Nintendo Takes Top Spot in '99 Revenue Count
mmWire via NewsEdge Corporation : The Pokemon craze, coupled with higher-than-average game
prices for N64 made Nintendo of America the no. 1 US publisher in terms of revenue last year,
while Sony Computer Entertainment America (SCEA) led in unit sales, according to The NPD
Group.
Nintendo remains less reliant on third-party publishers-a look at NPD's best-selling N64 titles for
1999 shows that eight of the top 10 were published by the company. Five of those games carry an
average price tag of $50 or more. Charging a higher price, largely due to the more expensive
cartridge format, is validated by Nintendo's top ranking among publishers, NPD President Ed Roth
says.
Pokemon, which is largely responsible for Nintendo's leading revenue share, may not survive the
long term, Roth says, but believes the coming two to four years will be strong for the company's
billion- dollar franchise.
With the launch of PlayStation2 and Dolphin imminent, N64 and PlayStation software prices are
bound to come down, especially in the latter part of the year, Roth says. Both Nintendo and SCEA
will also see more pressure to lower hardware prices as their next-gen consoles are ushered into the
market, he adds.
Don't expect Nintendo to abandon its 64-bit hardware, Roth says- the company still manufactures
its Super Nintendo. In fact, an mmWire visit to the major ecommerce sites (eToys [ETYS] and
ToysRUs.com) revealed Nintendo's 16-bit console ($50) was sold out. With Dolphin around the
corner, this will finally be the year SNES fizzles out, Roth adds.
An average price of $48 for Dreamcast titles allowed Sega of America to break into NPD's top 10
publishers based on revenues. Roth expects Dreamcast software prices to come down, but like any
console launch, the prices will be higher for the early adopter market, he says.
The holiday season was a "what if" time of year for Sega, which despite a surprisingly strong
Dreamcast launch, could have done better had it not been for product shortages, Roth tells
mmWire.
Whether Dreamcast will survive the PS2 and Dolphin launch is anyone's guess, including Roth's. A
Dreamcast price drop largely depends on the PS2 and Dolphin prices, he says, adding that when it
does happen, it will probably be around $149. (NPD, Ed Roth, 516/625- 2294)
<<mmWire -- 01-28-00>>
NPD's Top 10 Console Software Publishers, 1999
Ranked on Dollar Share:
Rank Publisher
1 Nintendo of America
2 Electronic Arts
3 Sony
4 Midway Home Entertainment
5 Acclaim
6 THQ
7 Activision
8 Capcom
9 Namco
10 Sega of America
Ranked on Unit Share:
Rank Publisher
1 Sony
2 Electronic Arts
3 Nintendo of America
4 Midway Home Entertainment
5 Acclaim
6 THQ
7 Activision
8 Namco
9 Majesco
10 Hasbro
Source for chart: NPD, TRSTS, Ed Roth, president, 516/625-2294 |
