Why are Wii sales falling in Japan?

The Wii had been a major success in Japan since it was launched last December. On average, the Wii would sell an impressive 60-70k units per week. But it seems that the Wii has dropped in sales (based on weekly sales) by 64.6% since the week of August 13th. It’s true that the PS3 has also seen a 39.7% drop as well. But there are possible factors as to the reasons why Wii sales are falling drastically.

Other than Mario Party 8, there hasn’t been a major release from Nintendo or any third-party, which suggests a lack of software releases during that sales period. Remember, it’s software that sells hardware, not the otherway around. The most wanted games in Japan are mostly PS3 games. In the Top 10, besides Brawl and Galaxy, five of them are PS3 titles and it has been that way for some time. Even a 360 game is listed in the Top 10 as well.

Another question to ask is how long will Wii Sports continue to sell? Wii Sports is one of the biggest reasons to own a Wii. But sales have slowly declined and Nintendo will need to think of bringing another “Wii” branded title into the marketplace. Sure Wii Fit is set to release this year, and although the fitness industry is growing in the country, it is years behind to where it should be. Other “Wii” branded titles are needed fast. It seems that first-party Nintendo games are what Japanese gamers are looking forward too the most. Third-party games haven’t been doing so well in the country and some games have been an utter disaster. This isn’t a good trend, as it could suggest another “GameCube” repeat if this continues in the long-run.

One could argue that it’s just a slow month. But that isn’t necessarily true, as last year’s DS and PS2 sales were solid. We’ve heard reports that Nintendo has been boosting production on American Wii’s over Japanese Wii’s, even so, the Wii has been reported to have been widely available in the country in the last couple of weeks. It’s likely that a consumer could walk into a store in Japan today and pick up a Wii.

Nintendo not attending TGS this year is a mistake and although they never attend the event, they had a chance for a strong showing. It’s the biggest annual game show in the country and not attending allows for the PS3 to keep itself on its toes. Sony did have a horrible press conference, but that didn’t mean attendees didn’t enjoy playing games like MGS4 on the showroom floor. PS3 is the real threat. The reason why it hasn’t done so great in Japan is obviously because of the price. How many people in Japan can afford that thing? Although there was no price drop announcement, you can expect one soon. And when you have a system that has games like Final Fantasy XIII/Versus XIII, Resident Evil 5, MGS4, Monster Hunter 3, White Knight Story, The Last Remnant, DMC4 and the next Dynasty Warriors in their line-up (all are games that Japanese gamers want the most), you sure has heck better be prepared to face it.

Is the Wii hype fading away in the country? I would say that although it is a possibility, it’s best to wait and see what happens in the coming weeks. In the long-run, Nintendo needs to be prepared. Nintendo President Sataru Iwata is right, they shouldn’t call Wii a success yet as the company still has a lot to do, especially when it comes to winning in their home country.

I’m sure when bigger titles like Mario Galaxy and SSBB hit the Wii’s will be flying off the shelves ,but they need a game for japan that will keep them waiting.

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