Nintendo Stamped in the Past - Analyst

Nintendo May Need Strategy Change

by Anton Shilov
01/06/2012 | 11:31 PM

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.