Trip Hawkins
(Former CEO, The 3DO Company, oversaw the 3DO launch)
Nintendo for, literally, a hundred years was a great toy company. ... In their first several years in the video game business, they were a really great toy company in this new electronic toy category, and basically their products were purchased mostly by children. And then when it became a medium, and it became a platform and they had to start competing against the likes of Sony, it got to be a lot harder for Nintendo and they began to think of themselves [as], "Oh yeah, we're a media platform company and we're competing against PlayStation."
Well, they're not going to make it in the long run with that kind of thinking. And if you think about what's really great about Nintendo it's the games that they have invented, like Mario and Pokemon, that they have popularized [these] incredible brands. They're now beginning to realize that, yeah, they really need to allow those brands to flourish on all the other platforms that are not proprietary Nintendo platforms, and that's a big change because they never used to do that. They used to basically drive the sales of their own proprietary platforms by restricting these famous brands to be the killer apps for those platforms. But I don't think it's viable for them to think of themselves as a generalized console platform company. They really shouldn't make a hardware system anymore in the future unless it's kind of a great toy. Like, for example, when the Game Boy came out, that was a fabulous toy. And it came out with Tetris, and then Pokemon came out on it, and that was really all you needed to know to decide that you wanted to have a Game Boy.
I think the Switch is going to disappoint. I think the optimists are saying it's going to sell 40 million units, and they're saying that because they're looking at Wii U selling 13 million units and they're looking at the original Wii selling 100 million units, and they're thinking, "Well, it couldn't possibly go as badly as it did with the Wii U. And, in my opinion, it could go just about the same, because their price point is really high. The Switch is 300 bucks, and that's not a toy price. That's a media platform price. And they can't win that game, even with proprietary, you know, killer apps. I just think that they have to have more modest expectations when they're in the hardware business, that if they have a low enough price point, maybe they can get the 20 million units sold and it's going to be a very successful toy for them. And their future value and future profit is going to have a lot more to do with what they do with their great brands and their capacity to create new games on all the platforms, not on their own.