I agree and disagree with the article in its entirety.
Yes consumers define a company but before consumers define that company it is the company that does the defining. Now Sean mentions the gamers who grew up with NES and GameBoy which were technically inferior but had games you'd want to keep playing and the consoles apparently did not have an expiry date.
Yah sure there was a market of 60-million consumers at that moment. A large user base that Nintendo slowly lost but is that really completely because they tried defining their own image? I don't believe so I note that Sean specifically states a major reason for Nintendo's success was arcade style games and family friendly software. But later with the fall of GameCube he specifically mentions the lack of hardcore mature software. He mentions that consumers have changed their view from family software to childrens software. Now why exactly did that image come into being?
I do not buy the fact that consumers are dead set from the day a company begins operating. I would share the view Sean claims Nintendo has that it is nostalgia. In the games industry their are constantly new gamers being introduced to gaming their is constantly gamers growing older who want games to grow older with them. I don't buy for a second that the whole consumer base in its entirety thought that Nintendo was a family friendly arcade game maker.
Why the downfall from NES onwards, yes partly due to Nostalgia but was SNES really a huge step backwards for Nintendo's NES? Everyone who shares this Nostalgic view that Nintendo used to be so amazing loved SNES. So why if SNES was such a true Nintendo console did SNES lose so many sales? I mean SNES lost over 10-million in sales compared to NES. Its true the largest dive Nintendo took was with Nintendo 64 and took a slightly smaller dive with GameCube. But is that all due to consumers image of the company? Partially I am sure it played a role but that is not the defining factor.
There were so many defining factors. I'd say the biggest one was the entry of Sony into the industry and Sega having more success with their Genesis then they did with Master System. Sega claims that Master System sold 13-million units world wide and VGChartz states Genesis sold 28-million units.
So lets look at this in greater detail, during the NES/Master System generation there was about 90-million consoles sold in total. That is almost 50-million for SNES, almost 30-million for Sega and 10 million for Turbo Grafx. But suddenly in the fifth generation we go from having about 90-million console market to over a 100 million that Sony sells alone. Sony sells more hardware in the fifth generation then all the companies combined did in the past generations! Now can you blame that entirely on Nintendo not meeting consumer's perception of Nintendo? Possibly a little bit but consumers not being satisfied with Nintendo wouldn't drive Sony's sales larger then all the past companies combined in their generations.Then include PS2 which actually sold even more units then PSOne selling 144 million units such a large increase that it basically added N64's sales and Sega's sales from the fifth generation together and put them onto the sixth generation. Nintendo losing market share is a no brainer and with Microsoft also entering the industry and selling 24-million units cuts Nintendo's market share even further.
So why did Nintendo lose so much market share, software and prices. Third parties were hugely supportive of NES/SNES but Nintendo was really harsh on the third parties and was not a very nice business partner. The third parties tried supporting Sega but Sega lacked the ability to over take Nintendo simply do to Nintendo's first party content killing Sega. Nintendo with N64/GCN was reliant almost entirely on first party software while Sony on the other hand had some of the highest selling third party software to date. N64's first party software did pretty good for the most part. But Sony's third party software built up! Then when PS2 came around you can see the highest selling title almost doubles that of the highest selling PSOne game.
Price was another huge pitfal with N64. lets face it I remember seeing games up to 129.99$ while towards 1999 some PSOne games were selling as cheap as 9.99$ this was a business decision by Nintendo that drastically hurt Nintendo's ability to compete. Yet Nintendo despite the very high priced software and lack of third party support managed to still sell over 30-million units. GameCube sought to remedy the price problem and bring back third parties, Nintendo had a lot of third parties interested but the lack of online turned them and LucasArts away.
In the end Wii was the fastest selling game console to date. It sold this well long before any (Arcade or classic) software was released. None of the titles launched within the first year even arguably the second year featured any of the games people call arcade. So Wii did not sell because of this it sold because of the new Wiimote and the new gameplay experiances Nintendo offered. Even Sony and Microsoft came to the same conclusion. Some of the highest selling Wii games aren't traditional Nintendo games at all games like WiiFit and on DS games like Brain Age and Nintendogs. None of these high selling games fit the profile that Sean lists.
In fact during the time that Sean refers to Pokemon was born. Pokemon on GBC/GBA/N64/GCN was massive so big that Nintendo sold over 100 million copies of Pokemon games in a short period of time. But Pokemon didn't fit Nintendo's classic profile either it offered a new gameplay experiance catch them all. Other new franchises like Animal Crossing and Pikmin weren't classic Nintendo franchises either and both have proven to be some of Nintendo's biggest games (AC on DS/Wii) sold shit loads and Pikmin 1+2 on GCN sold very well considering the software sales on the platform.
As for why DS didn't sell well in the beginning. This wasn't because of the touch screen really it was the lack of software. The lack of high quality software that took advantage of the touch screen. In fact GBA is the closest thing to Sean description it featured games that were classic Nintendo games whether they were remakes or entirely new titles.
Other titles like MetroidOtherM took the Metroid franchise in another direction. Consumers had gotten used to FPS Metroid but that goes against Sean's theory because those Nintendo consumers would have wanted a return of classic Metroid and Metroid Prime would not have been a powerhouse.
Fact is Wii's success is almost entirely due to Nintendo offering new experiances. Sean obviously is unaware of this he talks about the changes made to Mario, but what about MarioKart? I mean online play, motorcycles new weapons and characters new modes. The only reason Platformers are as popular as they are is because it is Nintendo's platformers that are selling.
In the end Sean has it right Nostalgic gamers who bought NES/SNES bought Wii for the classics. A funny thing about this is that NSMBW was launched and from then on when all these classics launched like Donkey Kong Country Return's etc...etc... Wii sales have actually been dropping since the release of these classic games. Hardware sales were not amazing because of Nintendo making arcade style games or classics. It was successful because almost all of the software from Nintendo's first parties offered new and unique experiances!
-JC7
"In God We Trust - In Games We Play " - Joel Reimer









