• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

IGN: Exactly How Bad is the Nintendo Situation?

REV 09

Member
Do people honestly want a Nintendo console that basically only plays Nintendo games? Sure, N can do that if they want, but do the fans honestly want that?
 

Log4Girlz

Member
18 months? LOL have you seen how badly the Wii U has been selling this year? Do you think Xbone/PS4 will sinnk anywhere near that low? PS3, with all it's negative hype and $599 price tag never even sold that poorly. Wii U has really had one good month, and everything since has been mediocre to pure shit. It won't take much for the big 2 to catch up. You seem to be really underestimating just how badly the Wii U has been selling.

I can't believe they've squandered an entire year head start. Completely let it go to waste.
 

goomba

Banned
18 months? LOL have you seen how badly the Wii U has been selling this year? Do you think Xbone/PS4 will sinnk anywhere near that low? PS3, with all it's negative hype and $599 price tag never even sold that poorly. Wii U has really had one good month, and everything since has been mediocre to pure shit. It won't take much for the big 2 to catch up. You seem to be really underestimating just how badly the Wii U has been selling.

Yes I'm aware how little the WiiU has been selling this year but it's not like it's had any software released during that time that would drive its installed base. Software sells hardware, do you accept that WiiU's sales will improve once we see the effect of Pikmin 3, Mario 3D world, Sonic: lost world, Wii Fit, W101, Zelda WWHD etc?
 
This would have more merit if said games were available, don't you think?

Yes I'm aware how little the WiiU has been selling this year but it's not like it's had any software released during that time that would drive its installed base. Software sells hardware, do you accept that WiiU's sales will improve once we see the effect of Pikmin 3, Mario 3D world, Sonic: lost world, Wii Fit, W101, Zelda WWHD etc?



New Super Mario Bros, a sequel to a game on Wii that sold like 30 million copies, came and went and didn't do much. Why would I have much faith that DK Returns or Pikmin or Super Mario Bros 3D...sequels to games that are less known and have not sold nearly as much, will cause much of a bump?

Those games listed will sell, I don't deny that. And they will likely cause a slight bump in sales. But will they attract any people that didn't have Wii U on their radar before? I doubt it.
 

Log4Girlz

Member
Yes I'm aware how little the WiiU has been selling this year but it's not like it's had any software released during that time that would drive its installed base. Software sells hardware, do you accept that WiiU's sales will improve once we see the effect of Pikmin 3, Mario 3D world, Sonic: lost world, Wii Fit, W101, Zelda WWHD etc?

New Super Mario Bros. U is a sequel to a massive game. That should have been a sales driver. The drop off from the very first 2 months shows that people have moved on from Nintendo's core titles.
 
If the PS4/XB1 release in Oct/Nov as expected the Wii U will in all likelihood still be under 1.5M in the US. That's a number that the 360 reached in about 4-5 months with supply constraints and the PS3 about 9 months at $599, just off the top of my head.

The PS3 at 599 EUR reached approx the Wii U's current European LTD in about 2 days.

We've seen the effect of Pikmin in Japan and the UK already. Minimal.
 

goomba

Banned
New Super Mario Bros, a sequel to a game on Wii that sold like 30 million copies, came and went and didn't do much. Why would I have much faith that DK Returns or Pikmin or Super Mario Bros 3D...sequels to games that are less known and have not sold nearly as much, will cause much of a bump?

Those games listed will sell, I don't deny that. And they will likely cause a slight bump in sales. But will they attract any people that didn't have Wii U on their radar before? I doubt it.

NSMBU was a launch game, and the WiiU had a strong launch because of it.

One game is not enough for most people.

I can see plently of people prefering the WiiU game library this xmas over the ps4/xbone libraries, not to mention the 360/ps3 with GTAV
 

Coxswain

Member
New Super Mario Bros, a sequel to a game on Wii that sold like 30 million copies, came and went and didn't do much. Why would I have much faith that DK Returns or Pikmin or Super Mario Bros 3D...sequels to games that are less known and have not sold nearly as much, will cause much of a bump?

Because a single game (regardless of how popular its franchise/series is) is just not as significant a motivator to purchase a new console as a cumulative half-dozen big-name titles are - even if that single game is from a franchise so big that it dwarves the entire collection.

Edit: To be fair, that might be different if we were talking about an online-focused game from a massive franchise, since online multiplayer games can leverage Friends List Peer Pressure to make sure that sales drive more sales, which drive more sales, and so on, but NSMB is a strictly offline affair.
 
D

Deleted member 752119

Unconfirmed Member
Do people honestly want a Nintendo console that basically only plays Nintendo games? Sure, N can do that if they want, but do the fans honestly want that?

Nope.

I love their franchises, but not enough to buy a home console for them. The GC and Wii gathered tons of dust for me during droughts between first party games I cared about, so I won't make the mistake of buying another one.

I'm happy to just get my Nintendo fix on portables as those are cheaper, sell better and get better third party support, and are most less obtrusive (i.e. easily stuck in a drawer out of site, out of mind) if there are any droughts.
 
This talk of the PS4 and XB1 selling against the Wii U is somewhat moot anyway. They really aren't competing for the same consumer anyway.
 

BlackJace

Member
New Super Mario Bros, a sequel to a game on Wii that sold like 30 million copies, came and went and didn't do much. Why would I have much faith that DK Returns or Pikmin or Super Mario Bros 3D...sequels to games that are less known and have not sold nearly as much, will cause much of a bump?

Those games listed will sell, I don't deny that. And they will likely cause a slight bump in sales. But will they attract any people that didn't have Wii U on their radar before? I doubt it.

Here's the thing about NSMBU: I believe that it was released way too close to NSMB2, and that had an effect on enthusiasm for the title. Hell, the game has some ridiculous attach rate, so in theory it did its job of selling a Wii U to people, but I'm willing to bet the overlap with 2 prevented it from doing better.

As for a potential stagnant bump, I think they have a little advantage with their titles usually having ridiculous legs.
 

Log4Girlz

Member
Because a single game (regardless of how popular its franchise/series is) is just not as significant a motivator to purchase a new console as a cumulative half-dozen big-name titles are - even if that single game is from a franchise so big that it dwarves the entire collection.

Edit: To be fair, that might be different if we were talking about an online-focused game from a massive franchise, since online multiplayer games can leverage Friends List Peer Pressure to make sure that sales drive more sales, which drive more sales, and so on, but NSMB is a strictly offline affair.

Wii sports

This talk of the PS4 and XB1 selling against the Wii U is somewhat moot anyway. They really aren't competing for the same consumer anyway.

In reality they are. Though Nintendo failed to realize it.
 
NSMBU was a launch game, and the WiiU had a strong launch because of it.

One game is not enough for most people. I can see plently of people prefering the WiiU game library this xmas over the ps4/xbone libraries, not to mention the 360/ps3 with GTAV

It honestly all sounds like wishful thinking. PS4 and Xbone, contrary to what people who want to believe the industry is tanking would have you believe, are tracking to be huge. They have a ton of hype and momentum behind them. There is nothing to indicate they will struggle anywhere near the way Wii U did in it's first 6 months. Come October/November, they are going to take up ALL of the headlines and games like Mario 3D World and Donkey Kong will be relegated to the back pages. There will not be enough buzz or hype of fervor to cause the kind of spike in sales Nintendo needs. Those games will sell well, but they are not going to create a phenomenon, which is exactly what Nintendo needs to cause their sales to go from where they are now, in the tank, to the levels that MS and Sony will be selling.

As I've said before, I really think Nintendo fans are either in denial or just underestimating just how bad the Wii U is selling. It's not comparable to 3DS. It's not comparable to PS3. Its not respectable or simply treading water. If that were the case, maybe a solid lineup could push it over the hump. It needs something in the vein of Wii Sports. Something that appeals to all sorts of people to pull sales and the system's fortunes out of the gutter. Mario and Donkey Kong are not those games.

New super Mario bros 2 is not a sales driver for the 3ds and the original had fantastic sales. I don't think the game is a system seller, rather its a game that people pick up once they have the system. Pokemon for instance is a system seller.

I believe Mario Kart and Smash Bros will pull in some numbers. Obviously it won't be huge but I think next year holiday season the Wii u will be decent.

NEXT holiday? As in 2014? By that time what Mario Kart and Smash Bros do will not make any difference. This holiday was the key. Those are games they needed this year.
 

trixx

Member
New Super Mario Bros. U is a sequel to a massive game. That should have been a sales driver. The drop off from the very first 2 months shows that people have moved on from Nintendo's core titles.
New super Mario bros 2 is not a sales driver for the 3ds and the original had fantastic sales. I don't think the game is a system seller, rather its a game that people pick up once they have the system. Pokemon for instance is a system seller.

I believe Mario Kart and Smash Bros will pull in some numbers. Obviously it won't be huge but I think next year holiday season the Wii u will be decent.

I do however agree that Nintendo wasted this head start.
 
They don't have the track record to wipe them out. Downward spiral after the SNES would support that.
True...but the snes was when Nintendo nailed first party/hardware and third party

After that they missed the hardware piece (carts vs cd) and went downhill from there

Imagine if they went back to the drawing board and came out with an actual gamers console

They have the coin....no reason why they couldn't
 

goomba

Banned
It honestly all sounds like wishful thinking. PS4 and Xbone, contrary to what people who want to believe the industry is tanking would have you believe, are tracking to be huge. They have a ton of hype and momentum behind them. There is nothing to indicate they will struggle anywhere near the way Wii U did in it's first 6 months. Come October/November, they are going to take up ALL of the headlines and games like Mario 3D World and Donkey Kong will be relegated to the back pages.

I don't have wishful thinking, I think console gaming is clearly in decline, whats wishful about that?

The wishful thinking appears to me to be people pretending that the industry is just fine and dandy with companies going out of business left and centre whilst Japan have migrated to handhelds while the mass market in the west are more interested in web and ios/android gaming . Gamers are even able to play new games like Watchdogs, GTAV, ACIV, GT6 etc on consoles they already have
 
I don't have wishful thinking, I think console gaming is clearly in decline, whats wishful about that?

The wishful thinking appears to me to be people pretending that the industry is just fine and dandy with companies going out of business left and centre whilst Japan have migrated to handhelds and the mass market more interested in web and ios/android gaming.

The industry is changing and evolving. That doesn't mean it is in decline. Nintendo's struggles are not because of some industry decline. They are because Nintendo did a shitty job of every part of the Wii U, nearly every step of the way. Even if MS and Sony don't replicate the sales numbers of 360 and PS3, do you think they will decline at the same rate as WIi-->Wii U? Not a chance in hell. There is still room for growth and revenue in the console industry, it's just not with Nintendo. When the PS4 and Xbone surpass Wii U's LTD in 3-6 months, will that be a sign of decline?
 

Coxswain

Member
Wii sports

... Was not the only driver of the Wii's insane early success. The concept of the hardware (controller) itself was as much or more of a sales driver than the actual content that was available on the Wii, and that content included not only Wii Sports, but Wii Play and at least a half-dozen similar motion-driven casual games that saw some pretty great success in the early days of the Wii's lifespan, along with a few standout non-casual titles that sold on the promise of motion controls being able to add to the experience of traditional games.
 

goomba

Banned
The industry is changing and evolving. That doesn't mean it is in decline. Nintendo's struggles are not because of some industry decline. They are because Nintendo did a shitty job of every part of the Wii U, nearly every step of the way. Even if MS and Sony don't replicate the sales numbers of 360 and PS3, do you think they will decline at the same rate as WIi-->Wii U? Not a chance in hell. There is still room for growth and revenue in the console industry, it's just not with Nintendo. When the PS4 and Xbone surpass Wii U's LTD in 3-6 months, will that be a sign of decline?

That would confirm the console industry is in decline.

As to whether the ps4/xbone surprass the WiiU's LTD in 3 months, well that sounds like wishful thinking or perhaps I can please borrow your crystal ball?
 

numble

Member
Uhh... why does your chart start arbitrarily in the middle of the Wii gen? I'd think a more useful chart would start prior to that?

Wolfram Alpha only seems to compute the last 5 years.

Its addressed on the article. Short term investments. They are trying to have those massive amounts of capital work for them.

No its not. Nintendo had a lot more short term investments in the past. They've lost about 4 billion in the last 3 years. Here is the chart total of cash and short term investments:
dW3xOQ3.gif


Cash only, by comparison:
wRfyFEl.gif
 

Barzul

Member
Nintendo as an entity is still in a good spot, the Wii U however is dead. Nintendo needs an apple moment where they create a product we never knew we needed. I like to think they make a console with comparable power to the Xbox One and PS4 but like with built in screen, but not bulky. Basically a gaming laptop, but with optimizations that consoles possess, with 4g LTE and other bells and whistles. Not sure how feasible this is or if it's even a good idea, but it sounds like something crazy that Nintendo could do.
 

goomba

Banned
Well three months from now is October so that won't do much good.

OK I meant three months after ps4/xbone launch sorry.

If it doesnt happen , I'm sure you will have an excuse like "shortages" or some such and just to clarify we are talking worldwide sales non of this US only bullshit.
 
Three months is a bold prediction. Remember The WiiU had a strong launch, it outsold the launch month of 360 and PS3.

WiiU actually has games coming out again now too, so it will continue to sell even if PS4/Xbone overshadow it. Personally I'm pessemitic whether $499 - $599 consoles will be that attractive to the mass market, especially when the big games (GTA V, Watchdogs, ACIV etc) are available on ps3 / 360.

I think PS4/Xbone will surpass WiiU's LTD, but I think it will longer to do so, 18 months perhaps.
I don't think $499 - $599 consoles will pull in the mass market either. Fortunately, I live in reality where they cost $100 less!
 

Wynnebeck

Banned
I hope you're chuckling in line at gamestop to buy yourself and 20 million of your closest friends a Wii U.

I said damn! lol

Three months is a bold prediction. Remember The WiiU had a strong launch, it outsold the launch month of 360 and PS3.

WiiU actually has games coming out again now too, so it will continue to sell even if PS4/Xbone overshadow it. Personally I'm pessemitic whether $499 - $599 consoles will be that attractive to the mass market, especially when the big games (GTA V, Watchdogs, ACIV etc) are available on ps3 / 360.

I think PS4/Xbone will surpass WiiU's LTD, but I think it will longer to do so, 18 months perhaps.

18 months? You're kidding right? PS4's price at $399 is going to ensure they pass Wii U's LTD fairly quickly and even the gaffes from MS won't stop people from buying the Xbone either. You say 18 months? I say 3.5 to 4. You are seriously underestimating the hype behind the PS4/Xbone.
 
OK I meant three months after ps4/xbone launch sorry.

If it doesnt happen , I'm sure you will have an excuse like "shortages" or some such and just to clarify we are talking worldwide sales non of this US only bullshit.

The XB1 won't be launching in Japan (not that it matters). The PS4 may not either.

Also, are you referring to actual sell-through or the massive over shipment Nintendo stuffed the channel with at launch.
 

Barzul

Member
Nintendo's biggest problem has been lack of an online infrastructure. The fact that as I'm typing this, I can't tell you what Nintendo's equivalent to PSN or Xbox Live is a big problem. They need to fix that. I still think the Wii U is dead, but an comparable online experience to what MS and Sony offer will go a long way in helping them. Does Nintendo still do the friend codes thing?
 
I wonder what would happen if Nintendo started doing false ads...like just say it's selling millions of copies and is sold out everywhere and got all the stores to go along with it. Do you think people would actually believe it and get hype for the system?
Haha, wow. This is one of the most hilariously bad ideas I've seen on GAF.
 

Striek

Member
With Nintendos forecast of 9M units this FY they would've been expecting the Wii U to sell 2 million units this holiday in the US (or more). Its not going to, but still its LTD may be close to that figure depending on the effectiveness of a big price drop. The PS4/XBOne wont outsell it in three months because they wont have supply. Even if they had supply that would be a tall order. Certainly both wont be able to accomplish it.

NSMBU was a launch game, and the WiiU had a strong launch because of it.
Well thats debatable. In the US the Wii U had a strong launch only with the disingenuous comparisons been thrown around against sold out launch systems and ignoring the fact it was unusually available on store shelves, and even then it was outright bloody terrible in Europe from the get-go. I remember threads like this one where we were shown how the Wii U was supposedly selling quite well. But like I pointed out back then it was just inability to discern the current sales trajectory and misleading comparisons.

Wii U had a bad launch in the US, terrible in Europe, and maybe good in Japan but overall WW nowhere near strong.
 
I think we may have a slight case of people overestimating the attractiveness of a $400 games console to the market at large in here.

I'm also not sure how we're expecting either company to push machines, as neither has a hook? Sony's strategy is "they have to upgrade eventually; don't be Microsoft" which may be a brilliant long term strategy but isn't going to drive initial sales past enthusiasts. Microsoft... I'm not even sure, $500 is dead in the water.

Say what you will about the Gamepad, but at least a value driver exists for Wii U. Look back at the last couple of successful platforms, they all offer something (let's call them "gimmicks") never before seen that drove the success.

PS1: 3D graphics/cutscenes
PS2: DVD playback
Wii: Motion controls
DS: Touch screen

Even Kinect did crazy numbers, and it was terrible.

PS4/XBONE are literally just linear upgrades over their predecessors, so that may still reach success over time but there's no guarantee short term.
 

goomba

Banned
The XB1 won't be launching in Japan (not that it matters). The PS4 may not either.

Also, are you referring to actual sell-through or the massive over shipment Nintendo stuffed the channel with at launch.

are "actual sell through" numbers available for wii u launch and will they be for ps4/xbone ?
 

LaNaranja

Member
I think Nintendo has the strongest software this year by far and if marketed properly can catapult them into a not to far off third place (or even second). Especially if the other new consoles sell out. All of this is assuming that thing Iwata said about stopping all Wii U marketing for the first part of this year was done in order to have a big push this holiday is true.

I also think the marketing should have some amount of focus on showing the way that the Wii U can control your TV and even has a dedicated TV button (just to shit in Microsofts cereal).
 

Barzul

Member
I think we may have a slight case of people overestimating the attractiveness of a $400 games console to the market at large in here.

I'm also not sure how we're expecting either company to push machines, as neither has a hook? Sony's strategy is "they have to upgrade eventually; don't be Microsoft" which may be a brilliant long term strategy but isn't going to drive initial sales past enthusiasts. Microsoft... I'm not even sure, $500 is dead in the water.

Say what you will about the Gamepad, but at least a value driver exists for Wii U. Look back at the last couple of successful platforms, they all offer something (let's call them "gimmicks") never before seen that drove the success.

PS1: 3D graphics/cutscenes
PS2: DVD playback
Wii: Motion controls
DS: Touch screen

Even Kinect did crazy numbers, and it was terrible.

PS4/XBONE are literally just linear upgrades over their predecessors, so that may still reach success over time but there's no guarantee short term.
I think you're underestimating peoples needs to play AAA games. With Wii U barely being competition this gen, I expect Sony and MS to eat much further into the marketshare that Nintendo got with the Wii. Unless Apple comes out with iConsole or whatever they'll call it. Don't forget that these devices won't always be $400/$500 dollars. By mid gen, I expect you'll be able to pick up a PS4 for $300 and X1 for $350.
 
With Nintendos forecast of 9M units this FY they would've been expecting the Wii U to sell 2 million units this holiday in the US (or more). Its not going to, but still its LTD may be close to that figure depending on the effectiveness of a big price drop. The PS4/XBOne wont outsell it in three months because they wont have supply. Even if they had supply that would be a tall order. Certainly both wont be able to accomplish it.
[
The Wii U's current LTD is about 3.6 million units worldwide and, even if it did unrealistically well at Xmas, they're still going to be 3 or 4 million short of FY target.

Realistically, I think the PS4 has a strong chance of overtaking the Wii U's LTD after a few months on the market. I don't think people realise how badly the Wii U is selling everywhere; there's not a single region it's successful in.
 
I think you're underestimating peoples needs to play AAA games. With Wii U barely being competition this gen, I expect Sony and MS to eat much further into the marketshare that Nintendo got with the Wii. Unless Apple comes out with iConsole or whatever they'll call it. Don't forget that these devices won't always be $400/$500 dollars. By mid gen, I expect you'll be able to pick up a PS4 for $300 and X1 for $350.

No, I agree that PS4 is the likely future "winner" and that both have decent prospects over the course of the next five years (slow and steady wins the race and all that).

I don't think they'll be immediately successful or widely adopted, for a handful of reasons.
 

Game Guru

Member
Most of the growth of the seventh console generation came from the Wii, and given that Wii U's not looking good, PS4 is continuing down the core gamer path, and Xbox One's casual interface makes the system cost at least $100 more than either the Wii U or the PS4, that Wii fanbase is almost certain not to come back. Looking at just the sales of the PS3 and the 360 versus the sales of the PS2 and the OG Xbox has shown that without the Wii, console gaming would declined with the seventh generation.
 
are "actual sell through" numbers available for wii u launch and will they be for ps4/xbone ?

Worldwide? The most we have access to regularly are sales in the two principal regions (USA and Japan).

Technically it is feasible to get European / Australian / Canadian sales through independent trackers, but they are seldom ever given out / leaked. Other territories don't really have any reliable metrics outside of console manufacturer's proprietary POS tracking services (and those are completely confidential).

At the moment it's impossible to get a complete worldwide view of "actual sell through numbers." We can only extrapolate and estimate based on the tidbits that filter down to us (these days, the tidbits mostly come from graphs sourced from Nintendo investor relations).

The Wii U's current LTD is about 3.6 million units worldwide and, even if it did unrealistically well at Xmas, they're still going to be 3 or 4 million short of FY target.

Realistically, I think the PS4 has a strong chance of overtaking the Wii U's LTD after a few months on the market. I don't think people realise how badly the Wii U is selling everywhere; there's not a single region it's successful in.


Technically they need 8.84 million in nine months to fulfill their predictions.

Assuming a ~200K shipped precedent into September, that's 8.64 million they need shipped in six months (October through March).

What Nintendo expects is for the Wii U to exceed launch sales (where the Wii U shipped 3.06 million in roughly one month), and maintain at least a ~1 million per month momentum for the remainder of the period.

Essentially, Nintendo aims to relaunch the Wii U. But THIS time, Nintendo predicts strong, Wii-esque momentum. So the Wii U would have to suddenly become a runaway hit to even approach the goal. That's a very hard proposition to sell, given that Mario Kart 8 is delayed until the spring, and 3D Mario / Donkey Kong / Mario & Sonic will have to carry the entire brunt of the relaunch.
 

Striek

Member
At $500/$550 the PS4 and Xbox One are already competitively priced here in Australia. The PS2 launched at $750, the PS3 at $999.
The Wii U's current LTD is about 3.6 million units worldwide and, even if it did unrealistically well at Xmas, they're still going to be 3 or 4 million short of FY target.

Realistically, I think the PS4 has a strong chance of overtaking the Wii U's LTD after a few months on the market. I don't think people realise how badly the Wii U is selling everywhere; there's not a single region it's successful in.
2 million was in reference to US sellthrough by the end of this year, which is the only region we are likely to get quality comparable data for all the systems.
 

IrishNinja

Member
Unusually sensible article.

yeah, that was my take here as well...kinda refreshing to see something on the other end of the spectrum form "they should putt their games on iOS!" type nonsense, man even that dude from naughty dog was on that tip at e3. shit's tragic.

In reality they are. Though Nintendo failed to realize it.

at the crux of my prior complaints about people not seeing WU as current gen was this, so yeah, hearing that they're not competing in the same market is kinda weird. there's variances in demographic here & there but they're not selling toasters.
 

Zinthar

Member
The problem with Nintendo going third-party to maximize shareholder value is that people here are ignoring what shareholders would actually be demanding. Shareholders aren't going to demand that Nintendo make console games for Sony and Microsoft platforms. The console game business is not a growth industry. The growth industry concerning gaming are tablets and smartphones, which is what shareholders would want Nintendo to be in. The problem here is that tablets and smartphones are more of a threat to Nintendo's successful handheld business than Nintendo's ailing console business.

Basically, if Nintendo feels that making home consoles is not worth it, Nintendo will likely just leave that industry completely and focus on their handheld business, rather than stick around to make console games, because console games are not a growth industry.

Your point is well-taken, and although conceptually smartphones and tablets are indeed much more competitors to handhelds than the console business, I don't think shareholders are clamoring for Nintendo to jump into that space yet if it would cannibalize (or force them to abandon outright) their existing handheld business -- if for no other reason than Nintendo is extremely risk-averse and would be hesitant to abandon their most profitable business.

I don't believe the overlap between the handheld/mobile and console/PC gaming markets is all that great -- they're not really direct competitors. Nintendo can reasonably expect that it can sell to the same consumer in both markets. Although the console business may have peaked, it's far from dead, and Nintendo could potentially be selling tens of millions of copies of each of its top franchises to console gamers at $60 apiece. Even if they want to jump into the smartphone/tablet market, the margins that console games at the top of the sales food chain can command is still enormous.

Additionally, there's a case to be made that going third-party on the console games side could help Nintendo protect its handheld business by getting more hardcore gamers re-immersed in the Nintendo ecosystem. To the end, Nintendo is a large enough player that they might be able to sign an extremely favorable distribution deal with either Sony and/or Microsoft that would allow them a certain degree of autonomy to sell digital games outside of each platform's first-party marketplace (perhaps via a Nintendo eShop app for each system). The threat of Nintendo exclusively going with one partner would probably be too much for the other company to ignore. It would be similar to how Apple was able to use its weight to obtain a favorable deal from AT&T with the iPhone, and then has since bent over every other U.S. carrier and is generally the only device that lacks carrier branding and doesn't require carrier approval for software updates.
 
Top Bottom