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Forums - Gaming Discussion - Nintendo Creating a New Console for Emerging Markets, Including China

So their dev capability will be stretched even more thin, so what a wiiu release what every 8 months or so. Or are they aiming for shovel ware mini games games mostly for their poor people products.

This could be a wiiu in new plastic - gamepad. 



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Don't take offense guys, but you all don't live on a country like China or Brazil, so you really don't have to much to say how the market really works around here.

First off, lets take a look on our console prices(all in EUA currency)/official prices only:
3DS: US$300
*PSVita: US$350
*360: US$320
*PS3: US$370
Wii: US$350
WiiU: US$900
PS4: US$ 1.800
*X1: US$ 1.100
Hanheld game: US$65
*7th gen game: US$60
8th gen game: US$110
* = produced on national territory.

As you can see, most of our products are at least 2x times more expensive, even when produced inside our territory(this helps a lot to cut the price down). But, as you can see, nintendo opt to create a factory here. Why? Simple, lack of infrastructure(our highways/trains/industry scenario suck) and a lot of burocracy(to open a bussiness, it can take 2 months, and 1 year to close one). Sony and microsoft have a lot of another products, so they got more interested on open their bussiness here to suport theirs products, that have a more wide market spread than videogames, of course.

So, nintendo products here end up being 3 times more expensive. So, what we do? Piracy and contraband. It got a lot better because of sony and microsfot innitiaves, but when ps4 came around here costing 4 times more, everyone got back to contraband again. Its so commom that its not rare to find polices officers looking at pirated products, not intended to arrest, but to buy.

I still need to clarify this: our minimum wage is US$330, and medium wage is of US$1000. And, not only video games are expensive around here, but another things too. So, as you can imagine, for cristmas/birthday present, the average kid wont be geting anything worth more than US$200. In the same way, kids can expect to recieve between 20$~40$ monthly from their parents. So, guess what? The only way is using piracy, this is why ps2 still are sold around here.

But why i would think that tatic would work so well for nintendo? Because alreadly work pretty well for sega. This is a product that sega sell today in a big number of retaliers around here:

its a master system with 132 games built-in, for less than US$100. Yearly, products like this manage to sell 150K. There are another re-releases too, like handheld master system, megadrives, etc...

So, if nitendo manage to product a console that cost less than 100$ for us, and has nintendo games wide avaiable for less than 30$, will sell pretty well, you bet on it. But they need to get rigth, the games must be there, they need to localise everything, and work on their customer service, that rigth now is horrible around here.

Another point, iwata also stated that this will not launch before next year on their investor meeting, so we will have to wait a litlle more to see.



"Hardware design isn’t about making the most powerful thing you can.
Today most hardware design is left to other companies, but when you make hardware without taking into account the needs of the eventual software developers, you end up with bloated hardware full of pointless excess. From the outset one must consider design from both a hardware and software perspective."

Gunpei Yoko

Mummelmann said:

OT: Hmm, entering into battle with smartphones/tablets and browser/social games will not end well, I think. This might have been a decent idea a decade ago but not now.

Assuming for the sake of this conversation that this premise is correct, are you simply proposing that Nintendo stop making its own hardware and become a dedicated mobile developer? If so, I can't agree, for reasons that have been discussed countless times on this site. The alternative to this plan is throwing in the towel.

Mummelmann said:

 Instead of trying to improve in the markets they are the most out of touch with (the West), they opt to try to penetrate the markets that are the least likely to adopt new consoles to begin with, regardless of pricing (the convenience segment will conquer these markets and consoles are losing relevance even in their strongest territories).

I assume "convenience segment" means mobile, based on the earlier portion of your post. If so, what is your support for that statement? As for the statement that consoles are losing relevance, we've just come off a generation where the combined home console sales are 260 million and rising, which I am confident in saying is a record. Shall we at least wait a little before predicting an epic and unprecedented collapse?

Mummelmann said:

In my honest opinion; this is a horrible plan in this day and age and shows that Nintendo are truly struggling to keep up with the modern market movements and development.

The basis here being that you firmly believe home consoles are doomed and that mobile is the future, I gather, in which case your only proposed solution would be for Nintendo to go third party. I, by contrast, don't for a second believe mobile is going to take over all of gaming any time soon, just like PCs didn't destroy the home console market in spite of repeated predictions of such in the 80's and 90's. I think this plan is somewhat wise, as offering the current generation consoles (which are already pricey for the developed world, as are smartphones) probably won't fly much in the developing world, but that capturing an emerging market early can make it easier to succeed in future generations (see: Nintendo in Europe for how it's harder to be a Johnny-Come-Lately).

Admittedly, there's a glaring achilles' heel here, namely that Nintendo already has great difficulty covering its consoles with enough development resources. It's for this reason I suspect this plan will go down in flames, not because of the old narrative that mobile will be everything soon.



^ Sega has released versions of Mega Drive/Genesis here in Portugal too.

If you are going to venture in those countries you better have a good strategy. High priced tech and software is not a good idea.
Better start with something small.

With so many Virtual Console games, Indie games, Wii and NDS games, SW doesn`t seem to be an issue to keep the console alive.

Btw, this new console reminds me of that registration in the South Korean Radio Administration regarding a vídeo player.



Wonder if china will save the wiiu



                  

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@Justiceiro

I know that Brasil is a f'ed up place to live with a lot of issues and yet I am surprised that 3DS costs the same as in Europe... While some consoles that are produced in your country have nearly identical prices and even cheaper... Minimum wage in eastern european countries is like 400-500$ with normal wages being a 1000$...

At first glances Nintendos idea is smart yet it is going to fail as 3rd party developers will either ignore it or make very cheap ports of old/outdated games... Zeebo failed in Brasil and other south american countries... Right?

Only viable option I see for Nintendo is to make a cheaper sku by moving production to other fabrication fabs and use smaller processing node to reduce size of chips thus cheaper production. I think Nintendo could drop Wii Us price considerably if they put enough effort. In the end Wii U could cost just 300-400$ if Nintendo manages to execute it.

Nintendo could at least make game printing facilities in brasil...



Jizz_Beard_thePirate said:
Wonder if china will save the wiiu

Someone told me that Mario might get banned because it promotes drug use, so who knows!



                
       ---Member of the official Squeezol Fanclub---

 


Assuming for the sake of this conversation that this premise is correct, are you simply proposing that Nintendo stop making its own hardware and become a dedicated mobile developer? If so, I can't agree, for reasons that have been discussed countless times on this site. The alternative to this plan is throwing in the towel.

That is not what I’m proposing, Nintendo rely on software – hardware synergy in their development, going away from making their own hardware would remove that possibility and force them under the hardware premises of outside companies; that would dampen their creative incentives and knack for original software.
I am in no way suggesting they become a dedicated mobile developer, and I can’t quite figure out where you get that impression from my post.
What I’m saying is that any kind of traditional console release at this point when the market, be it matured or developing, is undergoing such changes and partitioning is a bad idea as the outcome might well end up being bad, especially for markets where the cheaper convenience segment (note that that includes browser and social games, this is not simply about phones and tablets here) is likely to be the better alternative for most (if the other traditional consoles aren’t doing much in these markets; it is unlikely that yet another will, even dirt cheap PS2’s and Wii’s have failed to make much of an impact in these regions so price is not the main problem, especially now).

I assume "convenience segment" means mobile, based on the earlier portion of your post. If so, what is your support for that statement? As for the statement that consoles are losing relevance, we've just come off a generation where the combined home console sales are 260 million and rising, which I am confident in saying is a record. Shall we at least wait a little before predicting an epic and unprecedented collapse?

My support for that statement is the abundance of data showing how this segment has intruded upon traditional gaming; especially dedicated handhelds have taken a massive hit. Developing markets follow the trends and movements of mature markets so we can safely assume that whatever is happening in the latter will affect the former. “Unprecedented collapse” is a very dramatic straw man effort on your behalf and I never suggested as much; what I am stating is that we will see a market contraction and all the data thus far supports this view and you can see it on the very front page of the very site we’re posting on. 7th generation sales are in no way an indication of where console gaming is headed and it is ludicrous to think that the PS4, One and Wii U will manage a combined installed base to match that of the PS3, 360 and Wii.

The basis here being that you firmly believe home consoles are doomed and that mobile is the future, I gather, in which case your only proposed solution would be for Nintendo to go third party. I, by contrast, don't for a second believe mobile is going to take over all of gaming any time soon, just like PCs didn't destroy the home console market in spite of repeated predictions of such in the 80's and 90's. I think this plan is somewhat wise, as offering the current generation consoles (which are already pricey for the developed world, as are smartphones) probably won't fly much in the developing world, but that capturing an emerging market early can make it easier to succeed in future generations (see: Nintendo in Europe for how it's harder to be a Johnny-Come-Lately).

Again you’re putting words in my mouth; I have never said that consoles are doomed and that mobile will take over all gaming; that is a ridiculous conclusion to draw from my post(s). Nor have I ever implied that Nintendo should go 3rd party, in fact; I’ve been rather vocal about them not doing just that, because of what I mentioned at the beginning of this post, among other things.

Emerging markets are copies of developed markets; so like I’ve been saying, they will blueprint what mature markets are doing, and since consoles on the whole are on a downward trend and mobile/social/browser gaming is on the upwards trend, this is the most likely to strike home as a business proposal in developing markets. It’s all quite logical; consoles won’t suddenly get a whole new beginning simply for becoming more readily available on regions where they have historically been irrelevant and developing markets mimic mature markets.

I am not saying that Nintendo should go 3rd party; I am not saying that mobile gaming will conquer the entire market. I’m saying that mobile gaming will conquer a certain segment of the market that previously had one foot in the console and handheld market (look at Wii Fit, Brain Age, Buzz and similar games, there is no room for these games for fringe customers on traditional, static home devices any longer due to changes in demographic sway) and that attempting to revitalize console concepts in developing markets is a poor idea and that they should rather focus on gaining some hold where they have lost it. They are desperately searching for unplowed fields to sow their seeds and that won’t get them anywhere unless they take their time to really read the market and its development.

Admittedly, there's a glaring achilles' heel here, namely that Nintendo already has great difficulty covering its consoles with enough development resources. It's for this reason I suspect this plan will go down in flames, not because of the old narrative that mobile will be everything soon.

This is only one more part of the problem; one I didn’t even touch in my opening post. Nintendo’s resources are already spread very thin as is. “Mobile will be everything soon” is the third absolute term you have somehow attributed to me and it is quite simply unrelated to my point. You’re making many assumptions on my stance on the industry and its future, none of which seem to have been gleaned from my posts.

It quite simply seems like Nintendo are hoping for another Wii by tapping into a potential and nearly untouched market when the reality is that this is the wrong means to do so. Not to mention fierce competition by PC gaming in China, it is enormous over there.

I think that a lot of people get upset with me sometimes because I’m suggesting, and have been for some time, that Nintendo are lost in the woods and are failing to get with the times and that they simply got too comfortable with the winning handheld formula and the enormous success of the Wii; causing them to lose all sense of direction when both ends are being beaten and/or marginalized. Scrambled eggs are not everyone’s choice.


Edit; here is one of my posts where I mention some things about the changes in the gaming industry and consumer electronics market and a more accurate representation of my views:

http://gamrconnect.vgchartz.com/post.php?id=6075356

 



Well, here in Brazil a PS4 costs US$1800, XONE US$1100 (it is being made here already) and a Wii U US$900. Even the 3DS is US$ 600.

So there is definitely space for a good dedicated US$300 console, though bringing Wii U/3DS production here would give them a good edge too.



Mummelmann said:

"Nintendo will not be announcing any new hardware"...

OT: Hmm, entering into battle with smartphones/tablets and browser/social games will not end well, I think. This might have been a decent idea a decade ago but not now. Instead of trying to improve in the markets they are the most out of touch with (the West), they opt to try to penetrate the markets that are the least likely to adopt new consoles to begin with, regardless of pricing (the convenience segment will conquer these markets and consoles are losing relevance even in their strongest territories). In my honest opinion; this is a horrible plan in this day and age and shows that Nintendo are truly struggling to keep up with the modern market movements and development.

But, Microsoft is doing it. I thought they were good in the book of being "in touch", now?