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Forums - Sales Discussion - Why Nintendo shouldn't suck up to third parties

TruckOSaurus said:
FallingTitan said:

You are wrong saying the Xbox one is tanking.  ITS DOING AMAZING.

 

If you check the history of the Xbox 360.... the X1 is SUPER OUTPACING IT ALREADY.  And the 360 sold about 100 Million.  So maybe the X1 will hit 150 Million by the end of its 10 year cycle.  Since the start is already better.

Give or take 18 million.

82 get round to 100. Basic maths.



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OttoniBastos said:


Fixed*

Wii sold mainly for the smartphone shovelware crowd.People who hardly played videogames before and didn't have smartphone/tablet at that time(2006) to play with.That's why the "gimmick" resonated so well with the demographic.For gamers(with the exception,of course,of the hardcore nintendo fan) Wii was a secondary console that they would buy only after pick a PS3/360/PC. 

 

I said those same things and still say them. I told people that Nintendo's console that follows Wii won't sell well because they sold Wiis based on a gimmick. Everyone told me that I'm crazy. Now most Nintendo fans point fingers at everyone else and want to think Nintendo is the victim of some sort of video games company conspiracy.



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A mouse & keyboard are made for sending email and typing internet badassery. Not for playing video games!!!

I missed a good thread, but I don't see how using the X1 (which is going to outsell Wii U) has a good argument for your case.



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RolStoppable said:

Everyone who isn't in strong denial knows that the Wii U is a piece of trash. Just like there are various explanations for Nintendo's struggles, there are also various suggestions for what Nintendo's way forward should be, if they ever want to be successful again. One of those suggestions is that Nintendo has to suck up to third parties and make a console that is everything that third parties demand. This advice is voiced by Nintendo fans and detractors alike; while the motivations of these groupgs are fundamentally different, they are equally wrong. And here's why:

1. Third parties are biased against Nintendo

There's the belief that third parties would include every platform on Earth into the mix as long as the platform in question offers their demanded specifications. A prerequisite for this belief is the assumption that no third party would pull the line "We do not believe that there is an audience for our games." and forego giving support to Nintendo. This is an unsolvable problem for Nintendo, because the only realistic solutions would be to either pay off third parties for ports (thus ruining profitability) or build an audience for such games themselves which would lead into another commonly used excuse ("Only Nintendo games sell on Nintendo systems."), because consumers' expectations for quality and polish would be raised to levels that third parties are unable/unwilling to match.

2. People buy Nintendo systems in order to play the best games

There's no sales data (neither current or historic) that suggests that multiplatform games are in high demand on Nintendo platforms. Any list of best-selling games will have first party software at the top, followed by exclusive third party games, followed by multiplats. Therefore it's preposterous to suggest that Nintendo should build their console around the games with the least demand; the result would be an expensive system that compromises the values that consumers are looking for.

3. Xbox One

Since the preceding reasons still allow some wiggle room for the people who say that sucking up to third parties is the way to go, let's raise the stakes. Microsoft is an excellent practical example for how futile the pursuit of multiplatform games is. Keep in mind that consumers do buy Xboxes for multiplatform games, unlike Nintendo consoles.

With the Xbox One we have a system that gets all of the multiplatform support and yet it's still tanking hard. Who believes that the Xbox One could have beat the PS4 on a global level, if it launched at the same price, had no Kinect, was equally powerful and had none of the DRM nightmare before its launch? Continental Europe and Japan would have still picked the PS4 in much higher numbers than Microsoft's box. After all, the Xbox 360 failed to make significant inroads in the seventh generation despite having all the multiplatform games (and usually slightly better) and a clear price advantage. Therefore it's not outrageous to say that even a 100 Euro price advantage wouldn't threaten PlayStation. It's clearly an uphill battle for Microsoft and about the only reason why the 360 was competitive at all was the tremendous blunder that Sony committed with the PS3.

With this in mind, let's look at Nintendo again. Whereas Microsoft has only to deal with Sony, Nintendo has to deal with Microsoft and Sony when it comes to the battle of being the multiplatform console of choice. Let's say Sony and Microsoft put out $400 systems, that would basically mean that Nintendo has to sell an equally powerful machine at $200 in order to have a slight chance to succeed in selling their console. That, of course, is financial suicide. Alternatively, Nintendo could hope that both, Sony and Microsoft, launch PS3-like disasters. But any strategy that requires your opponents to commit huge mistakes isn't a good one. Now let's see who harps in on the first two points and ignores the third.





RolStoppable said:
outlawauron said:
I missed a good thread, but I don't see how using the X1 (which is going to outsell Wii U) has a good argument for your case.

It's still going to be a failure, that's why it works in my argument's favor.

Why does 2nd place equate to failure?



"We'll toss the dice however they fall,
And snuggle the girls be they short or tall,
Then follow young Mat whenever he calls,
To dance with Jak o' the Shadows."

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Train wreck said:
This is an unsolvable problem for Nintendo, because the only realistic solutions would be to either pay off third parties for ports (thus ruining profitability).

How is it ruining profitability? If a said multiplatform game is not coming to the console, Nintnedo receive zero dollars. Paying for port guarantees some level of profitability in that Nintendo would receive royalty payments.


You know, there is some merit to this argument. As the only hardware manufacturer with a history (tarnished this generation) of earning profit on hardware sales, and as perhaps the most successful publisher in videogames period, Nintendo is in a unique position to offer access to their platform with no licensing fee.

Paying 3rd parties in the hope that sales are high enough to recoup the cost is a risk that Nintendo would have to be very strategic about taking, but forgoing license fees could allow Nintendo to profit off increased hardware sales and the sales of Nintendo software which would follow, and entice 3rd parties with more profit per unit than they could possibly see on rival platforms. It's a deal Sony and Microsoft can't afford to match.

Niether 3DS nor Wii U are a good opportunity for this strategy, though, as they aren't compelling enough to sell hardware at a profit. And there's the problem. If your hardware struggles to sell, you need what little licensing fees you get to stave off the red ink, if your hardware is a smash hit, you're bound to get at least nominal 3rd party support and you're leaving money on the table.



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N64 and to a lesser extent GC/Wii had 3rd parties laughing their asses off of Nintendo. Still Nintendo pulled it out with great compelling SW. I dont see how this time will be any different. WiiU will sell around 20m, will have great 1st party games. And some paid cool 3rd party games on top of some fishy multiplats....
Typical Nintendo console. Im very happy with that.



OttoniBastos said:

¹So you found one game that is not cartoony and now you ignore all the other games(a lot of btw) that prove you wrong? Like other CODs for example!

²You're using US numbers only. Plus,Playstation 3 was never the strongest one with shooters(specially in USA).Plus²,even Iwata said that nintendo gamers don't want/buy third party games like COD: http://www.nintendo.co.jp/ir/en/library/events/110426qa/04.html

"However, Wii is good in some areas but not in others, so especially for games like "Call of Duty," the Wii version sold pretty well, but the unit sales were very different from the versions of other platforms, and I assume that one of the reasons is the issue with the graphical representations which you mentioned before, and also, the consumers who like that kind of game will have other platforms at home as well, which led to this result."

Even Iwata agrees that nintendo consoles sell nintendo games(and nintendo's similars).

Where is your god now?

Are you seriously saying that only cartoony games sell on nintendo consoles? that's like saying only grayscale games sell on the other consoles.