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Nintendo Sales Down 8% in 2nd Quarter Despite Mario Kart 8


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DRosencraft



Joined: 27 Apr 2010
Posts: 666
PostPosted: Mon Aug 11, 2014 7:37 pm Reply with quote
It doesn't suit Nintendo to be out of consoles. It is very hard to imagine playing their games on any other system. It is just such an iconic company. As I see it, their problem is not really consoles per se. It's the same as it was last week, two months ago, three years ago; no games. As much as 1st party titles draw attention, it's the strength of the rest of the library that keeps players around. Not a lot of people are going to buy a console if there are only a few games of interest available. MK8 is a party game. Well, how often are you going to have a party? Same for upcoming Smash Bros. Nintendo's Forte was games to play together with friends and family. Well, people have become much less interested in that brand of on-the-couch-together game play.

A game like Hyrum Warriors, or Bayonetta 2 can change that, but these are somewhat niche, so you have to be cautious of pinning too much hopes in those. Overall, however, Nintendo lacks a lot of "other" games. There are big lulls between the 1st party titles, and not a lot to fill those gaps. Any gamer looking for value wants to wait, but by the time they look back at the game, how many are still playing it?
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Beatdigga



Joined: 26 Oct 2003
Posts: 4417
Location: New York
PostPosted: Mon Aug 11, 2014 8:36 pm Reply with quote
They can still make portables, they have the market cornered there, Bioshock being near console perfect for iOS be damned, but still, home consoles they don't have the resources to compete with multimedia companies.
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enurtsol



Joined: 01 May 2007
Posts: 14795
PostPosted: Mon Aug 11, 2014 8:55 pm Reply with quote
gloverrandal wrote:
enurtsol wrote:

Because Microsoft is not a Japanese-based company. But yes, Microsoft is the only one of those 3 that is not in the red - if you must know, its Q2 profit is $4.6bn (in reference, current market caps of Nintendo is $15.07bn and Sony is $17.91bn).

I don't think it's very good comparison given Microsoft is more than just the Xbox so it can supplement any loss from the Xbox division from elsewhere. That's essentially how they were able to enter the console market in the first place while other companies died off since they didn't have that safety net.


Pretty much; that's also why Microsoft isn't mentioned in these news articles about console financials since the Xbox division is just a portion of their whole business. Still, it kinda shows how the company is doing, decisions regarding the Xbox division largely don't have anything to do with the bottomline.

(Apple could do the same thing too with their Apple TV if they ever decide that there's enough money out off gaming apps and cloud gaming. It already works with Macs.)
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Barbobot



Joined: 06 Feb 2007
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PostPosted: Mon Aug 11, 2014 10:19 pm Reply with quote
Do note though that the Xbox division of microsoft is indeed in the red. The Xbox One hasn't turned a profit quite yet.
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enurtsol



Joined: 01 May 2007
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PostPosted: Tue Aug 12, 2014 12:52 am Reply with quote
Barbobot wrote:

Do note though that the Xbox division of microsoft is indeed in the red. The Xbox One hasn't turned a profit quite yet.


Yep, it takes years for a console division to recoup the investments, plus if the console is sold at a loss (though in this case it's not). It took the 360 till 2008 and the PS3 till 2010 to return to the black. But they knew that going in.
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Stuart Smith



Joined: 13 Jan 2013
Posts: 1298
PostPosted: Tue Aug 12, 2014 1:37 am Reply with quote
DRosencraft wrote:
Well, people have become much less interested in that brand of on-the-couch-together game play.


Is that Nintendo's fault or the consumers?

Nintendo really is the odd-man out. Not relying on on-disk DLC, or day 1 DLC in an era where it's acceptable for a Game of the Decade to launch with over 100 dollars with of DLC content ready to buy. Offering online and backwards compatibility for free rather than being paid services like other companies. Focusing on games first and foremost rather than being a living room entertainment center device and social media integration. Focusing on new and innovative ideas for gaming rather than relying on interchangeable hardware and software.

Gaming has changed so much the past decade in the western hemisphere. Nintendo remains top dog in Japan, but here gaming culture has shifted a ton thanks to things like mobas, shooters, streaming, let's plays, gaming news sites mingling with developer and publisher studios, and other western conventions. Time will tell if there's still a place for a company like Nintendo here.

-Stuart Smith
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ikillchicken



Joined: 12 Feb 2007
Posts: 7272
Location: Vancouver
PostPosted: Tue Aug 12, 2014 2:54 am Reply with quote
Cecilthedarkknight_234 wrote:
The target audience for Nintendo consoles are people who like Nintendo IP's and usually don't care for 3rd party games to much. The main reason being?? Most Nintendo console owners own a secondary console to play games that the system is not getting or own gaming pc.


I think that's absolutely true. The Wii U appeals to die hard Nintendo fans and only die hard Nintendo fans. You have to recognize though that this is the problem. Numbers don't lie. The Wii U's sales numbers show where only appealing to Nintendo fans gets you. It's sad for sure. I wish it wasn't the case. But if Nintendo wants to right the ship they've got to realize that this just isn't viable. That niche has been shrinking since Sony entered the market and has finally gotten too small to be even viable as a side market.

That's where, while I'm in no way eager for them to give up on the Wii U (especially since I went and bought one), I can't really deny that looking at going 3rd party makes some sense at least at some point. If your greatest asset is software then it makes a whole lot of sense to just sell software. Trying to force people into buying a console just to get that software doesn't make a lot of sense. Obviously there are downsides. There's a lot more profit in selling software on a console you own than licensing it to other consoles. But then, there's not much profit to be made period for Nintendo these days anyway. I don't know. I guess we'll see.

Stuart Smith wrote:
Is that Nintendo's fault or the consumers?

[Verbal Masturbation]




Sure buddy. Nintendo is just the last noble hero of gaming, tragically spurned by stupid westerners for holing out against the evils of [hate buzzword]. Superior Japanese gamers (and you) still appreciate them. Laughing
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Polycell



Joined: 16 Jan 2012
Posts: 4623
PostPosted: Tue Aug 12, 2014 3:01 am Reply with quote
The core problem with the Wii U is that the Wii hit it out of the park with the appeal to casual gamers and Nintendo tried to make lightning strike twice with their silly tablet; the second screen thing is interesting, but a heads-down display is limited in its usefulness. An updated version of the Dreamcast's VMUs can possibly work, but like the original I suspect it's not going to be too popular.

Thinking about it, the giant pad could've been used far more innovative with one of those needle things you press you hand into and see it out the other side(sorry for the poor description): each game could've been able to create its own buttons as they wished, with full tactile feedback.
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enurtsol



Joined: 01 May 2007
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PostPosted: Tue Aug 12, 2014 3:28 am Reply with quote
Stuart Smith wrote:

Gaming has changed so much the past decade in the western hemisphere. Nintendo remains top dog in Japan,


Thanks to handhelds. Gaming has changed in Japan too, shifting mostly to handhelds and mobile gaming (Japan has surpassed the US for #1 mobile gaming - it's already 50% of Japan's total gaming revenue.) Japanese game publishers have to increasingly address that as mobile gaming becomes more powerful - they can't afford not to serve half of the gaming market.


Stuart Smith wrote:

but here gaming culture has shifted a ton thanks to things like mobas, shooters, streaming, let's plays, gaming news sites mingling with developer and publisher studios, and other western conventions. Time will tell if there's still a place for a company like Nintendo here.


Things always change. If not for the change in the market due to Atari's collapse, that allowed Nintendo to fill the void. And if Nintendo doesn't serve the market well, something else will step in. So if not for these changes, Nintendo would not be here - or Sega or Playstation or Xbox or Steam, etc. Gotta change with the times. Can't blame change.
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Guile



Joined: 18 Jun 2013
Posts: 595
PostPosted: Tue Aug 12, 2014 12:50 pm Reply with quote
Stuart Smith wrote:
Is that Nintendo's fault or the consumers?

Nintendo really is the odd-man out. Not relying on on-disk DLC, or day 1 DLC in an era where it's acceptable for a Game of the Decade to launch with over 100 dollars with of DLC content ready to buy. Offering online and backwards compatibility for free rather than being paid services like other companies. Focusing on games first and foremost rather than being a living room entertainment center device and social media integration. Focusing on new and innovative ideas for gaming rather than relying on interchangeable hardware and software.

Gaming has changed so much the past decade in the western hemisphere. Nintendo remains top dog in Japan, but here gaming culture has shifted a ton thanks to things like mobas, shooters, streaming, let's plays, gaming news sites mingling with developer and publisher studios, and other western conventions. Time will tell if there's still a place for a company like Nintendo here.


Even when they did do their first DLC pass for Mario Golf, they dropped the price of the game itself to compensate.

Nintendo's the most consumer friendly company out there, butit doesn't line up with what modern gamers have become. Anti-consumerism is rewarded in this environment and it's too late for anyone to really fight against it. It's part of the reason I grew out of most video games and only really enjoy the occasional Nintendo game or RPG like the Atelier, Dragon Quest, Final Fantasy, or Tales Of series. I wonder if that's part of the reason why handhelds have taken off in Japan, and why most western developers don't develop for handhelds.
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Tuor_of_Gondolin



Joined: 20 Apr 2009
Posts: 3524
Location: Bellevue, WA
PostPosted: Tue Aug 12, 2014 1:12 pm Reply with quote
Some people seem to think that the sales results of the Wii mean that there is this great casual market out there that is just waiting for the right console to come along. They are wrong.

The Wii was a FAD. Look up the word. People who are not gamers joined a *fad* and rode it until the next fad came along, which they then chased after, because there is a sizeable segment of the population that is like that. Granted, *some* of those people did end up becoming gamers, but that was a small percentage of those who rode Wii fad. The point here is that no one, least of all Nintendo, should expect that to happen again, because it almost certainly will not.

So Nintendo profited from a fad, and I certainly have no problems with that. But then they started acting (so far as I could tell) as if it was their product which pulled in casuals, and while that isn't *entirely* incorrect, it is a very misleading thing to think, because it implies that they could do something to make it happen a second time. This sets up unrealistic expectations, which we are now seeing being destroyed. Worse, it seems to have hidden/obfuscated changes in the non-fad-gaming marketplace, and those changes are also now impacting on Nintendo, which seems unable to answer them.

Nintendo had best forget about the Wii, or at least not use it as some sort of standard, and instead look at how things are *now*, and where things will likely be in the future. Otherwise, it'll become increasingly irrelevant to the gaming community. That's my take, anyway.
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enurtsol



Joined: 01 May 2007
Posts: 14795
PostPosted: Tue Aug 12, 2014 1:37 pm Reply with quote
Guile wrote:

Nintendo's the most consumer friendly company out there, butit doesn't line up with what modern gamers have become. Anti-consumerism is rewarded in this environment and it's too late for anyone to really fight against it. It's part of the reason I grew out of most video games and only really enjoy the occasional Nintendo game or RPG like the Atelier, Dragon Quest, Final Fantasy, or Tales Of series. I wonder if that's part of the reason why handhelds have taken off in Japan, and why most western developers don't develop for handhelds.


I don't think one has to do with the other. The Japanese are also very into mobile gaming, and that type of gaming is full of DLCs/microtransactions. And even your linked article says

  • "The change points to two sides of the same development: not only did players start to accept new modes of distribution and payment, developers got better at implementing them in ways that didn’t compromise the game experience... All in all, it’s hard to see an openness to new ideas as bad for either the industry or the artistic medium — the market will still punish bad implementation, but developers that can toe the line have a way of coming up with some very interesting things."

Most games can still be enjoyed without DLCs/microtransactions. I think the Japanese just prefer handheld/mobile gaming since they're outside the house a lot and don't have the entertainment situation to maximize consoles at home.
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Fedora-san



Joined: 12 Aug 2014
Posts: 464
PostPosted: Tue Aug 12, 2014 1:43 pm Reply with quote
Sigh. Nintendo is not going to go third party. Even if they drop out of the home console market, which they aren't, their dominance in the handheld market is more than enough reason to keep them in the hardware business. People have been saying Nintendo is doomed since 1986.
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Beatdigga



Joined: 26 Oct 2003
Posts: 4417
Location: New York
PostPosted: Tue Aug 12, 2014 1:56 pm Reply with quote
Fedora-san wrote:
Sigh. Nintendo is not going to go third party. Even if they drop out of the home console market, which they aren't, their dominance in the handheld market is more than enough reason to keep them in the hardware business. People have been saying Nintendo is doomed since 1986.


In 1986 Nintendo ruled the world. In 2014, they're losing money on home consoles and would be better served focusing solely on the mobile sector where their dominance is still present and if they do make home console games, sell them to third parties. No one wants their IP's bought by...EA.
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Cecilthedarkknight_234



Joined: 02 Apr 2011
Posts: 3820
Location: Louisville, KY
PostPosted: Tue Aug 12, 2014 2:34 pm Reply with quote
Beatdigga wrote:
Fedora-san wrote:
Sigh. Nintendo is not going to go third party. Even if they drop out of the home console market, which they aren't, their dominance in the handheld market is more than enough reason to keep them in the hardware business. People have been saying Nintendo is doomed since 1986.


In 1986 Nintendo ruled the world. In 2014, they're losing money on home consoles and would be better served focusing solely on the mobile sector where their dominance is still present and if they do make home console games, sell them to third parties. No one wants their IP's bought by...EA.


Don't forget about activision and ubisoft as potential buyers as well. Uggghhh the thought of any one of these companies buying out Nintendo ip's scares the hell out me.
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