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Varchild2008 (84.34)

Rick Munarriz was right about the 3DS...



December 10, 2011 – Comments (1) | RELATED TICKERS: BBY , GME

Continuing in the FULL SPIRIT OF DISCLOSURE-ness as asked for by All Star ikkyu2...

I went back and did uhm 2 days of research on the November NPD report that was reported Friday Afternoon.

It is interesting that we saw a total reversal of sorts where the Software side of things was the story of the NPD report instead of the Hardware/Accessories sales back in 2010.

Even more interesting is that if you went back to January (6th I believe) Motley Fool Article by Rick Munarriz, he said 2 months in advance of the release of the 3DS that without a price cut the system wouldn't take off...wouldn't sell...

Well he was right..... But, I wonder if he actually thought Nintendo would infact do a price cut as quickly as they did?

And with the 3DS now having a user base that is greater in 8 months than the Nintendo DS was in its first 12 months... 

Will RICK have a change of heart on his January claim that Nintendo was "doomed?"

And will RICK also have a change of heart on Video Game Retail in general, not just Gamestop?

Cause an increase in User Base on the Hardware side is a positive leading indicator...

it means 2 things:

1)  Nintendo can pull more 3rd Party Software Development support for the 3DS.... Thus having more software out there for sale for the system in the coming years.

2)  Retail company's like Gamestop prefer to sell Software vs. Hardware/Accessories due to the higher profit margins.

In another January Article it was RICK who was down on Gamestop based on the 9 Week Holiday Season showing mostly a Hardware/Accessories story...a downbeat software story except for Call of Duty Blackops.

He admitted that software is higher profit margins and if you are not selling the software then you are "DOOMED" to fail.

Well?  Bricks and Mortar store outlets like Gamestop, Best Buy, Target, Walmart, etc.  increased software sales by 16% if you include PC software.

16% increase!  A record breaker.   During the very year Rick Munarriz proclaimed Gamestop as "DOOMED."

Listen Rick....

NINTENDO isn't doomed....  Obviously customers aren't abandoning Nintedo for Smartphones and Tablets.

GAMESTOP and BESTBUY and So On aren't DOOMED either....

Obviously they sold a gigantic amount of packaged software in November.  The NPD report was beyond the most optimistic of analyst estimates... 

Since the 3DS software (excluding the built-in digital dnloading aspect of the 3DS) sell Cartridge based Software....Tangible.... The software market for Bricks Retail for the 3DS isn't going to go away any time soon.  Not with as large a User Base as it now has and will continue to grow....

Bleh...In short... I think NOVEMBER was a double edged sword of sorts for Rick Munarriz.

It proved him right about 3DS sales needing a price cut.... But, it proves him wrong about Nintendo and Bricks Retail being DOOMED.

1 Comments – Post Your Own

#1) On December 10, 2011 at 9:48 PM, Varchild2008 (84.34) wrote:

Flat Out... The 3DS was considered a failure out of the gate.

Those that openly chided the 3DS....They were proclaiming that at least part of the reason was TABLETS and SMARTPHONES taking over the market share for mobile gaming.


Just as people aren't going to throw away their phones because they have a mobile gaming device like the 3DS or PSP, they sure aren't going to throw away the Mobile Gaming Devices simply because they have a Phone.

You buy a PHONE to    "CALL" and "TEXT"

You need to have some kind of phone....The trend is to throw-away the lan line style phones and just have a CELL PHONE, Smartphone.

But too many want to portray the popularity of having a phone to call people a threat to Mobile Gaming Devices because you can play Fruit Ninja on them.

Take the most popular Smartphone game you can think of and ask yourself a simple question:

if the price was the same....Would you prefer to play that Smartphone Game you love...on a Smartphone? or a 3DS?

A Smartphone? Or a PS VITA?

Which one seems to be more suitable for gaming and which one (despite the fact that it is capable of gaming, music, movies, etc.) is clearly best suited for Calling People?

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