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Miyamotoo said:
Barkley said:

 

Reputation means everything, when it comes to both public perception AND relations with outside companies.

The worse your reputation the harder it is to create a succesful popular product and the harder it is to negotiate and recieve support from other companies and studios.

Really!?

Why after GC (Nintendo worst selling console at date) Wii become Nintendo best selling console ever if reputation is so important, why after PS2 best selling console of all time PS3 had terrible first two years and become worst selling PS console if reputation is so important, why Xbox360 sold 3x more than OR Xbox and on pair with PS3 while PS2 sold 5x more than OR Xbox if reputation is so important, why after most suscfule Nintendo generation ever and their best selling console ever Wii U become they worst selling console ever if reputation is so important!? 

Like I wrote reputation don't mean anything in console market for buyers, all comes to how much you current or new product is good and appealing.

Wii affected the reputation of Nintendo. Its why when Wii U launched, people stayed away from it because they assumed Wii U would be another gimmicky underpowered console. And for the most part they were right.

Wii sold because of the Blue Ocean strategy where they didn't even go after gamers anymore, but instead went after everyone else who are not gamers. This affected their reputation.

PS3 also had a price barrier of $600 and a production cost of around $900. Sony took a beating on PS3. It also didn't help that Sony execs were telling people that they would go out and work 2 jobs or put in overtime for PS3. And it did affect their reputation. Its what helped allow the Wii and the 360 to take off the way they did.

Same thing happened with Xbox One when Mattrick curb stomped it into oblivion for its reveal. Reputation does matter.