Some interesting analysis from Mat Piscatella about the state of the industry.
- Exclusives aren’t driving console purchases anymore, as evidenced by Forza Horizon 5 most of all.
- Nintendo would likely benefit from this too, but they’re unlikely to do so anytime soon.
- It’s too early to predict any sort of success for Switch 2, as the numbers they’re seeing right now may be little more than the supply being great enough to reach their biggest fans.
- Overall demand for gaming hasn’t gone down and has stabilized. Those dollars won’t be distributed evenly, but the enthusiasts are showing up.
He works at Circana. He’s working with way, way more data than he’s allowed to publicly disclose, since part of Circana’s business is selling the in-depth stuff to partners, as well as analyzing it to show trends to their partners who want to know what is and is not working across the industry at the moment.
Does he have access to the proprietary sales data of Nintendo, Xbox, Sony, Valve, and Google?
I’d be shocked if he did, because those companies are all big enough to have their own in-house departments for that. He’s trying to sell consulting services to smaller publishers. Consults don’t get paid for saying "well I don’t really have enough information to say that for sure*, they get paid for making executives feel smart.
He posts an image like this one along with each monthly report, but that’s also the sort of thing you should probably know before you claim that the author doesn’t have the data he needs. The data they don’t have, they disclose that it’s an estimate. Nintendo doesn’t like to share, but the retail partners that sell their consoles do.
That still doesn’t include most of the data necessary to reach this conclusion, and furthermore the bigger issue is that THE ARTICLE ITSELF DOES NOT CONTAIN ANY. It is an unbacked claim that we cannot verify. If he can’t share the data because ris propriety, he shouldn’t be making the claim publicly.
He’s looking at software sales in a vacuum, and he is probably correct that any singular piece of software would sell more units if it were released on more platforms. That’s not new or interesting: that’s obvious.
What he’s missing, even in the screenshot of claimed data he has, is everything else.
Consultants like this are not trustworthy sources. They’re trying to sell their own product.
The article is a summary of an interview. If he was lying about any of this, competing firms or their business partners would call him out. I know how the world looks from our perspectives and how the console markets have always worked, but that’s why there are companies out there collecting data, and that’s why their perspectives can be worth listening to. No one can predict the future, but he’s sharing his insights into where the wind is blowing, and yes, it’s so that his company can sell a premium product to companies doing market research. The console business model has changed quite dramatically very recently and is looking like it will continue to change. He’s not the only one claiming that the console wars are over.
Well first of all, this interview was published today so the only people who have had a chance to really respond to this are the general public on the internet. Beyond that, it is not safe to assume that any of their competitors would have any reason to respond to this publicly at all. Maybe they do, maybe they don’t, and maybe that decision has more to do with wanting to either keep up with Circana or differentiate from Circana than anything related to the truth. That’s kind of the problem with dealing with bias in sampling like this.
People have been saying this exact same thing for decades and it hasn’t happened yet.
And I’m all in favor of the end of exclusivity. Exclusivity is harmful to consumers, and to society as a whole from the perspective of preserving culture and history. But just because I want something to be true doesn’t mean I’m going to believe some consultant casually speculating while promoting his company.
If he provided data and outlined the methodology of projection they used them we could at least have an interesting conversation about this. But right now he’s just about as credible as the 3rd grader at recess whose uncle works for Nintendo and says the next Halo is coming to Switch.
This isn’t the first time he’s spoken. He’s done this job for a long time, and people trust and respect his work. It would be a hell of a thing if he picked this time to start making things up. The trend he points out is something he acknowledges as a recent trend, in the last year or so, but he’s working with data that’s consistent with my own anecdotes, like how publisher after publisher have found that they’re making more money on PC than on consoles; that games that used to never come out on PC now dwarf the console versions in sales; that my friends mostly stopped playing on consoles last gen, and that I don’t see a need for new ones; that when I see kids playing games out and about, they’re on mobile far more often than they’re on Switch; and on and on.
I’ve been polite this whole time, but you decided this man didn’t know what he was talking about, backpedaled very hard when you found out what his actual credentials were, and then decided he was untrustworthy instead. He’s not the one with the credibility of a 3rd grader.
I didn’t backpedal on anything at all so I’m not sure why you think that. My initial statement was that he did not provide enough data to reach his conclusion and seems to be drastically oversimplifying the problem to reach his conclusion, by focusing on the unit sales of singular pieces of software in a vacuum and assuming that games are fungible. I pointed out how different videogame companies operate with different business models that are more or less condusive to exclusive 1st party titles. None of that has changed, and the only thing you’ve said to try to dispute any of it is “this consultant said in an interview that he thinks exclusives are bad”. No attempt at discerning causation or explaining it, no attempt at even refuting the arguments I present, just “you should trust this guy, who also happens to be selling a product”. If I wasn’t bored killing time at work I wouldn’t even bother responding because this isn’t really a conversation, you just keep going “nu uh”.
Not just me: You’ve spent this whole thread arguing with myself and everyone else who are pointing out the obvious and glaring holes in what he’s saying.
One of my favorites is this one. Xbox has failed to make a profit throughout the entire history of the company. They’ve spent the last few years shutting down studios and laying people off, which has led to a lot of industry speculation. Insiders have reported rumors that Spencer might get pushed to resign or even fired. There’s been speculation that Xbox might be considering exiting the hardware side of things entirely, in part because of their own marketing campaigns. I am not saying I believe that, but these are strong signs that Xbox is doing badly.
Nintendo, by contrast, just had the single best launch week 1 in the history of videogame consoles. Pretty much every way you look at the Switch 2 sales numbers they are breaking records. And this guy saying that Nintendo should copy what Xbox is doing. That is an extraordinary claim which requires extraordinary evidence for me to take seriously.
And while anecdotes are pretty useless, I agree with you that many publishers have trended towards multiplatform releases and I said that earlier. I’m not disputing that: I’m disputing his comments about 1st party publishers.
If you didn’t backpedal on the data that you thought this man didn’t have access to, or for not understanding how platforms taking a cut of sales works, then I’m sorry for thinking you could admit when you were wrong.
Those aren’t glaring holes in his argument; those are people rebutting the summary I put in the blurb that Lemmy lets me add without reading the article.
Xbox is doing badly, at least by the old console model, which is why they aren’t doing it anymore. Sony has reduced how much they’re sticking to the old model as well, by putting Helldivers on Xbox and most of their games on PC; does that not indicate the same thing to you?
Nintendo had the best launch in the history of game consoles because they had the most supply available in the history of game console launches, which is why Piscatella is noncommittal on how well the console is doing. Consoles basically always sell out, so it only shows that the people buying them are the people who would have bought it regardless, until we see how it does around the holiday.
He is not saying that Nintendo should copy what Xbox is doing. He is saying Nintendo might see a similar boon if they do what both Xbox and PlayStation are doing, because we are not seeing evidence that people are moving to a platform for exclusives, and we are seeing evidence that people are more than happy to wait on the platforms they’re on for the games to come to them. He also says Nintendo is unlikely to do it regardless, at least right now.