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European HD DVD Group talks attach rate numbers
We focus on the U.S. market, but the European HD DVD Group just issued some numbers that caught our attention. Yes indeed -- more fuel for the format war, just in time to stoke the fires again. The European faction of team red didn't talk unit sales, but is proudly touting attach rate numbers, and with good reason. After doing the math across six countries and accounting for both standalone and console-based players, HD DVD enjoyed an attach rate of 3.8 vs. Blu-ray's figure of 0.6. Ouch. Spain posted the highest HD DVD attach rate (5.7 compared to 0.4 for Blu-ray). Now, one number doesn't tell the whole story any more than one region will dictate the entire format war; but it's an interesting number still. When you consider that HD DVD releases are less restricted by distribution rights in Europe than here in the U.S., the European playing field is closer to the "let the consumer decide" model we'd really like to see. Expect a Blu-ray response in 5... 4...
Analysts: Microsoft in the wake of Bungie, BioWare and Bizarre changes
Now that developers Bungie, BioWare and Bizarre are now either independent or owned by well-known multi-platform publishers, where does that leave the Xbox 360 considering each of those studios had a strong relationship with the console? GameDaily spoke with a couple of leading analysts in the industry to get their ideas on how these studios going in a different direction will impact the console that benefited from their commitment. Analysts, sound off: Mike Hickey, Janco Partners: "We anticipate MSFT will have ample opportunity to sign exclusive agreements with independent developers who are not necessarily willing to devote significant resources to the development of PS3 games." Michael Pachter, Wedbush Morgan Securities: "I understand the logic that says that EA and Activision won't allow exclusives, but for a price they will. Remember, GTA was always a PS2 exclusive, and it was a third-party title. Also Metal Gear will be a third-party exclusive for PS3, so where there is a checkbook, there's a way. ... The only first party loss is Bungie, and I think Microsoft has gotten itself a first look at all future Bungie products. Remember, Microsoft "owned" the Bungie name, and gave it back to the studio. There must have been some quid pro quo, and I'd bet it's a limited exclusive on future content." David Cole, DFC Intelligence: "One thing that Microsoft could do better is general marketing outside of just for titles that start with the name Halo. Microsoft is fairly cheap on the marketing side and often seems to save it all up for a big title like Gears of War or Halo 3. I think they should be more consistent around all their products." Todd Greenwald, Nollenberger Capital Partners: "I don't think it's that big a problem for the 360. I think it may actually be a result of the strength and large installed base of the 360. With the significant installed base lead over the PS3, Microsoft no longer needs 1st party studios to be assured of premium content. The 360 installed base is too big for publishers to ignore now." With the Xbox 360's impressive attach rate, it would seem the system is still the place for third-party developers -- although there are arguments that the attach rate is a bad thing. What we do know is that Microsoft still has the right of first refusal on Bungie games and BioWare's Mass Effect is still an Xbox 360 exclusive. And unless the PS3 starts picking up sales in '08 and perceptions change with the Wii, it appears the Xbox 360 will still be the place for third-party developers over the next couple years.
HD DVD backers see big 2007 ahead
The North American HD DVD Promotional Group took advantage of its press event to spread the good news about HD DVD, noting that over 300 additional HD DVD titles should be arriving in 2007. As of January 5th, the group estimates there were more than 175,000 HD DVD players sold in America, with an annualized attach rate of 28 movies per player. The group projects sales will reach 2.5 million players by the end of this year and more than $600 million worth of movie revenues. HD DVD buyers can look forward to more HDi enhanced titles, now featuring internet features that were demoed at the event, as well as more players hitting the market from manufacturers like Lite-On, Alco, Alpine, Meridian and Onkyo. Look for the trend of combo releases to continue, as the format's backers see it as a viable way of introducing current DVD owners to the format and building a library prior to upgrading. With Sony already hitting 1 million PS3s shipped and HD via IPTV picking up steam HD DVD surely has its work cut out for it in 2007 but with a slew of reference quality releases and enhanced hardware offerings they expect to hit all their goals.
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Wii gets nearly double PS3's attach rate in Japan
var digg_url = 'http://digg.com/gaming_news/Wii_gets_nearly_double_PS3_s_attach_rate_in_Japan'; Nintendo's of Japan's rosy Wii launch looked even rosier today as Media Create unveiled preliminary sales figures giving the machine a 1.8 attach rate, trouncing the PS3's "I'm only buying it to sell on Yahoo auctions" 0.98 attach rate. While this may seem low compared to the States, it's a lot better than the Japanese Cube's 1.2 launch attach rate and the Japanese DS's paltry 0.89. The top ten games and hardware sales were: Wii hardware: 350,358 Wii Sports: 176,167 Wii Play: 174,297 The Legend of Zelda: Twilight Princess: 139,011 Odoru Made in Wario: 63,954 Swing Golf Pangya: 12,908 Ennichi no Tatsujin: 10,763 Red Steel: 9,392 SD Gundam SCAD Hammers: 9,226 Tamagotchi Pika Pika Daitouryou: 8,042 Elebits: 5,791 As rosy as these sales figures are for Nintendo, they're a bit of a kick in the teeth to third-parties, whose offerings achieved sales that can only be described as comparatively weak. Third-parties have always struggled to compete with Nintendo's acclaimed first- and second-party development teams and, according to these preliminary numbers, it seems that this trend will continue on the Wii. It'll be interesting, and important, to see how third-party titles fare on the Wii in the upcoming months.
High attach rate equals bad news for 360?
The 360's high attach rate has been a big boasting point for Microsoft for some time now. After all, it's only natural to claim success when everyone who buys your console also buys an average of 5 games. It all sounds rosy, but according to the Susquehanna Financial Group, the 360's high attach rate may be indicative of its ultimate failure. "How the hell does that make sense?" you ask, and with good reason. The Susquehanna Financial Group believes that the high attach rate could indicate that the 360 attracts more "hardcore" gamers and fewer "casual" gamers. Again, this sounds like a good thing, because hardcore gamers buy more games. However, if the 360 isn't attracting casual gamers (who far outnumber hardcore gamers), then its overall installed base will never grow. From a publisher's perspective, it's always better to have more potential customers. As the analysts at SIG put it, "a console with an attach rate of 8 and an installed base of 50 million is superior to a console with an attach rate of 12 with an installed base of 20 [million]." In other words, attach rates are less meaningful if the installed base isn't large enough to back it up.Still, it may be a little early to declare that the 360 is the next Dreamcast, a failed machine with a dedicated following. The 360 is still young, and many people have been waiting for the Wii and PS3 to arrive before they made their decision. If anything, the new console war is only just beginning.[Via Joystiq]
Is the Xbox 360's high attach rate bad?
The Xbox 360 has been riding high on a wave of good news. From boosts in stock performance to Sony's stumbles, it would appear all is happy in Microsoft Land. However, for every Candyland we find there's bound to be some tooth decay. Susquehanna Financial Group has calculated that the Xbox 360's attach rate is currently a 5.2 (meaning there are 5.2 games circulating for every Xbox 360 console sold). While the number may seem impressive up-front, the high attach rate could ultimately predict the 360's failure. The idea is that casual gamers don't buy a lot of games, but there are many more of them; a high attach rate indicates a hardcore crowd. According to SIG, "an attach rate of 8 and an installed base of 50 million is superior to a console with an attach rate of 12 with an installed base of 20 [million]." A high attach rate is a good thing early in a console's life -- publishers know they can pull a profit early on -- however, as time goes by, those same publishers will find that competing for those 5.2 units sold will become difficult when the install base doesn't grow. If the Xbox 360 still has a high attach rate, it is not outside the realm of possibility that it will be an enthusiast machine, not a mass-marketable product (SIG thinks the PS3 may be worse). However, if the console is selling for a major loss, a high attach rate may not be a bad idea.
360 games rock the sales charts
Microsoft released some updated retail sales numbers yesterday, and the results are good. First, the big M reiterated its goal of shipping 10 million Xbox 360 consoles by the end of Holiday '06, and 13-15 million by the end of the fiscal year in June '07. As for the numbers, the 360 has maintained a very high accessory attach rate at 2.9 accessories per console (apparently a record). Of course, this is somewhat misleading as Microsoft has made accessory purchases somewhat essential (battery chargers, play n' charge, memory card, etc.). It would be interesting to see what the attach rate is for optional accessories like faceplates.Software attach rates are also becoming larger, with an average of 4.6 games sold per console. Most of our readers will know that 4.6 is a very high attach rate for games. Also mentioned in the announcement, the 360 has four of the top ten games sold in the US this month, including: Chromehounds, NCAA Football 2007, Prey, and LOTR: BFME II. Don't be shocked if Madden '07 and Dead Rising make that list as well.Very encouraging numbers for Microsoft, indeed. Now if they could just get some momentum going in Japan ...
