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Nintendo lowers forecast from ¥55B profit to ¥25B loss [3DS 18M->13.5; WiiU 9M->2.8M]

Shengar

Member
The shop doesnt work without the game pad either and most games use the touchpad for some functionality. Nintendos would have to redo the whole system and patch a lot of games if they cut the gamepad. It will not happen.

They still can massively redesign the gamepad to make it more cost efficient. Though I doubt it if Nintendo have the engineering expertise.
 
What other options does Nintendo really have at this point? They're stuck in a position where they have to ride out the Wii U (the console is barely a year old and has games in development for it) and continue to churn out first party titles much like their GameCube era. I'm not sure dropping support for the Wii U would be viable for them at this point, and would leave them with no HD home console this generation, not to mention the consumer distrust that would result with any future console release.

Nintendo needs to make sure that their next console is both innovative and something that the consumer wants. I know it's been discussed in the past, but I really think they'd hit it big with a console/handheld hybrid. Can you imagine all of Nintendo's efforts (both software and hardware support wise) focused on a singular system with a heavy handheld focus?
 

Velcro Fly

Member
The release of the 3DS XL drove more sales than MH4 and Pokemon. It isn't always about the games when you release a new and better hardware design.
 

Game Guru

Member
I think some of you guys are missing the point about all this - there really isn't much Iwata could have done - really - he had the option of turning the company into a F2P/mobile company four years ago and embracing that business model like many Japanese publishers did - or to take a risk and try to stay in the packaged software business and spending tremendous resources scaling Nintendo's capabilities to meet the bar of high-end software development without overextending themselves.

At that time people were questioning whether Sony was going to make a new console as the company was nearly bankrupt (and still is almost bankrupt - it's basically a zombie firm with a ridiculous amount of debt), and Microsoft had pretty much abandoned Japan (the source of 30% of Nintendo's gross profits). It isn't as if Nintendo could even have gone third-party - the only real options were to embrace the iPad and iPhone which were nascent platforms in Japan and had a style of games that Nintendo had never made.

If somehow Iwata were removed - the company would most likely move towards mobile and most likely free to play models since Iwata and his executive team are the last holdouts in the entire Japanese video game industry keeping traditional complete games a priority. I mean I guess some of you would want that because you want more free to play games, but I'm guessing a lot of you wouldn't be too happy about that. A new CEO would likely kill off Monolith Soft since they have been a perpetual cost center for Nintendo over the years, and probably cut off the dozen or so companies that Nintendo works with and keeps feeding like Grezzo, etc. I'd imagine they would kill Bayonetta 2 (or send it to die with zero marketing to cut their losses) and probably kill niche series like Pikmin from ever being produced ever again. Platinum in its current form would probably disappear since Nintendo has been effectively paying their bills over the past two years. MGR:R barely made them any money - they were hired as contractors - and a sequel to that game isn't going to be enough to keep everyone at Platinum employed. Nintendo's overall hiring plans would probably be frozen, and staff would be cut - probably at the high-end developers like EAD Tokyo which over hired to stock pile human resources for HD development over the past two years. Under a hypothetical new CEO, I wouldn't expect much in the way of new AAA console games from Nintendo if Iwata were fired since he is one of the few people who still believes in making them.

Shareholders aren't going to replace Iwata with someone that is going to make hardcore AAA IPs as a first party or as a third party for PS/Xbox platforms, or have Nintendo build a competitor to those platforms. The failure of the Wii U and the failure of their packaged software business in general (consider that out of 40+ million 3DS consoles - Zelda sold peanuts during the Holiday season) is going to lead investors to focus on someone that is going to embrace contemporary trends in gaming. That means lots of F2P an P2W and other things like low development costs on mobile to maximize gross profits. This has implications for the entire industry.

A world where Nintendo gives up on premium software is a scary one because it is going to drive expectations of all customers and spill across the entire industry. EA might be able to ride out the next few years with cheap updates to Madden and FIFA licenses and force yearly upgrades - Activision might have World of Warcraft money - which while declining rapidly - still keeps the lights on. But the former is effectively a peasant of Microsoft (and praying to be bought out by Microsoft or Disney), and the latter is deep in debt and is banking on a single game (Destiny) to deliver any profitability next fiscal year while depending on its Chinese investors to provide cash if they need it. Who knows maybe Destiny does great - but the millions it will sell to a core userbase aren't going to be enough to help Sony/MS drive their user bases up to 70-80 million needed to really achieve profitability at-scale.

Beyond that, Ubi's Just Dance money isn't going to sustain itself and Assassin's Creed is a franchise-in-decline. If Watchdogs fails to sell ridiculous numbers, I would expect Ubi to fully embrace F2P and focus heavily on mobile going forward. I can see them running to Apple and offering to make Rayman an iPad exclusive in return for cash payments. Take Two is already contracting its portfolio, and now it's more or less a two-products a year company. Bioshock4 and GTA6 might just be persistent online worlds with monthly subscriptions or a F2P model. I have a feeling NBA2K is going to go the F2P route in a few years as well - because that's probably where EA is going to take NBA Live to try and compete - and unlike the NFL - the NBA is probably not going to cut an exclusive with Take Two to preserve pricing power and risk lawsuits.

Even people like Peter Moore who have mastered the art of selling out their current employer for their next job and want nothing more than to see Nintendo suffer, are most likely trembling at hearing about Nintendo's current-year numbers.

To put this into perspective, Activision, EA, Ubisoft, Nintendo, Take-Two, Microsoft, and Sony are in essence THE major game studios much like Sony, Warner Bros, Disney, Universal, Fox, and Paramount are the major film studios. Given what has been described here about these particular companies, it is a very a bad thing for anyone who likes traditional gaming or even gaming with buttons for these seven companies to be in the positions they currently are. What we could be seeing is a decline for traditional gaming... The big traditional publishers have bloated budgets, are facing the rise of successful independents, and are suffering under the success of new models for entertainment like F2P. That is exactly what happened during the late 1940s to late 1960s to film, which had the major studios of the time struggling with bloated budgets while independents and television ate up their market for entertainment. Thankfully, gaming will survive as films had survived, though perhaps not as you know it.
 

Mengy

wishes it were bannable to say mean things about Marvel
Can someone on the anti-Gamepad boat please explain to me how the Gamepad is the problem? How would have a traditional controller or upgrade Wiimote save the Wii U?

The gamepad adds $100 to the console price. While it may be neat and novel, the majority of gamers (people who buy gaming consoles) don't want it, they would rather have a standard gaming controller like the DS or Xbox pad. No one wants to pay an extra $100 for a gimmick they don't really want.

The Wii-U- is simply too expensive for what it is, and the gamepad is a huge part of the reason. Drop it, then price drop the Wii-U, and see sales increase. It's that simple.
 

Kimppis

Member
It didn't help. Nintendo didn't just fuck up with one thing with the Wii U, they fucked up everything possible.

Yeah, and the GamePad is not attractive in the eyes of the masses. They already have their smartphones and tablets. It's that simple. Wii U is a "bad" product. Nothing will change that.
 

KoopaTheCasual

Junior Member
Neither one would matter if they still did a shit job marketing and with third party software. It's not the Gamepad people.
The gamepad alone is what makes the console so damn expensive and continues to be why they lose money on every unit. It is the opposite of what made the Wii successful, and kept all of their previous consoles profitable, no matter how little they sold. It is the Gamepad people.
 

CassSept

Member
Their forecast was ludicrous but still, wow. WOW. And that forecast probably includes some units sold in Q4, where the console will probably flatline yet again and they won't be able to reach a forecast reduced by OVER SIXTY SIX %. It's insane and after the recent articles about development of GameCube I'm convinced fire Iwata, stat is a proper course.

I have nothing against the man himself, I like listening to him, he does great interviews and did some solid job as a developer, but he is doing a terrible job as a CEO. The company needs a major shake-up. At this point there is probably nothing that could make Wii U successful, but they have to ride it out and prepare new strategy for their next major HW. What's worse, this one will be even harder for them.

Hubris, hubris everywhere.
 

open_mouth_

insert_foot_
Nintendo should come out with another handheld on schedule and continue to dominate that arena (although the days of gba/ds sales are long gone).

Then... they should scrap the WiiU and home console hardware altogether. Just go 3rd party. They can make insane bank with quality entries of their big franchises on Mobile, PC, XB1/360, and PS4/3. Forget trying to be the #1 console maker. Just focus on being the #1 game maker and having the #1 dedicated portable system.

The time to shift gears is right now.
 

Gnub

Member
Time to bring back the Virtual Boy. The ORift may have primed the world for it this time and you may be able to reuse the WiiU gamepad screens.
 
Nintendo should come out with another handheld on schedule and continue to dominate that arena (although the days of gba/ds sales are long gone).

Then... they should scrap the WiiU and home console hardware altogether. Just go 3rd party. They can make insane bank with quality entries of their big franchises on Mobile, PC, XB1/360, and PS4/3. Forget trying to be the #1 console maker. Just focus on being the #1 game maker and having the #1 dedicated portable system.

The time to shift gears is right now.


That seems like the best course of action. I'd also like to see them offer a $100 virtual console box that plays games from their back catalog.
 

Maedhros

Member
Nintendo should come out with another handheld on schedule and continue to dominate that arena (although the days of gba/ds sales are long gone).

Then... they should scrap the WiiU and home console hardware altogether. Just go 3rd party. They can make insane bank with quality entries of their big franchises on Mobile, PC, XB1/360, and PS4/3. Forget trying to be the #1 console maker. Just focus on being the #1 game maker and having the #1 dedicated portable system.

The time to shift gears is right now.

I agree with this.
 
Iwata has to go I think now. He did a great job of recovering the company and raising the profile after GameCube and during Wii/DS. But Wii U was a horrible and obvious miscalculation from the start.

3DS showed a nice recovery, though. I just think Wii U is beyond repair. Even with deep price cuts.

No need for 3rd party development. They needed to make a home system in line with the others so they could get 3rd party support. Also, they handled online horribly too. There are ways of protecting younger players while having a competitive and competent service.
 

chaosblade

Unconfirmed Member
I don't get why these topics always devolve to "drop gamepad, cut price." Price cuts don't create interest, they encourage people on the fence to buy it. Even at $200 the WiiU is still a worse value to the average consumer than a PS3/360. Who are they targeting? Nintendo fans? The people that are going to buy it regardless as soon as their system selling game of choice comes out? Cutting the gamepad isn't worth it.
 

NYCrooner

Member
So the Wii U being $300 with Gamepad doesn't work but Xbone being $500 with Kinect does? I'm just really against the idea that the Gamepad or lack thereof would have change the fortunes of the the Wii U. Nintendo screwed the pooch on marketing, branding and there horrible relationship with third parties. I would even throw their bad relationship with Amazon in the mix. The Gamepad is a non-factor compared all the other things they did wrong.
 

QaaQer

Member
So whats the future of the industry/Nintendo? F2P? Mobile? Mobile won't be getting money from the "High Fidelity gamer," and if it is F2P, then it almost vindicates MS and Nintendo, except Nintendo went too low on the specs of the Wii U.

PCs with steamos or windows. There is still a core gamer market and there will be products made for them. If it isn't on consoles or handhelds, it will be elsewhere. In fact, I'd say the problems with much of the aaa industry are because they have been chasing non-core gamer types with streamlined play and cutscene driven games.
 

Pociask

Member
Okay, read the OP. What stands out to me, besides the catastrophe, was the excuse Nintendo gave for their poor performance. I didn't see (and correct me if I'm wrong) the usual excuses about delayed software. What I saw instead was, this was the plan. Actually, stratch that - Nintendo released the software they wanted to release, which they thought would be sufficient to reach their goals, except they thought they would reach those goals without even a price cut. And even with a price cut, their plan completely, catastrophically, predictably failed.

Iwata has got to go. Put him in a corner office where he can make Indie Nintendo games with Shiggy.
 

Sneds

Member
So the Wii U being $300 with Gamepad doesn't work but Xbone being $500 with Kinect does? I'm just really against the idea that the Gamepad or lack thereof would have change the fortunes of the the Wii U. Nintendo screwed the pooch on marketing, branding and there horrible relationship with third parties. I would even throw their bad relationship with Amazon in the mix. The Gamepad is a non-factor compared all the other things they did wrong.

If the Xbone was cheaper I think I would have sold more.
 

Interfectum

Member
So the Wii U being $300 with Gamepad doesn't work but Xbone being $500 with Kinect does? I'm just really against the idea that the Gamepad or lack thereof would have change the fortunes of the the Wii U. Nintendo screwed the pooch on marketing, branding and there horrible relationship with third parties. I would even throw their bad relationship with Amazon in the mix. The Gamepad is a non-factor compared all the other things they did wrong.

It's all connected man. The Gamepad suffers from Nintendo's lack of focus for the system. Developers have to design a game that takes into account someone using a Gamepad+TV, a Gamepad Remote Play, a Wiimote or a Wii Pro controller. This relegates the Wii U's biggest differentiator to a map screen / item screen / horn. This will obviously effect marketing because people are waiting for a reason to care about the gamepad but Nintendo never gave it to them.
 
LTTP with the reaction gif, but here ya go anyway

XOlhH.gif
 
The gamepad adds $100 to the console price. While it may be neat and novel, the majority of gamers (people who buy gaming consoles) don't want it, they would rather have a standard gaming controller like the DS or Xbox pad. No one wants to pay an extra $100 for a gimmick they don't really want.

The Wii-U- is simply too expensive for what it is, and the gamepad is a huge part of the reason. Drop it, then price drop the Wii-U, and see sales increase. It's that simple.

It's that simple guys, pack it up!

By the way, how am I supposed to play ZombiU, W101, Rayman etc without the game pad?
 

Tripon

Member
I'm more disappointed that Nintendo didn't come near their goal for 3DS. Nobody thought they could get anywhere close to their Wii U figure.
 

Kimawolf

Member
Nintendo should come out with another handheld on schedule and continue to dominate that arena (although the days of gba/ds sales are long gone).

Then... they should scrap the WiiU and home console hardware altogether. Just go 3rd party. They can make insane bank with quality entries of their big franchises on Mobile, PC, XB1/360, and PS4/3. Forget trying to be the #1 console maker. Just focus on being the #1 game maker and having the #1 dedicated portable system.

The time to shift gears is right now.
That would make things worse. They need to work on expansion, and growing their 3rd party relations. And remember companies like money, begin making offers they cant refuse since most 3rd parties are one bomb from failure and shutdown.
 

Sneds

Member
It's that simple guys, pack it up!

By the way, how am I supposed to play ZombiU, W101, Rayman etc without the game pad?

They could still sell it as a peripheral.

But I still agree with you. The gamepad was a mistake but one that Nintendo have to live with.
 
I'm pretty pessimistic about the future of games, but even I can't accept this frankly dystopian vision of the future. I'll address the bolded points.

1. There was plenty that Iwata could have done, quite obviously. In another world, there is a Nintendo that came up with a better idea than Wii U, gave it a better name, launched with better flagship software than Nintendoland and came in at a better price point. That's just to begin with. In that better world their home console is not cratering the way it is now. Maybe it's not a huge success, but the Wii U is a function of terrible decisions piled on top of each other as much as anything else.

2. Of course Nintendo could go third party. The transition to PS4 development would be massively easier for them than the transition to phone/tablet gaming. One is an entirely new paradigm of gaming that as you point out does not suit most of their franchises. The other is just learning a new architecture, licensing an engine and making higher quality assets. There are 160m PS3s + 360s out there. There will be plenty of next-gen consoles sold. They could easily go, or could have gone, third party. I believe they probably one day will.

3. I don't think that there's any guarantee whatsoever that the new CEO forces Nintendo into mobile gaming. Shareholders aren't stupid - they must see that
a) It doesn't suit Nintendo's catalogue
b) They don't have the skill / expertise in that area, and it would take two years minimum to acquire,
c) You can still profit making software for PS3/4 and the Xboxes
d) You can still profit making handhelds if you don't have a home console albatross weighing you down
e) The mobile market is disastrously over saturated and very few companies are making money. You're throwing the dice as a new entrant to that market. You're also destroying the dollar value of your software forever once you start selling it for 5 bucks or less.

I'm not saying it won't happen. I'm just saying that painting that as the inevitable consequence of a new CEO is ridiculous.

Look regardless of the Wii U's tactical errors - here is the reality - the audience is gone. Their primary profit center - the true source of the company's tremendous cash pile - handhelds - are going extinct, and Nintendo is bleeding money trying to keep it alive. That's right - the 3DS - not the Wii U.

The only territory where Nintendo is making a profit on 3DS hardware is Japan right now - and they are most likely going to introduce the 2DS there in February to sustain sales momentum and hit EOY targets, which is going to eat into their weighted margins in that region.

Instead of people understanding this, they are playing make-believe and imagining useless permutations of better online or account systems or more power or evil Iwata and trying desperately to convince themselves that if Nintendo did what THEY wanted, it would restore the company to profitability.

The traditional Nintendo audience - the ones that bought 3 DS'es and 3 copies of NSMB is gone - they don't want to own a console and neither do they want to own a handheld - they want to own an iPad or they want to play Puzzles and Dragons or Angry Birds on their smartphone. They don't want to pay $50 dollars for Mario anymore when they are conditioned and used to paying $1 for a game.

Replacing the CEO would be about killing traditional packaged software and going to where that audience is - not doubling-down on expensive HD games on the PS4/XBO with low gross margins or releasing games for PS3 (terrible idea). It would be utterly insane for Nintendo to bet that their primary audience - children - and their parents would buy a $400/500 dollar console to play HD Mario when that entire audience is already using tablets in the West and most tablets will be capable of outputting HD games in under 12 months.

That said, Nintendo wouldn't do well in the traditional mobile space. They provide a unique experience and hardware is an inherent part of that. That is why as I've said before - the next step for Nintendo is to release a proprietary tablet, with Streetpass and physical controls, with Miiverse, NicoNico (which they recently invested into), Nintendo's eBooks marketplace (which was the subject of a lot of press last year), Nintendo animation (Pikmin anime, Pokemon TV shows), a variety of internally-developed F2P games, and the ability to buy completely traditional games as well, sold for $200 dollars (generating about $80 of profit per device). The tablet market in Japan is still wide open and Apple by no means is dominant yet. At half the price of an iPad Mini Retina, such a device has the potential to outsell the DS and they will never have third party issues ever again as the development tools would be standard Android or iOS development tools.They could do a great job curating content and really ensure that it is a great gaming experience.

That is a device that parents would buy their children. It would have good parental controls, a child-safe social network through Miiverse, and finally, it could be subsidized with a data plan in markets like Japan (in the US subsidies are going extinct and Apple is feeling the pain).

Nintendo could easily erect it as a third pillar, then release a follow-up dedicated handheld device based on the Wii U Game Pad to replace both the 3DS and the Wii U. They'd effectively capture their traditional audience again with a child-friendly tablet that contains lots of F2P games while possibly turning a profit on their ever-shrinking enthusiast gaming audience with a Wii U Game Pad-only hardware.

Iwata has hinted in the past that Nintendo is working on a tablet/smartphone product - it was in the Q&A some time ago - so it's only a matter of time before it gets released.
 

Stumpokapow

listen to the mad man
Revising forecasts
This revision should have definitely occurred last quarter. Most analysis observed at the time that failing to revise the forecast was asinine as it was obvious they wouldn't hit their targets. Even noting that the holiday quarter is by far the biggest sales driver, when you're half-way through the year and less than 10% of the way towards your expected forecast and nothing that would materially change the forecast during the holiday quarter, it's time to revise. In the last quarter, Nintendo had Pikmin 3 and TW101's second quarters and Super Mario 3d World. There was no reason to assume based on past sales that 3d World would have sold materially better than NSMBU. Donkey Kong Country was delayed to cover gaps in the release calendar, which is sort of shocking in and of itself. So either way, every single person here would have told you the 9 million wasn't going to happen. I had expected a revision to 4-4.5 million prior to now--was it just a case of Nintendo preferring to do one enormous guidance revision rather than two smaller ones?

Iwata
It's not clear to me that Iwata stepping down would be productive. Who would you replace him with within Japan? It's true Nintendo could easily poach a GREE executive, but I think the single biggest structural problem Nintendo faces is a misunderstanding of the global market, and while pivoting towards (not entirely!) Japanese mobile concerns might help make investors feel better, I don't think it's a long-term solution to Nintendo's woes.

Home market
- Short term Wii U: Wii U is not going to reach any kind of lofty goals. As a result, it makes sense to concede this instead of stringing people along by saying "We expect <our next title> to help significantly drive hardware". I don't think there's a need to kill the system and I don't think any new system being launched would work any better. I also don't think dropping the GamePad would really benefit them. I don't think a price drop would materially change demand at this point. So I think set modest forecasts, work on software that's going to sell big, work on global instead of Japanese-focused software, use outsourcing to plug holes in the release calendar. In terms of third parties, it's a write-off at this point. I'd focus on securing Wii U's niche for stuff like Skylanders, LEGO games, dancing and fitness games. It's not a good sign to me that Just Dance is still mostly on Wii, and that Xbox 360 and Xbox One appear to have inherited the rest of the audience rather than Wii U. If the war chest is big enough to start working to secure
- Medium term Wii U: Try to pump internal money into aggressive cost-reduction plans on Wii U. I recognize Nintendo's in a worse position to cost-reduce than Sony or Microsoft because they have no internal production at all, relatively little engineering capacity, and lower scale with fabrication plants. But I still think they could probably reduce cost quickly if they made it priority 1. It's better to be in a situation where you're selling 5 million units of hardware a year but making a profit on each. This also takes some pressure off software performance.
- Long term Home Market: Consider not replacing the console. Sunset it within 5 years of release or so (end of 2017). Look to low cost, globally focused solutions for future hardware. Look into how network services are driving profit for a lot of companies. Look at the needs of individual markets beyond Japan. Don't make anything a hardware design priority that won't lead to global success--"it fits well in Japanese living rooms" is absolutely not something that matters at all. If hardware doesn't make sense, don't do hardware. It's healthier to have a company that shrinks but is more sustainable than preserving the size of the company at all costs.

Portable Market
- Short term 3DS: Given that most of the 3DS' major software has been depleted, much of it at a significant decline from DS highs (although not all! Yay Fire Emblem!), I think the short term plan means recognizing that 2012 and 2013 were high years and there's no immediate strategy to replicate them through software. Getting software costs down so that there's a broad reason for buy-in is probably a good move. $20 and $10 software would really help the hardware pick up, I think. Make software as easy to buy as possible.
- Medium term 3DS: Start moving internal teams into smaller, more agile configurations making quickly iterated games. This pays dividends in two ways. First, if you ever do need the escape hatch for Mobile, your teams are more ready. Second, you can lower effective software pricepoints to be able to compete with and head off Mobile. You should also get used to the mobile style of releasing a product and constantly updating it in order to keep attention on it.
- Long term Portables: Future hardware will probably need to be always-connected (both for software benefits and for hardware usage benefits). If this means you need to make a phone, then you need to learn how to make a phone and how to partner with various countries telecom firms. If this means it's not a phone but something more like a tablet, then your OS and software situation will be way behind and you should have a plan for catching up that relies on actually understanding competitors. If this means getting out of hardware, your company will get massively smaller and you should be prepared for that.

Overall company
- Short term overall company: Transfer as much power as possible out of Japan to make the company more global. More autonomy for regional divisions. Look to Sony and Sega as model companies that are still very Japanese but that have recognize that this market sector might benefit from control and power being vested outside Japan. Start looking at what competitors are doing, because when you're an iconoclast and successful everyone loves it, but when you're an iconoclast and failing and confused as to why, everyone else has an answer for you. What are other companies doing that you're not? What assumptions have you internalized?
- Medium term overall company: Minimize burn rate so that the loss of the hardware business would not cause as much of an immediate system shock or massive layoffs. Lower software prices to reflect structural erosion in value of software.


I think investors want to see mobile, rightly or wrongly. I think it would be an error if Nintendo became a MORE Japanese company by eventually giving in to investor demands by focusing on GREE type situations. I think it'd be more sustainable to operate on a more global basis. I think if they do choose to participate in Mobile, it shouldn't be in the extremely limited Japanese context. But I think being able to see with a more global horizon requires a more global company. So to me, Nintendo's #1 challenge going forward is becoming a more global company.
 

KiTA

Member
Nintendo needs to make sure that their next console is both innovative and something that the consumer wants. I know it's been discussed in the past, but I really think they'd hit it big with a console/handheld hybrid. Can you imagine all of Nintendo's efforts (both software and hardware support wise) focused on a singular system with a heavy handheld focus?

A 3DS emulator for the WiiU. You go home, put your 3DS into sleep mode, your WiiU pipes up and asks you if you want to beam it to the TV and keep playing. Bam. Pokemon on a 32" TV. It wouldn't save things, but it would help.
 
So the Wii U being $300 with Gamepad doesn't work but Xbone being $500 with Kinect does? I'm just really against the idea that the Gamepad or lack thereof would have change the fortunes of the the Wii U. Nintendo screwed the pooch on marketing, branding and there horrible relationship with third parties. I would even throw their bad relationship with Amazon in the mix. The Gamepad is a non-factor compared all the other things they did wrong.

Consider all the things a Xbone can do compared to Wii U. In the eyes of the public Wii U is basically a last gen console with an humongous cheap looking tablet like controller.

Xbone is a next-gen system on which they can play to the all the big IP installments with media center capabilities.

And still the price is hurting them with a PS4 avaliable for 100$ less, which is hurting Wii U too at the same time.
 
So the Wii U being $300 with Gamepad doesn't work but Xbone being $500 with Kinect does? I'm just really against the idea that the Gamepad or lack thereof would have change the fortunes of the the Wii U. Nintendo screwed the pooch on marketing, branding and there horrible relationship with third parties. I would even throw their bad relationship with Amazon in the mix. The Gamepad is a non-factor compared all the other things they did wrong.

Ayes, the difference is that people can buy the xb1 and know that they will be able to play almost all of the new third party games that come out. Nobody buys the Wii U for any other reason than the 2-3 first party games that they want to play. The Wii U was simply too expensive to succeed as gamer's secondary system. Casual gamers/families have moved to tablets and smart phones for their entertainment options and again, have no interest in spending $300 to play 2-3 first party games a year.

The gamepad is an alabtros, forcing Nintendo to sell their system at an absurdly high price, while providing little to no benefit to consumers. It is a failure, a complete and total failure.
 

Davey Cakes

Member
The 3DS is a gamer's dream handheld, right? It's flawed in certain ways but it has a ton of great games to back itself up.

This might be an implication for the industry as a whole.

That's right, GAF, a purely game-focused system might sell decently to a point, but doesn't necessarily sustain itself well.

I wonder how people feel about that.

The gamepad is an alabtros, forcing Nintendo to sell their system at an absurdly high price, while providing little to no benefit to consumers. It is a failure, a complete and total failure.
It's such a cool aspect of the system though. ;_;
 

Shengar

Member
They could still sell it as a peripheral.

But I still agree with you. The gamepad was a mistake but one that Nintendo have to live with.

How about reducing the price of the gamepad itself? Why is it have to be so damned expensive anyway.
 
A 3DS emulator for the WiiU. You go home, put your 3DS into sleep mode, your WiiU pipes up and asks you if you want to beam it to the TV and keep playing. Bam. Pokemon on a 32" TV. It wouldn't save things, but it would help.


Who wants to see a shitty 240p image on a giant 1080p display?
 

kmax

Member
I think that the attitude are unwilling to let Iwata go, simply because he headed the success of the Wii. The company's facing a difficult time right now, but I don't believe that Nintendo is confident to replace Iwata. They obviously need to have candidates that have a clear vision where they want to take the company. If there are no contenders, then Iwata's going to stay put.

Still, the pressure's amping up, and Iwata must accept the fact that the vision that he helped create and made the company so successful, doesn't work anymore. He needs to come up with something new and exciting, and give the consumers and investors alike, reasons to care for the company. The lack of activity from Nintendo's part, if it's third party relations, consumer relationships, IP's in development all needs to be adressed and signaled clearly to the people outside the company.

Basically, they need to stop treading water and do something major.
 

npm0925

Member
What are the advantages of having your own hardware if it has virtually no third party support (and thus no royalties to Nintendo), is sold at a loss or break even, garners no income from a subscription service (e.g., PS+), and does everything worse than the competition?
 
Eh, that's basically the same thing though. Hoping they will buy a $40/€40 Mario game after playing those $0.99/€0.99 Mario games and in the process of selling way less 3DS'/Wii U's or whatever their next handheld/console are gonna be.
Playing games for free or at a very low cost of entry and then suddenly having to pay 40 bucks won't go too well with these casuals. These people will just expect the next Mario to be on iOS/Android devices, not that they have to buy a additional $150 device and a $40 game.

They either go full mobile or stay in the dedicated handheld/console space.

Counterpoint: classic GTA, FF, and DQ are available on mobile.
 

BowieZ

Banned
Zombi U i'll give you. W101 already has pro controller support. what kind of touch controls does Rayman, is it an integrated part of the gameplay?
Exactly - I don't think Nintendo is in the position to worry about the controller compatibility of a game from 2012 nobody bought when considering their Wii U salvaging strategy.

But yeah, the only games really needing the Pad are ZombiU, Game & Wario, and Nintendo Land - and I think Lego City too though correct me if I'm wrong.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Look regardless of the Wii U's tactical errors - here is the reality - the audience is gone. Their primary profit center - the true source of the company's tremendous cash pile - handhelds - are going extinct, and Nintendo is bleeding money trying to keep it alive. That's right - the 3DS - not the Wii U.

The only territory where Nintendo is making a profit on 3DS hardware is Japan right now - and they are most likely going to introduce the 2DS there in February to sustain sales momentum and hit EOY targets, which is going to eat into their weighted margins in that region.

Instead of people understanding this, they are playing make-believe and imagining useless permutations of better online or account systems or more power or evil Iwata and trying desperately to convince themselves that if Nintendo did what THEY wanted, it would restore the company to profitability.

The traditional Nintendo audience - the ones that bought 3 DS'es and 3 copies of NSMB is gone - they don't want to own a console and neither do they want to own a handheld - they want to own an iPad or they want to play Puzzles and Dragons or Angry Birds on their smartphone. They don't want to pay $50 dollars for Mario anymore when they are conditioned and used to paying $1 for a game.

Replacing the CEO would be about killing traditional packaged software and going to where that audience is - not doubling-down on expensive HD games on the PS4/XBO with low gross margins or releasing games for PS3 (terrible idea). It would be utterly insane for Nintendo to bet that their primary audience - children - and their parents would buy a $400/500 dollar console to play HD Mario when that entire audience is already using tablets in the West and most tablets will be capable of outputting HD games in under 12 months.

That said, Nintendo wouldn't do well in the traditional mobile space. They provide a unique experience and hardware is an inherent part of that. That is why as I've said before - the next step for Nintendo is to release a proprietary tablet, with Streetpass and physical controls, with Miiverse, NicoNico (which they recently invested into), Nintendo's eBooks marketplace (which was the subject of a lot of press last year), Nintendo animation (Pikmin anime, Pokemon TV shows), a variety of internally-developed F2P games, and the ability to buy completely traditional games as well, sold for $200 dollars (generating about $80 of profit per device). The tablet market in Japan is still wide open and Apple by no means is dominant yet. At half the price of an iPad Mini Retina, such a device has the potential to outsell the DS and they will never have third party issues ever again as the development tools would be standard Android or iOS development tools.They could do a great job curating content and really ensure that it is a great gaming experience.

That is a device that parents would buy their children. It would have good parental controls, a child-safe social network through Miiverse, and finally, it could be subsidized with a data plan in markets like Japan (in the US subsidies are going extinct and Apple is feeling the pain).

Nintendo could easily erect it as a third pillar, then release a follow-up dedicated handheld device based on the Wii U Game Pad to replace both the 3DS and the Wii U. They'd effectively capture their traditional audience again with a child-friendly tablet that contains lots of F2P games while possibly turning a profit on their ever-shrinking enthusiast gaming audience with a Wii U Game Pad-only hardware.

Iwata has hinted in the past that Nintendo is working on a tablet/smartphone product - it was in the Q&A some time ago - so it's only a matter of time before it gets released.

Interesting. Could you share a link to that?
 
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