I thought 3DS was still the best selling console well ahead of the competition, even if Nintendo didn't quite match their predictions for last year?
But it's not the fastest selling mobile device. Not even close.
I thought 3DS was still the best selling console well ahead of the competition, even if Nintendo didn't quite match their predictions for last year?
We seriously need to have this discussion again?
It's an incredibly low res screen. The graphics hardware is marginally better than the PSP and once you account for screen pixel density it doesn't look that much better. The device literally SCRATCHES ITS OWN SCREEN. The firmware is absolutely tragic. It's 3D might be revolutionary but it's not good with a serious hit to game performance seen in many implementations and is generally a PITA to keep angled just so to get the full effect. It's shoulder buttons are junk and it's lack of a second analog pad/stick standard when many games all but require it is laughable.
To be honest, I think it's worse hardware than the DS Lite. At least that more or less outgrew the hinge issues of it's predecessor and hand a nice balance of internal hardware, screen tech, and inputs. As a result developers had to good sense to mostly stick with 2D. The 3DS feels like someone wanted a high profit margin small scale iteration on the DS but felt that it would feel like too small a step so they glommed 3D on as damn near an afterthought. It's not as poorly planned hardware as the Wii U (where Nintendo is over a year into it's life and still lacks a compelling reason for having included the tablet), but it's damn close. But it has Pokemon so it's going to sell at least fairly well.
I actually meant to flesh out that post more but I lost my train of thought halfway through lol.Great post, fair enough points. I was more so talking about financial reasons though. A lot of these devices cost a pretty penny. So the way I see it, more and more parents see smartphones/tablets as an all in one sort of device. It's something they think their kids need first off (especially phones for communication), but then they also see them as tools for learning and doing other tasks. And then they also play games and have all the other stuff.
So if a parent is going to buy their child something on the expensive side, they are going to buy something they think is important first, it just happens to be, Tablets/Smartphones also have a lot of games that kids love to play. So that is what I meant about them not wanting to buy Nintendo hardware after the fact (and not really so much, because they don't want their kids having more than one device. I agree, parents will generally buy their kids more than one thing).
And yet people say that Iwata doesn't know what he's talking about...When Nintendo announced that apple was now their main competitor in 2008 I never knew what that meant until now.
Because the eShop is so successful and features a lot of content?
If it was, I'm sure Nintendo would've released a lot more figures.
And here we are, 6 years later and Nintendo have yet to do anything about it in all this time. Now, it's hurting them.
In fact, the next Chaos Rings, as well as Final Fantasy Agito, is ftp.
This article is just stupid and if you believe this guy, you're an idiot.
Nintendo will always dominate handhelds. There's not a single iPhone or Android game that can compete with what Nintendo has to offer.
And DQ VIII is like 20
I don't have a 3DS, but I would sooner get that than attach a controller to my phone or a tablet
Lol are you supposed to carry the controller around everywhere or what?
Mobile will not "win". Mobile/touchscreen based gaming will have its space. Traditional controlled gaming will have its space too (think 30 year backlog + PC-based gaming that will continue to exist).No but fewer people care about playing controller based games - the money follows the players. Mobile will win. I'm disappointed but being a person who has been playing games for 30 years its not the first transition and it won't be the last.
IF there's a large enough market for it.Mobile will not "win". Mobile/touchscreen based gaming will have its space. Traditional controlled gaming will have its space too (think 30 year backlog + PC-based gaming that will continue to exist).
McDonald's and fast food didn't kill traditional restaurants, cars didn't kill walking, yoga didn't kill lifting and so forth. Things have a way of co-existing.
Well, I see very exciting times ahead. For now we have what we have... and no one holds the exact truth of what will happen, regarding both Nintendo and the industry. I can't wait to see what the future brings.IF there's a large enough market for it.
We've already seen what can happen with arcades in America. Once the tech started to create a "close enough" approximation we saw a huge shift from arcades to home consoles. It culminated in the arcade industry barely existing. Now consoles are up against another wall. Against a rapidly technically improving competitor with a more convenient way to play as its tail wind. Will GTAVI release on tablets and phones for $20 alongside the PC version? And then 250 million people buy it changing the shape of a specific "core" gamer subset.
I see a very real scenario where consoles are still manufactured, but such a niche market that most development dollars are focused elsewhere.
Can they though? I keep reading about how great mobile gaming is doing but I'm not seeing detailed numbers on how well individual developers are doing. I know that there are a lot of success stories but what's the average publisher bringing in?Game prices are gonna be tough to compete with. iOS and android developers have a huge install base so they can afford to sell games cheap in massive volumes.
If you look at what really happened though Nintendo essentially chose to move up into the PSP's market share and completely abandoned the lower end of the market to mobile (hence the huge contraction). They really didn't need to do that as both probably could have coexisted.Dedicated handhelds are dying shockingly fast.
The DS sold 154 million units, the 3DS might get to 50% of that
The PSP sold 76 million units, the Vita might get to 20-25% of that
(And software sales are down too.)
We're seeing, in one generation, the total handheld market go from around 230 million units to likely under 100 million. It's a huge market contraction. I don't think there's any reason to believe some core handheld market will remain.
Dedicated handhelds are dying shockingly fast.
The DS sold 154 million units, the 3DS might get to 50% of that
The PSP sold 76 million units, the Vita might get to 20-25% of that
(And software sales are down too.)
We're seeing, in one generation, the total handheld market go from around 230 million units to likely under 100 million. It's a huge market contraction. I don't think there's any reason to believe some core handheld market will remain.
Agreed.This is sad, because mobile gaming is absolute garbage. If mobile gaming is the future, then I'll probably move on from this hobby.
Game prices are gonna be tough to compete with. iOS and android developers have a huge install base so they can afford to sell games cheap in massive volumes.
Differentiation by better control options. Hi-fi gaming if you can call it that. Most markets, especially media related ones have an high-quality upscale niche, larger or smaller, be it movie watching, photography, computing, music listening, etc... can't imagine why would it be different regarding gaming. Actually gaming has the potential to have this niche larger than any other media.Dedicated handhelds are dying shockingly fast.
The DS sold 154 million units, the 3DS might get to 50% of that
The PSP sold 76 million units, the Vita might get to 20-25% of that
(And software sales are down too.)
We're seeing, in one generation, the total handheld market go from around 230 million units to likely under 100 million. It's a huge market contraction. I don't think there's any reason to believe some core handheld market will remain.
Agreed.
Just because you're gaming on a small screen doesn't make these things comparable (mobile/3DS/Vita). IMO, the Vita is failing, like the PSP before it, because they're targeting a market that doesn't actually exist (people that want their full-bore console experience on the go). The Vita actually targets a different audience than either mobile or the 3DS. Three different devices, three different markets.
People here that say they've "switched" to mobile, and are playing all their console/handheld games on their phone are in the EXTREME minority. You are NOT the ones being targeted by Zynga for their next big multi-billion-dollar shit hit. You are not affecting the market at all, either of them.
The funny part about this is that I personally don't really give a shit if Nintendo fails or not. I have a 3DS, and I barely play it. I haven't bought another Nintendo console in more than a decade. I'm not defending them. But I will call out the BS that they're "doomed" because of completely unrelated bullshit like mobile gaming.
It's funny I let the optimist in me decide what my projections are for the end of the generation unit tallies All the while the cynic is doomsaying.Well, I see very exciting times ahead. For now we have what we have... and no one holds the exact truth of what will happen, regarding both Nintendo and the industry. I can't wait to see what the future brings.
Tax accounting is different from financial accounting. You seem to forget that nasty little secret.Depending on where you go, sales of Digital Single Lens Reflex cameras are down 40% year over year OR they are up 15% or even 900% in some markets.GoPro camera/camcorder sales are up. New markets are rising in places like China, Russia, the Middle East, the coastlines of Africa, and the emerging South American market.
But that's not really too important to the issue because sales are not an end sum game. The sale of a RED camera isn't affected by the sale of a Kindle Fire. A person looking for a GoPro camera isn't deterred by their phone having a camera. Unless there is some sort of global recession where you have a ton of people losing purchase power at a rapid rate through job loss, inflationary currency bubbles, and regressive monetary policies. (I'm hoping there isn't one of those.)
These are all ascending or descending markets. There is no such thing as a limited profit umbrella when it comes to electronics. A person who buys an Amazon Kindle is not more or less likely to buy a Sony TV. Because those are not the same market. They are similar in that you can watch Netflix or Hulu Plus on both of those item; but different in that they cater to a slightly different audience. The Motley Fool is confusing the mobile market with the dedicated handheld market.
Mobile market = Mobile phones and mobile store device devices (iOS/Play)
Dedicated Handheld market = Sony Vita, Nintendo 3DS, NVidia Shield, Leapfrog devices, Apple iPod Touch
Tablet market = Amazon Kindle, Samsung/Google/Sony tablets, Apple iPad
Of course, these markets have features that bleed into each other. If you want to watch Netflix, there is an application for every one of those markets. If you want to play 99 cent games, all of those devices have them. Although Nintendo eShop titles usually start at $1.99 with sales of some games going as low as 99 cents. Think of that extra dollar as an "It has buttons, Bitch!" tax. (Yes, the Nintendo eShop has frequent sales and hundreds of games for under $2. They also have demos, downloadable content, free to play micro-transactions, and a dedicated social media network that is heavily moderated for a lot of the games.)
Ahem.
My opinion on the article is that it is intended to draw hits and controversy. Because consumers have a "team" mentality and want the items they purchase to "win" all of the "market" in their mind. An item that still sells well enough to sustain a company is a good item. An item that does not sell enough is a loss and -guess what- those are okay to have in a company. The problems right now are these:Sony is bleeding money in their cameras/TVs/tablets. Nintendo is bleeding money on the Wii U. Apple is bleeding money on their personal computer and laptop models. Microsoft is bleeding money on their operating systems. Google is bleeding money through extensive (and expensive) R&D that has produced incredibly few products that are ready for mass market. Those are all problems but none of them are big enough to kill those companies off.
Here's a nasty little secret about company P&L reports. A net loss can be "held" for a certain number of years on corporate taxes and rolled over to the next year to reduce taxable profit. Let's say you have a year where you have a net loss of $35,000 in a business. The next year, you made a net profit of $75,000 in your business. You can deduct that $35,000 loss from the previous year and cut down your taxable net profit to $40,000. There is also depreciation on business assets. That's a little weirder actually. Example: All of your equipment is an asset. If you purchased a $6,000 server for your company, that is both a loss and an asset depending on what you are using it for.
Nintendo actually needs to take a few more quarterly losses since they now need to buy more online infrastructure and hire more personnel to operate/maintain that infrastructure. Nintendo is the last of the video game companies to seriously invest in those areas. All of the other ones (Microsoft/Apple/Sony) have already gotten past the initially high losses associated with updating their infrastructure. So, I was surprised they expected to make so much money this year.
Here are the quotes for people to take away from the mountains of text.
Mobile phones hurt dedicated handhelds in the same way that new/used car ownership has killed off taxis, buses, and car rentals. Or vice versa.
Nintendo has to sustain net losses to build assets and infrastructure. They will continue these net losses until at least the end of the first quarter in 2015. You can roll your net losses into the next year for tax credits/relief.
Why hasn't Nintendo partnered up with Panasonic already? They have a good relationship with each other and Panasonic has tried a few times to enter the gaming market, so it's something they are interested in. And Nintendo could definitely use the help of a large CE company when going up against Sony.
There is a whole universe of varied gaming options on mobile, reducing it to just Zynga and the like is daft, the indie scene on it is awesome, and the niches being filled are astounding.
Dismissing mobile gaming as just social/facebook gaming is as shortsighted as thinking Nintendo is just "another Mario lol" or Xbox is "Dudebro lol", all these are equally retarded opinions.
It will absolutely be their last handheld, otherwise they'd never support Playstation Now on iOS and Android.
The Vita was a mid-R&D project when the smartphone movement really took over so Sony finished it out and have tried to push it based on the hardware features they had planned (remote play and PS Now most notably). They've done incredibly well with digital distro on the device and held off from cutting the price until it could be done with a minimum of red ink. Even their new hardware revision is a cost cutting move. They're basically looking to handle the device like Nintendo handled the Gamecube for much of it's life. Don't take a bath on hardware, leverage high profit margins on software, let it live as long as it's breaking even/making slight profits.
So they'll pull it from store shelves when it's the only device fully supporting Playstation Now on the market? Sure, that sounds legitimate.
I figure the Vita's got about another 2-3 years in western markets, 3-4 in Japan. It will evaporate from the retail space slowly over that time and Sony will likely focus most of their marketing/sales pushes through online retailers for hardware (minimizes potential losses from channel stuffing) and SEN for software (digital is the highest profit margin for them and also removes any risk of loss from unsold physical product).
The PS4 and remote play have given it a small boost, which should continue as the PS4 continues to lead next gen sales. VitaTV offers another nice bump as VitaTV sales are effectively Vita sales since they grow the same install base. Then Playstation Now will give another decent little bump late 2014. Combined I'd expect that to make 2014 the Vita's best year to date, though still pretty lackluster. They'll likely be able to roll out another price cut in late 2014/early 2015 as well to give it a bit more life heading into the new year.
At that point they'll have enough of an install base and cheap enough hardware to ride the high tie ratio and extra profit margins from digital into a tolerable end of life scenario in around 2017.
I think the only games selling like that are the f2p games that force you to buy crap in game and stuff like Minecraft.
So many people in this thread are going to be hating life in 2-3 years. Get used to gaming on your phone bitches
My niece and nephew play games on their nexus 7 and iphone way more than they do on thier 3DS nowadays. They are big animal crossing/mario fans but they seemed to have just lost interest for most things nintendo. I think it's really just the fact that they don't need to carry a dedicatee piece of hardware around with them just for gaming and can still get gaming in in bursts.
I know I was never big on portable game consoles but I have been all over monile apps sinxe I bought my tablet.
plenty of those that like traditional games have moved to smartphone/tablet games for their portable gaming option. I'm one of them.
I almost don't think there's currently a 1:1 valid comparison between a dedicated handheld like the 3DS that plays handheld games (not console-lite experiences like the Vita) and Android/iPhones.
The 3DS just feels so damn cheap and worthless. I've played mobile games with comparable graphics to the 3DS. There's no second analog stick. Money that could've been better spent making the system specs higher was wasted on 3D. The bottom screen isn't even the same size as the top one. The 3DS might've been able to better hold its ground against mobile if it wasn't such an insufficient effort.
Well..consoles never came even remotely close to the sales of computers, did it kill consoles?But it's not the fastest selling mobile device. Not even close.
So many people in this thread are going to be hating life in 2-3 years. Get used to gaming on your phone bitches
I personally believe Nintendo should erect a third pillar tablet device that is potentially compatible with the DS family but targeted specifically to the F2P crowd with multi-purpose functionality (and higher-res display).
This is a horrible article by some hack pretending to understand the market. It's even worse than Forbes Contributor garbage that pretends to be journalism.
That said the handheld sector is in trouble right now - because people don't want to pay big bucks for software on their devices. That's the source of most of Nintendo's profits. And that's what matters - regardless of whether there are 50 or 150 million 3DS units out there in the long-run.
Peoples' consumption patterns are changing - in the past they would buy an extra game or two in-between tent pole titles - now they are just playing tent pole titles and the C- to B+ low-budget stuff they'd normally buy on a DS for example gets substituted for mobile games that they download for free. That means selling 66 million games on 43 million devices in a banner year with three huge IPs (Animal Crossing, Zelda, Pokemon) is a failure. Those games cost 2X to 3X what DS games cost to make and market - and the revenue isn't all that different on a per SKU basis (or less - as I saw deep discount of 3DS games during Christmas) relative to the DS.
The second part of it is obviously hardware. Nintendo is already struggling to make money on the hardware side of the portable business - and that's because there is no piracy. Again the problem comes down to price of software. With the DS there were 30-50 million people buying the device (with Nintendo earning a nice profit on those sales) because they could just pirate all the games (although they might have bought one or two games). All those pirates moved onto the iPad which Apple makes a nice profit on - and they spend their time with F2P games. They don't mind paying $500 for an Apple device not because of its multi-purpose functionality - but they get lots of free software.
Hence the solution for Nintendo will be to scale back on packaged games for the 3DS and increase the perceived value of the device to people who have never paid much for software. That means they will have to introduce a variety of high-quality F2P games on the 3DS that compliment their full-price packaged games like Smash Brothers, and then build a new revenue stream by offering services to their user base like subscription to VC or something that can generate annual revenue (PokeBank is the first effort towards this).
I know it isn't what GAF wants to hear but this is what you are going to see from Nintendo over the next twelve months. Less full games, more attempts at getting people to utilize their device more often and hoping they can sustain higher margins on their hardware and cross-sell a few tentpole titles to the DS pirates who buy back in to the ecosystem.
Iwata in particular has really tried to avoid going the route of devaluing software and has done everything to stop F2P in its tracks - he wants to keep games a complete single purchase affair - but the masses have spoken - video games should be free or super cheap. There are a lot of free entertainment options out there like browsing Facebook or watching YouTube if games are going to cost $30 or $40. The tent pole games may pay the bills and keep the lights on - but they aren't going to bring the company back to profitability.
I personally believe Nintendo should erect a third pillar tablet device that is potentially compatible with the DS family but targeted specifically to the F2P crowd with multi-purpose functionality (and higher-res display).
Assuming they don't want to do that and want to try and monetize the 3DS user base further in its current form - then a mix of F2P and packaged games is the only path forward for Nintendo if they want to survive without ripping their teams apart and firing tons of employees the way Sega did. With the Wii U struggling to make money on either hardware or software - the next 24 months might be the last AAA HD console games Nintendo could possibly ever produce - the silver lining is that rather than continue to struggle with console development - the 100 people making a single Wii U game could work on 4 or 5 great 3DS games - both F2P and complete games.
Oh, and it isn't just the handheld market that's screwed. Even if Sony sells 80 million PS4s - there is no guarantee that their tie-in ratios are going to be sustained. A lot of parents that bought consoles for their kids and a few high-priced games a year to go with it - are going to be able to stream their 300 gigaflop tablets to their televisions in about 12 months with tons of F2P content. That will be the real test - to see if either Microsoft or Sony can get the non-enthusiast segment back that made up the bulk of software and hardware sales last gen. If Sony and Microsoft only sell 40-50 million consoles each to people who buy 10-12 games each over the next five years, I don't see a very bright future for the space - Sony will probably go bankrupt and Microsoft will probably try to take an XONE SOC and move it into a Surface product and once again, try to take on the iPad (and lose).
Some data - at least some part of the hobby/hardcore gamer segment has embraced mobile gaming, and is spending money on mobile gaming.
iam not able to understand these statistics.
a bit of explaination?
what makes the difference between non payers and payers?
like how much?
what kind of measure? spent money on IAP? DLC? Fees such as XBL/PSN?
and whats the difference between phone and tablet? they have the same games? both are portables?
WAT
I bolded the key words.You guys can hate on f2p games all you want. Mobile doesn't have only f2p games
On top of that, mobile have a lot more educational apps than 3ds, why wouldn't a parent want to get a touch or Android tablet to a child before a 3ds?
As for the small niche of adult gamers who play portable games, I don't get how, if you have a stable full time job, you have time to play portable game. I much rather spend that time to play home console game, or just use my smartphone to go online. Both activities are much more interesting to me than playing portable "real game".