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Forums - Gaming Discussion - What is the Nintendo NX going to do in order to be successful?

Cut platform royalties and watch all the 3rd parties come crawling back



I predict NX launches in 2017 - not 2016

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spemanig said:


...The practicality of an all digital platform? How is that getting carried away? That already exists. It exists with smart phones. It exists with steam. A unified platform exists with smart phones. The difference is that it doesn't exist on consoles. That doesn't mean it can't exist; it means no one has done it yet. Right now, we're still playing on the video game equivilant of flip phones. Powerful flip phones, sure, but definitely not modern design philosophies.

By all digital, I mean that the primary way to get games is via download. I think the NXDS will be digital only, but I think that the NX may unfortunately do both, though recent comments make me feel that they may just ditch discs altogether, which would be the right way to go. If you think that that isn't a game changer, then I have nothing to say to you on that.

The unified platform ties in directly with the digital platform. They are one and the same. It doesn't work without being all digital. A unified platform means that you can take your gaming library where ever you want on whatever certified hardware you want. That won't be seamless without being all digital, unless you think that the NXDS will have a disc drive or that the NX will go back to 1990 and run on cartridges. Nintendo directly confirmed that their membership program will reward players who buy a lot of games with discounts on more games. How is that going to happen physically? Printed out coupons for Gamestop? No. Sales on their digital software.

With a unified, digital, platform, you just buy a game and own it everywhere. Buy the game on the NXDS. Maybe a year later you decide you want an NX console. You just log in and are able to download your entire library to the new system, no problem. Because of cloud saves, all of your save files are transfered over as well, so you can literally pick up from where you left off. Have a friend in, I dunno, London with an NX while you have an NXDS? Wanna play a round of Smash? No problem. Unified platform has cross play. Playing Monster Hunter NX on the console, but have to go to work? No problem. Bring your NXDS and play on your lunch break. Cross save automatically syncs your saves so that you can pick up from where you left off without a hitch and cross buy means you're only purchasing the game once. There may even be a "download for both" option that has the game automatically download itself on both consoles without needing to boot both up separately.

A unified platform only works when its digital, and it's only revolutionary when its digital. Somebody has to force the future on us. That someone will be Nintendo with the NX. Not hardware innovation. Not Software innovation. Firmware innovation.

If they were to use your strategy, they would be assured to sell even less consoles than WiiU.

All digital will never work with consoles because of one major stumbling block - retail sales. It works with phones because phones are mostly secondary to the main goal - subscription plans. Phone manufacturers manufacture phones only, they let others fill it with software. Phone digitalization exists because a great percentage of downloads are free of charge. 

PC digitalization works because PC manufacturers just make computers or components, they let others fill it with software. 

In both cases, retail stores that sell phones and PCs are not invested in filling them with software. They are chasing profits from subscriptions on phone services (or just a dandy margin on a full priced phone) and solid margins on computer components.

 

Console space, however, is very different. Consoles don't generate much profit, they are often even loss leaders for the store in order to move a high margin product - a video game. In the instance in which the retailer would lose any and all potential gane sales, and be just constrained to selling big boxes for a $2 profit, they just would not. They would just choose not to stock NX completely. Why waste 2 square feet of precious shelf space on a $2 generating (or losing) item, when the same space can be filled with 20 video games generating a total of about $150 profit. Gamespot, WalMart, Target etc. are certainly aware of that.

That is one of the main reasons Microsoft did not go (and they could have, they had all systems in place) full digital with XOne, and why digital games on XBL and PSN still cost the same as in the store, although all logic and expenses say they should be cheaper digitally.

And, of course, by going all digital, Nintendo would ensure themselves to lose about 75-80% of potential global market from the places that have crappy or expensive internet. And one of those countries is USA, their largest market, a narket in which ISPs have a lot of power and where limiting bandwidth and non-flat internet is very prominent.



Burek said:
They need to make it even more child friendly, pack it with a lot of kiddie games, toys and trinkets, and make a very cheap buy ($99-149) that has power as much as a good phone, as kids don't really care about graphics.
Market it a lot towards parents during Christmas, maybe with a gimmick toy like Furby or Tickle Me Mario and watch it fly off the shelves. They already have a lot of child-friendly mascots, they should focus on their strengths.


thats just not gonna work. kids these games are playing angry birds, minecraft and Call of Duty. sure nintendo games do sell to kids, but if any console maker wants to sell a lot of consoles, then they need to cater to adults, because the majority of gamers, and the BIG majority of gamers that actually have money to spend on quality games are adults. 



I think merging their handheld and consoles market into one unit make lots of sense. I would be glad only needing one device to get all Nintendo games.



bananaking21 said:
Burek said:
They need to make it even more child friendly, pack it with a lot of kiddie games, toys and trinkets, and make a very cheap buy ($99-149) that has power as much as a good phone, as kids don't really care about graphics.
Market it a lot towards parents during Christmas, maybe with a gimmick toy like Furby or Tickle Me Mario and watch it fly off the shelves. They already have a lot of child-friendly mascots, they should focus on their strengths.


thats just not gonna work. kids these games are playing angry birds, minecraft and Call of Duty. sure nintendo games do sell to kids, but if any console maker wants to sell a lot of consoles, then they need to cater to adults, because the majority of gamers, and the BIG majority of gamers that actually have money to spend on quality games are adults. 

But the adult market is already occupied by two high quality consoles that get all the third party support. Going after adult market would mean going head to head with MS and Sony, and the last time they did that they came in dead last.

They need to bring kids over with those Angry Birds, split the pot with Rovio on AB amiibo, and market the crap out of those little collectible toys, just have the entire console centered around them (of course, this would mean ramping up amiibo production considerably, but they already make good margin on them anyway).

Make a $99 console, sell Amiibo for $15-20 with a copy of Angry Birds 2, Super Mario Temple Run, Zelda Crush, Amiibo Sports, Amiibo Fit.... Go after 8-12 demo, go after party games Smash Amiibo Bros, go after Nintendo-loving parents with kids... Forget going after GTA, CoD, Destiny, Battlefield crowds, those crowds already have a console.



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Burek said:
bananaking21 said:


thats just not gonna work. kids these games are playing angry birds, minecraft and Call of Duty. sure nintendo games do sell to kids, but if any console maker wants to sell a lot of consoles, then they need to cater to adults, because the majority of gamers, and the BIG majority of gamers that actually have money to spend on quality games are adults. 

But the adult market is already occupied by two high quality consoles that get all the third party support. Going after adult market would mean going head to head with MS and Sony, and the last time they did that they came in dead last.

They need to bring kids over with those Angry Birds, split the pot with Rovio on AB amiibo, and market the crap out of those little collectible toys, just have the entire console centered around them (of course, this would mean ramping up amiibo production considerably, but they already make good margin on them anyway).

Make a $99 console, sell Amiibo for $15-20 with a copy of Angry Birds 2, Super Mario Temple Run, Zelda Crush, Amiibo Sports, Amiibo Fit.... Go after 8-12 demo, go after party games Smash Amiibo Bros, go after Nintendo-loving parents with kids... Forget going after GTA, CoD, Destiny, Battlefield crowds, those crowds already have a console.

$99 hardware would be much weaker hardware than Wii U, maybe it wouldn't have power for HD graphic. Its very unrealistic to expect that Nintendo will release $99 console, even for handheld.



Burek said:

If they were to use your strategy, they would be assured to sell even less consoles than WiiU.

All digital will never work with consoles because of one major stumbling block - retail sales. It works with phones because phones are mostly secondary to the main goal - subscription plans. Phone manufacturers manufacture phones only, they let others fill it with software. Phone digitalization exists because a great percentage of downloads are free of charge. 

PC digitalization works because PC manufacturers just make computers or components, they let others fill it with software. 

In both cases, retail stores that sell phones and PCs are not invested in filling them with software. They are chasing profits from subscriptions on phone services (or just a dandy margin on a full priced phone) and solid margins on computer components.

 

Console space, however, is very different. Consoles don't generate much profit, they are often even loss leaders for the store in order to move a high margin product - a video game. In the instance in which the retailer would lose any and all potential gane sales, and be just constrained to selling big boxes for a $2 profit, they just would not. They would just choose not to stock NX completely. Why waste 2 square feet of precious shelf space on a $2 generating (or losing) item, when the same space can be filled with 20 video games generating a total of about $150 profit. Gamespot, WalMart, Target etc. are certainly aware of that.

That is one of the main reasons Microsoft did not go (and they could have, they had all systems in place) full digital with XOne, and why digital games on XBL and PSN still cost the same as in the store, although all logic and expenses say they should be cheaper digitally.

And, of course, by going all digital, Nintendo would ensure themselves to lose about 75-80% of potential global market from the places that have crappy or expensive internet. And one of those countries is USA, their largest market, a narket in which ISPs have a lot of power and where limiting bandwidth and non-flat internet is very prominent.

Thank you for explaining it to him. I just didn't have the energy to give him as detailed an explanation as I knew it would require. 

Just to add. @spemanig; I hope and pray Nintendo does nothing like what you are suggesting. It would be the single worst thing they could do and be the end of their platform. You can't "force" people into whatever future you feel they need to be in when there are variable more effective options in the present. Personally, I think its ludicrous to believe that all Nintendo has to do is push for a digital console and that will be it. Kinda shows how limited your grasp of this industry is. 



I doubt NX is going to be digital-only, the rewards program will be used to convince people to go digital but they will still have a retail presence for software.



When the herd loses its way, the shepard must kill the bull that leads them astray.

spemanig said:
Maraccuda said:


Unfortunately I think you are right. It feels like Nintendo will further push themselves into a different market, when I only want them to make a console that will have equal 3rd party support compared to others.

If they do the digital age well they could be a roll in the money, but as a gamer I dont really like the idea as I just want to play games.

Also it means I will have to buy the games digitally at higher prices than I would want to.


I don't think it's unfortunate at all. It's a good thing. First, I don't think that the markets can't cross. What I described doesn't mean there won't be third party support, for example. It's literally just a more modern platform. That's all.

What do you mean "as a gamer?" PC gamers are as hardcore as it gets, and they've been all digital for years. This isn't a casual gamer idea. It's a modern consumer idea.

No it doesn't. Digital games go on sale and get discounted all the time. On top of that, Nintendo is preparing a new membership program that I speculate is specifically geared towards addressing those kinds of concerns. From what we already know about it, it will reward consumers who buy/recommend games with discounts on more games. It's a "the more you buy, the more you save" mentality that rewards dedicated consumers.

Its just that the rumours are saying the NX will only be slightly more powerful than the Wii U and I take that as meaning it wont be able to handle most third party games on PS4/Xbone. All I really want is to be able to play games like Witcher 3 on a Nintendo console.

When I said 'as a gamer' I meant I just care about playing games, not the other things the NX could potentially bring (the QOL stuff and all). (Looking back at my comment it doesnt seem to make much sense... my bad).

Well hopefully you are right in that aspect. It is just that I am so used to buying games for less than half their usual retail price, in boxed form. Also, apart from Steam and a few sales here and there on eshop/PSN I dont really get impressed by the level of savings digital store produce on consoles.



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Burek said:
bananaking21 said:


thats just not gonna work. kids these games are playing angry birds, minecraft and Call of Duty. sure nintendo games do sell to kids, but if any console maker wants to sell a lot of consoles, then they need to cater to adults, because the majority of gamers, and the BIG majority of gamers that actually have money to spend on quality games are adults. 

But the adult market is already occupied by two high quality consoles that get all the third party support. Going after adult market would mean going head to head with MS and Sony, and the last time they did that they came in dead last.

They need to bring kids over with those Angry Birds, split the pot with Rovio on AB amiibo, and market the crap out of those little collectible toys, just have the entire console centered around them (of course, this would mean ramping up amiibo production considerably, but they already make good margin on them anyway).

Make a $99 console, sell Amiibo for $15-20 with a copy of Angry Birds 2, Super Mario Temple Run, Zelda Crush, Amiibo Sports, Amiibo Fit.... Go after 8-12 demo, go after party games Smash Amiibo Bros, go after Nintendo-loving parents with kids... Forget going after GTA, CoD, Destiny, Battlefield crowds, those crowds already have a console.


that would flop harder than the WiiU. again people who are interested in dedicated gaming systems are dedicated gamers, which are mostly adults. dont get me wrong, i agree with the bolded part, and it puts Nintendo in a very very bad situation. thanks to iwata's and myamoto's lack of vision for the industry. they never really tried to cater to adults like Sony and MS did. and for the past 10 years or so with their past two consoles they didnt even give turd about catering to them. 

they used to have the family and Kids market, but who would ever thought that market would change, who would have ever thought that those kids would grow up?