[HN Gopher] Consoles and competition
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       Consoles and competition
        
       Author : marban
       Score  : 38 points
       Date   : 2022-12-13 09:35 UTC (1 days ago)
        
 (HTM) web link (stratechery.com)
 (TXT) w3m dump (stratechery.com)
        
       | erickhill wrote:
       | I find it slightly baffling (yet predictable) that Commodore
       | wasn't mentioned once during the transitional leap from the 2600
       | to "home computers." It's as if the best-selling computer of all
       | time prior to the iPhone has been erased from history.
        
       | Tiktaalik wrote:
       | It was Nintendo that created the 30% share for the platform owner
       | that all future console owners would implement, and which Apple
       | would set as the standard for the App Store.
       | 
       | Is there a citation for this number? I thought I knew this whole
       | story quite well but this is the first time I've seen someone
       | cite the specific royalty rate Nintendo was getting. I'd always
       | more read the generalization that Nintendo was "expensive", and
       | Sony was "cheaper" and beyond that I got the impression that it
       | was the reduction in costs and increases in flexibility with the
       | shift from Nintendo made carts to cds that dominated royalty
       | differences.
       | 
       | (It's somewhat fuzzy to me around whether anyone was allowed to
       | press Playstation discs or Sony reserved that right alone. I
       | recall hearing the former but don't recall. Similarly I am under
       | the impression that at some point Nintendo had strict control
       | over manufacturing carts, but at some point that was loosened?
       | Perhaps it was that Famicom carts at some point were a grab bag
       | of manufacturers, but it all went in house with the SNES?)
        
       | quanticle wrote:
       | Sony extended that advantage with the PlayStation 2, which was
       | backwards         compatible with the PlayStation, meaning it had
       | a massive library of         3rd-party games immediately; the
       | newly-launched Xbox, which was basically a         PC, and thus
       | easy to develop for, made a decent showing, while Nintendo
       | struggled with the Gamecube, which had both a non-standard
       | controller and         non-standard microdisks that once again
       | limited the amount of content         relative to the DVDs used
       | for PlayStation 2 and Xbox (and it couldn't         function as a
       | DVD player, either).
       | 
       | Is that actually true? From what I remember, and what I've read,
       | the original XBox was kind of a flop. That generation of consoles
       | was dominated by the PS2, with the GameCube as an also-ran,
       | mostly due to the strength of Nintendo's first-party titles and
       | Rare's "almost first party" work. The original XBox had Halo, but
       | I don't really remember any other really standout best sellers on
       | that platform. Characterizing the GameCube as some kind of flop
       | that Nintendo "struggled" with seems like a misrepresentation. It
       | may not have been as immediately successful as the PS2, but with
       | games like Super Smash Bros Melee and Banjo Kazooie, it had
       | decent success, especially towards the end of that generation.
        
         | yamtaddle wrote:
         | The OG XBox was _de rigeur_ in every dorm room in the country.
         | Mostly for Halo, but football games and racing games and such
         | also made a showing.
         | 
         | The Gamecube's considered a flop because it sold worse than
         | _all_ their other game consoles except the (later) WiiU, which
         | is their other major flop. At the time, it was sitting at the
         | bottom of a not-promising trend line for Nintendo consoles
         | (before the Wii blew that up). It also sold significantly worse
         | than its contemporaries (XBox, PS2... better than the
         | Dreamcast, but that hardly counts). I agree that it 's a great
         | system, in fact--the controller is, uniquely, _brilliant_ for
         | introducing young kids to controllers with more than a couple
         | buttons on them, and feels great once you 're used to it even
         | for an adult, and it may be lacking in games but it's got a
         | fair number of excellent entries in its library. It's easily my
         | personal favorite of that generation (followed closely by the
         | Dreamcast, actually).
        
         | mikepavone wrote:
         | The OG Xbox did sell more units than the Gamecube (~24 million
         | vs. 21.7 million per Wikipedia anyway), but these seem close
         | enough that it's a bit weird to classify them differently. I
         | guess one way to justify that outlook is that Microsoft was
         | coming from nothing in the console space, so getting to a
         | distant 2nd place (even if only narrowly) makes for a decent
         | start whereas the Gamecube sold fewer units than the N64 even
         | while the home console market was growing as a whole.
        
           | sylens wrote:
           | I agree the sales were close, but I think the
           | narrative/momentum was very different for the two. That was
           | Microsoft's first console. They started with nothing, and by
           | the end of the generation had sold more than Nintendo and
           | established critical IPs and an online service for the next
           | generation. Nintendo, at the time, felt very backed into a
           | corner - which of course gave us the Wii that shattered all
           | expectations.
        
           | bee_rider wrote:
           | I would classify them differently. I mean they were both not
           | very successful consoles, but the Xbox was at least a first
           | effort from a new competitor. It makes sense that it was...
           | more of a predictable learning experience.
           | 
           | The GameCube seemed like a surprisingly poor showing from
           | such an experienced company. But hey, hard to give them too
           | much flack given the follow up. Guess the GameCube was a
           | strong unexpected learning experience.
        
           | naet wrote:
           | Super Nintendo: 49.1 million sales
           | 
           | Nintendo 64: 32.93 million sales
           | 
           | Nintendo Gamecube: 22 million (PS2: 155 million, Xbox: 24
           | million)
           | 
           | Nintendo Wii: 101.63 million
           | 
           | Nintendo had very high targets for Gamecube, hoping to make
           | up for some of the "lost ground" of the n64's weaker sales
           | compared to its predecessor. The Xbox struggled heavily in
           | Japan compared to Nintendo, and was a newcomer to the console
           | scene, but still made more total sales.
           | 
           | The Gamecube also had an extra year before Nintendo released
           | a successor compared with the Xbox. Both came out around the
           | same time, but the Xbox 360 was released a full year before
           | the Nintendo Wii. Luckily for Nintendo, the Wii ended up
           | being very popular compared to the Gamecube and sold ~5x more
           | consoles.
           | 
           | I think both original Xbox and Gamecube had sales targets
           | higher than what they ended up reaching, but you could make
           | an argument that Nintendo failed to capitalize on their
           | previous popularity and market share and had a bigger flop.
        
         | wcarss wrote:
         | I'm not here to disagree with you but I'm pretty sure Banjo
         | Kazooie was never on the GameCube.
        
         | actionfromafar wrote:
         | OG XBOX was great though for XBMC media center and for pirating
         | games. I guess for playing DVDs, too.
        
         | syntheweave wrote:
         | There's an interesting thing in that the sales numbers and the
         | narratives differed strongly in that generation.
         | 
         | The Gamecube, while having sales nearly equal to the original
         | XBox, is beloved mostly in retrospect; at the time of release
         | the consensus between North American enthusiast press and
         | corporate PR swung strongly in favor of "grown up" games(i.e.
         | 90's edginess with swearing, gore, and boob) while Nintendo was
         | still making "kiddie" stuff. Of course, plenty of folks bought
         | Nintendo's offering anyway, but it wasn't clear what their
         | strategy was at that point. They gained their now-standard
         | reluctance to push graphics tech further on consoles with the
         | Gamecube; it was a well-rounded game player, straightforward
         | enough to develop for, and not hugely different from the others
         | in spec, but it avoided doing really flashy graphics demos. And
         | for the press, who had gotten used to talking about how high
         | tech and advanced every release was, and how big the production
         | budgets were, this was an affront. If you make smaller games
         | with less graphics that aren't for the reviewer's specific
         | demographic, their job is harder and needs more nuance.
         | 
         | And so while the larger side of the market aided and abetted a
         | "gamer" image, which was really just catering to whomever would
         | give them more coverage - Nintendo stuck to its own plan. It
         | could afford to; every portable system was a hit. So they
         | started making their consoles more like their portables after
         | the missteps of the N64(which was a graphics beast, but too
         | hard for most developers to delve deep into).
         | 
         | The reality, of course, was that the GCN quickly became a
         | fixture in college dorms because it had good party games like
         | Smash and the Mario Kart series. It was there right along with
         | the PS2 and XBox and their exclusives, and yet when you saw
         | interviews with game industry producers and the like, nobody at
         | the time said "we should be more like Nintendo". They wanted a
         | GTA or a first-person shooter with better lighting effects. And
         | there was a xenophobic "beat Japan" angle among some in
         | favoring Microsoft over Sony or Nintendo. In effect, they
         | gaslit some part of the gaming audience in order to push the
         | type of games they were making and the country that games
         | should come from. It was only later in the 2000's with the next
         | generation releases that critical backlash against the
         | "grey/brown shooter" arose and Nintendo's position was
         | championed - though not by everyone.
        
         | quanticle wrote:
         | This also rings false to me:                   Nintendo,
         | meanwhile, dominated the generation with the Nintendo Wii. What
         | was interesting, though, is that 3rd-party support for the Wii
         | was still         lacking, in part because of the underpowered
         | hardware (in contrast to         previous generations): the Wii
         | sold well because of its unique control         method -- which
         | most people used to play Wii Sports -- and Nintendo's
         | first-party titles. It was, in many respects, Nintendo's most
         | vertically-integrated console yet, and was incredibly
         | successful.
         | 
         | The Nintendo Wii did have excellent sales initially, but those
         | sales fell off _fast_ , as everyone who wanted a Wii for e.g.
         | Wii Sports or Wii Fit got their consoles within a couple of
         | years, and the _severely_ underpowered hardware meant that the
         | majority of games were released on the XBox 360 first, the PS3
         | second, and the Wii never. Meanwhile, Nintendo 's normally
         | strong first-party games struggled to integrate motion
         | controls, so aside from gimmicky tech demos like the
         | aforementioned Wii Sports, there really wasn't much reason to
         | buy a Wii. It was a slightly better GameCube, that's all. If
         | any console "dominated" that generation, it was the XBox 360.
        
           | ketzo wrote:
           | The Wii outsold the PS3 and the Xbox 360 by about 15 million
           | units. [1]
           | 
           | [1] https://www.ign.com/articles/best-selling-video-game-
           | console...
        
           | smcl wrote:
           | In terms of units sold, it's actually correct. From the
           | wikipedia page "List of best-selling game consoles"[0] I've
           | taken the three from that generation:
           | 
           | 1. Wii: 101.63 million
           | 
           | 2. PS3: 87.4 million
           | 
           | 3. Xbox 360: 84 million
           | 
           | It's possible the Xbox 360 dominated within your friend-group
           | or even your locale (fwiw I didn't know anyone who had a 360,
           | my friends who had a console had a PS3) but in terms of raw
           | sales it's edged by PS3 and obliterated by the Wii.
           | 
           | [0] - https://en.wikipedia.org/wiki/List_of_best-
           | selling_game_cons...
        
             | de_keyboard wrote:
             | The 360 launched first so it was probably at a higher units
             | sold for a few years at least.
        
           | syntheweave wrote:
           | The Wii captured a fundamentally different market from its
           | competition: that was the whole "blue ocean" strategy
           | Nintendo had in mind, building on success with the DS. The
           | 360 and PS3 sold "convergence" devices instead: they did a
           | little bit of everything home-entertainment related.
           | Enthusiasts with the cash to spare would end up with multiple
           | consoles for the exclusives, but in that generation the
           | software barriers to exclusivity were starting to come down;
           | the PS3 had a more unfamiliar architecture than the 360, but
           | regardless, cross-platform releases running the same engine
           | and assets, vs a completely recoded game with different
           | assets, were now becoming the norm across both consoles, so
           | it was not like the old days of Sega vs Nintendo where you
           | could have a totally different view of gaming by getting one
           | or the other; the high end was actually getting a bit
           | commoditized, and it was just the first-party exclusives that
           | added differentiation.
           | 
           | But the broader market was in unexpected places like senior
           | centers, where Nintendo's offering found an ultra-casual
           | niche. For those markets, it never had to do anything more
           | than play Wii Sports, and was a profitable hardware sale from
           | day 1, where the other two banked on loss-leading for market
           | share and making it up with a high attach rate. Definitely a
           | fad, but also one that printed money.
           | 
           | All three did well enough to keep going, but they're really
           | apples and oranges stories.
        
             | P5fRxh5kUvp2th wrote:
             | This is how I remember it as well.
             | 
             | Nintendo was public about dropping out of the console fight
             | and doing their own thing, which is still true to this day
             | with the switch.
        
       | Tiktaalik wrote:
       | To suddenly cut Call of Duty (or Activision's other multi-
       | platform titles) off from Playstation would be massively value
       | destructive; no wonder Microsoft said it was happy to sign a
       | 10-year deal with Sony to keep Call of Duty on PlayStation.
       | 
       | It would be value destructive if all those Sony buyers decided to
       | shrug and not buy a CoD game ever again. It wouldn't be at all if
       | the CoD players could be lured to buy an Xbox. This article
       | asserts that there's effectively no difference between the
       | hardware at this point, so if we accept the article's arguments
       | here, getting the consumers to move from Sony to Xbox with
       | exclusives is theoretically easier than it's ever been. No wonder
       | people are alarmed.
        
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