Tue, Mar 31, 2009 | 08:41 BST

Fils-Aime – Wii games must sell 1 million to turn profit

reggie

NoA boss Reggie Fils-Aime’s told the New York Times that Wii games won’t get into the black unless they hit 1 million sales.

Hey, Platinum: look at this!

Reggie Fils-Aime, chief marketing officer for Nintendo of America, said publishers of games for its Wii console needed to sell one million units of a game to turn a profit. He said that was a lower threshold than for the other consoles. Only 16 out of 486 games for Nintendo Wii game machines have sold more than one million units as of March 1, according to NPD, which tracks the sales of consumer products. (Nine of the best sellers are made by Nintendo.)

Mr. Fils-Aime said Nintendo recognized the economics were changing when it developed the Wii. He said the company deliberately did not add high-definition capability to the Wii so games would be cheaper to make.

By those figures, that means that only 3.29 percent of Wii software’s profitable.

Them’s hot odds.

25 comments

#1

Blerk
31/03/09, 8:43 am

Seems over for third-party Wii development.

#2

Lutz
31/03/09, 8:49 am

Nice tag!

#3

Patrick Garratt
31/03/09, 8:55 am

That is shocking. Absolutely crazy.

#4

Shatner
31/03/09, 8:58 am

I want whatever boiled sweets Reggie sucks on.

Not the same sweet itself covered in Reggie goo. Just the same brand.

In over-excitable speculatory news: OMG there’s a picture of Kid Icarus behind Reggie. KID ICARUS FOR WII CONFIRMED!! We love you ‘tendo!!!!11one

#5

Blerk
31/03/09, 8:58 am

I think he’s over-simplifying, though. Surely the number of units you need to sell to make a profit is based purely on how much you spent actually making the game. I refuse to believe that some of the complete shit I’ve has the misfortune to play on the Wii has cost more than about a tenner to produce.

#6

G1GAHURTZ
31/03/09, 9:00 am

Rubbish.

#7

Madlink
31/03/09, 9:00 am

If he’s right in saying it’s ‘a lower threshold than for the other consoles’ then how the hell are the majority of 360 and PS3 games meant to turn a profit then?

I’d imagine the percentage of games on the high-def consoles that reach one million in sales is probably a bit higher than that on the Wii, but it won’t be massively different, especially considering the difference in installed user base.

Very odd thing to say indeed and hardly encouraging for struggling third party developers.

#8

Patrick Garratt
31/03/09, 9:00 am

I sat about three seats away from him in Miyamoto’s GDC keynote a few years ago. His eyes are amazing. Like they’re on stalks. I’ve got some pictures of him somewhere.

Blerk – Yeah. It does seem a little “pulled out of ass”.

#9

David
31/03/09, 9:03 am

Reggie its bat shit crazy but :P god hes interwebz gold

#10

Madlink
31/03/09, 9:03 am

I agree Blerk. Some of that shovelware has to be very cheap to produce, and nearly every game on the shelf receives little or no marketing either.

#11

Hero of Canton
31/03/09, 9:06 am

I think he’s probably talking about Nintendo’s own games. Either way, I’m sure that figure’s nonsense, and it certainly doesn’t apply across the board. I’m sure I’ve read somewhere that your average PS3/360 game needs to sell 500,000 copies to break even. And what about No More Heroes? Sold well enough for a Wii-exclusive sequel, but I bet it’s not even close to a million.

Industry exaggerating figures again? Whatever next?

#12

JPickford
31/03/09, 9:07 am

Bit of a gaffe that.

#13

Blerk
31/03/09, 9:10 am

Didn’t Konami famously say that MGS4 would need to sell 1 million copies in its first week in order to recoup the development costs? And I imagine the development costs for that particular game were ‘quite high’, shall we say.

My understanding of the Wii model was that it was far cheaper to produce stuff so you didn’t actually need to shift as many units in order to turn a profit. I’m not entirely sure what Reggie’s trying to achieve here, aside from putting people off even trying.

#14

Shatner
31/03/09, 9:19 am

Yes. Blerk. That was a famous misquote. A correction was issued but a lot of people prefer fiction to fact.

Besides, it suggests that any sales after the first week wouldn’t assist in recouping development costs. Not sure how that works but I’m sure an INTERNET EXPERT can enlighten us all.

#15

Blerk
31/03/09, 9:22 am

Ah, really? Damn the media. To Hell. And that.

#16

Tonka
31/03/09, 9:24 am

Cool!

#17

grubbstar
31/03/09, 9:41 am

Correct me if I’m wrong, but NPD only covers the US, I’m fairly sure that there are a damn sight more than 16 games that have broken 1m units on Wii worldwide…

#18

G1GAHURTZ
31/03/09, 9:42 am

I wouldn’t be so sure…

#19

grubbstar
31/03/09, 10:02 am

Hmmm… Assuming the UK accounts for somewhere between 10 and 20% of the World wide market, then a title will only need to have sold 100-200k here to have done 1m worldwide, and there are a reasonable number in that ballpark. ELSPA lists 64 titles that have reached Silver status (and its slightly out of date too), and 26 of those that have reached Gold.

And like Blerk said, there’s going to be a big difference in development costs between a Mario Galaxy and some of the Wii Sports tyle rip-offs…

#20

Truk
31/03/09, 10:28 am

Erm, what.

#21

grubbstar
31/03/09, 10:38 am

Sorry, Silver means 100k units sold and Gold means 200k sold (iirc) according to Chart-track sales.

Ignore me, I got a bit carried away…

#22

Hero of Canton
31/03/09, 11:05 am

It’s interesting that it’s not a direct quotation. It’s probably a bastardisation of what Fils-Aime really said. Like maybe the average game would have to make £1m in revenue to make a profit on Wii. (Though, as ever, I’d imagine the truth is actually somewhere in between.)

#23

Shatner
31/03/09, 11:25 am

The original article is full of indirect quotes. This summary is quite a distilled version of the whole thing which takes one point from the original article and shines a spotlight on it.

As for bastardisations, I tend to find that’s common when you get the journalistic equivalent of chinese whispers going on. I tend to give more benefit of the doubt to non-english spokespeople when there’s scope for ‘lost in translation’ than for english spokespeople. Particulary those that are directors of PR.

#24

OrphanageExplosion
31/03/09, 11:45 am

I was in GAME buying an XBox 360 the other week and almost bought Noel’s Telly Addicts on Wii. Now THAT’S a 1m seller.

#25

Truk
31/03/09, 12:18 pm

I was saying “erm, what” at the story.

Leave a Reply