RolStoppable said: What would your answer be, if I asked you why Brain Training and Nintendogs have seen a steep decline? You would probably say that there are tons of similar games on mobile now, including free ones. With that in mind, what kind of success could Nintendo see by competing directly against the games that diminished the value of their Touch Generations IPs? Putting those games on smartphones doesn't look like an attractive proposal at all. There's little chance for Nintendo to improve the revenue and profits of those games over what they see on the 3DS now. The other problem is that by Nintendo going third party all kinds of speculations are going to start. "How long until other Nintendo games also come to smartphones? Or PC, PlayStation or Xbox?" You would answer that Brain Training and Nintendogs were only put on mobile because they didn't sell enough on Nintendo hardware anymore. Then consumers begin to think that if they hold out and let other Nintendo IPs flop, they can force Nintendo to go more and more third party. Which means that you are creating a negative domino effect that diminishes the value of Nintendo hardware more and more, and thus ultimately threatens Nintendo's core business. "Nintendo should go mobile." is an answer to a wrong question. That question is "How can Nintendo sustain their current hardware strategy?", but the correct question would be to ask how Nintendo can create a sustainable hardware strategy; and the answer to that is never "go third party", because the answer to "Why should anyone buy Nintendo hardware?" is always "Nintendo games" (that's not the only answer, but certainly the most important one). Thus every single game Nintendo can create can increase the value of Nintendo hardware and every Nintendo game created for non-Nintendo hardware would be resources that weren't spent on making Nintendo hardware more attractive; not to mention that a Nintendo game sold on Nintendo hardware brings in more profit than a hypothetical Nintendo game on non-Nintendo hardware, plus higher sales of Nintendo hardware also mean more royalties from third parties and more sold accessories. |
Sega was in the same spot once (Not that much cash in the bank though). Fans of Sega would have told them to ride it out, to never go third party, to create a sustainable hardware strategy.
In business there comes times when your original plan does not work, you loose the customers you thought were reliable, they find something better or cheaper. Then your company must change your old ways cause they are not working anymore. It is painful and even if you can come up with a multitude of reasons that your product is the best, no-one listens anymore. This is what Nintendo has now with the WiiU. It is not the first time they are in this position but the solution (Wii, Blue Ocean) is probably not going to work again.
I like Nintendo the best of the three consoles, but I know I have a hard time convincing anyone of my friends that they should buy a WiiU. "To expensive", "Been there - Done that", "Smartphones is sufficient" will probaly be the answers I get.
Is going mobile a to extreme sollution to the problem - maybe - but Nintendo are forced by both their economic department and their stock holders to make a change.