Posted February 22, 2011
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Console sales are dominated by Nintendo entertainment systems, not products that compete with Computers for the same games. 2009 is the latest year we have the full NPD write up on currently, so I'll focus on that year. In 2009 the Nintendo DS by itself sold more units then the XBox 360, PS3, and PS2 combined at over 11 million units. The Wii dominated in second place with 9.6 million versus 4.8 for Xbox 360, 4.3 for PS3, 1.8 for PS2, and 2.5 for the PSP.
The top ten titles for software sold was dominated by Nintendo, especially the fitness programs. The only non-Ninentedo titles in the top 10 were CoD MW2 and Halo 3:ODST which didn't really perform meaningfully better then Nintendo properties despite the significant advertising dollars invested hyping them up, and likely higher development costs.
The NPD's numbers are well known to ignore significant blocks of sales for the PC, so it's much better to use the PCGA numbers. This is the top 5 console games broken down in terms of total sales, directly from the NPD. You'll note Call of Duty: Modern Warfare 2 managed all of 11.86 Million USDe total across the PS3 and XBox 360 versus Wii Sports Resorts 7.57 Million USDe and New Super Mario Bros. Wii in at 7.41 Million USDe. Total software sale revenue reported by the NPD was 9.91 Billion USDe and hardware 7.3 Billion USDe.
The PCGA report can be found here. It reports PC software sales at 13.1 Billion USDe meaning PC software revenues more then all console software revenues as far as such things are tracked. Hardware sales in client space are dominated by laptops and needless to say eclipse the entire revenue of Consoles in Intel chip sales alone. If you remove Nintendo entertainment systems from the equation to thus focus on the machines meant to "compete" with PCs the entire notion they're more then a glorified niche market versus the overall market is farcical.
Note that in early 2009 the Dolphin Wii emulator gained more or less full functionality in not only running Wii games but enhancing them to full computer resolutions and several emulators for the NDS had reached maturity, not to mention firmware mods, and thus the pirates had all the keys to that kingdom. Meanwhile there are PSP and PS2 emulators, but no emulators for either XBox 360 or the PS3 are currently available and are otherwise much more closed.
Hence you may note there's more then a little wrong the "Pirates!" and "PC Gaming is Dying" positions when you actually look at the research.
However I originally wanted to say something much more simple, i.e. that games which are available for consoles as well as PC are much more expensive for consoles than for PC although theoretically it's the very same product with minor modifications.
Just some examples from my local amazon site:
Sims 3 PC 33€ versus PS3 & XBOX 48€
Mass Effect 2 PC 19€ versus PS3 & XBOX 21€
Bad Company 2 PC 31€ versus PS3 & XBOX 42€
Fallout New Vegas PC 30€ versus PS3 & XBOX 40€
Assasins Creed 2 PC 31€ PS3 25€ XBOX 60€(?)
...
So, in average games that are available for PC and consoles are more expensive on consoles which hints that the console market is less price competitive than the PC market.
Of course there are PC only games (Civ 5, WoW, ...) and many console only games (Wii Fit, ...) so this can be a reason for buying either of these things too.
However I can understand people who buy and consume console games only under the assumption that they do not care much about the extra price premium put on console games and then my guess is that people are equally willing to tolerate DRM somehow. OK, it's kind of a very vague connection, but that's what I wanted to say in the first posts.
But let's approach it from another side: in the end the DRM which gives the highest profit will prevail. No DRM could reduce profits due to potential casual piracy and strict DRM could potentially scare customers off. So, let's hope that moderate DRM is the long term aim for all parties involved.