The Pressures on the Next Nintendo Console 341
With the launch of Nintendo's next-gen offering a little more than two months away, the importance that Nintendo is placing on this console is finally becoming apparent. Dyed-in-the-wool Nintendo loyalists and haters alike have both come to the same conclusion: if Nintendo is to stay a force in the non-portable console market, this system has to succeed. Along those lines, WhatEntertainment offers an editorial entitled Failure is not an Option. It explores the reality that Nintendo's failure would have repercussions on the industry as a whole. "Most of all I'm worried what this might do to the industry if it's a failure. In a landscape already filled with the carcasses of those that dared to try something new, and publishers more afraid than ever to try something a little different, the high-profile failure of a system that tried to put innovation and fun before graphics could be the final nail in the coffin of creativity." Meanwhile, GameInformer has a piece entitled Will Wii be Dissapointed Again? Billy Berghammer says what he doesn't want to say: the Wii could be another flop for Nintendo. From that article: "The launch price is low enough (outside of the $60 for controller costs) to avoid damaging my wallet the same way the purchase of a Xbox 360 or PlayStation 3 will, and the possibilities and promises from Nintendo somehow still keep me hoping for a bright future. But for now, the future is made up of many of the same promises and hopes I had when the N64 and GameCube were announced. I just hope I don't end up being disappointed once again."
Re:So the real news here is... (Score:3, Interesting)
Uh... what? So basically, losing $2b on each generation of your console and not being able to get any decent foothold in japan is "a stable place" now?
God, and there I thought that earning money meant you were in a stable position. The times, they are a-changing.
Failure (Score:5, Interesting)
I agree it would be a terrible thing for the industry if the console were to fail, but it would be OK with me.
I had an N64 and it was my favorite console of that generation by far. Some people say it "failed" because it didn't put The Big N back on top. I really enjoyed the thing, and I'm glad I bought it.
I have a 'Cube and many people say it failed (or is close). I've bought FAR more games for the 'cube than my XBox and PS2. It was a great little system. I don't regret buying it at all.
If the Wii fails, so what. I can afford to lose $250 on a console that that will only have a bunch of great games during it's life (Marios, Zeldas, Pikmins, Smash Brothers, etc.). That's OK with me. It will be sad, but I'll still love the games.
Let's not forget that even if Nintendo's grand experiment fails (the controller) everyone could always use the "classic" controller for the rest of the console's life-span (not unlike the NES Zapper was basically forgotten about). The Wiimote can still be used for fun with light-gun games (and is worth it for me for that fact alone).
The PS3 is $600. I'm not buying that until I'm dead sure there are tons of games I want for it. Even with the price drop that will have to happen by the time I buy it.
The 360 is $400. It's not as worrying as the PS3 but that's still a fair amount of money.
The Wii is $250, and worse case scenerio I can use it as a replacement 'Cube and have a few new fun games.
The Wii may "fail" because it doesn't take over the industry or ends up in 3rd place, but I bet I'll still love it anyway.
All that said, who do we think... objectivly... is the most likely to fail? The cheap one with the "gimmick", the expensive one that is more of the same, or the obscenely expensive one that currently seems like more of the same?
Re:Zelda, Mario, Rinse, Repeat (Score:5, Interesting)
I don't think anyone in their right mind could justify saying Nintendo is going to be in trouble (as a company) if the Wii disappoints. However, it is likely that if it doesn't sell well, and people generally don't adopt it well, that Nintendo may start to be seen as "the" handheld company, and not the "video game" company it is currently. Does that make sense? I just think it's deeper than financial. Sony's not going to fail if the PS3 fails. But it's games division, SCE, will be rocky. But Nintendo, as stated, will make a profit on each unit, ensuring Nintendo isn't going anywhere soon.
But it may not be on people's radar unless they make Wii stick with gamers.
Re:It costs a Wii bit too much (Score:5, Interesting)
I don't know how you figure that out. Unlike the Xbox versus Xbox 360 you can directly compare the performance/power of the Wii against the Game Cube. The GC was only barely less powerful than the Xbox and certainly more powerful than the PS2. The Wii is pretty much a GC with 3x the clock speed on both CPU and graphics while being fully backwards compatible so it will be able to perfectly play GC games many of which are very good so there is a large library of available games to buy and be reissued.
No-one is going to argue that the raw compute power of the Wii is pretty far behind the 360 and PS3 but it really doesn't matter if none of the games really do much new. The 360 and PS3 are nothing but the evolution of the NES, nothing new, just more power. Nintendo defined the current controller structure and the Wii redefines it.
Judging by the number of people queuing up to pre-order the Wii this last weekend I think it is going to be very successful.
Re:We'll know about abject failure pretty quickly (Score:3, Interesting)
The DS sold well at launch and was hard to find, even though there weren't that many great games available for it for a while. It was only months later, when better games started coming out, that the system really gained momentum. And then the DS lite made things even crazier.
The Wii might be a smash hit right out of the gate, beyond all the fanboys picking it up. But I wouldn't be surprised if in general it starts out a little slow, but then ramps up as more interesting games get released. Especially if Nintendo is really going after the non-gamer market. They aren't going to buy a system based on hype, but eventually they'll see something at a Wii kiosk at Target that will catch their eye, and maybe try it and enjoy it enough to purchase one.
Re:Same Arguments as DS had (Score:5, Interesting)
My youngest is out at his friends, he has played them all, XBox 360, Xbox, PS2, Gamecube, and N64. For playability, he likes the N64 the best.
For the first time in my life, I am very tempted to put a game console under the chrismas tree. That would end up being a Wii as a family gift and a game for each of the kids.
I am sure many less tech savy folks than me will go, "Oh, I know my kid has their heart set on an XBox360, but at $400.00, I can get this $250.00 Nintendo system, buy some games for it, and still come out with an Xbox 360. I am sure the kids will like the Wii."
Re:Zelda, Mario, Rinse, Repeat (Score:5, Interesting)
Re:the controller has me worried (Score:4, Interesting)
Anyone else think of War Games? (Score:4, Interesting)
Interesting game, professor. The only way to win is not to play.
Over Reacting (Score:4, Interesting)
No, Nintendo is nowhere near being in dire straits. What planet are you from!?
Re:Zelda, Mario, Rinse, Repeat (Score:3, Interesting)
Still waiting for an all new Pixar rendered CGI Mickey Mouse motion picture... ;)
Re:Zelda, Mario, Rinse, Repeat (Score:3, Interesting)
When everyone saw the controller they thought of sword games. From seeing how Red Steel has implemented sword play I am extremely depressed. It is about the equivalent of what you would get with a DS sword game (e.g. you literally draw gestures on the screen).
Re:Opinion of article.... (Score:3, Interesting)
Microsoft only reports shipped numbers, Nintendo only reports sold numbers. As of the release of the Xbox 360, Microsoft has stopped shipping original Xboxen. That shipped number will never increase. Nintendo, on the other hand, still ships the Gamecube, because the Wii has not shipped yet. They continual to outsell the original Xbox by 1000 to 1 in every region (and until March of this year, were outselling the 360 as well, but that was mainly due to production issues on Microsoft's part). By the time the Wii releases, chances are the number of GC units sold vs the number of Xbox units sold will be almost exactly the same.
Oblig. Sony complaints (Score:5, Interesting)
From the designs of their products, you can see that Sony has no interest whatsoever in making products that last beyond the warranty period. Their laptops have no latch securing the screen to the lapboard of the computer. When you put a Vaio in its sales floor box, with the hinge down, it literally falls open and cannot be closed. (I've even seen the new Blu-Ray equipped Vaios do this.) All the holding power that's supposed to keep the screen and the computer together when closed is in the hinge. Bad design.
Even better, Vaio laptops have the thinnest screen enclosures on the market. The enclosure has no ridge on the outer edge (like the ones you see on most other laptops, Apples and HPs to start) that redirects pressure to the outside of the enclosure and protects the screen. Instead, all the pressure goes directly on the screen. Maybe this is why all Vaios come back from repair with a note saying, "Your Vaio is designed for maximum durability. However, please refrain from putting pressure on the screen enclosure."
Sony cameras are probably worse. From their Handycams, that look and operate like relics from the late 90s but retail at futuristic prices, to their CyberShot cameras with touch screens on the back. One model has nothing but a power button and shutter on top and a touch screen covering the entire back of the camera, which controls everything else. It makes me wonder if Sony has an entire department dedicated to Putting Large LCDS on Things That Go In Pockets. Oh yes, and the batteries are proprietary, too.
Sony isn't doing too badly in audio equipment--their stuff seems to be on par with everyone elses. And their optical drives are decent but you wont see one in any non-Sony OEM machines. Not to mention their drives are more expensive.
For almost every technology thing you can name, Sony makes a souped-up, talked-up, marked-up version of their own. 99% of the time, it's just not worth the extra money.
Not selling at a loss != profit (Score:3, Interesting)
But Nintendo, as stated, will make a profit on each unit
This is a misconception. Just because the console isn't sold at a loss doesn't mean that Nintendo will "make a profit" on each unit.
Sure, each unit sold makes a positive contribution to the financials of the Wii project, but in order to determine whether Nintendo makes a profit on the console, you must factor in R&D, marketing, and a number of other support expenses. The amount of money that Nintendo brings in on each console (and accessories and licenses, etc.) must offset a certain fixed cost of overhead in order for the operation to be profitable. You can calculate this as an additional cost added to each console that scales with the number of consoles sold.
Consider this situation: Nintendo sells a total of 10 Wiis. Assuming the unit costs $249 and the unit costs $189 to manufacture (I just made that number up), they bring in $60. $60 x 10 = $600. But R&D + other costs were somewhere in the millions. If R&D, etc. total $10 million (again, just making numbers up), and only 10 are sold, the true cost of each unit is $1,000,189. Nintendo would make profit on no consoles, even though they weren't selling them at a loss.
Of course, it's a lot easier to cover those initial expenses and start making a profit when you're actually bringing in money with each sale...
Re:It costs a Wii bit too much (Score:2, Interesting)