Interbrand Has Dropped Nintendo’s Brand Value By 33%

Interbrand, a division of Omnicom which is a brand consultancy firm, has dropped Nintendo’s overall brand value by 33%. The company says this is due to declining sales of Nintendo products such as the Wii U and Nintendo 3DS and the advent of smartphone and tablet gaming which is ruling the roost in the handheld market.  You can view Interbrand’s top 100 brands, right here.

“Nintendo continues to provide safe fun for families, but has not remained relevant to the “smart world” gamers who now demand edgier entertainment. Significant volumes of Gaming entertainment have moved away from dedicated gaming consoles and hand-held devices (like Nintendo’s DS) to all-in-one devices like smartphones and tablets. Wii U, the brand’s biggest launch for several years, has suffered from weak sales since its birth in 2012, largely attributed to the limited number of games offer, as well as market dynamics.”

“After three years of decline, Nintendo is yet to clearly articulate how it will respond to the challenge of smart devices and the prevailing “free-to-play” games model. However, the recent lifting of the 14-year games console ban in China (estimated to be the world’s third largest market) presents a growth opportunity-although Nintendo will have to tackle the issue of bootlegged software, customized hardware, and fierce competition to gain a real presence in the country.”

“Nintendo’s amiibo is a collectable figurine line with built-in memory that was created to encourage shared gaming experiences between real friends, rather than those of the virtual variety. However, Nintendo is effectively playing catch-up with a market already crowded with similar products like Activision’s Skylanders and Disney Infinity. The company’s core fanbase remains committed to the brand and vocally defends it, which is clearly an advantage. However, despite this enthusiasm and the quality of its games, Nintendo needs to deliver a more relevant and impactful brand experience to change the perception and demonstrate clearly that its exciting innovations are still to come.”

Source: http://mynintendonews.com/2014/10/09/interbrand-has-dropped-nintendos-brand-value-by-33/

Wouldn't doubt it, more doom and gloom for the poor company but they deserve it with the goof ups they had with the wiiu

So according to this firm.... nintendo is for kids and has no games.

I wish nintendo would get back to the good ol days when they provided a lot of variety in their games.

Not shocking at all. Nintendo has fallen over the years :/

Yeah it's so non-relevant with Mario being one of the most recognizable video game characters today. You know what I never heard of that company until this post but I've known nintendo longer than 20 years. Face it, phone gaming is temporary and driven by free apps that advertise and monetize your data two thing I don't want in my life.

They launched Wii U almost without any marketing effort. Compared to Wii campaign it was nothing. People still mistake the tablet as Wii add on.

Mobile gaming is not going anywhere. In fact, it is conventional console gaming that will disappear before phone gaming. Don't be surprised if consoles in their physical form are non-existent in generation 9 or 10, yet people will always need a phone on the go... Sure, true gamers mostly dislike smart phone games, but the vast majority of the world enjoy those offerings. Tens of millions of people enjoy Angry Birds just as much as you or I enjoy Uncharted/Halo/Forza/Mario/Zelda. Phone gaming is a very lucrative market and with the spiralling budgets of making a game and increased costs of physical media and distribution, I see developers turning to making smartphone games and independant AA releases on both smart phones and consoles(via download, no physical version). We have already seen high-profile developers move to smart phone development.

Ahh Interbrand, as usual way off point with their analysis.

Its going to crash, Apple's already having crippling issues with their app marketplace and the shithole it has become. The mobile sphere is nothing more than a blind gamble right now, and completely unrelated to the quality of a product.

The brick-on-a-cord console is a dead concept, for sure but the idea of dedicated hardware certainly isn't going to die for a while yet: http://what-if.xkcd.com/31/

Not surprising. Nintendo is really not as relevant as it used to be.

Deserved.

However, some of their reasons were weak.