After a fairly boring holiday season, we finally have some interesting numbers. In fact there havent been numbers this surprising since August. As a quick overview, the January NPD retail month covers a four week period starting on Sunday, January 6th and extends through Saturday, February 2nd. December was a five week month, so as usual Ill stick with weekly averages to make the numbers line up. As a quick reminder, here are the December numbers, with weekly averages in parenthesis:
DS: 2,470,000 (494,000)
Wii: 1,350,000 (270,000)
360: 1,260,000 (252,000)
PS2: 1,100,000 (220,000)
PSP: 1,060,000 (212,000)
PS3: 797,600 (159,520)
Also, were now far enough past the launches of the Wii and PS3 that numbers from last year are becoming relevant as well, so we can compare this years numbers to last years and see what changes have arisen. Its important to note, however, that the NPD retailer calendar is 52 weeks and a year is slightly longer than that, so to compensate last years January included an extra leap week and was a five week month. Here are the January 2007 numbers, again with weekly averages in parenthesis and systems no longer being sold removed:
Wii: 435,503 (87,100)
PS2: 299,352 (59,870)
360: 293,774 (58,755)
PS3: 243,554 (48,711)
DS: 238,869 (47,774)
PSP: 210,719 (42,144)
So now that we finally have the prelimaries out of the way, lets look at the January 2008 numbers. As usual, well start at the top of the charts and work our way down.
Wii: 274,000 (68,500): Its obviously down quite a bit from December, but that shouldnt surprise anyone. The year-over-year drop, however, is somewhat more surprising at first glance. However, Nintendo was kind enough to clear up this discrepancy for us in their quarterly briefing held towards the end of January. To ship as many Wiis as they did in Q4 calendar 2007, they not only raided their stockpile of Wiis but also air-freighted a number of systems originally scheduled to ship in January. By pushing shipments ahead of schedule rather than taking the normal course they were able to boost supplies in November and December, but the consequences of this move are that they simply didnt have as many Wiis to ship out in January. Expect sale to again rise above 350,000 in February, if not 400,000 once shipments resume their normal schedule. This months drop has nothing to do with demand but rather is simply the result of Nintendo getting as many systems into retailers as they could over the holidays.
PS3: 269,000 (67,250): I dont care if theyre being bought for games or movies as a result of BluRay apparently winning the HD format war, Sony has to be thrilled to see this number. For the very first time the PS3 has outsold the 360 in the US, which is a huge victory for Sony (even though MS helped them achieve it, but more on that later). It even nearly tied the Wii (and theoretically could have beaten it, since 5,000 may well be within the margin of error for NPDs algorithms, although Im not sure about this). The year-over-year numbers are also up nearly 40% when you account for the extra week in January 2007, which is a very nice boost as well. Although not a spectacular month in the larger historical picture, relative to the PS3s past performance and its current competition this is without a doubt the best month the PS3 has ever had. It remains to be seen if they can hold this momentum into February, but 2008 is off to a far better start than 2007.
PS2: 264,000 (66,000): Insert comment about the PS2 never dying and continuing to sell amazing numbers here.
DS: 251,000 (62,750) Like the Wii, Nintendo pretty much emptied the cupboard on the DS over the holidays, so what youre seeing here is the re-equilibration of a totally empty channel. Also, whereas the Wii is notably more popular in the US than the rest of the world (still selling at record-setting numbers everywhere, just even more so in the US), the DS popularity is more evenly divided, so Nintendo doesnt favor the US as heavily like they do with the Wii, hence the US getting a lower proportion of shipments. Its still a decent number with a nice year-over-year rise, but its not indicative of actual demand. Like the Wii, expect sales of the DS to rise drastically in February as the channel begins to refill.
360: 230,000 (57,500): MS apparently took a page out of Nintendos book. Whereas shortages on the 360 were anecdotal in December, they became obvious in January as stores went weeks without shipments of new hardware and MS eventually sent out a press release saying that an increase in demand was causing severe shortages. However, unlike Nintendo, part of MS problem lies in an apparent drastic mishandling of 360 SKU distributions. Elites and Premiums have been nearly as scarce as the Wii over the last 6-8 weeks, while Arcades and Halo Editions have been readily available, but nobody wants them. The net result is that the 360 joins the Wii as the only system to show a decline in year-over-year sales even when accounting for the extra week in January of 2007 (although admittedly the 360s decline was much smaller than the Wiis at only 1,000 vs. nearly 20,000). Again I question the wisdom of trying to balance multiple SKUs. Put one system on the market (or at most one configuration with multiple colors like the DS) and watch the 360s shortages either cut down drastically or vanish altogether. MS has nobody to blame but themselves for this situation, as its entirely of their own creation.
PSP 230,000 (57,500): The PSP shows a decent improvement in sales compared to last year, but without software selling in any sort of substantial numbers its more and more questionable if the system really even counts as a gaming machine. The installed base is pretty good (although not amazing), but that doesnt mean a thing without software sales. The goal of the market is to move the most software, whether through an enormous installed base (like the Wii) or through crazy high tie ratios (like the 360), but the PSP isnt doing either. It just keeps moving along without any real direction. Sony really needs to figure out what they want the PSP platform to represent and do a better job of focusing its successor if they dont want it
Finally, a few brief thoughts of the top 10 software titles. Im amazed by the continuing legs shown by Call of Duty 4 on the 360. I honestly expected that it would have dropped off by now. Wii Play will never die as long as the Wii keeps moving hardware. Guitar Hero 3 on the Wii also retakes the lead in monthly sales over the 360 version (in total sales the 360 version leads by a good margin, although the attach rate is higher on the Wii). Rock Band making the top 10 is extremely impressive given its own supply issues as well as its very high selling price. Super Mario Galaxy continues to sell well, although its dropping off a bit quicker than I expected, but it will continue to sell over the life of the Wii. Burnout Paradise debut on the 360 is rather disappoint in light of the titles ahead of it, although not knowing historical numbers for the series I freely admit this could simply be the result of my own misguided expectations. CoD4 on the PS3 also is showing great legs, giving the PS3 what I believe is its first million-seller in the US alone. Finally Mario Party DS is selling well, although not as well as Mario Party 8, but again you can expect huge legs on this one. Mario & Sonic at the Olympics on the DS wraps up the top 10 with a decent but unimpressive debut. Expect this one (and its Wii counterpart) to get a substantial boost during the Olympic Games this summer. Otherwise, I cant really comment on the software situation. As December demonstrated very clearly, the top 10 is nowhere near adequate to get an adequate view of the full picture.