Friday, August 28, 2009

Why the Wii needs a price cut fast



Smooth ride up until now

The Wii needs a price cut fast and here is why. Up until now, Nintendo has had a very smooth ride this generation. They started out with the lowest price proposition by far and the most revolutionary, intuitive and immersive control scheme and biggest fun factor to top it all off. At least, that is what more than 50 million people around the globe think.

Sure, the white box can only deliver 480p as its top resolution. And the rest of its hardware is equally modest, making sure that most graphics-intensive games by third parties get either a toned down version, a completely unique adaptation (some examples are ´Overlord: Dark Legend´, ´Dead Space Extraction´, ´Resident Evil: Darkside Chronicles´) or pass the console by completely. But, all the unquestionable Nintendo goodness aside (´Metroid Prime 3´, ´Zelda: Twilight Princess´, ´Super Mario Galaxy´), hardcore gamers got a few third party gems, too. Particularly in the survival horror genre, Wii boasts more titles than any other console ever offered, I reckon (I have counted 20 already) and some are absolute must-haves. So, Wii sold to new gamers as well as to veterans, who probably own more than one console anyway. And it has been smooth sailing for Nintendo up until now, with Wii selling about as many units as the two competitors put together.

Microsoft seemed to endlessly tweak the SKU variety of their Xbox360 as well as their price. And, leaving the elusive fun factor aside, the 360 has been the best value proposition by far for a long time. But even this circumstance could not change the reality that is each companies' respective market share. Sure, Nintendo has hit dry spells in the past, with other consoles selling more units for a few months in one territory or another. But these dips were usually related to a lighter release calendar. When bigger titles drew nearer, sales rose again.

Software no longer moves hardware

Not anymore, it seems. The news of Wii hardware sales taking a 30 percent dip in the US last month despite the release of ´Wii Sports Resort´ should have Nintendo worried. Very worried, in my opinion. Because the title should move hardware as much as any other Nintendo game. A gigantic marketing campaign in the US should have made sure that the consumers were aware of the release. The fact that it did not move a significant amount of hardware can only really mean one thing: everyone that wanted to buy a Wii in the said territory has bought one. If a title like ´Wii Sports Resort´ cannot invigorate sales, then no title can (at least not of Nintendo's casual variety, which undoubtedly was the backbone of the console's success). The only option available to Nintendo of America may be a price drop. This would surely convince more people to hop on the Wii bandwagon. But software no longer seems to move hardware.

Upcoming games to disappoint

First, a little reality check: Am I being unfair here? Of course, all the other consoles sold badly in July. Well, yes. But the PS3 only took a 25 percent dip and the 360 went down a mere 15 points, only half of the Wii's loss. That is a significant difference. But what about other territories? In Japan, year-to-date year-over-year changes show big losses for the console. Europe may be the Wii's last resort (this is actually a double pun, if you remember an obscure PC game from 1996) but a worldwide downward trend is becoming clearer and clearer, it seems.

But what about other upcoming titles, particularly the third party portfolio, which is still a sore spot for Wii owners? Surely, exclusive titles like ´Monster Hunter Tri´ or ´Red Steel 2´ will sell hardware to the traditional crowd, if the more casual titles now fail to shift consoles. Unfortunately, I have it on good authority that both of these highly anticipated games will not deliver. They may look nice, but both titles are being rushed out of the door. Wii owners will have a few good survival horror titles to mull over. But there is no shortage of those on the platforms. So a ´Dead Space Extraction´, no matter how good it will be, will not become the killer app that a polished ´Monster Hunter Tri´ could have become.

Price cut the only solution

Especially with the PlayStation3's price drop and sleeker re-design, as well as motion control around the corner for both high definition consoles, Nintendo is coming under intense pressure this generation for the very first time. The only way out seems to be a price cut, preferably to be announced around Tokyo Game Show next month (though Nintendo will not exhibit, as always). I do not see any alternative for Nintendo (and I am not alone with this opinion), if they want to maintain the impressive momentum they have exhibited so far. This is the curse of a runaway success: maintaining it. After all, a boom, in economics, is a highly unstable and volatile state. And if they do not re-position the Wii's price point, Nintendo may soon find out the hard way.

EDIT Looks like I was spot on with my analysis. The following image was published by Kotaku. It may be fake, of course. But both the timing and extent of the price cut would fit perfectly, so I believe it is legit.


Source: Joystiq, Joystiq, Chart Get! Chart Get!
Thanks to: Some German Guy

100 comments:

Falafelkid said...

Wow, it's been around seven weeks since my last post. I apologize, but I have a good excuse. I am on parental leave until early October and minding the Falafelkidkid is a full-time job. If I have half an hour to spare between changing nappies and mopping up spewed-out baby food I usually prefer forty winks. Sorry, I am sure you understand.

I promise it won't take another seven weeks for the next post. Still working on that Sadness article, by the way. But it's a very bumpy road. Noone seems to want to talk about the company at the moment, which is a cause for concern.

Anonymous said...

simple answer """"!!!!NO!!!!"""""

I REPEAT NO....

Sony have not merely lowered there price and tried to cut costs with the cheap azzed tacky looking ps3 slim....

they have shown there desperation and ps3 is on its last legs drinking at the last chance saloon

the sony re -brand and over the top IT DOES IT ALL ADD CAMPAIN LITERALLY STINKS OF BUY ARE CONSOLE PLEASEEEEEEEEE WERE SO DESPERATE...............

sony have effectively mini re-released the ps3 and are trying to RED OCEAN IT INTO PEOPLES HOMES why i don't know because the red ocean approach that the ps3 is hasn't worked ps3 has flopped along side all the other flopping departments of sony OUCH .....

it plays movie the advert screams

its bluray the advert screams

it downloads shock horror really how wowzzer

it goes online wickedy wicked wuppzzziseee dudar

all for 299.99 wow weee

but who gets sucked into SAVVY marketing only RED OCEAN SONY FANS SONYS CORE MARKET and guess who the new add campain is aimed at

YOU GUESSED IT THE EXISTING FANBASE WHO ALREADY OWN IT

HOW SONY BUBU-ED HERE IS BEYOND ME....

red ocean marketing and over specs and a hyped bluray THAT WAS THE PS3 BUSINESS PLAN AND IT FLOPPED

so sonys answer was more red ocean advertising and a small price cut at the expence of the thing geting a tacky cheap build down grade and a expencive rush to 45nm chips

sony are red oceaning hard core marketing them self's OUT OF EXISTENCE......

theres no new gen there theres no wow the mass market can see or want its just a black box and a dualshock that operate via a movie format disc

NOW WERE DID I SEE THAT BEFORE OH YES PS2 AND PS1 BUT AUDIO DISC CD

theres nothing new gen or mass market about the device theres no innovation ether its just MORE OF THE GOD DAMED SAME SONY ZHIT.....

ps3 slim is the act of a desperate corporation as is pspGO ...


many many price drops and re-bundles for both ps3 and xbox 360 also many many hard-drive sizes

has resulted in ,,next to no sales increase at all vs the dominant wii

if wii continues to outsell both other systems globally from release to this date with out price drops as the competition lowers prices and re bundles like crazy

THEN HOW DID ANY JERK OFF come to the idea wii needs a fast price drop

INSANE COMPLETELY INSANE WHO THINKS LIKE THAT.........

people are looking at the price as if it needs to be inline with birdmen thinking

just because sonys pricing its self into extintion and micrsoft wastes billions and billions fighting the set top box war

does that mean nintendo should do the same thing UTTER HOG WASH GET A GRIP FOR GODS SAKE

keeping the price stable keeps the desired product image going

as x360 and ps3 look like desperate whores selling it cheap for crack

wii is the classy whore getting payed big money my business men in hotels just to get a foot wank and a flash of thigh

wii walks away head high dignefied and a hand full of cash


sony and micrsoft mouth wash cum out of there mouths in back alleys after a 10 buck blow job

x360s disastrous build quality hasnt gone unnoticed and sonys hype and lies at last (thank the gods) hasnt gone unnoticed ether

ps3 ps2 psp xbox x360 gamecube etc ARE OLD GEN OLD FLESH OLD CULTURE

Wii and DS DSi are new gen new flesh new culture untill that penny drops in D'morons head

thell never learn to think like the mighty wiiboy101 formally cubeboy101 (mii)

or malstorm who writes the amassing disruption articles

do you really want to know what is happening well tap the links i supply and actually read them from top to bottom

what will happen is not unlike a girl saved from a cult she will be de-programmed by a expert

think of the following articles as de programming from sonys and 3rd partys and jurnos and analists

lies http://malstrom.50webs.com/washinghardcore2.htm

Anonymous said...

PART 2....read it dont look and dismiss it click it read it and just maybe you start thinking for ones self instead of having urges to suck sonys pole http://malstrom.50webs.com/newworld2.htm
theres more http://malstrom.50webs.com/birdman.html

Anonymous said...

i couldnt believe it wen i seen the ps3 add for tv in the usa ,,,its a stereotypical fat lazy sony fan or pc gamer guy banging on about all the HD savyness of ps3 for 299.99... my first thought was wait a second that guy already has a ps3 wheres the add campaign to get it into EVERYONE'S HOUSEHOLD LIKE wii..

tacky desperate adverts a tacky cheap plastic casing a whole corporation on its knees and a console in last place and a handheld that basically just survives

Sony and Sony fans put your hands up and ether admit defeat or surrender.....

Anonymous said...

after the holidays falafel after the holidays.

Eventually has to drop in sales once almost everyone and your mom has a wii.

Anonymous said...

post above mii commonsense itsd a great thing nice to see you have some

a black wii alone would out sell ps3 slim nevermind a price cut

mario 2d 4x player wii at christmas plus wii fit + and wm+ games = sales lots and lots of sales

Anonymous said...

Nintendo may soon find out the hard way. the last line from the article,,,,

are you sugesting that wiis massive userbase(install base) is at risk from ether ps3 or x360 in the near future you state nintendo may find out the hard way SOON

are you suggesting ps3 or x360 or both will sell millions a pone millions of consoles in a short periode of time

falafelkid hold on to ur hat ur heads about to blow off COME ON GIZZA DO YOU REALLY BELIEVE WHAT YOU STATED

ROLLSEYES LOL but i still love ya

Anonymous said...

First, a little reality check: Am I being unfair here? Of course, all the other consoles sold badly in July. Well, yes. But the PS3 only took a 25 percent dip and the 360 went down a mere 15 points, only half of the Wii's loss. That is a significant difference. But what about other territories? In Japan, year-to-date year-over-year changes show big losses for the console. Europe may be the Wii's last resort (this is actually a double pun, if you remember an obscure PC game from 1996) but a worldwide downward trend is becoming clearer and clearer, it seems.


and yet you still fail to see that with that drop even do is higher than the other consoles, it is still selling more units than both (not combined but more when compared to each one)

as for games, i guess you forget both mario games, once the new one comes out comes out specially for the holidays its gonna bring a lot more people, and as for galaxy 2 it might even convince new player to get the Wii as they are gonna see that they can buy the first one cheaper aswell.

desperation is not the answer, sometimes a little patience can give you a better look of what you think its coming.

yor mom speaking, I kick your ass on Wii sports

M. Ferreira said...

No worries, Falafelkid. :) Raising a child is definitely two full time jobs at once. I wish you luck in that end of things.

On the price cut end, I have to politely disagree. While Nintendo's not shifting 500,000 copies a month anymore, they still have a very strong momentum behind them. Month over month, they're still out-performing the competition on at least a 2:1 basis. There's no reason to knock the price down just yet, when they're still dominating the monthly charts.

The issue with price cuts is that it devalues the product in the eyes of a consumer. Once it drops once, you'll have that group of people just waiting for it to drop again, and again, and again... much like we're seeing with software in general right now.

More than anything, I expect to see another type of bundle or a new color hit the market before a full-fledged price drop.

Of course, if the PS3 and 360 do start eating into Nintendo's longer-term market share, I'll gladly change my mind on the issue. :)

Error404 said...

Amazing article man, I do agree nintendo needs to make a price cut and maybe announce one more major game to bring it's shine back.
Also thanks for the comment on the sadness article, looking forward to seeing it when you put it up (cause seriously one of the very few wii games I'm looking forward to.)

Also Falafelkid, What would you think happen if nintendo around TGS (October conference. announced a new system bundle, say Wii + wii sports resort or Metroid trilogy?

Anonymous said...

"But what about other upcoming titles, particularly the third party portfolio, which is still a sore spot for Wii owners? Surely, exclusive titles like ´Monster Hunter Tri´ or ´Red Steel 2´ will sell hardware to the traditional crowd, if the more casual titles now fail to shift consoles. Unfortunately, I have it on good authority that both of these highly anticipated games will not deliver. They may look nice, but both titles are being rushed out of the door."

lol mh 3 scored 40 out of 40 from famitsu! lol

Anonymous said...

oh and btw the ps3 slim is the ish..cant beat that...goodbye wii

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True Believer said...

Nice article, but are you sure that both MH3 and Red Steel 2 will not deliver? Didn't MH3 get rave reviews in Japan? And was it not announced that Nintendo would help Capcom to promote Monster Hunter 3 in the west, to make it a success?

Ubisoft delayed the release of Red Steel 2 just to polish the game more and the previews by journalists have been positive so far.

I don not know wether these games will deliver, but I do not believe that good games only will help to boast the sales of the Wii.But the combination of a price cut combined with more quality software could attract more core gamers to the wii platform. A 50 dollar prices drop combined with 2 new Mario games, a new take on Metroid, a new Zelda,some new franchises and great 2nd and 3rd party support could convince a section of core gamers to try the Nintendo wii. And the price cut combined with wii sport resorts and a new wii fit game could attract new casual gamers. It would be a good move, especially because the console is on the market for almost 3 years by now and producing the system should be very cheap by now.

p.s. A lot of people using the dolphin emulator to play wii games on their pc's are claiming that the Wii games they play are looking really good, because the dolphin emulator allows them to play these wii with HD quality, couldn't Nintendo release a cheap add on device that would port wii graphics to hd on your television or monitor?

Anonymous said...

the wii went down the wii went down THAT IS THE SAME THINKING AS THE ANALYSTS AND JOURNALISTS

THE WII MAY HAVE GONE DOWN SOME MONTHS

BUT IT IS STILL ABOVE THE COMPETITIONS NUMBERS UP OR DOWN BY A HUGE MARGIN

IF WIIS DOWN IS ABOVE SONY AND MICRSOFTS UP

THEN HOW ARE YOU EVEN MAKING SENSE

HOW CAN THE GAP BE CLOSING IF WIIS USERBASE LEAD IS SO SO FAR AHEAD AND WII CONTINUES TO OUT SELL THE COMPETITION

ITS CLEAR BASIC MATH SHOWS US WIIS INSTALL BASE GETS BIGGER AND BIGGER STILL

AS PS3 X360 CAN NEVER EVER CATCH UP

ITS COMMONSENSE STOP HIDING BEHIND % UPS AND DOWNS

WIIS DOWN IS ABOVE THE COMPETITIONS UPS

AND GLOBALLY FOR 4 YEARS WII HAS SOLD FASTER THAN ANY OTHER CONSOLE EVER


SO STOP TRYING TO FIND OXYGEN SO YOU CAN BREATH SONY FANS

UR BLIND TO THE TRUTH

Anonymous said...

the issue with 3rd partys and wii is 3rd partys

will the sony fan please read birdmen casual falacy and other such articles

and learn to stop thinking inside boxes

wii has no 3rd party issue

3rd partys themselfs have the issue

work out how to think like an adult sony fans not an idiot

Anonymous said...

p.s. A lot of people using the dolphin emulator to play wii games on their pc's are claiming that the Wii games they play are looking really good, because the dolphin emulator allows them to play these wii with HD quality, couldn't Nintendo release a cheap add on device that would port wii graphics to hd on your television or monitor?


emulator runs like 5 frames a second and theres no wiimote nunchuck controls


its a load of pc fanboy hogwash

you cannot play them dam games and they run like a snail

DONT BELIEVE PC FANBOYS THERE ALWAYS LYING ABOUT THIS STUFF


my freind a pc head into all iligal downloads always bangs on about ds roms

so i say well play it then prove to me you can play it

he switches on pc he runs a rom thats laggy as hell pc dualcore cannot even run a ds emulator smooth let alone wii

he then startys fiddling with his keyboard

no control over a ds game what so ever he cannot play it

i say well play it then he turns and says i am


i say you have no touchscreen control at all and ur struggling to even operate it

but then these guys go online and swear before god there playing DS on a pc screen

fucking lying freaks

http://malstrom.50webs.com/birdman.html

http://malstrom.50webs.com/washinghardcore2.htm

http://malstrom.50webs.com/newworld2.htm

read the above pages go o0n you may EDUCATE UR SELF

Anonymous said...

DSi 59,578
PSP 27,187
Wii 26,972
Xbox 360 8,979
DS Lite 5,735
PS2 3,295
PS3 2,052 LAST WEEKS JAPAN NUMBERS HARDWARE

I THINK ITS THE SONY FANS WHO NEED A REALITY CHECK

26,972 WIIS IT WAS 40PLUS THOUSAND WEEK BEFORE AND NEAR 100K WEEK BEFORE THAT

SO YES WII SALES HAVE DROPPED HOW CLEVER YOUI ARE SONY FAN

BUT DID IT CROSS UR TINY STUPID MIND THE LOWER NUMBERS ARE STILL WAY WAY AHEAD OF PS3

NUMBERS SOLD NOT % ON A ALALYST SHEET OF PAPER

ITS CALLED REALITY

PS3 BEHIND PS2 AND X360 IN JAPAN CHECK THAT REALITY SONY FANS

Anonymous said...

Historians keep getting this generation wrong by comparing NES’s competition to the Atari 7800 and Sega Master systems. But remember that those two systems came out as mostly a response to the NES’s success. When NES founded a ‘blue ocean’ twenty years ago, competitors jumped in. But they were not the NES true gaming nemesis.

Gaming was well and alive in the mid-1980s in America, and they were on the computers. When the console market crashed, the computer market soaked up the gaming remains. It was believed that consoles would always crash and gaming would return on computers. Each year of the NES Era, analysts (obviously prototype incarnations of our current model analysts) proclaimed, “Nintendo has had its last good year,” for then the market would suddenly ‘crash’. They kept saying that even into the 1990s.

But the game centric computers were in their own red ocean. They were going into the 16-bit generation while the NES was, graphically, a generation behind in the 8-bit generation. Those who think the Wii’s processor is outdated should look at the NES’s processor which was from the 70s. But people do not play graphics, they play games. NES had amazing software. The user interface of the NES, sitting in the living room playing on the TV, trumped sitting at a desk huddled around a small monitor with the computers. Kids flocked to the NES simply because it was fun while computers were more like ‘work’. NES games loaded instantaneously while one had to wait a while for the computer games. NES also sported a new controller that seemed odd when joystick was king. Like the Wii, NES had non-games from Duck Hunt, Track & Field, and the R.O.B. games. The Wii Generation will look back fondly on these ‘non-games’ and likely turn them into cultural icons as the NES Generation did.

Some old computer gamers may blow a gasket at some of the value ratings I placed the computers (especially on the topic of software). Consider twenty years later, we still obsess over NES games while no one hears a peep about these old computer games. Because of that, I place the higher value of the software on the NES.

Notice how the Wii matches the value points that the NES did. In fact, the Blue Ocean Strategy applies to no other console in the past except the NES. Well, that and the handheld….

Anonymous said...

Casual Gamer Myth

I have never seen a book more cited and little read than The Blue Ocean Strategy within gaming circles. The myth that is going around, even hilariously believed by third parties, is that the Blue Ocean Strategy means going after ‘casual gamers’.

Really? Where does it say that in the book? Notice how no one ever cites the Blue Ocean Strategy saying that. They are too caught up in the metaphor for Blue Oceans vs. Red Oceans to really get into the guts of the book. They are only applying the metaphor to the games industry as opposed the strategy and contexts themselves. So they see only Sony and Microsoft competing for the hardcore with Nintendo’s new direction they mistake for aiming at casuals.

If one reads Nintendo’s words carefully, they do not cite the Blue Ocean Strategy in terms of ‘casuals’ but only in terms of non-competition. Let us listen to what Reggie really said:

“In the past, you've heard us talk about blue ocean strategy and innovator's dilemma and our role in this industry as a disruptor. But let me showcase for you another way to think about what it is that we're doing in this marketplace -- another way to look at our strategy.”

–Reggie at the Nintendo Summit for Summer 2007

Reggie then talks about Nintendo aiming at casual and expanded audiences before the typical hardcore. But isn’t that the Blue Ocean Strategy? Why is Reggie referring to the aiming at expanded audience as different from the Blue Ocean Strategy? It is because the popular stereotype is not true, that Blue Ocean Strategy does not mean ‘aiming at the casual audience’.

Anonymous said...

Soul of the Wii

As the Wii shoots up like a fountain, consider the spray to be the Blue Ocean Strategy and Innovator’s Dilemma. But what is the source of the fountain itself?

Aside from the Wii, there is only one other console ever created that matches the Blue Ocean Strategy and disruption of Innovator’s Dilemma. This console is the NES. It created new markets while disrupting the game centric computers at the time. Ironically, Bill Gates and Ken Kutaragi label their systems as game centric computers rather than consoles. And, just like twenty years ago, the analysts are proclaiming the Wii to be a bubble that will ‘burst’ and gaming will return to the game centric computers.

“We were the disruptors twenty years ago and now we are so again.”

-Reggie Fils-Aime concluding Nintendo’s 2006 E3 Press Conference.

Anonymous said...

Fallacies Through The Generations

Within every generation of gaming, a business myth is created, catches hold, and becomes insanely believed by gamers and even some publishers. Let us go through the list:

Generation One (Pong Era)

MYTH: The beginning of the business of personal computers and video-games are entirely separate.

(History on computing has whitewashed gaming out. Steve Wozniak admitted that the Apple II was designed mostly as a gaming machine. And how many young people did “Space War” and other games inspire to start programming in their youth?)

Anonymous said...

Generation Two (Atari Era)

MYTH: Video-games are a fad and would always crash. The future of gaming will forever be on the PC. Soon, the PC will take over every digital function in the household.

(The NES of the third generation would shatter this myth completely. Using a processor from the 70s, the NES showed that not only does the console market lives, the NES destroyed the dream that PCs would be the nexus of everything digital.)

Anonymous said...

Generation Three (8-bit Era)

MYTH: Nintendo persecuted and kept third parties down under an iron boot of draconian licensing, manufactured shortages, and uncanny censorship of brilliant tortured artists and their masterpiece games.

(Nintendo's approach to third parties was to insure that the Atari Crash would not happen again as their business model became copied with every other console maker onward. Keep in mind, at the time, every analyst and journalist kept predicting doom and crash for Nintendo up to 1992. The simple sprite changes for religious symbols or anything that could be interpreted as racist was self-regulation in a hostile political environment. There was no ratings system at that time.)

Anonymous said...

Generation Four (16-bit Era)

MYTH: The "Console War" between Sega and Nintendo was the best thing since sliced bread. Such competition created the best games! Oh, why can't we have more console wars! They are so good for gamers and the business!

(The "Console War" was the worst thing ever for the industry and gamers. Instead of focusing on growing the market, as Nintendo was determined to in the 8-bit generation, the company began to lose its way inside the Red Ocean. The 'competition' resulted in crass advertising campaigns and games that mimicked one another. It was horrible for gamers as Sega threw silly hardware onto the market from Sega CD to 32x. The "Console War" mentality would, in time, destroy Sega and cripple Nintendo allowing an opening for newcomer Sony to take the market.

Luckily, the "16-bit Console War is awesome" myth appears to be dying this generation due to Nintendo's 'non-competitive' approach.)

Anonymous said...

Generation Five (3d Era)

MYTH: Nintendo lost to Sony because the N64 used cartridges and not CDs.

(Obviously, licensing issues and third party relations went way beyond the nature of the Saturn had CDs so why didn't they prosper? It is because third parties were looking to escape Nintendo's heavy licensing and thought Sega was the salvation with its Genesis. But Sega wanted to BE Nintendo and had similar licensing. Sony carefully watched the third party companies jump back and forth and Nintendo and Sega go at each other.

The N64 failing had more to do with Nintendo's change of direction during the '16-bit war' everyone so mistakenly loves and failure to update their business practices after the crash-solutions from the 8-bit era.

The DS surpassed the PSP in both sales and third party support with DS using cartridges and PSP using discs. The point is that the problem was deeper than the surface nature of the format.

Anonymous said...

Generation Six (Cinematic Era)

MYTH: PS2 sold so much because it was also a DVD player!

(Early adopters and some poor gamers might have bought the PS2 also for its DVD capacity, but PS2 succeeded because of its game library. It was also at a mass market price.

Ironically, Sony, Microsoft, and Nintendo bought into the myth that PS2 did well because it was a DVD player. Nintendo made a DVD playing Gamecube (that went nowhere). Xbox playing DVDs did not skyrocket the system. Sony so believed in this myth that it made the PSP play UMDs (which died on the market) and PS3 to play Blu-Ray discs (which are going nowhere in the market).

Happily, this myth appears to be dying this generation.

Anonymous said...

Generation Seven (Disruption Era)

MYTH: Nintendo's rise to heaven is because of casual gamers instead of focusing on the hardcore.

(Like previous myths, this one is spreading like wildfire and becoming cemented in the minds of gamers, the media, and some third party companies. So how did this myth get started?

With Nintendo saying they are not 'competing' with the Xbox 360 and Playstation 3 this generation but are focused on 'growing the market', everyone interpreted this to mean Nintendo to ignore the hardcore and focus on 'casual gamers' (under the impression the game market has been casual-less and hardcore centric). This myth comes from people being enchanted with the metaphor of the "Blue Ocean Strategy" of avoiding blood-soaked red oceans for blue-oceans where there is no competition.

As Iwata has said repeatedly, Nintendo is competing against disinterest. Who has disinterest? Disinterest can be found in those who have never played a game, former gamers, and even hardcore gamers. Iwata then says hardcore gamers are the main priority because if they become disinterested, their best customers are gone.

Anonymous said...

Wii: The New NES



The NES is the model for the Wii. Not the SNES, not the N64, and heaven forbid not the Gamecube! The reason why many gamers got the Wii wrong is because they are young (in twenties or below) and did not know how the industry was pre-NES. The reason why ALL analysts got the Wii wrong was because they stubbornly refuse to incorporate a ‘sweep-of-time’ analysis that involves all seven generations. They study only the last couple of generations as a predictor of events for the future. Had they studied all seven generations, they would have accurately predicted the Wii explosion. Remember that the last consoles that recreate interest in primarily cold markets were the Atari 2600 (after the PONG crash) and the NES (after the Atari crash). Studying the Atari and NES generations will yield more insight for the Wii generation than studying any other generation. It is not a coincidence that many Wii games share an eerie similarity with those generations from Wii Tanks to Combat, Excite Truck to Excite Bike, and even Wii Tennis to PONG. While Nintendo is praised for bringing back simpler gaming, older gamers will remember that Nintendo was the destroyer.

History will be very kind to the Wii. The Atari 2600 and NES reached a high echelon dwarfing following systems in terms of their culture shock, altering how society perceived video games, and defined their era. Just as most reviewers today are mostly from the ‘NES Generation’, most reviewers twenty years from now could be from the Wii Generation. They will grow up with motion controls and will write feature stories about the ‘glorious year of 2007’ when their parents bought them a Wii. In 2027, people will probably remember the PS3 as an Atari train wreck, the Xbox 360 as a hardware disaster (with no Xbox 360s working then unless specially modded), and the Wii for saving gaming as the NES did. Today, there are Atari fans who, after two decades, are still bitter about the NES success. Many game computer fans of the early 80s still believe the NES ‘destroyed gaming as we know it’. The funniest surprise await the PS3 and Xbox 360 stalwarts who despise Nintendo’s business moves as their blood pressure rises with any mention of ‘Blue Ocean’ or ‘New Market’. Twenty years from now, their children will be reading about the success of the Wii in all the business textbooks (as the NES is today).

Anonymous said...

The Flood

Before the Wii launched, I wrote a series of articles for The Wiikly describing the incoming tidal wave of the Wii and not just that the generation belonged to Wii, but that Nintendo would pull the rug from the top box war of Microsoft and Sony. I received many emails with some being downright nasty. The idea that Nintendo could overwhelm the console market was shocking at the time, and they refused to believe it was probable, let alone possible. I had to have been a wishful Nintendo fanboy or a convert viral marketer to have said something so preposterous. Over half a year later, business magazines echo much of what was said. Why? It is because Blue Ocean Strategy and Innovator’s Dilemma were not marketing talk but real strategy books and highly respected within the business community. Nintendo hid their business strategy by placing it in plain sight.

Unfortunately, with all the media attention on the Blue Ocean Strategy aspects, there has been little talk of the disruptive properties of the Wii. This is probably due to the ‘LOL casual gamers!’ myth that is the craze now. As you have witness in my above wall of words that “Generation” revolves around software, not hardware, and specifically to user experiences the software, working with the hardware, create. The motion controller is not the disruption; it is the software working with the controller. Genre by genre, franchise by franchise, the Wii is disrupting its competitors in a systematic fashion. No one will accept playing tennis or bowling game on the HD systems, even if the games are more ‘complete’, because Wii Sports disrupted how we play those games. Why push button combinations when it is more natural to swing one’s arm? As development with Wii controls improves, the ‘novelty’ factor of Wii games blossom into a disruptive nature. While God of War type games are certainly going to be made for the HD systems, what if a Wii one was made with precise motion controls? It would be far more interesting and intuitive to gamers that turn it to disrupt the competitors’. Iwata won’t shut up talking about how Wii is ‘natural’ for FPS games. What Iwata is really saying is that he intends the Wii to disrupt FPS gaming despite the early lame attempts. Could this be a reason why magazines are saying Metroid Prime 3’s controls are a ‘FPS revolution’ since the original Halo? We will have to wait and see. Star Wars games have been consistent sellers as well. Iwata also won’t shut up about a Wii light saber game. If such a game was made, would anyone really care to push button combinations of light saber fights on the HD consoles? How about strategy games using the pointer versus the analog sticks? Other disruptions will be lesser in nature such as RPGs played with one hand versus two. As these disruptions mount, the Xbox 360 and PS3 software become less and less interesting. Do not forget how the DS software made the PSP games, despite their graphic superiority, seem tired and used.


"Yes, we have already disrupted handheld and it worked. Yes, we have already disrupted Wi-Fi and it worked. We disrupted the very definition of a game and that is working, too. In a few weeks, you will better understand how to disrupt console gaming. You will play, and you will see.

-Iwata (GDC 2005)

Anonymous said...

educated you just been so

Anonymous said...

You may think the revolution has come and gone, but I am here to tell you it has just begun. So far, the Wii has been little more than tidal waves slamming the shores and sweeping over the industry. Every month, people stare at Wii NPD numbers in wonder. “Oh heavens, PLEASE be a fad. Please!” This Fall is as critical to the success of Wii as the launch. It is from here that those irregular tidal waves will become a longstanding flood. Many people sold their DS systems the first year because “there were no games”. Now, the DS has “too many games”. For those who sold their Wii systems, good luck trying to buy another one this Fall. This Fall will begin to have ‘too many games’. Nintendo will also unveil hardware you already have (but didn’t know about) in order to ‘surprise’ the market.

What is more fascinating than the expanding gaming market is the expanding Nintendo. Nintendo is now one of the top ten most valued Japanese companies whose market value surpassed Sony. Nintendo of America has decided to send the sales and marketing staff to New York and San Francisco. This move shows that Nintendo wants to be a participant in Silicon Valley and foreshadows more ambitious plans to come. So far, the Internet has been used primarily for information. It has not yet been fully utilized for entertainment. We are on the cusp of another Net Boom but this time it will take place in entertainment. This is the reason why Sony and Microsoft shoe-horned all these digital entertainment eccentricities into their monstrosity consoles because they want to get there first. Nintendo designing the Wii hardware from the ground up to be an online console shows they know which way the trends are heading. Japanese companies think in long-term, and Nintendo is positioning itself to take advantage of the huge change coming ahead.

Regardless, some people (they know who they are) have been so embarrassed by the sudden change in the market that they are now saying, “Nothing to see here! This is simply a market change like the changes of the phase of the moon.” Or they say, “Nintendo did nothing! Microsoft and Sony just screwed up!” While that shows the typical ‘blame the disruptor’ attitude when a market gets disrupted, it doesn’t explain why EVERY analyst put their bets on Playstation 3 or Xbox 360 to come out ahead this generation. Sometimes, they would not think it worth including Nintendo’s ‘Revolution’ into their analysis!

This generation is unlike any other in two major ways. First, Nintendo is introducing new business models and concepts that every console manufacturer will emulate from here on out. We have not seen this since the NES. Second, ‘console wars’ are caused by people wanting their hardware to be a ‘good investment’. No one wants to be stuck with a turkey. Unlike previous generations, competing systems now cost two to three times more let alone the high costs of HD televisions and sound systems some gamers are insanely buying just for their game machine. The higher the buyers’ remorse, the more bitter the tears.

As the flood slowly rises, ignore the screams from the ‘elite’ gamers as they drown in the Blue Ocean. Let these ‘sophisticated’ and ‘cultured’ gamers swim with the other ‘sophisticated’ and ‘cultured’ consoles from the past such as the Atari 7800, the Sega Saturn, the 3DO, and 1980 game centric computers. Let them sink into their underworld of alternate realities as their games become nothing more than fading embers from a gaming age long past. While the old continent sinks below, the surface above has revealed an unexplored realm.

"When I think of what faces all of us right now, I imagine what it must have been like for the explorers who first set foot on a new continent. For them, it was impossible to imagine all the adventure that lay ahead.”

-Iwata, GDC 2006, "Disrupting Development" speech

For above the Blue Ocean awaits the New World.



Home | Before the Revolution | Malstrom's Casual Article Division
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Anonymous said...

http://seanmalstrom.wordpress.com/2009/05/14/why-nintendo-is-always-doomed/


nintendo doomed for 20 yearsas number one game company on earth there doomed

its the so called industry thats doomed

Anonymous said...

who is this "so" anonymous person who make question & answer?? lool
This blog needs to revive but what is those manners??!

pero_detlic said...

wow, nice to have you back falafel! i agree with you here, nintendo MUST drop wii price now.

regarding your statement that software (wii sports resort) is not selling the system... i don't know what to think about that... i think it's the whole "casual gaming" problem- "casual" gamers saw wii sports, thought "oh cool", played it a little and never turned the white box again. they dont care about new add-on or new wii sports, they got tired of it.

not everyone, of course, as galaxy, mario kart and some other games have very high sales numbers.

but i must point out, what i did before, the wii needs games!! "core" gamers are waiting too long for a new release. and what we (will) get? another metroid, metroid prime, galaxy, mario... great games for sure, but... we already have that!

nintendo killed (for now) classic donkey kong, starfox, f-zero...

nintendo needs the price drop and some friking great games. not another wii sport/fit/shit, they sold us that already

Falafelkid said...

First of all, thanks for the great response and the very insightful comments. I especially welcome the mythbusting entries, although I don't agree with everything being said (I believe it is a fact that the PS2 at launch sold alongside more ´Matrix´ DVDs than games and the fact that Xbox and the Panasonic Q could not replicate this strategic advantage might just as well prove that every gamer already had a PS2).

I will not be able to address the comments individually at the moment. But I appreciate the lively debate my comments sparked.

I just want to add a few words of clarification. Of course, I am aware that the Wii is still selling better than the competition in most territories most of the time. But the competition is closing the gap and despite a major first party release. This is a scenario that should have Nintendo worried. Because the hardware manufacturers have to look beyond the current situation and consider the trend.

As far as ´Monster Hunter Tri´ is concerned, I am aware of the critical reception in Japan. Still, I have been told that the game offers little more than impressive visuals. Just like ´Red Steel 2´ it is said to have big quality issues and will likely have little impact on Europe and North America.

And I want to go on record here: I see no doomsday scenario for Nintendo whatsoever. The company is swimming in money and could probably buy both Sony Computer Entertainment and Microsoft's Entertainment and Devices Division if they were for sale.

I am simply concerned with a long-term dip in Wii sales figures leading to a weaker perception of the platform by third parties and, consequently, less exclusives. A price cut for the Wii will happen within the next six months. The question is whether it will be before the holidays or after. And I believe that Nintendo would be wise if they cut the price before, thus cementing its market leadership for good.

Anonymous said...

CLOSING A GAP YOUR SO WRONG IT AINT FUNNY

EVEN IF THEY OUT SELL WII FOR THE NEXT 18 MONTHS WIIS NUMBERS WILL NEVER BE REACHED

CLOSING A GAP IN MONTHLY SALES STILL HAS WII ON TOP AND STILL HAS WII USERBASE GAINING GROUND


IF I SELL 6 OF SOMETHING A KMONTH FOR 4 YEARS AND COMPETITION SELLS AROUND 1.5

THE COMPETITION GAIN SALES AND SELL 2

BUT I STILL SELL 3 THEN WERE IS THE GAP CLOSING


BASIC MATH WII LEARN IN BABY SCHOOL SHOWS US THAT EVEN WITH A CLOSING GAP AS YOU PUT IT


THE WII NUMBERS HUGE LEAD STILL GETS BIGGER

THERE IS NO RUSH FOR A WII PRICE CUT WHY WOULD ANYONE THINK THAT


ITS SONY FACING DOOM NOT NINTENDO

Anonymous said...

Falafelkid,

So glad to find a post from you in my reader today. I was *just* thinking about how long it had been since I had seen any new content from you, and there it was! :)

Sadly, I'm very very VERY disappointed in your article. You were always the leader in insightful Wii commentary, but it's now obvious that "life" has taken priority, and you've not been able to spend nearly as much time doing an actual analysis of the games industry as of late. This is totally fine, of course. Congratulations on the Falafelkidkid :) Lucky guy.

I really wish wiiboy/cubeboy was able to articulate better. If only he'd put as much passion into spelling, grammar, and punctuation as he does into his content... *sigh* He's very funny, and actually knows *exactly* what he's talking about. Alas, he will not be understood by many.

Falafelkid. Dude. If you *honestly* believe that the Wii "needs a price cut NOW" or "Nintendo will learn the hard way", you're simply not paying attention.

The value proposition is simply *different* with Wii. As wiiboy/cubeboy tried so eloquently to say, (heh heh) Wii absolutely holds a different *type* of value in the consumers eyes than the HD consoles.

Nintendo just "doesn't" price cut anymore. Why cut the price of your product when you don't have any actual competitors? STILL, everybody is making the *same mistake*, *over and over*, that PS3 and 360 are competing with Wii. They're simply not (yet)!!!

Check it out-- While other publishers and developers are complaining about "used games" eating away at their profits, Nintendo keeps the price of Mario Kart DS exactly the same since its release. Look at *ANY* non-nintendo made/published game that came out the same month as MKDS and tell me what has happened to its price :) Nintendo believes that it still holds its value in the consumers eyes, and by golly, if you look at the sales charts-- They're fuckin' right! :D It STILL sells! It's STILL a DS killer-app! :D

As wiiboy/cubeboy also already said, Wii could simply bring forth a new COLOR or a motion-plus pack-in before going the price-cut route. Still, I even think the motion-plus pack-in is far-fetched for a lot of reasons that I won't go into right now (undercutting its value, overshooting customers, etc).

Watch Falafelkid: Before cutting the Wii price, (right around the time that Sony and MS bring out "competing" motion controllers,) Nintendo will literally SHIFT the *whole focus* of the market to ANOTHER blue ocean, leaving Sony and MS to play catch-up AGAIN, and making them look archaic and irrelevant AGAIN. Likely this will happen with the Wii Vitality Sensor or something similar.

You would do well to readjust your understanding of what makes consumers purchase Wii, Falafelkid. It really is a shame to see you still stuck in the "last-gen" mindset where seemingly every single other games journalist and analyst is also stuck.

I was here for everything you ever wrote way back before the Revolution. What Wii turned out to be, after all of our speculation together... It was a shocker to say the least.

I too had to readjust my understanding of Nintendo's strategies. It didn't happen overnight for me, and it won't for you either. I mean... you have to literally break down "old gen" fuckin mental BARRIERS, but believe me-- If you want to continue to be a games journalist (which i believe you do?) you're *absolutely* going to have to go against the grain, and develop a better understanding of Nintendo's strategy with Wii.

Still your loyal reader and biggest fan,

-"superfan" tactics.

Anonymous said...

Wiiboy/Cubeboy,

Your posts have been amazingly entertaining here. Some people just don't get it, I suppose. They will. :)

I'm glad to hear that you're reading Malstrom's legendary fucking writing too, man.

I wish you had your own blog. I would love to see what you write in response to some of the same things that Malstrom responds to. Your "crack whore" analogy had my sides busting with laughter. So harsh, so lewd, yet so fitting and so satisfying :) Brilliant.

-"superfan" tactics.

Anonymous said...

haven't read good comments from this blog for a while from. so thank you for a great read.

now...

the book explains the benefits of creating ones own market, and becoming the leader in it (blue ocean), instead of competing in one that your company's perception is not the leading one (red ocean).

also...

its right that nintendo does not need to cut prices, as they them self have stated.

the price will eventually come down when a a new updated wii enter the market.

/silwer

Anonymous said...

Falafelkid, here's a very fun and interesting article speculating on the possibilities of the Vitality Sensor.

http://tinyurl.com/mfzuhl

Please, Falafelkid. We miss your speculation. You should be writing articles like THIS, not about ridiculous "game industry"-created delusions of an imaginary need for a Wii price cut and other such preposterous rubbish.

WE WANT SPECULATION, AND YOU'RE THE BEST ON THE INTERNET!!! BRING IT BACK, DUDE!!!

-"superfan" tactics.

Some German Guy said...

You know this thing about the Vitality Sensor is an amazing move by Nintento. Going away from the hardcore, reaching out for a new audience... this whole demographic thing. Older gamers, pensioners are having a blast with the wii.
Now you know how the future in the western world is looking like. The population of old people (a lot with health issues) is increasing. So is the number of unhealthy eaters... fat people. They are the new cash cow for Nintendo. With the Vitality-Sensor we'll have a new generation of games... DIABETES games!!! I mean this thing can "read" the users blood state!

My five cents... ;-)

Anonymous said...

stop thinking in a console box or console war mentality


start thinking in a everyday commonsense way about the subject peoples thinking is clouded by years of brainwashing

remove everything """they tell you"" to believe and stand back and OBSERVE the console war

its so easy to see if you LOOK

ATB cubeboy/wiiboy101

Metaldave said...

To close the gap one would think that they would actually be outselling the Wii to do that right? So far, it's not happening. The Wii is still outselling Xbox 360 and PS3 on a monthly basis.

Now if you are saying that combined, 360 and PS3 are closing the gap, then I guess maybe the last 2 months they have. Individually though they will never catch the Wii and neither of them have outsold the Wii since November '06 when the Xbox 360 sold over 1 million units and the Wii sold about 400,000 due to supply constraints.

Black Wii alone would spark sales up to the 400k range again all without a price cut.

Anonymous said...

xbox users reporting a 54% fail rate x360s userbase install base numbers are massivly over stated take 5 plus million away for failed consoles

NO ONE EVER THINKS ABOUT THAT

Falafelkid said...

Again, thanks to everyone for the great discussion here. Just to clarify some points again. There is no doubt in my mind that Wii is the winner of this generation. The question is whether Nintendo will just win this generation or win it by a landslide. If they want to maintain the momentum up until now they simply have to bring the console into a different price region and compete with the PS2, which is still a great value console.

Also, there has been much talk about whether the Wii is in competition with the 360 and the PS3. Mostly Sony and Microsoft have claimed that there is no competition, for obvious reasons. But I believe that a Wii is a gaming console just like the other two and having one in your home makes you less likely of purchasing another one. They are obviously in direct competition and I don't see how that is a last-gen attitude or thinking (great contribution, though, Tactics).

Anonymous said...

Again, thanks to everyone for the great discussion here. Just to clarify some points again. There is no doubt in my mind that Wii is the winner of this generation. The question is whether Nintendo will just win this generation or win it by a landslide. If they want to maintain the momentum up until now they simply have to bring the console into a different price region and compete with the PS2, which is still a great value console.

It makes it completely irrelevant wether you think the console is good or not, wether is winning or not, you article practicly says that they need to cut price now or they will be sorry.

I myself go against that belief, why? this is my reason, Nintendo is really popular with mario games, holidays are coming and many will want to get the new 2D mario, they can wait and drop the price after the holidays, right now it would be just a bad. People who will buy PS3's and xbox elites have been waiting for a long time for these price cuts and nothing will change their minds, people who want the Wii will get the Wii no matter what, this doom that you predict would probably be bad once the PS3 and Xbox have motion controls because then atleast there will be confusion, right there and then price will make a difference and mostly for the customer that wants to play Mario Galaxy for the Xbox 360.

Anonymous said...

Falafelkid,

Thanks for acknowledging my post...

Here's the thing: They're NOT competing. The fact that you think they are *is* your last-gen mindframe. This is the whole point of "The Blue Ocean Strategy". By breaking down the accessibility-to-gaming walls, Nintendo literally left the old market behind and created a new one where they had no competition. That's the whole point.

PS3 and 360 are NOT game consoles. They are set-top media boxes that do everything under the sun-- including playing games-- and they are advertised that way. They're dumbed-down PCs that you connect to your TV. This is why games are constantly ported between PC, 360, and PS3. THEY are competing.

When PS3s sales spike, 360s sales take a dip, and vice-versa. They compete for the same market, and are symbiotic of each other, cannibalizing each others sales at every single turn. Wii is NOT A PART OF THIS RELATIONSHIP.

As soon as Sony and MS actually figure out what makes the Wii customer buy, they can begin to compete with Nintendo. Fortunately for Nintendo, Sony and MS are *computer hardware/marketing* companies, and not *videogame/software* companies, so while their hardware might look impressive, and their marketing might scream "LOOK AT US WE'RE LIKE THE WII NOW TOO", The Wii customer is clearly going to be smart enough to spot a wolf in sheep's clothing from a mile away, because they're much savvier than most people think. (this is why old-gen 3rd parties scream "ONLY NINTENDO GAMES SELL ON WII, WAAAAAAAAAAAAAHHHHHHH" ...No, your games just fucking suck.)

I'm sorry Falafelkid, dude... I don't mean to come off as rude or anything, but seriously: You still don't get it! Take a closer look man!!! Your fans want you to speculate on the possibilities PLEASE!!! Write something about the Vitality Sensor! You're the only one who can do this for us! PLEASE!

-"superfan" tactics.

Anonymous said...

exactly my point all along for like the past 2/3 gens....

Sony NOT INTERESTED IN GAMING'S EVOLUTION its a set top box war

Microsoft NOT INTERESTED IN EVOLUTION OF GAMING its a set top box war


microsoft feared playstation branding

sony wanted playstation to be the home do it all hub

each wanted global home living room domination

GAMING WAS THERE BACK DOOR INTO ARE HOMES BEFORE THERE !!!!DICTATORSHIP STARTED!!!!

NINTENDO WANTS TO HAVE FUN AND EVOLVE THE THING WE CALL GAMING AND ADD ADITIONAL APPS THAT AGAIN ARE HELPFUL AND FUN

NOT MEDIA CONTROL NOT CONSUMER CONTROL POPULATION CONTROL NET CONTROL ETC FROM ONE BOX IN EVERY HOME IN THE WORLD CONTROLING TV TO GAMING TO BANKING ETC


micrsoft wants you evslaved

sony wants you enslaved

nintendo wants a smile on ur face


jesus h christ dont any of you see this glaring fact

wiiboy101

Anonymous said...

nintendo evolved the gaming experiance on a !!!!!!!!1gaming console!!!!!!!!! so thats gaming yes thats core yes


so how is a movie core gaming

so how is a 3 generation out dated dualshock core gaming

how is long loadtimes core gaming


why do people /fans say stupid shit like im a core gamer thats why i like bluray


bluray is a storage disc designed for movies


wiimote is a device for playing games


but wii is casual non gaming and ps3 a media hub with long loading and a movie disc is core gaming


wait a second hold ur horses non of the above makes sense


AND THATR IS WIIBOYS POINT ALL ALONG


WII= D'game


ps3 = i dont know what i am do it all shit box

x360 is a micrsoft pc back up buddy against the playstation brand


only nintendo is D'game wake the hell up if you cannot see that

Pimp My Nintendo said...

PS3 is even launching a TV campaign that's aimed that the reduced $299 for the PS3. I think you are right and Nintendo needs to setup and give the Wii a price cut to remain competitive.

Some German Guy said...

@ "superfan" tactics

"Here's the thing: They're NOT competing"

Maybe in theory they're not competing. But when parents who hardly know anything about consoles see their choice (and get subjective advice from the sales person) Wii definately has competition.

"PS3 and 360 are NOT game consoles."

Hmm... come on. The games sell a console (e.g. Microsoft=Halo, Sony=Gran Turismo, Nintendo=Wii Sports). The companies invest millions to create a unique gaming experience for their console. The games (and online services) are the profit makers. What would PS3 and 360 be without games? Sure they can offer a lot more but that all is secondary.

Anonymous said...

Some German Guy,

What do you mean "in theory" they're not competing? Also, what do you mean "Sony = Gran Turismo"? That game's not even out yet!

"In theory"? Come on. Just the fact that you even say that makes it clear that you also don't understand the Blue Ocean Strategy even in the slightest.

CLEARLY, with Sony and MS scrambling to release motion-control technology, they've dignified Nintendo's direction as the proper direction for gaming. They realized they'd been made a fool, and are now going to do *anything* to turn that around and actually TRY to compete with Nintendo (which at this point they are NOT.)

Wait for it: (I can't tell you when... because i still have my doubts about a 2010 release for either "natal" or "sony faerie wand" but...) Whenever they release, expect Sony and Microsoft to repackage and rebrand the ps3 and 360 with different names (more accessible), a different look (more accessible), and a different message (they play GAMES! :D ...anddd are more accessible). Once that happens (and the hardcore will go ballistic!) they will finally be competing with Nintendo. (Maybe, anyway. We'll have to see.)

...At least they *would be*, except that Nintendo is going to, by that point, be going full steam in another direction (Vitality Sensor) that will again make Sony and Microsoft scramble to play catch-up and look relevant. At least, that's Nintendo's plan :) We'll see if that works out as well as I believe it will.

Anyways. They aren't competing. Not "in theory", and not "in reality" either. They don't fucking know HOW to compete with Nintendo right now. They really don't! They actually believe that a rebranded PS3 with a glow-tipped cylindrical wand (with like 15 buttons!) is going to steal Wii market share-- BAHAHAHAHAHAHAHA!!!!!!

-"superfan" tactics.

Anonymous said...

Some German Guy,

Sorry... Got off on a tangent there... Rereading your post...

Sony has invested millions to create a unique gaming experience? Do you honestly believe that? WHAT UNIQUE EXPERIENCE? The PS3 is exactly like the PS2, just "better"! Like fuckin 90% of its games are the same as the 360 and PC! It has the same god damned controller as it's *2* predecessors! How is that unique?

The online services are profit-makers? bahahaha... you're kidding, right? For Microsoft, sure, but Sony's online service is a money-black-hole... And I really really hope you're not talking about "Home" which was Sony's biggest waste of money since... well... It was a huge waste of money. They do that all the time. They're trying to recoup their losses with "Home" by injecting advertising all over it. Oh that's what gamers want, Sony! What a UNIQUE EXPERIENCE! Getting to walk around a VIRTUAL world and look at adverts all day! Oh wait, I do that in REAL LIFE ALREADY. Thank god everyone in "Home" is a total prick because they're faceless and anonymous! Oh, wait...

"Sure they can offer a lot more but that all is secondary."

But it ISN'T though! Look at the adverts! "BLURAY BLURAY BLURAY! MEDIA STREAMING, INTERNET BROWSING AND CONNECTIVITY, A CENTRAL ENTERTAINMENT HUB FOR YOUR WHOLE FAMILY ...and some cool games that aren't unique in any way whatsoever!" THAT is Sony's message.

Luckily for your argument, Microsoft is in a better position than Sony in this regard, so there's not much to say. Nonetheless, Microsoft has still always positioned the 360 as a media-streaming hub-- and now has added facebook connectivity, twitter functionality (which is sooooo stupid for a "game console") Netflix streaming, etc. These are not GAME CONSOLE features. They're fucking PC features. The things that are "unique" about the PS3 and 360 aren't actually unique, because they're all the things your computer can already do better.

-"superfan" tactics.

pero_detlic said...

superfan... they are competing. not all people are experts in "HD" and "motion controls". they just decide what feature looks more interesting

Anonymous said...

Well, I've already explained as clearly as I possibly can how/why they're not competing. I don't know what else I can say to that end.

Learn more about what Nintendo is really doing. You'd be surprised at what a few short hours of reading can do for your perception of the whole industry.

Start here:
http://malstrom.50webs.com/

That's really all I can say. Good luck!

-"superfan" tactics.

Anonymous said...

Scratch that-- start HERE:

http://malstrom.50webs.com/theblueoceanarticles.htm

Same link, tiny:

http://tinyurl.com/lw2mvr

-"superfan" tactics.

pero_detlic said...

dude... we all know how to read and we understand you completely. we just have different opinion.

nintendo's innovation does not present category for itself. it's not that revolutionary

Anonymous said...

ps3 slim heat issues,freeze issues,fan noise issues

wen will sonys fanbase awake from the curse i could never live with ps3 slim/x360s fan noise seriously like a vacum cleaner

Anonymous said...

Actually the PS3 Slim does not have any of those issues. All of the reviews claim the opposite, the slim being quiet and running much cooler due to the 45nm processors.

Anonymous said...

pero_detlic,

Thanks for reassuring me that you know how to read. I was wondering about that. Apparently comprehension isn't your strong point, then?

Look around you: Gaming is changing. The Wii is "not that revolutionary?" bahahahaha... I really really wish that 20 years from now, when Wii is hailed as the savior of gaming and ALL consoles (and other entertainment-focused products) use motion controls as the primary input, that I could be right behind you to say "I told you so."

Not that revolutionary... You're a fucking joke, dude.

Wii has changed everything. Just like a successful handheld gaming console for the forseeable future *must* have a touch-screen (Hi iPhone! :D), a successful home console will, for the forseeable future, be based primarily on pointer functionality and motion controls.

Not that revolutionary: Tell that to the TV, DVD player, and PC manufacturers who are now switching gears to incorporate a Direct Pointing Device and gesture-based control into their future products. Mark my words: For entertainment purposes, all of these products' input devices will be DPD/gesture-based within 5 years.

Not that revolutionary: Tell that to the oh-so-hardcore Sony and Microsoft as they scramble to introduce a new interface for their antiquated game consoles before their "supposed" 10-year-lifecycle is even half-way over. Natal and the Sony Wand are REACTIONARY. They have seen the future, and it has only a tiny place in the back of the cabinet for the now-"standard" controller (for fighting games, arcade-style shmups, and a couple other tiny niche genres).

Not that revolutionary: Tell that to the children who grow up with Wii now, who in 5, 10, and 20 years won't even be able to imagine using dual-thumbsticks for an FPS, or a racing game.

Not that revolutionary: Tell that to the companies who, after being unable to succeed with the Wii customer base will either disappear, or be gobbled up and reconfigured by the companies who *are* succeeding on Wii.

Not that revolutionary: Tell that to EA, as Peter Moore shovels more and more humble pie down his throat (realizing again what he already knew from his days at Sega) and turns the *whole behemoth company* around, slowly patiently and carefully, to focus on Wii's market, so that EA can once again wear the crown of "biggest and best 3rd party publisher" while Activision's Bobby Kotick gets cockier and cockier, still focused on old-generation values and falls by the wayside as "A golden boy who had it all and let it slip" (due to his arrogance and blatant disregard for his customers, two traits which Peter Moore has NEVER shared).

Not that revolutionary. What a fucking joke.

-"superfan" tactics.

Some German Guy said...

PS3 sales jump in Japan, increase ten-fold in UK:
http://www.afterdawn.com/news/archive/19243.cfm

PS3, Xbox 360 finally outsell Wii--in US anyway:
http://news.cnet.com/8301-17938_105-10345377-1.html

Superfan... I understand your point. But please don't take this tooooo seriously. Aren't you from Holland? I thought you guys know how to chill... ;-)

Anonymous said...

Some German Guy,

Hehehe no, I'm not from holland.

This is the thing about price cuts. They create a very very temporary boost in sales, but have no lasting effect. These sales will drop off just as quick as they came, and the PS3 will then simply be seen as less valuable since pricing is an "old market" value factor.

Look at last generation for proof. I'm not going to go into it in too much detail, but watch the PS3 cut its price and earn its sales, and then compare it to the GameCube's performance from last generation. Eventually PS3 will be $99 just like GameCube was, and will still end up in a pathetic "3rd place" overall just like GameCube did.

Nintendo learned that you *shouldn't* depend on price cuts "the hard way", and not vice versa like Falafelkid believes is their future. Sony and Microsoft will also learn this lesson.

I normally don't mean to offend anyone with my passionate and abrasive responses necessarily, but I refuse to hear "Wii is not that revolutionary" because that's absolutely ludicrous and it pisses me off.

I hate to just keep saying "you'll see!!!" and shaking my fist in the air, but the fact is, Wii has effectively changed interactive entertainment forever, and it takes time for big sweeping changes like this to be seen clearly for what they are. 2, 5, 10 years from now... it will become increasingly obvious.

I wish Falafelkid had more time to respond to the discussion that's going on here. Perhaps he's too busy reading Malstrom's articles and speculating about the Vitality Sensor? :)

-"superfan" tactics.

pero_detlic said...

yes, it's not THAT revolutionary. it's a very very nice evolution of gaming device.

what FPS? 1 great and 2 decent ones in 3 years? truly unforgettable experience

driving wheel? 1 great racing game in 3 years (and plays better with GC controller), perhaps 1 decent

i though the thing was revolutionary, but now, it just didn't deliver... game-wise at least.

Some German Guy said...

@ pero_detlic

I think you're wrong here. Nintendo showed balls to try something completely new in terms of gaming expierence. They risked a lot and got lucky. They managed to break free out of the stagnating, idealess gaming market and even reach new audiences. For them it still is an experiment to see how people (developers, gamers, non-gamers) react to such a unique peripheral.

Remember when you played Wii Sports for the first time? Wasn't that an incredible thing for you because it was so different and far more immersive than everything else?
Even though Wii games might not quite "deliver" for you YET, we're getting there. Evolution takes time.

Anonymous said...

Just like the first attempts at games for a joystick, plus-pad, thumbstick, and touch-screen mostly weren't perfect, and just as the hardware of the first evolutions of these controllers themselves weren't perfect either, neither is the Wiimote, and neither are its first games.

Nonetheless, despite the mediocre content, the controls of The Conduit are perfect. Same goes for Metroid Prime 3, and I expect that CoD4:WE and The Grinder will be just as tight and fluid. Clearly, They've figured FPSs out (They just have to make them GOOD GAMES now). Have you even played Excite Truck? Launch title. Superb controls for a racer. Even superior to MK:Wii.

As I said in my last post, these things take time. As the hardware gets better, and the developers begin to understand what customers want from motion-controls and DPDs, we'll get better and better games.

-"superfan" tactics.

Anonymous said...

http://tinyurl.com/la7ef4

Read that, and then talk to me about the pricing value proposition.

400k? That's just pathetic.

-"superfan" tactics.

Anonymous said...

aaaaaaaastooooooouuuuuuuundiiiiiiiiiiiiing visuals ;)

IALS said...

hi I own a wii and I think its a piece of shit softwarewise and the waggle gimmick doesn't do it for me...I think we should return to classic controllers unless they finally figure out that real time strategy games like Starcraft is what the damn pointing device is made for. I couldn't be more disappointed with wii ..i feel cheated...it's just such a piece of crap...IALS

Anonymous said...

IALs in that case go trade it for a PS3 slim is only $299.

Stop bitching about it, the xbox 360 is $299 aswell for the 120 GB or you can get a 60GB for $250.

no fucking reason for you to complain, just go switch the damn thing.

Sometimes it seems like this people complaining about the Wii are just a bunch of dumb fucks!!
they have the options with the other 2 consoles.

and yeah IALS, you are a dumb fuck!! classic controllers are still being used in the other 2 consoles.

IALS said...

Wii is ....I dont know.... it just leaves a lot to be desired....not happy....ps3 is superior from a software point of view...

Anonymous said...

above ““““I OWN A WII ITS A PEASE OF SHIT,,,,, THE WAGGLE GIMMICK IS””””””””””””

WHAT WAGGLE GIMMICK THE ONE MADE UP ON THE INTERNET WAGGLE GIMMICK YOU SAY
I SEE,FEEL,INTERACT WITH A WELL BUILT 3D MOTION 3D MOUSE POINTER REMOTE AND A NUNCHUCK WITH A SWEET ANALOG STICK I DONT SEE ANY WAGGLE GIMMICKS IN MY WII BOX MAYBE NINTENDO FORGOT TO PACK IT

I DONT CALL X360/PS3 DESTROYING CPNTROLS WAGGLE OR GIMMICK AH-HMMMM...,.......I THINK WE HAVE ONE OF THOSE ELEPHANTS IN DA ROOM NAMED SONY FANBOY....PRECISION 3D MOTION AND GAMER IR MOUSE IS A WAGGLE GIMMICK

ARE U ON CRACK

Anonymous said...

do i play on 3d motion controls and analog and ir mouse pointer OR ab3 generation out dated dualshock ......GIMMICK shut up moron fps via wiimote/nunchuck is the DADDY

IALS said...

hi everybody i have found a pic of cube boy in all his glory:

http://www.infendo.com/2009/09

/05/random-saturday-no-4/

Anonymous said...

those presice physics and 1to1 golf club controls in tiger woods are WAGGLE GIMMICKS YOU KNOW COUGH COUGH.....
those motion/point/drag/analog controls of pro evo wii on all 11 players vs ps3s n64 like one player at a time old fashioned out dated crapothone are just GIMMICKS funny ps3 motion wands still not suited to that gameplay HOW SAD.....price drop rumor OCT wii

Anonymous said...

http://tinyurl.com/qdb5ez

there ya go.

Anonymous said...

"As for Sony and Microsoft, they are circling the drain. After cutting prices, where do they go from here? They have to build the value of their systems up, or they run the risk of being wiped from this market just as every console company not named Nintendo."

- Sean Malstrom, 9/2009

Anonymous said...

talking of disruption i just spotted malstroms post wilst dipping a choc OREO in my cup of english tea a biscuit corrently disrupting the traditional british biscuit market yes thats right OREO is nintendo of the biscuit world huge drops in traditional english bidcuits (HOW DARE THEY) LIKE jammy dodgers/jaffercakes/morning coffee/custerd creams etc OREO is a overly sweet moddern take on a custard cream but the kids dont realize that OREO sales are huge in uk and its got biscuit/cake market all in a tizzle over it OREOs are always on offers at ASDA (wallmart owned) tesco etc and those overly sugery plastic tasting biscuits full of E numbers are selling like crazy the british tradition of TEA and biscuits is being disrupted by the OREO twist and dip in milk not tea...dipping a biscuit in a cup of tea is with out dout the most english thing anyone could ever do its the backbone of englishness yet kids are fast looking at that as ODD and ask for there oreos and a glass of milk IM NOT LIKING THIS DISRUPTION VERY MUCH MALSTROM LOL ....its just not BRITISH hehehe and oreos are sickly i dont like them much....

Some German Guy said...

Rumor: Wii Price Cut Incoming?

http://kotaku.com/5359038/toys-r-us-ad-points-to-199-wii-price-drop-this-month?skyline=true&s=i

Some German Guy said...

Every blue ocean will eventually turn red... although Nintendo's ocean still is pretty blue. ;-)

Oh boy, can't wait for new Nintendo 3D rumors. Not too much has been happening in the last months. Any new crazy rumors or ideas out there? Superfan already said it quite nicely. WE WANT SPECULATION!

Anonymous said...

falafelkid the pic you have added to try glout IS A STORE PROMOTION NOT A OFFICIAL NINTENDO RETAIL PRICE DROP IM IN UK I COULD ADD 5/6 DIFFERANT PROMOTIONS TO URS DOESNT MEAN NINTENDO REDUSED PRICE UK WII 179.99 BUT AGUS/ASDA/SAINSBURYS/TESCO ETC HAVE ALL HAD OR ARE HAVING LOW PRICE WII PROMOTIONS SAY 129.99 149.99 ETC AND YES POSTERS TO SHOW THERE LOW PRICE

prettymanfairy said...

I don't exactly agree, but I wouldn't be against it. The Wii is as cheap as it needs to be, but a price cut wouldn't be terrible. It would help convince those that are on the fence.

Falafelkid said...

Hi Anonymous.

falafelkid the pic you have added to try glout IS A STORE PROMOTION NOT A OFFICIAL NINTENDO RETAIL PRICE DROP IM IN UK I COULD ADD 5/6 DIFFERANT PROMOTIONS TO URS DOESNT MEAN NINTENDO REDUSED PRICE UK WII 179.99 BUT AGUS/ASDA/SAINSBURYS/TESCO ETC HAVE ALL HAD OR ARE HAVING LOW PRICE WII PROMOTIONS SAY 129.99 149.99 ETC AND YES POSTERS TO SHOW THERE LOW PRICE

Please do tell me about other such promotions. In ten years of reporting about videogames, such a case (where a retailer has cut the price of a console without the manufacturer's consent) has happened only once here in Germany and it resulted in a big fight between the retailer and manufacturer, since all other retailers pretty much had to follow suit in order to continue selling.

Unless the manufacturer reduces the wholesale price (i.e. the one they charge retailers), such promotions practically do not happen with videogame hardware, because the margin is pretty much zero. So I would be very surprised if you could name just one other instance of a current-gen console being sold below the recommended retail price. Bundles yes, but price cuts no.

The flyer by TRU may indeed advertise an exclusive promotion, but it would be based on Nintendo lowering the wholesale price which all retailers would benefit from in the very near future. To cut a long story short, such promotions as you call them almost always herald a proper price cut across the board.

M. Ferreira said...

It's definitely not just a promotion. My store received flyers for the price cut yesterday - as of September 27, Wii will be $199.

I can only shake my head in disbelief in this case. With Christmas coming, a new Mario game on the way, and a steady almost-200K sales per week, Nintendo didn't need a price drop.

Really, I can't help but feel that they're going to kill their momentum by entering the cycle of price cuts. You're going to see a large audience just stop buying the console, since they'll expect it to "go cheaper" in the future. Definitely not the effect Nintendo wants, I'd think.

But I'm not paid to analyze this. If I were, I wouldn't currently be working as a retailer. ;)

Some Guy said...

Falafelkid is right about this, retailers cannot advertise the consoles for a lower price due to MAP (Minimum Advertised Pricing). Maryland is actually doing away with MAP but that is not in effect until October 1st.

Also there is now Best Buy and Target ad going around now advertising the Wii for $200.

Link


Link2

luckbox said...

Nice write up.

Let it be known, My wii is dusty.

Free Wii Games said...

Wow

Some German Guy said...

Hey guys, what do you think about this statement from Suda 51:

http://www.joystiq.com/2009/09/22/no-more-heroes-2-is-last-installment-on-wii-next-game-on-new-ni/

Does he know anything about Nintendos next steps? And why would he say such a thing? Disinformation?

Some German Guy said...

Even Square-Enix talks about Wii 2:

http://uk.wii.ign.com/articles/102/1026709p1.html

Some Guy said...

It is official; the Wii will be $200 beginning September 27

Link

Anonymous said...

uk gets the best deal by far

price drops coming with trade price back down and a new uk/irland bundle

wii sports wiisports resort wm+ all in box at original 179.99 price if not less

THIS ALLOWS RETAILERS TO SELL OF ORIGINAL STANDARD BUNDLE ON SALE AT SAY 129.99 OR EVEN 99.99

HUGE SALES OF Wii COMING IN THE UK CLEARLY

Anonymous said...

iv said it from the wii starting post a wii and wii+ can co-exist just like ds/dsi

wii contiunes its success nintendo can re-bundle lower prices add new colours

and keep this going for years add a wii+ late 2010 or 2011 and have

wii wii+ enhanced wii+ only wii and wii + downloads all available

99.99 wii 199.99 wii + EASY PEASY

wii+ wireless nunchuck wiimote 2 with wm+ built in added function like rumble in nunchuck or a second ir mouse pointer maybe a camera,senser bar,wiispeak combo unit on tv

just a thought

Anonymous said...

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Porter said...

I'm eager to see what Nintendo does with their next portable and console system, they have to up their game if they're going to stay on top.

Anonymous said...

Yups, This is the curse of a runaway success: maintaining it. After all, a boom, in economics, is a highly unstable and volatile state. And if they do not re-position the Wii's price point, Nintendo may soon find out the hard way.

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