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Eric Kain: Why Nintendo Needs To Stay In The Hardware Business,Regardless Of The WiiU

Tripon

Member
But even the GameCube, largely seen as the third horse in a new race against Sony and Microsoft MSFT -1.51%, was a financial success for Nintendo. But even if the company’s glory days have passed to some degree, this is still a corporation which has posted only one loss since it began publicly reporting earnings in 1981. That’s a remarkable success story, spanning over three decades. (And, of course, Nintendo is a much older company which has weathered many changes in technology.)

While the Wii U is still fairing dismally, Nintendo’s 3DS handheld system is the top performing video game system on the market. This fact offsets the Wii U’s troubles to some degree, and at the very least buys Nintendo time to figure out what to do next.

[...]

Imagine the graphics of the Wii U on an updated version of the 3DS (or some new DS machine) and then pair that with some sort of small receiver that allows you to play all your handheld games on any TV. There are Android devices that do this already, of course, but they only play Android games—nothing even close to par with Nintendo’s first-party offerings.

You see something similar with the PS Vita from Sony. You can play your PS4 games on the go and then switch right back over to the PS4 when you get home. But that’s still two distinct systems which will cost you over $600 plus tax. The nVidia SHIELD operates on a similar concept, but again lacks the sort of specific, exclusive software support that Nintendo can bring to the table.

[...]

Is it possible that letting go of first-party exclusivity would lead to higher Mario sales? Maybe. But Nintendo can’t do that and keep the 3DS alive. It’s an all or nothing proposition. And Nintendo would have to be very short-sighted to abandon something as lucrative as its handheld market simply because it’s struggling at the moment in the living room wars.

http://www.forbes.com/sites/erikkai...he-hardware-business-regardless-of-the-wii-u/
 

Oppo

Member
He's right of course.

Nintendo isn't a normal developer or publisher, they are like a mystical toymaker, intrinsically tied to the hardware.

I do think they should set up a separate development studio to noodle around with mobile games, but that's as much to mollify investors as anything else.

But like consoles themselves, the hardware is part of the personality of the system, all of apiece, all considered together. This is why I actually don't really mind the differences between them – I think it's cool that they are all a bit different, sometimes a lot different. But I'm old and remember joysticks and arcades.

Anyways, I say all this as someone who didn't buy a Wii, and will not buy a Wii U. The last Nintendo hardware I owned was a DS. But I know how important they are. And I don't think they should bend to market fads.

I do think they should pay more attention to what's happening in that space. They move too slow. Sometimes I think they confuse tradition or feng shui or whatever the fuck Miyamoto smokes with taking a stalwart position within a raging marketplace. It's a tough line no doubt. But Nintendo's problem lately does not specifically have to do with the fact that they make hardware.

To cement my own insanity, I still maintain that Nintendo's next revolution is somewhere in AR toys ;)
 

Pyrokai

Member
Sometimes I try to see how the industry would benefit with Nintendo leaving the hardware business.....and then I stop because I can't see a possible reason it would be better off.
 

Hsieh

Member
GameCube wasn't a third horse between Sony and Microsoft. The GameCube was ahead of the original XBox for most of the generation, falling behind near the end, and ending the generation just a little bit behind. PS2 dominated the generation and the original XBox got crushed by the PS2 pretty much equally as bad as the GameCube did.
 
Nintendo will stay in the industry and won't go 3rd party, anyone saying they would go 3rd party isn't really thinking much.

The article is advocating the idea of a console/handheld hybrid. I don't see how Nintendo can justify losing one revenue stream.

or having the technology to create it, If they go hybrid the "console" version of games wouldn't even look as good as Wii U games.
 

Zalman

Member
Sometimes I try to see how the industry would benefit with Nintendo leaving the hardware business.....and then I stop because I can't see a possible reason it would be better off.
People only say that because they want to play Nintendo games without having to buy a Nintendo console.
 

LCGeek

formerly sane
GameCube wasn't a third horse between Sony and Microsoft. The GameCube was ahead of the original XBox for most of the generation, falling behind near the end, and ending the generation just a little bit behind. PS2 dominated the generation and the original XBox got crushed by the PS2 pretty much equally as bad as the GameCube did.

Spot on, how people rewrite how some generations play out despite having sales data pretty accurate since the psx era is beyond me. Nintendo also wasn't losing money on gc while xbox as a whole has been nothing but a sink hole for ms most of the time.

This is nothing new for me or others who have leaked what nintendo's grand goal is, which is to merge both console and handheld platforms. The tech years ago wasn't there but after seeing wiiu pad and the size of the tech it won't be long before we get something light enough for hand helds that can exceed the wii. Once this is done nintendo has no reason to keep making consoles when their handhelds will have more power and be mobile. Add in a hdmi port and something for external controls and they will be done. Price isn't there but it's coming down quickly same for the size of the tech necessary to do the idea right.

They have no interest in MS or Sony's goals, but they do need to get online right it's a joke right now.

The article is advocating the idea of a console/handheld hybrid. I don't see how Nintendo can justify losing one revenue stream.

They won't. If you have one piece of hardware that does both and is more powerful than any of the consoles you made, they are saving more money by not having to invest in two platforms. The hybrid console is coming rather it is inevitable and outside of power users a lot will flock to something they can take on the go but in the right place go big comfy couch mode. Mark this post and my others in less than 2 console cycles we will see it.
 
I think Nintendo will have 1 more go, them decide what to do, the DS is there life line right now, and moving mario to mobile would kill it
 

Bronetta

Ask me about the moon landing or the temperature at which jet fuel burns. You may be surprised at what you learn.
Is Nintendo still the largest video game publisher?
 

JoeM86

Member
Nintendo won't have a hybrid handheld/console.

What they are doing, though, and have said this iirc, is planning for their next console and handheld to run similar architecture (different specs, obviously) so the games can be put on both easily if necessary and so developers don't have to fuss about each system having different methods. In my view, it'd also prompt the combining of Virtual Consoles.
 

10k

Banned
GameCube wasn't a third horse between Sony and Microsoft. The GameCube was ahead of the original XBox for most of the generation, falling behind near the end, and ending the generation just a little bit behind. PS2 dominated the generation and the original XBox got crushed by the PS2 pretty much equally as bad as the GameCube did.
Christ. So much salt and spin. It lost. Xbox beat it in a shorter time frame too (it was abandoned in 2005 compared to 2006 for the GameCube.)
 

mollipen

Member
But even the GameCube, largely seen as the third horse in a new race against Sony and Microsoft MSFT -1.51%, was a financial success for Nintendo. But even if the company’s glory days have passed to some degree, this is still a corporation which has posted only one loss since it began publicly reporting earnings in 1981. That’s a remarkable success story, spanning over three decades. (And, of course, Nintendo is a much older company which has weathered many changes in technology.)

Forbes, what are you doing I don't even.
 
Once again, another piece that repeats the mantra that as long as Nintendo makes a buck, everything is OK. And it touts the "lucrative" handheld business, as if it isn't shrinking under pressure from mobile.

Now, I'm not saying Nintendo should go third party. But what I will say is that if Nintendo is going to stick it out with a home console and, of course, with a handheld, they are going to have to find another market to be in, as well. If the handheld business is shrinking, and the home console business is just barely on this side of being completely irrelevant, they need additional revenue streams to generate growth, because I do not believe they'll be able to replicate their successes with Wii or DS with their next generation of devices, and certainly not with this one.

It is not enough to not lose your shirt, it is not enough to make a buck. They're a publicly-traded, for-profit corporation. They have to grow.
 

Shengar

Member
Nintendo would never go 3rd party, let alone releasing their games on mobile platform. They are too proud for that (not exactly bad thing though). As for the current situation, they really need to fix Wii U problem really fast. Don't act like it doesn't have any problem. Remodel the gamepad to make it more cost efficient should be a good start, then followed by price drop to reach at least Gamecube level.
 

GDGF

Soothsayer
As far as additional revenue streams go, nintendo should go crazy with the merchandising of their IPs. Toys, cartoons, clothing - the whole nine yards. They do this to some extent, but they need to go all in.

It's a shame their Bandai deal from years ago was blocked. That's the kind of multimedia presence they could use right now.

Hell, they should consider opening up Nintendo Stores in every major city as well. That way if they get pushed from the shelves, they have their own.
 

tinfoilhatman

all of my posts are my avatar
So Nintendo has to give up on mobile hardware if hey give up on home console hardware?

Not sure I understand why Mario can't be exclusive on mobile if it's multi on home console
 

Crisco

Banned
Nintendo just needs to go back to the drawing board, and forget about recapturing the flash in the pan success of the Wii. That will never happen again, certainly not with a home console. Before the Wii, they were doing a fine job of releasing technically competent and easy to develop for video game hardware. Just get back to that, but make a stronger push to get 3rd party publishers on board. Their strength is their IPs and first party studios which are unmatched in the industry, just stop creating gimmicky hardware that undermines those strengths
 
GameCube wasn't a third horse between Sony and Microsoft. The GameCube was ahead of the original XBox for most of the generation, falling behind near the end, and ending the generation just a little bit behind. PS2 dominated the generation and the original XBox got crushed by the PS2 pretty much equally as bad as the GameCube did.

To be fair, Xbox might as well not have ever released in Japan, and yet did consistently better than the GC after the first year worldwide
 
So Nintendo has to give up on mobile hardware if hey give up on home console hardware?

Not sure I understand why Mario can't be exclusive on mobile if it's multi on home console

Nintendo has pointed out before that if they ever step outta the console game they're stepping outta video games (no going "3rd party" and no going handheld only).

Anyway, I dream of a day when Nintendo can make a true mobile console. Something that plays when you're out on the go and turns into a console for your tv when you're at home. Something that doesn't require you buying BOth a hand held and a console ...

But I don't think it's gonna happen. That would mean a family of 4 would have to get 4 as portables.
...Maybe the console could just be something that connects to the portable pads so that you only need to buy one "console" for the family and you can have any number of portable-affordable screens?
 
Nintendo won't have a hybrid handheld/console.

What they are doing, though, and have said this iirc, is planning for their next console and handheld to run similar architecture (different specs, obviously) so the games can be put on both easily if necessary and so developers don't have to fuss about each system having different methods. In my view, it'd also prompt the combining of Virtual Consoles.

DING DING DING DING DING DING DING DING DING DING DING DING

We have a winner!

You guys need to stop thinking of the "platform" as the hardware. iPod and iPad isn't a platform, iTunes is.

They've already implied pretty transparently that this is the direction they're going to take next time around (though dammit I can't find quotes right now).
 

Donnie

Member
Of course they have to stay in the hardware business. Not just for 3DS either. Selling their games on other systems would not only mean significantly less revenue per copy sold but would also remove their ability to decide their own development environment. They design their consoles to be exactly what they want to develop on, that doesn't always suit third parties but its important to Nintendo. What they need to do is find a compromise between the system they want and what third parties want.
 

clubstoic

Banned
If the next handheld can function as Wii U gamepad for streaming, and also stream to TV through console (gameboy player), then theres no abandoning two supposed revenue streams. They still have 2 platforms that are integrated in a way that makes them valuable together.
 

Satchel

Banned
Nintendo needs to stay in the hardware business because the Xbox One and PS4 will be the last traditional consoles from those two. Their next consoles will be streaming boxes which I'm not interested in.
 

Kanyon

Member
Nintendo just needs to go back to the drawing board, and forget about recapturing the flash in the pan success of the Wii. That will never happen again, certainly not with a home console. Before the Wii, they were doing a fine job of releasing technically competent and easy to develop for video game hardware. Just get back to that, but make a stronger push to get 3rd party publishers on board. Their strength is their IPs and first party studios which are unmatched in the industry, just stop creating gimmicky hardware that undermines those strengths

I agree with this post so much as it just hits the nail on the head... Nintendo needs to get back to doing what they do best, creating the best game hardware and game software on a competent platform that is also inviting to third parties. I'm of the opinion that ditching motion control as the primary input in favour of a tablet controller was probably the biggest mistake they made.

It really should have been only the two options of Wii Remote + Nunchuck and the Pro Controller. Making improvements to the accuracy of the Wii Remote and refining it to be the best motion controller on the market, would have been the killer feature they could have used to differentiate themselves from their competitors. The Pro Controller is there for traditional stuff but as is stands right now, there is just too many options (just look at the back cover of a Wii U game). I'm a pretty knowledgeable gamer and even get confused as to what control options there are for the Wii U.

This leads straight into consumer apathy, the Wii U is just so unfocused as it's trying to do too many things for too many people and the message is just getting lost. I'm of the opinion that people don't care about the Wii U because it just so confusing. If Nintendo want to right the ship with the next console they need to cut out all the superfluous control schemes like tablet controllers and balance boards, put more dollars into silicon hardware to be somewhat on par with competitors and concentrate on creating experiences that they do well and with a laser-like focus.

If they were so gung ho about trying to capture the tablet market, make a companion app and utilise that as the second screen like other devs are doing. There are ways to monetise your IP on other platforms without cheapening your content - Rayman Legends and Battlelog on tablets for example.
 

Donnie

Member
understood I guess I just don't get the reasoning for that logic

I don't think its only about not being able to continue developing exclusive games for their handheld if they go third party in the console market. Its simply the fact that they wouldn't be prepared to produce games for other systems full stop, whether thats for consoles or handhelds. It goes completely against what the company is, what the people behind the company want. Like I said, a fundamental part of Nintendo is being able to create a console or handheld around the games they want to make. They lose that freedom if they make games for others.

Also you have to ask yourself is going third party really going to move them forward? How many more copies would they sell on other consoles compared to their own? Bare in mind third parties have to pay licensing fees per game, so that's a significant cut per game suddenly going to someone other than Nintendo. Will their games be quite as good if they can no longer decide their own development environment and system features? I don't think its clear cut at all and considering just last generation they had a massively profitable console I don't even think its really time for Nintendo to be panicking either.
 
Agree with this person. The claim that Nintendo needs to go 3rd party or release their stuff on mobile is ridiculous. They make Hardware, and they're in the enviable position that their games are so good, that they can sell comparatively inferior hardware (Wii, Wii U, every single portable console they've ever made) for profit (mostly). It's not any more of a crime that I have to buy a Nintendo console to play Zelda than it is that I have to buy an Xbox to play Halo. Multiplatform is mostly on PC, all these consoles are just exclusive boxes these days.

HOWEVER (incoherent rambling incoming...) Imagine having your Nintendo exclusives AND good multiplatform ports though. Just drop the tablet, pool those resources into beefing up the hardware, done. Sony don't subsidize anymore, just build a box with PC parts and sell it. Nintendo could have done the same and at least been an attractive option for third parties to dump ports onto, and I believe they would have but the longterm prospect just wasn't there because of last gen hardware. Mass Effect and Deus Ex were proof that there was at least interest in releasing very un-Nintendo like games on the system, but most devs/pubs can't justify going the extra mile to port to a last gen (tech-wise) system with no install base and the reason it has a low install base is because consumers/devs/pubs see it having no bright future which is because....And here we are again, last gen hardware.

I believe releasing a console on par with the others will work out a LOT better than it did in the Gamecube days, because these days the risk is so high and you just know publishers like EA would LOVE nothing more than to release their games on every platform under the sun aslong as it wasn't a hassle for them, and Nintendo seems to love going out of their way to make their console an unattractive option (weak hardware) for third parties.

I'm still buying one for Bayonetta 2 alone, but this console could've (should've) been so much more if the tablet was dropped, console was beefed up. The End.
 

Log4Girlz

Member
The next console and handheld should use similar API's, so that handheld games could be made with code to enhance graphics when played on the console. So instead of a massive drought and two completely separate revenue streams, they get shared a little. You would have the console and console games when they come, and then you would have handheld games that get a big boost in resolution, lighting, and whatever else that can play on the console. For most Nintendo games, that'll be enough incentive to purchase them.
 

ismk

Member
It's great to read a different perspective on Nintendo. Whether the writer is right or wrong is up to the reader but it's nice that someone is willing to write a different spin on the company.
 
This mofo lifted my advice to Nintendo and called it his own (i.e., the console/portable hybrid approach, consolidating their product lines since Nintendo is master of the portable space and will be otherwise left behind in the console only space).

Half of fucking NeoGAF thinks they've come up with this idea.
 
It's not a totally terrible idea, really. Basically make a mobile gaming device which can output to a TV if you want it to. Google seem to be thinking along similar lines with Chromecast in the tablet world, it's certainly not without precedent.

Forbes, what are you doing I don't even.

I also liked "the Wii U is still fairing dismally".
 

Trago

Member
Seems like people are already talking about the generation after Wii U, but there're hardly any articles making a case for the Wii U in the now or it could get better.

Still though, I don't think a console/handheld hybrid would work.
 
I agree with this post so much as it just hits the nail on the head... Nintendo needs to get back to doing what they do best, creating the best game hardware and game software on a competent platform that is also inviting to third parties. I'm of the opinion that ditching motion control as the primary input in favour of a tablet controller was probably the biggest mistake they made.

It really should have been only the two options of Wii Remote + Nunchuck and the Pro Controller. Making improvements to the accuracy of the Wii Remote and refining it to be the best motion controller on the market, would have been the killer feature they could have used to differentiate themselves from their competitors. The Pro Controller is there for traditional stuff but as is stands right now, there is just too many options (just look at the back cover of a Wii U game). I'm a pretty knowledgeable gamer and even get confused as to what control options there are for the Wii U.

This leads straight into consumer apathy, the Wii U is just so unfocused as it's trying to do too many things for too many people and the message is just getting lost. I'm of the opinion that people don't care about the Wii U because it just so confusing. If Nintendo want to right the ship with the next console they need to cut out all the superfluous control schemes like tablet controllers and balance boards, put more dollars into silicon hardware to be somewhat on par with competitors and concentrate on creating experiences that they do well and with a laser-like focus.

If they were so gung ho about trying to capture the tablet market, make a companion app and utilise that as the second screen like other devs are doing. There are ways to monetise your IP on other platforms without cheapening your content - Rayman Legends and Battlelog on tablets for example.

Agree with everything you said. Too many goddamn control options, It even confuses me. Should've just dropped the tablet, released it with the Pro controller and beefed up the hardware.
 

Shengar

Member
This mofo lifted my advice to Nintendo and called it his own (i.e., the console/portable hybrid approach, consolidating their product lines since Nintendo is master of the portable space and will be otherwise left behind in the console only space).

I'm sure everybody who own a Wii U will think of console/handheld hybri
You should copyrighted your ideas next time before saying about stealing advice
 

donny2112

Member
Half of ... NeoGAF thinks they've come up with this idea.

Yep, and it's still a bad idea, in my opinion. Despite the Wii U losing money now, Nintendo is still better off with two potential revenue streams than one. If the console business loses money year after year for the next 10 years with no sign of possible improvement, they can revisit the question. :p
 

Trago

Member
Agree with everything you said. Too many goddamn control options, It even confuses me. Should've just dropped the tablet, released it with the Pro controller and beefed up the hardware.

Something tells me that they will release a sku without the gamepad and sell the gamepad separately with Nintendo Land in the future.

After all, Nintendo did say that they aren't selling the gamepad by itself, because there aren't any games that support two gamepads.

I think they'll have to drop the tablet and sell Wii U with just a pro controller if they expect to compete this gen.
 

Log4Girlz

Member
Seems like people are already talking about the generation after Wii U, but there're hardly any articles making a case for the Wii U in the now or it could get better.

Still though, I don't think a console/handheld hybrid would work.

Because everyone realizes the Wii U is well and truly dead.
 

Taker666

Member
I'd be quite happy if they treated their handheld and home consoles like a low end and high end PC...which could play the same game from the same media format(I guess an SD card in Nintendo's case).

Handheld displays games at 540p , lower res textures, basic effects.
Home console displays the same games at 1080p/4k, higher res textures , improved effects, split screen multiplayer.

That way software will sell even if one hardware format doesn't, there's a clear reason to own both machines..and both machines have a steadier flow of software due to Nintendo no longer splitting resources.
 
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