainly not great but definitely not 0.  Given that the Playstation brand dominated this era, I think it is fair to attribute the majority of this growth to them.  ]

 

So in conclusion, what makes the PS2 so impressive is that they actually did grow the market (ever so slightly) and kept a big piece of the pie for themselves.    

 

Of course, I used a ton of assumptions to “prove” 10% growth.  Using a slightly different set of assumptions, you could just as easily show 0% or 20% growth.

 

So I think we can agree that the PS2 modestly grew the market.  The Wii attempted to grow the market and despite some initial success, ultimately failed to do so.

 

It would be interesting to look at the “attach rate” per console (ie games sold per console) in the 16-bit era vs. the PS2 era.   If there was growth there, then the industry was successful in selling more to their existing customer base.  

 

Going forward, it looks like this generation was ultimately a bust for the industry as far as growing (or even maintaining) the customer base goes, despite being the longest generation yet.  A diminishing customer base plus increased production costs certainly flashes red for investors.

 

So we can conclude that the business model the console manufacturers are working off of is unsustainable and doesn’t seem to be improving.

 

It would be interesting to take a deeper look at mobile and browser based games.  Perhaps companies like Rovio and Zygnga were successful in getting a segment of the Wii crowd to spend their time on an iPad instead of on a console….

Now playing: SNES - Phalanx, R-Type III, Genesis - Bio Hazard Battle, PS3 - Dragon's Crown

April 2, 2013
9:10 pm
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RushDawg

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Mongunzoo said
…………………..To get us out of this circular discussion, You mentioned that gaming can also be a solitary experience.  I absolutely agree with you, though it can be argued that even then the computer-controlled enemies and allies simulate the social aspect. Do we ever really do anything alone? In movies and books they spend an insane amount of time writing characters that are relatable and believable. By the end of a good film or novel we almost feel like we have gotten to know a well-written character.

On the other hand, a game like Super Metroid benefits from a solitary experience like no other.Jaki Crush certainly has no aspects of social interaction.

 

I suppose it depends on the game type.

There are a few excellent games that really do make you feel alone while playing it.  Metroid is perhaps the best example of this.  Other single player games certainly do simulate social interactions.  While playing Chrono Trigger, I really feel a sense of camaraderie with my allies, even though Ayla and Lucca aren’t real!

 

Interestingly, many of the most hardcore games are also the most socail.  Starcraft 2, Call of Duty and Capcom-based fighters all have dedicated hardcore communities.  The problem is, many of these communities have developed into their own subcultures that are extremely insular and very unwelcoming to newcomers.  Often they even generate their own jargon.

Now playing: SNES - Phalanx, R-Type III, Genesis - Bio Hazard Battle, PS3 - Dragon's Crown

April 2, 2013
9:23 pm
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Mongunzoo
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Don’t worry about assumptions and hypothetical points lol! Look at the shit I’ve posted in the last half of this one!

 

That said, That was one of the best examples out-out-of-the-box thinking that I have ever seen! And I thought I had covered all the angles.

Are you in business? Because you ought to be….

 

That said, If what you say is true, (And it makes sense. You really WOULDN’T need a sale for every person in the nation, now would you?), there really isn’t much room for growth after all…

 

Hell, I’m still reeling from the fact that the Wii was probably stagnant. Maybe there is nothing really left to grow. In that case, only a change in direction will stop the coming decline. I will return with some official NPD data, but I think the number-crunching we did earlier is pretty accurate.

 

Best discussion I’ve ever had in regards to gaming, this one…

 

Exploring the New World on Nintendo Switch. Currently Playing: Zelda BOTW, Octopath Traveler, Sonic Mania, Yoku's Island Express, Mega Man 11. Currently Watching: Marble Hornets, Luther, Black Mirror, JoJo's Bizarre Adventure Part 5. Currently Reading: Influence by Robert Cialdini.

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