Nintendo Rules And Video Game Sales Rebound

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By Douglas A. McIntyre Published
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The Nintendo Wii and the company’s ancient DS were supposed to be nearly dead, leaving the door ajar for huge market share gains by the Microsoft (NASDAQ:MSFT) Xbox 360 and Sony (NYSE:SNE) PS3. It did not work out the way during December, the height of the holiday sales season.

According to NPD, the research group that tracks game sales, the Nintendo Wii set a record for console sales in any one month, selling 3.81 million units. The DS did nearly as well with sales of 3.31 million.

Xbox and PS3 sales were modest at 1.3 million units each despite the price cuts that Microsoft and Sony made on the machines last October. Nintendo may have bested them by such a large margin because three new games for the Wii console posted tremendous sales–“New Super Mario Brothers”, which sold by 2.82 million units, “Wii  Fit Plus” with sales of 2.41 million, and “Wii Sports Resort” which sold 1.79 million.

The data proves that Nintendo’s gamble on a machine that is meant for casual gamers paid off in December. The Wii is targeted at people who have no interest playing complex video games on complex consoles. Wii sales also how that Nintendo has successfully “reinvented” the console’s purpose by turning it into an exercise accessory. Sales of the Wii Fit line reached impressive levels.

Nintendo, one foot in the grave, jumped back to life in a way that almost no expert on the industry forecast.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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