Is the home console business viable for Nintendo?

[VG_Addict]

The Wii U is flopping. That's just a fact. But I don't see the next console faring any better for Nintendo. Third parties aren't coming back, and people won't buy their console just for first party games. They're also behind on online and infrastructure.

Can they even make a successful home console?

 

[Johnny Novgorod]

Can they even make a successful home console?

Been there, done that. The NES, SNES and arguably the N64[footnote]Or not! PS1 outsold it 3 to 1.[/footnote] are the indisputable kings of their generations.

As for the Wii U: yes, it had a shitty start. Nintendo's shares have dropped consistently since 2007, having lost 82% of their value so far, it only managed to sell 5% of its target (Wii U) for the last fiscal year and it has more or less recently cut its Wii U sales forecast from 9 million to 2.8 million. That's only 30% of their original intentions. At its lowest, the console has sold 50% less than the GameCube and 90% less than the Wii. And so on. But they have a more or less resilient fanbase, going by some Escapists. "People won't buy their console just for first party games" seems like a gross overstatement.

 

[Z of the Na'vi]

Your OP is rife with opinion that you are regarding as fact. The Wii U is certainly not "flopping," and is finally picking up steam after an otherwise slow start. Sorry, I don't agree with the majority of your opinion(s), because let's face it: that's what they are.

Johnny above me said it best: Nintendo have made successful home consoles in the past. I don't think it's fair to let a rocky start to the Wii U forecast dark times ahead for Nintendo.

I'm fairly certain they know what they are doing.

 

[Hairless Mammoth]

The Wii U has picked up. It certainly looked bad compared to the others when they first came out. I'll even admit that I wanted them to give up and go third party for home consoles, with them giving up their control freak primadonna ways and maybe making customer controllers for other systems to work with their game designs.[footnote]Mostly because I don't want to buy another system for 2-5 exclusive and nothing else. I have a Wii that happened to and a PS3 bought in 2008 that probably has seen more use since the PS4 was officially announced back in 2013.[/footnote] Although, Nintendo has finally put some extra effort into it, not as much as they could, but enough. And what's currently coming out is the results of their efforts from 2 or more years ago, so it is possibly the will gain more traction this year.

The Wii U is slowly becoming the first party powerhouse, as the other two have mostly lackluster choices from 1st and 3rd parties and only a few stand out 3rd party titles, which are also on PC. Unless one has no interest in Nintendo IPs, the Wii U should be the console to get right now. It's better to wait for the xbone and PS4 to drop in price and build up their libraries, especially if you have a PC that can run the 3rd party games out now. (And if you don't like Ninty or lack a gaming PC, patience can save you money for more games when prices do drop.)

 

[Casual Shinji]

As long as they still have a rabid fanbase that will defend them to the death and buy anything that has the Nintendo brand on it, I think they'll be fine.

And with some of the controversies surrounding certain popular Triple-A third-party titles on the current-gen hardware, the Wii-U's more simplistic nature can coax people into opting for it instead.

But how about you get some new IP's out for this thing, huh Nintendo? That'd be nice.

 

[Johnny Novgorod]

Unless one has no interest in Nintendo IPs, the Wii U should be the console to get right now.

That's the point, for a lot of us it's hard to get excited about a new Mario game anymore.

Every time I point this out people go WELL THERE'S A NEW ASSASSIN'S CREED EVERY YEAR, because surely if I'm not crazy about Mario then I have to be a sucker for Assassin's Creed. But here's the thing - continuing the AC example - I was playing Mario games when I was 5 (more than 20 years ago), but it's only been 8 years since super-stabby-stealth-parkour-pirates-optional kicked off (and I've been playing them only for the past 2). Mario, Kirby, Smash, Kart, Pokemon and all that jazz are games that I played over and over when I was a kid, and then some more. 20 years later, I look at the Wii U library and it's the same games all over. I don't give a fuck about saving Mushroom Kingdom's Patty Hearst anymore. Or button-mashing my way through Smash.

And you say the other consoles hold no appeal (because they don't to you), yet the PS4 is the only way I can play a new IP like Bloodborne, or Silent Hills, or the latest Disgaea/Uncharted game. And it'll also run Arkham Knight, Dying Light and Kingdom Hearts 3. And maybe even The Last Guardian, god willing. None of which I can play on the Wii U. The only appealing things in it, to me, are 3rd party games: a zombie game and not-DMC N°2.

Nintendo's first party games have a strong fanbase that, let's face it, will buy anything they spew out. I've never seen a Nintendo fan be critical of anything they put out. So they're good on that count.

 

[laggyteabag]

Oh, Nintendo.

As it stands now, Nintendo is the only company with first party games that are worth a damn[footnote]Unless you just aren't interested in Nintendo titles, like me, then there isn't really a console worth getting right now.[/footnote], and even though they don't have the third party support of Sony or Microsoft, most of the third party games that are out right now are also out for the last gen consoles, so unless you are super into having the best graphics, there is little to no point in buying the Xbox One or PS4 right now, making the Wii U the only console out there right now that is worth getting. That being said though, when Sony and Microsoft actually start to release some games that are worth a damn (probably starting with Halo 5: Guardians for the XbOne and Uncharted 4 for the PS4), then that might change, but as it stands, the PS4 and the XbOne are selling solely on the promise of better graphics than the last gen consoles, and the promise of some new games (at some point).

Would I personally like it if Nintendo went third party? Of course I would! I would love to play some of their best titles like Bayonetta 2, Mario Kart 8 and Smash without having to buy a console.

Does Nintendo need to go third party? Hell no. Nintendo benefits from a fanbase that is probably more zealous than Microsoft and Sony combined, and they do this by having a few core franchises that the develop and innovate over and over again. Nintendo had a spectacular year in 2014, and that only goes to show that Nintendo is in no way failing.

Is the Wii U less successful than the PS4 or Xbox One? Yes.

Does it need to be more successful than the PS4 or Xbox One? No.

 

[Spaceman Spiff]

They've been making consoles for 30+ years. I doubt they'l stop now. The NES did very well, as did SNES, N64, and Wii. WiiU has had a rough start, but is picking up steam. Nintendo will likely take steps to avoid another WiiU situation for their next console.

Captcha: rocket science

 

[Vivi22]

arguably the N64 are the indisputable kings of their generations.

I love the N64 and it can certainly lay claim to some of the best 3D titles of its generation, but it isn't even arguable that it could have been the king of its generation. A console can't be outsold more than 3:1 by it's biggest competitor and have the argument that it was the undisputed king of its generation hold water. Especially when the Playstation also had a damn incredible library in its own right.

The NES did very well, as did SNES, N64, and Wii.

For the record, the N64 didn't do that well. It's sales were almost 20 million units behind the SNES and 30 million behind the NES. The N64 was one step in a decline that continued with the Gamecube, and which Nintendo has returned to with the Wii U. The Wii was comparatively an anomaly, and one which only happened because it managed to appeal to casual gamers at a time where nothing was really appealing to casual gamers. Now they've lost that market to things like cell phones and tablets and they aren't likely to ever get it back. And even if they did get that market, it would almost certainly be as much a fluke as the Wii's success was because you'd have just as easy a time picking winning lottery numbers as guessing what will catch the casual gamers eye.

WiiU has had a rough start, but is picking up steam. Nintendo will likely take steps to avoid another WiiU situation for their next console.

The Wii U hasn't really picked up Steam at all though. It manages to get a reasonable bump every fall/christmas season so far, likely thanks to things like Black Friday and their major games releases happening during those periods, but it can't even manage much more than half a million in sales every other quarter. Meanwhile the PS4 has outsold it 2:1 after a year and even the XBone is sitting at 2 million more units sold after a single year.

And I doubt Nintendo will be able to take steps to avoid another Wii U situation with their next console because that would require they actually understand what the problem is and what to do about it, but that's something they've been trying, and failing, to figure out since 1996. It's almost 20 years later and they still don't have a solution, and frankly, I don't even know what they can do either.

 

[Silvanus]

I really don't understand how this Nintendo doomsaying keeps coming up. The Wii was the most popular console of its generation by a significant margin, and that's only one generation ago, so it would be absurd to start saying that Nintendo aren't "viable" in the home console business after a single iteration since then anyway. Nobody was saying the Xbox 360 coming behind both its major competitors was evidence that Microsoft wasn't viable in the market.

Even with that said, the WiiU isn't doing much worse than the XBox One anyway.

 

[Lightknight]

Nintendo has to succeed at the same balancing act the other studios do:

1. First and second party titles. Nintendo is famous for this so it shouldn't be a problem. They do need to innovate and produce new IPs rather than letting all of their existing IPs age without replacement. But Mario games are still fun if not fresh.

2. A powerful enough console. It doesn't have to be the best, it just has to be relatively easy to put games on it. Currently, the WiiU is too weak to handle ps4/XBO titles since it is technologically still in the ps3/360 generation. From the gamecube era, we know that Nintendo is capable of this but got burned by the failure to cater to the next issue:

3. Third Party support. Nintendo decided that courting 3rd party developers was beneath them. They said this a couple years ago and have since changed tune but it's too late for them to change that course. Sony and Microsoft actively pursue other studios and give them resources/expertise to help with the development and porting process. Nintendo thinks 3rd party developers should come groveling to them and that's absolutely idiotic. They need to understand that consoles have two sets of customers. Gamers and development studios. You have to market and please both.

4. Price. The Wii was a very attractive $250 purchase. Sure, it was weak but the games were innovative and fun and the price was so good compared to machines like the $600 ps3 launch. The WiiU however, it launched at $300 and $350 with the only real difference between the two being just 16 GBs of storage which is deplorable. They forced a $140 gamepad to be part of the mix and it ended up being a total dud. Had Nintendo dropped the gamepad they could have instead been at $200 and $250 respectively and we may have seen an entirely different outcome. Hell, I'd have one. Why not? It'd only be $200 or cheaper than four new games. But why would I have gotten a $350 WiiU or even a $300 WiiU when just a little more money would get me the most powerful console in the market that is also wide open to 3rd party titles? Just for the Nintendo first party games? I'm really only interested in four or five and that $300 price tag means I've got to consider the cost of that as part of the cost of those games. A nintendo games tax, if you will. That means the effective cost is me spending more than $100 per Nintendo game and that's now, after several years. Unacceptable.

Do I think Nintendo can do all four? Yeah, I do. Do I think they will? They'll probably fail on some level. In fact, I think they're panicking right now. I believe they're about to release a new console to compete with the next half of this generation and that may help if they meet all four categories. If they succeed it could work but it's risky.

If it fails, they could go third party themselves and get out of the console race temporarily only to try again later, but I don't recall that ever really being done successfully.

 

[Lightknight]

Your OP is rife with opinion that you are regarding as fact. The Wii U is certainly not "flopping," and is finally picking up steam after an otherwise slow start. Sorry, I don't agree with the majority of your opinion(s), because let's face it: that's what they are.

Johnny above me said it best: Nintendo have made successful home consoles in the past. I don't think it's fair to let a rocky start to the Wii U forecast dark times ahead for Nintendo.

I'm fairly certain they know what they are doing.

Actually, the WiiU is the slowest selling console in Nintendo's history. Even Nintendo admits they're flopping and are already gearing up to announce a replacement console.

http://www.forbes.com/sites/insertcoin/2015/01/29/the-wii-u-is-nintendos-slowest-selling-console-ever/

The Gamecube sold faster than the WiiU and the gamecube only sold 22 million units all told despite being the most powerful console on the market at a price of $100 pretty soon after release if you recall.

http://www.theguardian.com/technology/2014/dec/22/nintendo-games-console-mario-shigeru-miyamoto

So unless you have a different definition of "flopping", then they are absolutely flopping by nearly everyone's standards. Their uptick was extremely modest. In 2013 they sold 3.1 million units (which the XBO nearly matched and the PS4 exceeded to reach in less than two months) and in 2014 they only made it to 3.6 million units despite all those great game they put out.

So it's pretty bleak for them. To say that they are not flopping is in-congruent with the facts. I think they can turn things around through innovation or solid competition like I said above. But things are not good as is and it's important to acknowledge that. Rose colored lenses have seldom helped people with reality.

 

[Z of the Na'vi]

Actually, the WiiU is the slowest selling console in Nintendo's history. Even Nintendo admits they're flopping and are already gearing up to announce a replacement console.

http://www.forbes.com/sites/insertcoin/2015/01/29/the-wii-u-is-nintendos-slowest-selling-console-ever/

The Gamecube sold faster than the WiiU and the gamecube only sold 22 million units all told despite being the most powerful console on the market at a price of $100 pretty soon after release if you recall.

http://www.theguardian.com/technology/2014/dec/22/nintendo-games-console-mario-shigeru-miyamoto

So unless you have a different definition of "flopping", then they are absolutely flopping by nearly everyone's standards. Their uptick was extremely modest. In 2013 they sold 3.1 million units (which the XBO nearly matched and the PS4 exceeded to reach in less than two months) and in 2014 they only made it to 3.6 million units despite all those great game they put out.

So it's pretty bleak for them. To say that they are not flopping is in-congruent with the facts. I think they can turn things around through innovation or solid competition like I said above. But things are not good as is and it's important to acknowledge that. Rose colored lenses have seldom helped people with reality.

Alright, fine.

The Wii U isn't as great of a success as I thought it was. Compared to the other current-gen consoles, it's severely falling behind. I suppose I was more speaking in line with how I didn't want to see my chosen 8th gen console grilled so harshly as it was done so in the OP.

I've been having a great deal of fun with my Wii U and just hate to see this news, is all.

 

[KingsGambit_v1legacy]

Considering the Wii had more sales than both the 360 and PS3 combined, I'd say Nintendo are doing just fine in the home console market. Considering their hardware doesn't cost £300-£450 or whatever ludicrous price Sony and MS are charging these days and Nintendo's solid marketing towards family friendly/younger gamer audiences, they have an advantage neither of the other two have.

 

[Piorn]

Personally, I feel the Nintendo is the only current home console that has any justification to exist in the first place.
If I had to get a console, I'd definitely get a WiiU, just because it's not just a bad premade PC and actually does something unique.

 

[Lightknight]

Actually, the WiiU is the slowest selling console in Nintendo's history. Even Nintendo admits they're flopping and are already gearing up to announce a replacement console.

http://www.forbes.com/sites/insertcoin/2015/01/29/the-wii-u-is-nintendos-slowest-selling-console-ever/

The Gamecube sold faster than the WiiU and the gamecube only sold 22 million units all told despite being the most powerful console on the market at a price of $100 pretty soon after release if you recall.

http://www.theguardian.com/technology/2014/dec/22/nintendo-games-console-mario-shigeru-miyamoto

So unless you have a different definition of "flopping", then they are absolutely flopping by nearly everyone's standards. Their uptick was extremely modest. In 2013 they sold 3.1 million units (which the XBO nearly matched and the PS4 exceeded to reach in less than two months) and in 2014 they only made it to 3.6 million units despite all those great game they put out.

So it's pretty bleak for them. To say that they are not flopping is in-congruent with the facts. I think they can turn things around through innovation or solid competition like I said above. But things are not good as is and it's important to acknowledge that. Rose colored lenses have seldom helped people with reality.

Alright, fine.

The Wii U isn't as great of a success as I thought it was. Compared to the other current-gen consoles, it's severely falling behind. I suppose I was more speaking in line with how I didn't want to see my chosen 8th gen console grilled so harshly as it was done so in the OP.

I've been having a great deal of fun with my Wii U and just hate to see this news, is all.

At the end of the day, if you're having a great deal of fun with your console then that's all that matters. It doesn't invalidate the choice you made of going with the WiiU and it can't take away any of the fun you've been having. It may impact your fun in the future but that's not here yet. Yes, the WiiU is selling poorly. But the individual games are still performing well and this crossroads for Nintendo is really just an opportunity for them to try again. So take heart and keep enjoying your games.

Considering the Wii had more sales than both the 360 and PS3 combined, I'd say Nintendo are doing just fine in the home console market. Considering their hardware doesn't cost £300-£450 or whatever ludicrous price Sony and MS are charging these days and Nintendo's solid marketing towards family friendly/younger gamer audiences, they have an advantage neither of the other two have.

That's not true.

The Wii sold around 101 million units. The PS3 has sold around 85 million units. The 360 has sold around 84.5 million units. Likewise, both the PS3 and 360 are still selling in large numbers. For example, the PS3 sold 3.6 million units last year as compared to the WiiU's 3.68 million. The Wii is unfortunately dropping off the face of the planet where sales are concerned due to Nintendo discontinuing it.

Now, what's important to note is that the Wii was profitable out of the gate. Both the 360 and the ps3 lost billions up front. I would declare the Wii a clear winner of that generation. But I just wanted to get your facts straight.

Additionally, the WiiU started out charging $350 for the console that is now standard and isn't that far away from either console in price. It just isn't like the Wii that was $250 out the gate compared to the ridiculous $600 PS3.

 

[Johnny Novgorod]

Considering the Wii had more sales than both the 360 and PS3 combined, I'd say Nintendo are doing just fine in the home console market.

The Wii U is the slowest selling console in Nintendo's history. It has nothing to do with the fact that you like your Wii U, and everything but a Wii U is apparently a half-baked PC. Nintendo just doesn't sell as much as it used to, and they're the first to acknowledge it.

 

[Supernova1138]

Considering the Wii had more sales than both the 360 and PS3 combined, I'd say Nintendo are doing just fine in the home console market. Considering their hardware doesn't cost £300-£450 or whatever ludicrous price Sony and MS are charging these days and Nintendo's solid marketing towards family friendly/younger gamer audiences, they have an advantage neither of the other two have.

The problem is most of the Wii's audience has migrated to mobile platforms, and will stay there for the foreseeable future. The Wii U's sales numbers have been slow, and it's only been the hardcore adult Nintendo fans who have bought it. The kids these days likely aren't even gaming on a console anymore, they're more likely on a smartphone, tablet, or maybe a dedicated handheld like the 3DS.

As it stands the Wii U has pretty much zero third party support from Western developers, and a small amount of third party support from Japanese ones, and that combined with Nintendo's first party offerings really isn't enough to sustain a console. Nintendo's hardcore fanbase is starting to shrink, and they're pretty much the only audience they have left at this point. 2014 was a very good year for the Wii U in terms of games, but I don't think Nintendo can keep up that kind of pace when they're practically the only developer and publisher that is releasing games for the Wii U. About the only reason the Wii U looks even somewhat good right now was because Sony and Microsoft dropped the ball on getting a decent number of exclusives out relatively close to the launch of their systems and 2014's third party offerings being mostly disappointing.

 

[Nowhere Man]

I just bought a Wii U yesterday with Smash Bros and Bayonetta 2 and my brother is planning on buying one himself by the end of the month. So far I'm really enjoying it. I know nowadays there's a lot of people (especially the writers on many gaming sites where the cool thing to do now is hate on Nintendo) who are quick to say Nintendo is flopping etc etc, but I thinks it's all B.S. and that they are doing just fine.

If anything the gaming industry's behavior and business practices over the past few years has made me appreciate Nintendo even more.