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Although Nintendo Wii was extremely successful early in its lifecycle, it is becoming aggressively irrelevant now among the core auditory. An industry analyst claims that Nintendo has to make a step closer towards game developers and start using the latest technologies to continue to be successful.

"Nintendo has to simply stop living in the past in 2012. They had a great deal of success since 1985 by making proprietary hardware and supporting it with proprietary software. They attracted third party support based upon the large installed base they generated for their hardware. They appear to me to be confident that 'if they build it, third parties will support it', but I don't think that is the case for Wii U," said Michael Pachter, an analyst with Wedbush Securities, in an interview with Industry Gamers.

Nintendo Wii U combines motion-sensing game play with the ability to support full HD graphics and generally performance demanding games that can run on consoles like Microsoft Xbox 360 or Sony PlayStation 3. The system itself is based on a custom IBM Power microprocessor as well as a modern ATI Radeon HD graphics chip with high-definition graphics and video support. But the main feature of the code-named Cafe game console is its unique controller with 6.2" touch-screen that also features an accelerometer and a gyroscope, a rumble feature, an inward-facing camera, a microphone and speakers that can be used to play both classic Gamecube/Wii games as well as specially designed titles that take advantage of the screen. Each Wii U console will be partnered with a new controller and can also use up to four additional Wii Remote or Wii Remote Plus controllers. The system is also backward compatible and can play all Wii games and use all Wii accessories. Nintendo Wii U will cost more than $249.

"By trying to be 'different' with the tablet controller, they have complicated game design for developers, who can't figure out if the Wii U will ultimately support only one or multiple controllers," added Mr. Pachter.


A snapshot from Nintendo Wii U demo

The problem is that the forthcoming game console of Nintendo does not only belong to the previous-generation consoles in terms of hardware capabilities, but is ideologically similar with them as well. Nintendo significantly needs changes and there are no signs of their incoming, unfortunately.

"They should stop relying upon the strategy that got them here, as it appears to no longer be working. I think their resolution should be to look outside of Nintendo for leadership in the areas of digital downloads, a user-friendly online interface and multiplayer gaming," the analyst said.

Tags: Nintendo, Wii, Wii U

Discussion

Comments currently: 10
Discussion started: 01/08/12 11:59:56 AM
Latest comment: 01/10/12 02:42:17 PM
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1. 
"The problem is that the forthcoming game console of Nintendo does not only belong to the previous-generation consoles in terms of hardware capabilities, but is ideologically similar with them as well."

Not sure I agree with that comment. Any graphics card from HD4600-4800 series would be significantly faster than what's found in PS3 and Xbox360. It will have at least DX10.1 capability, more VRAM, etc. At minimum, the graphics card in Wii U will be 3-4x faster than what's found in PS3/360, even if it's just an HD4770/4850. Also, can't say with 100% certainty what the final specifications of the Wii U are going to be. Perhaps Nintendo will upgrade the specs for the final version. For example, I am pretty sure Nintendo will support more than 1 of the innovative touch-screen controllers, while initial specs only called for 1 such controller to work simulatenously.

I think Nintendo's dilemma is 3-fold:

1) Lack of strong 3rd party developer support. Outside of their 1st party games, there is no reason to own a Wii. This may or may not change with Wii U. If PS4 and 720 are much more powerful than Wii U, cross-platform games will once again be inferior on the Nintendo's platform, and that's not a good thing for someone who can only afford to own just 1 console.

2) Timing of the launch. Wii U launches first in 2012, but even if has 4-5x the GPU hardware performance advantage, the majority of developers are still going to be developing games for ancient PS3 and 360 hardware (and making COD clone sequels). That means in the next 1-2 years, Wii U won't really have much better 3rd party games. The problem is in 2-3 years when PS4/720 launch, and developers finally start investing heavily into next generation game engines, the Wii U will be the most underpowered next generation console. If Nintendo's strategy of launching first is going to be a key competitive advantage, it would need to build a strong customer base (i.e., sell 10-20+ Million Wii U consoles before PS4/720 launch). But Wii U will not cost less than PS3/360 to start with. Therefore, it won't be able to use price as a main attraction like it did with the original Wii. So can it sell 10-20 million units before PS4/720 launch based on 1st party game line-up? Probably not.

3) Competing with MS and Sony for hardcore gamers requires becoming LIKE MS and Sony -- and that's not something Nintendo wants. If Nintendo's console is just like MS's and Sony's (top of the line hardware, high price tag, competing primarily for the hardcore gamer, etc.), then can the market really sustain 3 $400-500 next generation consoles simulateously? Such a scenario implies having 3 systems that are more or less the same, except for their key franchisees. Is that what gamers really want?

With PS3 and 360, 95% of all games were multi-platform. Outside of 5-6 key franchisees (MS: Gears of War, Forza, Halo, Fable, PGR; Sony: Ratchet & Clank, Uncharted, God of War, Killzone, Resistance, Little Big Planet, Gran Turismo, etc.), the 2 consoles were pretty much identical. Sure, the fanboys might argue over minute details such as the differences in CPUs, Blu-Ray vs. HD-DVD, Kinect, etc. But overall, the general gaming experience on PS3 and 360 was more-or-less identical - i.e., traditional gaming model. More or less, they had similar online multiplayer capabilities, similar graphics, similar style of controls, similar sound, similar target market, similar style of games, etc.

By Nintendo doing something completely different like the Wii U controller, they are actually providing a different choice for the gaming experience (not necessarily the best choice). The whole idea behind Wii and Wii U was NOT attract the same target market as MS and Sony but to attract gamers that want a gaming experience unlike what MS and Sony offer, even it meant allienating the hardcore gamers.

I don't know if Wii U will be more successful than PS4/720 in terms of sales or $$, but having 3 consoles that are "more or less the same" (high-end hardware, online multi-player, traditional controls, more or less same style of games, etc.), only being separated by their key franchisees sounds way worse for the already predictable gaming industry that keeps turning endless sequels and doesn't care to innovate gaming.

Maybe because I am older, but I no longer care to buy 1 "best" console with the best graphics and best online gaming capabilities. If I wanted the best graphics and the best online gaming, well I have my PC for that I am not 14 years old that I must buy "just 1 console" and proclaim it the best. Right now I'd rather have the option of buying 2 or even 3 different consoles that provide totally different gaming experiences than have 3 gaming companies compete with each other for the title of "the best all-around hardcore game console".

Frankly, I saw little point in owning the PS3 and 360 other than for their key franchisees since all the cross-platform games have better controls and graphics on the PC anyway!! At least the Wii provided a gaming experience I could not get on my PC. Similarly, the Wii U will be completely unique from PS4/720 and my PC - a good thing for us gamers. That makes the gaming market more exciting, not less.

The sad part is that the analysts/investors/shareholders would probably disagree with me since all they care about is making $$$, not about Nintendo innovating the gaming industry by evolving and offering a different gaming experience. If it was up to guys like Michael Pachter, the Call of Duty franchise would be made into Madden of first person shooters (COD 2013, 2014, 2015, etc. here we go let's make another $700+ Million dollars by selling mainstream garbage).

I think most of these analysts fail to realize that having 3 next generation consoles with similar online capabilities, all offering amazing graphics and all 3 targeting hardcore/"mature" gamers is not going to work. This is exactly why Nintendo decided to innovate with the controller as opposed to throwing a 16-core CPU and an HD7970 graphics card inside the Wii U (even if that was possible, that's not how Nintendo thinks because they are not MS or Sony). Sega already tried with Dreamcast by bringing the most technologically advanced console at the time and failed. Nintendo understands the reality of having 3 "identical/hardcore" consoles on the market with no differentiation between them other than 1st-party games and how much $$ they can throw to woo 3rd parties to become "exclusives". That's a road to financial disaster when trying to compete with MS's bank account using that strategy.
3 3 [Posted by: BestJinjo  | Date: 01/08/12 11:59:56 AM]
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- collapse thread

 
Sega failed because they were on the brink of collapse from the epic failure the saturn turned out to be due to high pricing and lack of support from retail and developers.

By the time The Sega dreamcast showed up it was too little too late for sega and they bowed out of the consol market for good.

Overall for a next gen consol to be successful, it comes down to the price, Games, marketing and the right release date that makes or breaks a consol... i dont think the WiiU will be as big as the Wii was due to the price being much much higher then the PS3 or Xbox360.. i just picked up an Xbox360 4GB consol for $146AU to use as a media center with DLNA software on the pc or Windows Media Center Client.

Thats even cheaper then what the Wii sells for now and with the Global Economy the way it is now i see the mum and dad shoppers out there picking up a nice cheap capable PS3 or Xbox360 over a exp, WiiU.. The games are also very cheap starting at $9 pre owned or $12 new, i dont think WiiU has much of a fighting Chance because for the people who are not BIG on gaming they already own a Wii that sits under the TV Collecting dust.

Nintendo should keep on milking the wii for every dollar they can get from it build up the bank account and release a spected up WiiU early 2013, giving developers even more time to finish the games to go along with it on release and better competing with PS4/Xbox720

It should be an interesting few years to see who wins the top selling consol once they are all out... It looks like they will all be using a Bluray disk or physical media of some type unless Xbox goes harddrive and Download content only, that may also play a part in who wins the next war.
1 0 [Posted by: vid_ghost  | Date: 01/08/12 03:22:40 PM]
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I agree with pretty much everything you have said, except I don't think all next gen consoles will use Blu-Ray. I am not even sure Xbox next will use that format; and Nintendo likes using proprietary formats too. I have a feeling MS might go with some proprietary format of their own to combat the piracy that haunted 360. Also, if they went with Blu-Ray, they'd need to pay a Blu-Ray royalty fee to Sony, their competitor. Since Blu-Ray drives can be purchased for $70-80 nowdays, this functionality no longer seems like such a bargain (back when PS3 launched, Blu-Ray drives alone were $300-400!). Also, the ability to play Blu-Rays is no longer that important, not when we can get media from Netflix and Hulu, etc. Online HD content and HD video streaming are taking off far quicker than Blu-Ray format.

I think Nintendo is in a dilemma though. On one hand, the Wii U is launching too early (how many developers will release games with next generation graphics for Wii U only?). Because it will launch first with more modern hardware, Nintendo won't be able to undercut the current consoles. Unless Wii U has 5-6 must own games in the first 12 months, it'll be harder for Nintendo to get that initial market penetration quickly.

But the problem is the Wii is dead in the water; so they can't really wait 2-3 years either. There is nothing left to milk there for them as most developers have abandoned development for the Wii. If Nintendo waits until 2013-2014 to release a mor "speced-up" Wii U, then they'll run into the exact scenario I listed -- which is all 3 of them trying to compete for hardcore gamers. If Nintendo will go that route, Nintendo would have to abandon the expensive innovative controller if they were to also have a console with hardware specs ~ PS4 and 720. Otherwise, how do you cram the innovative controller and top-of-the-line hardware for under $500+? The $500 price tag is simply unimaginable for Nintendo. They prob. knew they either had to invest into top-of-the-line hardware, which means becoming just like MS and Sony OR innovate. That was their reasoning when they were working on the Wii as well.

And looking at what happened to Sony losing leadership with PS3 after much successful PS2, Nintendo can clearly see that packing the most features into a console and even providing free online multiplayer gaming does not ensure winning the generation!
1 0 [Posted by: BestJinjo  | Date: 01/09/12 10:05:52 AM]
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You forget about the Kinect. With that MS did something like Nintendo did with the Wii Remote. And it is definitely not the same experience like the good old gamepad.
0 0 [Posted by: Martian  | Date: 01/08/12 08:32:09 PM]
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You are right. Kinect was a lot more successful than initially predicted. But were there any must have killer Kinect titles?

It'll be interesting to see if the next Xbox will have 2 separate versions (with and without Kinect). If MS integrated Kinect into every new console, then more developers will take advantage of that feature. Hopefully the price of this technology will have come down by the time they launch so that they can integrate it into every console.
0 0 [Posted by: BestJinjo  | Date: 01/09/12 10:15:22 AM]
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BestJinjo, Got a shorthand comment because you get a thumbs down for talking or typing too much.
0 2 [Posted by: tecknurd  | Date: 01/08/12 08:32:40 PM]
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It's not often that next generation of consoles launch. After that it'll be 7-8 years of enjoying the consoles. It's fun to discuss the strategies now before the 3 firms launch. Do you have any opinion to add?
0 0 [Posted by: BestJinjo  | Date: 01/09/12 10:12:42 AM]
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2. 
Agree with this article. Ditch the stupid controls and just put more powerful hardware in it.
0 0 [Posted by: DirectXtreme  | Date: 01/09/12 12:31:50 PM]
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- collapse thread

 
And what happens when Sony and MS have even more powerful hardware in their consoles? What's the key differentiating factor for Nintendo's console then besides 1st party titles? Nintendo 64 was arguably more powerful than PS1, but Sony smoked N64 that generation. Powerful hardware does not really attract 3rd party developers on its own. Also, recall SNES vs. Sega Genesis. SNES was barely more powerful but was extremely successful. Having powerful hardware specs does not guarantee success. That's just 1 part of what makes a console.

It seems the problems are related to lack of 3rd party support, lack of social platform connectivity, and lack of online multiplayer gaming platform like Xbox Live. None of those things has anything to do with how powerful the Wii U is. Nintendo should team up with someone who can create an advanced online gaming platform for their new console so that it's no longer about single-player gameplay and 60 hours Zelda quest style games. The new generation of gamers want to play online and specifically heavily online multiplayer games.
1 0 [Posted by: BestJinjo  | Date: 01/09/12 04:37:37 PM]
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I thought the wiiU did have online play! . if it doesnt then wow.. its going to tank like a rock, next 10 years of WiiU not online vS PS3 and Xbox online .. it has no chance
0 0 [Posted by: vid_ghost  | Date: 01/10/12 02:42:17 PM]
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