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GI: The Failure of the 3DS Isn't a Boon to Sony, It's a Portent of Disaster

gamesindustry

You wouldn't expect PlayStation Vita to have a lot to prove. It's the successor to a console which has sold 70 million units in spite of stiff competition from one of the biggest gaming success stories of the past two decades, the Nintendo DS, and it arrives on the market less then a year after Nintendo botched the launch of the DS' own successor. It's high-spec, reasonably priced and lavished with all the hardware design expertise Sony can bring to bear. What's not to love?

In spite of all that, there's an inescapable note of pessimism in a great many of the discussions I've had about the Vita. More than once - more often than not, in fact - the question of whether the system could be an outright flop is raised, which seems almost ludicrously bleak when you consider the quality of the console and the support being mustered for it.

Yet it's not actually a ludicrous question, because the reality is that the Vita is launching at a time when the handheld market as a whole just doesn't look all that healthy. Nintendo made some shocking mis-steps with the 3DS, certainly, but its mistakes weren't fundamental enough to justify the critical and commercial battering the machine received in its first three months on the market. That can only be understood in a wider context - a context in which most consumers who might have thought about a dedicated handheld own a smartphone, a tablet or an iPod Touch, and can't justify the expense of another device that only does games (and horrendously expensive games, at that).

When you turn the picture around and look at it that way, the failure of the 3DS isn't a boon to Sony - it's a portent of disaster. Yes, it would have caused sleepless nights for the firm's bosses if the 3DS had a stunning launch and was selling like hotcakes around the world, but that might actually have been preferable to the situation as it stands, with the 3DS heavily discounted (making the Vita look uncomfortably expensive, a factor which could have significantly influenced Capcom's decision to push its upcoming Monster Hunter games on the 3DS instead) and the industry questioning the relevance of the whole dedicated handheld sector.

Sony, to its credit, is not taking the situation lightly. Everything it revealed about the Vita this week at Tokyo Game Show felt like an attempt to distance itself from Nintendo's mistakes, and to ensure that it could never be accused of repeating them. Some of those things were straightforward, like the massive launch line-up of software - patently designed to fend off the extremely damaging (and not entirely fair) accusation that the 3DS doesn't have any games. Others are much more fundamental strategic differences.

Primary among those differences is Sony's tentative attempt to embrace the mobile market that threatens to engulf the dedicated handheld market. Two key pieces[/B] of information in that regard were forthcoming this week. One is that the Vita will be supported by reasonably priced pay-as-you-go 3G data plans in Japan (which is quite a big deal, since that kind of plan essentially doesn't exist in that market at the moment - it's less exciting for Europeans who have been used to that sort of thing since the launch of the iPad, obviously). The other is that Vita is now officially considered to be a target platform of PlayStation Suite.

That second piece of information was something that many of us had assumed for some time, but which had never quite been confirmed or explained. This week, Sony set things straight - Vita will, indeed, be running games which are created for PS Suite Android devices. What this means is that developers will be able to (relatively) easily create games to run across Vita, Xperia Play and Sony Tablet devices, as well as any other Android devices which decide to support the PlayStation Suite software and app store.

This is important for a few reasons. Firstly, it represents an embracing of the app store distribution model and business model which Sony's rivals - chiefly Nintendo - have thus far shied away from. Rather than betting against the app store model, Sony wants to have a foot in both camps - almost certainly a wiser decision than trying to throw its lot in completely with either the Nintendo camp or the Apple camp.

Secondly, and perhaps more importantly, this gives near-instant critical mass to PS Suite. While most commentators agree that Suite is an important and positive direction for Sony, there has been a lot of concern over just how the platform was ever going to reach the point of actually being relevant to the market. Sony's tablet devices and the Xperia Play don't make up a substantial enough chunk of the market for developers to be interested, after all - but add Vita to the equation and suddenly it's a much more attractive prospect, not only to developers, but also consequently to other hardware manufacturers who may have previously baulked at the requirements for PS Suite to run on their systems.

In practical terms, what this means in the short term is that Sony has opened up the potential for low-cost, iOS-style gaming hits to be available on the Vita. Many questions remain to be asked, however, not least of which is what the company is going to do with regard to pricing (previous efforts at bringing iOS titles to established game consoles have generally involved ridiculous price-hikes) and how open it will be to the concept of freemium games. Yet the point still stands that Sony, unlike Nintendo, is taking important steps into the market that threatens to kill handhelds.

This is very positive for Sony, but it doesn't quite allay fears about the future of the Vita. The reality of the situation remains - this is a dedicated gaming device in a world that doesn't seem to have any huge requirement for dedicated gaming devices any more, and while you and I will probably buy one because we love some of the more traditional gaming genres and control mechanisms enabled by Vita, one can't help but wonder how much of the wider market feels that way.

What Vita needs to prove - and hasn't shown just yet - is that it's a device that justifies being carried in my pocket alongside my Android or iOS phone, offering major functionality and possibilities above and beyond what the phone can do. In part, I fear that Sony's thinking may still be rooted too firmly in Japan, where older "featurephones" still dominate and iPhone-style smartphones are only now seriously taking root - giving the Vita a major window of opportunity. In the West, the company certainly has its work cut out for it. Vita will almost certainly be a success, but to be a success on the scale that Sony - and the industry - wants to see, it must go a lot further to prove itself to a market which, right now, is already very happy with what's in its pocket.
 

Htown

STOP SHITTING ON MY MOTHER'S HEADSTONE
Great. Another one.

Look, how about we wait to see how the holiday season pans out before we pronounce gloom and/or doom for anyone, okay?
 

Erethian

Member
Nintendo made some shocking mis-steps with the 3DS, certainly, but its mistakes weren't fundamental enough to justify the critical and commercial battering the machine received in its first three months on the market.

Reading this makes me realise two things about this article:

A) The importance of launching at a mass market price with compelling software is grossly understated

B) The writer lacks an understanding of the sales of earlier handheld devices

Edit: As to the rest of the article, it strikes me as interesting that they mention Sony's move to smaller, iOS-style games with the Vita, but don't at all mention the lack of internal storage the device has or the expensive proprietary memory cards which hinder any move in that direction.
 

Peru

Member
The coverage of this particular hot topic in games analysis right now will look embarassing beyond belief come january.
 
Thing about Vita is im not sure why i should want it, if i want to play PS3 type games ill play them on PS3, as well have putting they game on other things is a little like walking on fire.

Its why MS stop game from being on 360 and PC, if they can play it somewhere why would they buy a 360?

hand-holds are not about power

and 3DS fail what? :/ looks like it done fine and im sure Vita will
 

SmokyDave

Member
Peru said:
The coverage of this particular hot topic in games analysis right now will look embarassing beyond belief come january.
I don't think this sort of thing gets settled by looking at unit sales over a couple of months.
 

Auto_aim1

MeisaMcCaffrey
Good article. PS Suite is definitely beneficial for the Vita. Although, I don't think the Vita will sell as well as the PSP did i.e. 70 million. But it depends, really. You can never predict anything properly nowadays.
 

Valnen

Member
Oh look, another article written by someone that thinks flash games sold on an app store for 99 cents are enough to satisfy actual gamers >.<.

They're fun in their own right but will never replace full on games.
 

Kintaro

Worships the porcelain goddess
jump_button said:
Thing about Vita is im not sure why i should want it, if i want to play PS3 type games ill play them on PS3

<checks calendar>

Huh, I went back to 2004.
 

Riposte

Member
Izayoi said:
dooooooooooooooooomed

This coming right after the stellar TGS conference I find particularly baffling.

Games don't matter in the gameindustry, sells do. Well, "market share".
 
This has been my feeling since the 3DS first failed to live up to initial expectations. A lot of the difficulty it's had in the market comes from a dedicated handheld being a harder sell today than it ever has been, maybe even more than due to any of the 3DS-specific oversights and blunders we've seen.

That being said, it's beyond pointless to diagnose the health of a system that hasn't had any truly meaningful releases or had its first holiday season, and even moreso one that's not even out yet.
 

Jin34

Member
MS isn't going to mention/reveal the next Xbox until the last minute just so they don't have to hear how they are doomed too.
 

Izayoi

Banned
ShineALight said:
This has been my feeling since the 3DS first failed to live up to initial expectations. A lot of the difficulty it's had in the market comes from a dedicated handheld being a harder sell today than it ever has been, maybe even more than due to any of the 3DS-specific oversights and blunders we've seen.
I'm almost positive it's because of Nintendo's awful handling of the launch, and not so much the "difficulty" of selling a dedicated gaming handheld.
 

Mael

Member
Kintaro said:
<checks calendar>

Huh, I went back to 2004.
Well it worked for psp, after games that succeed there were games not suited to ps3.

And yeah so far 3DS launch has been an unmitigated disaster, no 2 ways about it.
Kinda like that hillarious ps3 launch.
 

likeGdid

Member
I'm not quite so sure the handheld market is doing so bad nor will it get that much worse. I think it really only looks bad compared to the huge surge that was the DS.

I believe the surge was mostly the Brain-Age/Nintendogs/etc phenomenon which brought a huge amount of people to buy the handheld, since that was the only place they would get that experience.

These days, the people who were buying consoles just for those type of games will likely have their desires satiated with iOS/etc. And it would makes sense, purely out of convenience.

That type of market seems to me to be pretty much taken by the phone crowd and the best Sony and Nintendo can do (most likely Sony) is to sell those kind of experiences in their online shops/markets.


My prediction:
Yes, neither will reach DS levels (since that was very unprecedented), but the market would likely be 'leaner,' so to speak, in that you won't find companies desperately making 'casual*' games to make a quick buck, and the top handheld franchises will be 'hardcore' games.

Someone is more than welcome to correct me if my line of thinking is incorrect, as that would be much appreciated. I don't necessarily think the article is wholly "NINTENDO IS DOOMED." Just giving my thoughts on the matter.
 

jonno394

Member
I don't own either and i cant see myself buying a 3DS until next year as i'll have Zelda, Saints Row, Fifa, Ico Collection, Skyrim and Dark Souls to play over the next few months so i'm unsure if i'll actually have time for another gaming device.

Out of the two the Vita looks like the better hardware but the fact is it really is in competition with android and iOS moreso than the 3DS as it is seemingly trying to position itself as a lifestyle device.

I hope both do well as I would hate hand held gaming to be relegated to only on smartphones or tablets. I look forward to both machines selling decent amounts and not being flooded with casual shovelware experiences.
 

stilgar

Member
The failure of the 3DS. What did we say about the PSP, again?

Stupidity is intergenerational AND crossplatform, it seems.
 

Orayn

Member
HgcAZ.jpg


This is just getting tiresome now.
 

nubbe

Member
In the old days people said the PSP would destroy the DS...

Now it is said that Vita and 3DS are irrelevant because people can play games for cheap on their smartphone.

I'm in the crowd that think dedicated game machines aren't desired or needed anymore.
 

marc^o^

Nintendo's Pro Bono PR Firm
3DS was too expensive for the few games it had post launch, and it was too expensive period. Since the price cut it is selling like it should, but medias have not noticed it, nor do they anticipate the big sales coming from holiday season and the unusual amount of system sellers coming in the next 6 months. Failure/flop/3rd party keep being used in every articles. They have no clue.

PS Vita is too good of a hardware not to meet success. Its launch has nothing to do with the 3DS one. And as 3DS is now selling good, the basis of this editorial is wrong.

Killer apps, perceived value sell consoles. Always been the case, and always will be
 

IrishNinja

Member
Peru said:
The coverage of this particular hot topic in games analysis right now will look embarassing beyond belief come january.

this, kinda. let the systems show & prove.

SmokyDave said:
I don't think this sort of thing gets settled by looking at unit sales over a couple of months.

true, but this has all been analyst talk for the most part, no? enough months of high #'s and a lot of that falls by the wayside.

jump_button said:
Thing about Vita is im not sure why i should want it, if i want to play PS3 type games ill play them on PS3

to be fair, while i kinda agree with this statement, wasn't this a knock on the PSP for much of the early part of its life? it still sold well regardless, so presumably many consumers felt it had more to offer, albeit after that first year or so.
 
Peru said:
The coverage of this particular hot topic in games analysis right now will look embarassing beyond belief come january.
Nintendo is forecasting 15+ million shipped units in the last 9 months of this fiscal year. They are expecting huge numbers to be sold and even with those huge numbers they expect almost no profits to be made.

Huge unit sales numbers won't change the fact that the 3ds has been a huge financial failure for them so far and it will be a long time before we know if they are able to turn it around.
 
SmokyDave said:
I don't think this sort of thing gets settled by looking at unit sales over a couple of months.
Only took about that much time of mediocre 3DS sales for these articles to start popping up a lot.
 

Donos

Member
Why should i want to play 200 hours of Final Fantasy X on Vita when i just can play Doodle Jump on my smartphone ?? Woohoo.

Don't get me wrong, there are some nice games on IOS/Android. I played up to 50 hours of the "Kairosoft" games on my Android phone and hours of other little games but it dosn't come close to playing games like Peacewalker or GTA Chinatownwars with buttons and never will.
 

gofreak

GAF's Bob Woodward
jump_button said:
Thing about Vita is im not sure why i should want it, if i want to play PS3 type games ill play them on PS3,

To me Vita is simply another (rather beautiful) games platform. Handheld or home, it doesn't really matter to me. Content and functionality are what matter.

It has its own games I can't play anywhere else. It has unique input opportunities for different styles of play than PS3. It has a much better online and services environment than PS3. It has a level of visual fidelity that feels far less compromised than previous handhelds. More specific to my own circumstances, it'll probably be to some degree more convenient for me at the moment.

Maybe the differences are not enough for some or many people even, but lots of people - myself included - own multiple devices that have more overlap than Vita and, say, PS3. If I can find room for certain other devices, I think I can certainly find room for Vita.

Anyway, more directly to the OT...if 3DS and Vita are dooooomed, it's the most beautiful face of doom I've ever seen :p I think they'll be fine though. Maybe not 'DS' fine, but fine enough to be viable.
 

SmokyDave

Member
IrishNinja said:
true, but this has all been analyst talk for the most part, no? enough months of high #'s and a lot of that falls by the wayside.
That much is true, I guess a quarter of decent growth could keep the hounds from the door.


JoshuaJSlone said:
Only took about that much time of mediocre 3DS sales for these articles to start popping up a lot.
Not really, eyes were already on the ball after 2010 started seeing a shift in monies and time toward the smartphones. The weak 3DS launch just gave these people a chance to say "Ha! Told you so!". Prematurely, I might add.

electroplankton said:
People DO buy Nintendo consoles for their games.
People DON'T buy Apple / Android devices for their games. Simply and plain.
I think you're wrong about this in the case of the iPod and iPad. I'll see if I can find the article I read that gave the stats.

Edit: Thinking about it, that was a usage survey, not a 'why did you buy it' survey. You're probably not wrong.
 

antonz

Member
bigtroyjon said:
Nintendo is forecasting 15+ million shipped units in the last 9 months of this fiscal year. They are expecting huge numbers to be sold and even with those huge numbers they expect almost no profits to be made.

Huge unit sales numbers won't change the fact that the 3ds has been a huge financial failure for them so far and it will be a long time before we know if they are able to turn it around.
I think you are overstating the financial issues a bit. As they have stated the losses they will be taking short term is due to slow production lines. Once they stabilize demand and there is a consistent sales rate they will be making money again.
 

DiscoJer

Member
How exactly is the 3DS a "failure"? It's been out in the West for what, 5 months? Maybe give it a holiday season before you write it off (and even then, wait until Pokemon hits).


bigtroyjon said:
Nintendo is forecasting 15+ million shipped units in the last 9 months of this fiscal year. They are expecting huge numbers to be sold and even with those huge numbers they expect almost no profits to be made.

Huge unit sales numbers won't change the fact that the 3ds has been a huge financial failure for them so far and it will be a long time before we know if they are able to turn it around.

Omg, they didn't make tons of money in the first year they launched, which is pretty much like every other single console launch. Yes, it's unusual for Nintendo, but hardly a big concern.
 
I like that no one really questions the wording "the failure of the 3DS". Nintendo dropped the ball on pricing and launch software, but it's still extremely early in the 3DS' lifespan (not that you would know it by the way some people discuss it :p) and the reception has been more lukewarm than downright bad. I also think the threat iOS games pose is somewhat overblown. Not that they doesn't pose any threat at all, but I don't personally believe the portable market is going to just sort of shrivel up and die or be replaced by mobile devices overnight. Nintendo and Sony might lose a slice of the pie, but in spite of the conventional wisdom I don't see dedicated handheld gaming devices going anywhere for a long time to come.
 

Donos

Member
ZoddGutts said:
The times have changed. IOS/Android is where is at.

What is there? The "easy" cash? Yeah but i can't play games that are on DS/3DS/PSP/Vita on them. And i love Android and have a ipod Touch full of games.
 

Izayoi

Banned
nubbe said:
I'm in the crowd that think dedicated game machines aren't desired or needed anymore.
Well that's pretty silly, considering you're on a forum where thousands of people clearly desire/have already purchased dedicated gaming handhelds.
 

Ushojax

Should probably not trust the 7-11 security cameras quite so much
I certainly think the main issue is the price. It looks even worse with those memory cards. I just don't see why people would pay $250+ to play the launch games. You need a Wii Sports/Brain Age calibre title to shift consoles at that price but neither Sony or Nintendo had one at launch. Stuff like Uncharted and Wipeout is already available on the PS3.
 
When a competitor fails with a cheaper price point and no competition it is not a good sign for your business plan for sure.

They have to be extremely careful. There is little space for errors as Nintendo is learning in the hard way.
 

Riposte

Member
Izayoi said:
Well that's pretty silly, considering you're on a forum where thousands of people clearly desire/have already purchased dedicated gaming handhelds.

And not just handhelds, lol...
 

DMeisterJ

Banned
Ushojax said:
I certainly think the main issue is the price. It looks even worse with those memory cards.I just don't see why people would pay $250+ to play the launch games. You need a Wii Sports/Brain Age calibre title to shift consoles at that price but neither Sony or Nintendo had one at launch. Stuff like Uncharted and Wipeout are already available on the PS3.
Get a pair of glasses?
 
Wow! The media are trying really really hard to paint the 3DS (and Vita) as dead consoles! (probably so that they can justify not having to cover/support them)
 
SmokyDave said:
I think you're wrong about this in the case of the iPod and iPad. I'll see if I can find the article I read that gave the stats.

Can't wait!
Obviously, there is a fraction of people who have bought iPhone for its games, but I don't think it's the primary reason, since it's a device that you'd use for something else. And a video gamers won't buy an iPhone for its games, because he/she knows that it's a complete different way to intend his/her hobby.

In terms of casual, well, GBA sold 80 million units without Brain Training mothers, that'd be huge installed base for 3DS.
 
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