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Nintendo teams up with Tesco for Wii U fight back

MDX

Member
nCAMVS4.jpg


Nintendo is tucked away down the far left.


Out of sight, out of mind.

This is an important development for Nintendo

TESCO: 6,351 stores (As of April 2012)

I think Nintendo is doing this because they might have some exclusive third party
games coming in 2014 that are making third parties worry. Just like how they reduced
the price of the 3DS to increase the numbers for games like Monster Hunter.

Besides that, what Nintendo will hope to capitalize on is any droughts and console launch issues that might plague XB1 and PS4.
 

Claneko

Member
Good on them for getting up and getting started on putting some marketing effort in. I swear that I just don't like this whole air of send it out, keep quiet, and then wait till things are shitty before making any moves. It's a great console, but so many people outside of our enthusiast bubble have no idea what the heck it is, and that just isn't right.
 
Out of sight, out of mind.

This is an important development for Nintendo

TESCO: 6,351 stores (As of April 2012)

I think Nintendo is doing this because they might have some exclusive third party
games coming in 2014 that are making third parties worry. Just like how they reduced
the price of the 3DS to increase the numbers for games like Monster Hunter.

Besides that, what Nintendo will hope to capitalize on is any droughts and console launch issues that might plague XB1 and PS4.

that's all their store including international and stores under different names, theres only about 2.5k uk Tesco shops and over half of them are express stores that only ever sell FIFA, COD & GTA (the express in my little village that normally only opens 6 til 11 even does midnight launches for them though which I find amusing) but theres still about a thousand Tesco's with proper game sections so this is a pretty huge deal
 

Piers

Member
Unfortunately I doubt that Nintendo titles themselves have the power to draw people like fans would want to believe - at least when there isn't the novelty precursor 'Wiimote' to captivate and anchor the masses from the get go.

We'll see, it just feels like the UK consumers at this stage are NOT shifting from the PS360 - and by their logic will just jump onto XB1/PS4 "coz its like da last one but betar"
 

m.i.s.

Banned
Nintendo really don't have any choice, it's buy space at Tescos or it's curtains in the UK.

It's only delaying the inevitable.

Still, it doesn't hurt to try. It'll get some brownie points from Nintendo fans.

All two of them, :eek:p

PS: what if other game stores / supermarkets also want cash from Nintendo to display their wares? Is Nintendo prepared to be in a position to pay all of them?
 

JoeM86

Member
It's only delaying the inevitable.

Still, it doesn't hurt to try. It'll get some brownie points from Nintendo fans.

All two of them, :eek:p

PS: what if other game stores / supermarkets also want cash from Nintendo to display their wares? Is Nintendo prepared to be in a position to pay all of them?

Considering it's standard practice, then yes I am sure they are
 
Unfortunately I doubt that Nintendo titles themselves have the power to draw people like fans would want to believe - at least when there isn't the novelty precursor 'Wiimote' to captivate and anchor the masses from the get go.

We'll see, it just feels like the UK consumers at this stage are NOT shifting from the PS360 - and by their logic will just jump onto XB1/PS4 "coz its like da last one but betar"

Mario kart was as much of a killer hook as the wiimote was
 

Vinci

Danish
Buying shelf space in stores now. It's a new low.

Yeah, this is pretty normal for retail.

Nintendo needs to combine this with a relaunch, a different name, and a gob of experience sessions. Because, otherwise, people will still wonder why they have to pay so much money for a damn add-on to the Wii and why they can't just buy the GamePad separately.
 

jeffers

Member
FINALLY. wondering if it was going to be another quiet year. like the leaflet deal also. Now just hope the creative teams have picked up the slack and come up with something better.

E.g. could highlight the wii fit u angle. easy cheap deal for the fit meter for mum, using that old board in the cupboard while pick up mario or donkey kong for junior, and ofc off-tv play.
 

marc^o^

Nintendo's Pro Bono PR Firm
Unfortunately I doubt that Nintendo titles themselves have the power to draw people like fans would want to believe - at least when there isn't the novelty precursor 'Wiimote' to captivate and anchor the masses from the get go.
Mario 3D World, no matter how much some people wish it was different, will be a game with such a hook. It's too cute not to be on kids Christmas wishlists.
 

LocalE

Member
2 options on the continue screen:

- Create super console of dreams(casts) with bleeding edge tech, new way to play (VR+motioncontrol+???) all bundled in, lose money on it, but aggressively carve way back into 50+ million home console market.

- Gracefully bow out of home console market, focus on next handheld (HD) providing hybrid experience through TV dongle plugin

Well, Nintendo gonna Nintendo, and they almost certainly aren't doing either of those options.
Maybe they have a cheat code you never heard about or something.
 

QaaQer

Member
I don't actually think slotting fees for videogames in UK supermarkets are as common as people are suggesting. I'm not about to argue it strongly because I don't work in retail and people have a vested interest in shouting 'everybody does it' without examining if that's true, and if it is, to what degree.

Did you notice that this thread is based on one such article? It's hardly far out to have wondered if there was another similar article covering a competitors product.

Grocery store customers are extremely price sensitive, and margins are thin. So the amount of 'buying shelf space' is limited because when stores pursue that, manufacturers have to raise prices in order to pay for it, and customers will migrate to places with lower prices, i.e. stores that don't demand payment.

Further, the 'eye level' and end cap placements are determined by product profit margins (usually in-house brands), overstocked items, flyer specials, and whatnot. Companies don't buy those things in grocery stores.

Stores like HMV back in the day did charge. But that was a much different market than grocery or walmart type stores.

In Nintendo's case, they may be paying money for floor space, or they might just be working with Tesco for a big marketing push and Tesco is hoping that they will be big beneficiaries of that marketing. If I had to bet, I would bet it would be the latter.
 

MDX

Member
that's all their store including international and stores under different names, theres only about 2.5k uk Tesco shops and over half of them are express stores that only ever sell FIFA, COD & GTA (the express in my little village that normally only opens 6 til 11 even does midnight launches for them though which I find amusing) but theres still about a thousand Tesco's with proper game sections so this is a pretty huge deal

Ah, OK thanks for the clarification
 
Grocery store customers are extremely price sensitive, and margins are thin. So the amount of 'buying shelf space' is limited because when stores pursue that, manufacturers have to raise prices in order to pay for it, and customers will migrate to places with lower prices, i.e. stores that don't demand payment.

Further, the 'eye level' and end cap placements are determined by product profit margins (usually in-house brands), overstocked items, flyer specials, and whatnot. Companies don't buy those things in grocery stores.

Stores like HMV back in the day did charge. But that was a much different market than grocery or walmart type stores.

In Nintendo's case, they may be paying money for floor space, or they might just be working with Tesco for a big marketing push and Tesco is hoping that they will be big beneficiaries of that marketing. If I had to bet, I would bet it would be the latter.

eye level and end caps are definitely often bought and paid for in the UK
 

m.i.s.

Banned
Just out of interest, has that late summer major Wii U firmware update happened yet? Has NCL announced anything?
 

jeffers

Member
Just out of interest, has that late summer major Wii U firmware update happened yet? Has NCL announced anything?

was announced delayed ages ago. think the current timeframe is october? emilyrogers also said similar about 3ds (miiverse support and all that jazz)
 

Lumyst

Member
Nintendo needs a title that surrounds the Tablet functionality of gameplay on their console to push the damn units. Currently theres no reason to care about the one feature they shoved at us so hard, because it is not utilized in any manner that is compelling to consumers.

I still think Wii Party U is the title to look at regarding casual games and how the gamepad enhances those games. When I see those "tabletop" games, I see an obvious use of the gamepad. So I am eager to see how they push that title. Japan has the bundles but nothing of the sort has been announced elsewhere.
 

Sendou

Member
Just out of interest, has that late summer major Wii U firmware update happened yet? Has NCL announced anything?

was announced delayed ages ago. think the current timeframe is october? emilyrogers also said similar about 3ds (miiverse support and all that jazz)

Basically they said it was coming either the end of this month or the beginning of October.
 

jeffers

Member
Basically they said it was coming either the end of this month or the beginning of October.

thought it might have been, 3ds one was after pokemans. Guessing this one is delayed into mid october at least, since its been pretty quiet. (considering last time we got that speed vid in advance)
 

Sendou

Member
thought it might have been, 3ds one was after pokemans. Guessing this one is delayed into mid october at least, since its been pretty quiet. (considering last time we got that speed vid in advance)

3DS and Wii U updates are completely separate as far as we know. It might very well be delayed again but them being quiet about it doesn't really tell us anything. I'd say if we don't hear anything about it the next week then start wondering.
 

RK9039

Member
Just Tesco?

Good luck with that. The majority of Tesco stores where I live are Tesco express, they don't sell electronic goods. My local Sainsbury's on the other hand has a good gaming section, but hardly any Nintendo/PC stuff.
 

QaaQer

Member
Actually, just talking to a buddy at work, and I was 80% wrong.

Grocery stores here almost never charge promotional dollars and allowances for commodity groups (produce, meat, fish) and other basic items.

But for everything else there are a myriad ways to squeeze money out of suppliers.
 

jwhit28

Member
Actually, just talking to a buddy at work, and I was 80% wrong.

Grocery stores here almost never charge promotional dollars and allowances for commodity groups (produce, meat, fish) and other basic items.

But for everything else there are a myriad ways to squeeze money out of suppliers.
Forbes has a good article about the grocery side for the US.

So how does the system work? Specific pricing information is very tough to come by—secrecy shrouds the special deals that salesmen cut product by product, region by region, retailer by retailer, as they jockey for shelf space. This much is known: Real estate on the grocery shelves is largely allocated according to clout and to money passing to the retailer, either in fees or price discounts. Established manufacturers like Kraft still have to pay chains to take new products, but they receive preferential treatment in placement and display because of their ability to generate huge turnover.

For a new product the standard price of admission to the shelves is a slotting fee—up to $25,000 per item for a regional cluster of stores. (A California food producer says he met with a buyer at a chain grocer who demanded $250,000 for ten stores and wouldn’t even take a meeting until he received a $100,000 check.) Small manufacturers hate paying upfront money; it can put them out of business before they’ve even started.
 
It's only delaying the inevitable.

Still, it doesn't hurt to try. It'll get some brownie points from Nintendo fans.

Probably true but it would be totally stupid of Nintendo to give up the retail market before their biggest games come out this and next year.
 

SuperHans

Member
There's a 24 hour Tesco near me. I'll probably do all my xmas shopping in there.
Fine Vodka for all.
PhG9foS.png


But seriously this is a good deal for Nintendo, with the death of HMV and Game more and more people are using Tesco and their ilk for their games purchases. Plus good exposure when people wander past looking for pasta sauce or cheap socks.
 

Duster

Member
I was under the impression that Tescos only kept data on their customers shopping habits for two years, were there that many people buying Wii's in 2011 and if so will those people really want a WiiU at this stage?
 
There's a 24 hour Tesco near me. I'll probably do all my xmas shopping in there.
Fine Vodka for all.
PhG9foS.png


But seriously this is a good deal for Nintendo, with the death of HMV and Game more and more people are using Tesco and their ilk for their games purchases. Plus good exposure when people wander past looking for pasta sauce or cheap socks.

Tesco value vodka doesn't get me drunk, just gives me a splitting headache and I wake up with a terrible hangover, all the pain none of the pleasure, got to at least spend the extra quid or 2 and get grants or red square
 
I was under the impression that Tescos only kept data on their customers shopping habits for two years, were there that many people buying Wii's in 2011 and if so will those people really want a WiiU at this stage?

I wouldn't be surprised if they keep everything from the day you sign up
 

Dougald

Member
Interesting development, considering that the Wii U selection at my nearby large Tesco currently consists of two copies of Just Dance 4
 
Sounds like Tesco threatened to pull the WiiU entirely, and Nintendo had to respond. UK retailers have them by the balls right now really, and when things don't play out well, I can see the WiiU disappearing entirely from many stores in 2014.

Sounds like this would make you a very happy bean pie.
 
I'm sure as a community, we're collectively crossing our fingers this works out, and we have a decent third competitor in this upcoming race



....I just don't think it'll work.

I think most reasonable people are.. but there'll always be the "lol nintendo" crowd who need to fill their quota.
 

Coketruck

Member
They need to expand their marketing in the U.S. as well. As a Wii U owner, I really like the system and so has everyone I've shown it to. I think some great ads like the "Wii would like to play" commercials would really help their sales, but there's nothing. I haven't seen one single Wii U commercial since a couple of weeks after they launched last year.

And yes, I've heard that they're supposedly "saving" their marketing push for this fall, so they'll have some games to showcase. Well, it's fall now and Black Friday is less than two months away. If they don't start the ad blitz now (and really get the Wii U in the public consciousness before the PS4 and Xbox One launch), then it's going to be a long damn winter for them.
 

Effect

Member
Why are some people acting like buying shelf space is something new and not done. I thought it was always done. Which is why you always see certain brands in prime locations. Their products aren't always or even usually the best. I figure it was because companies paid to have their brands there or they were partnered with the chain. I know that's the case with clothing brands which is why some get pushed out in front compared to others and are exclusive to a particular store like Macy's, JC Penny, Target, etc.

Sony and Microsoft's sections were always big. Bigger in many stores even at the the Wii's peak. You mean to tell me Microsoft and Sony weren't paying for shelf space while everyone was buying Wii systems? Otherwise those should have shrunk as well. This is likely Nintendo, if they are paying, just doing what everyone else is doing. It's about damn time too. They need to keep the Wii and Wii U sections separate. Money being spent is likely to stop that because of right now it's as if stores really don't give a damn while not realizing they are actively confusing their own customers.
 

UNCMark

Banned
Mario 3D World, no matter how much some people wish it was different, will be a game with such a hook. It's too cute not to be on kids Christmas wishlists.

As much as you wish it were true, not all kids these days worship at the altar of Nintendo like in the past. My nephews and nieces couldn't care less about Mario.

Why are some people acting like buying shelf space is something new and not done. I thought it was always done.

It doesn't just take money to buy shelf space. Microsoft's agreement with retailers to never release a retail game day 1 digitally has ensured them prime locations at retail outlets.
 

Riki

Member
Why are some people acting like buying shelf space is something new and not done. I thought it was always done. Which is why you always see certain brands in prime locations. Their products aren't always or even usually the best. I figure it was because companies paid to have their brands there or they were partnered with the chain. I know that's the case with clothing brands which is why some get pushed out in front compared to others and are exclusive to a particular store like Macy's, JC Penny, Target, etc.

Sony and Microsoft's sections were always big. Even at the the Wii's height. You mean to tell me Microsoft and Sony weren't paying for shelf space while everyone was buying Wii system? Otherwise those should have shrunk as well. This is likely Nintendo, if they are paying, just doing what everyone else is doing. It's about damn time too.
Not only is it always done, it's not even exclusive to games.
Every major company buys ad and shelf space. Every square inch of a retail store is bought by someone.
Why people are freaking out over Nintendo doing it just shows people have no idea how this industry (any industry) works.
 

John Harker

Definitely doesn't make things up as he goes along.
You do buy space in stores - end caps, shippers, fixtures and signage etc - who do you think pays for all that? The stores? Hehe, naw. The retailer is the customer they have a lot of power.

Retailers don't produce ads for you, you pay for production and the space to put them. You offer them content or offers to get circular space. It's a business, it's all marketing
 
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