Soundwave said:
I don't really think I buy the "it's an advertisment for Nintendo games!" ... millions and millions of people play Angry Birds on their smart devices too, they don't suddenly buy game consoles or portables just for that. Ditto for Sonic ... the Sonic mobile games have been hugely successful in terms of tens of millions of downloads, but Sonic console/dedicated portable games are not selling one ioata better. If anything I think if you give people "free" versions of something, even if they're not as "good" as the "real" games, so long as they're good fun, for a lot of people they're more likely to just say "yeah but I already have this other Pokemon game on my iPhone, I don't need a Nintendo portable" as an example. And honestly Nintendo I think knows that full well, it was just more of a "if you can't beat them, join them" call on their part, they know damn well they stand to make a fortune off mobile games, so it didn't make sense just sit on the sidelines forever and do nothing while their hardware marketshare decreased either way. Might as well make money off smart devices if they're cannibalizing large chunks of your audience. If a person likes those apps so much that they then feel compelling to buy a seperate $200-$300 piece of hardware just to play those franchises in more depth, that's more like a side benefit I think. Mobile will be Nintendo's no.1 revenue generator in a few years IMO, above their traditional game business. I think they know this too, they didn't make that decision without doing profit projections, demographic breakdowns of smart device users, etc. etc.
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I think "advertizing" is a misleading way to word it. The goal is to spread brand awareness. It's not there to say "play Mario on consoles," but to say "Mario is cool and all your friends know Mario and think he's cool, too." That widened brand awareness will lead to better sales simply on the basis that there will be more people in the world that to whom Nintendo's IP are immediately relevant to, but that's the extent of it.
And again, I think its more about spreading Nintendo's brand as a whole than raising the sales of software. From this POV, Angry Birds is a perfect example. So is something like Minecraft. Those are two of the most culturally relevant franchises today, from any media. Their brand has been spread far and wide, and now they are titanic. They have toys, AB is getting a movie, kids wear their shirts and hats, and Nintendo wants that back. That immediate cultural relevance and brand awareness that they had in the NES/SNES era. The "games are Nintendo," everyone cares about Mario Nintendo. They want people talking about them again, and in a good way.
I think that anyone looking at mobile as merely an advertizement wing is completely missing the point. Nintendo wants to make good mobile games so that lots more people have good experiences with Nintendo as a brand and the mass market's awareness of Nintendo as a brand is raised. They want people to be talking about Nintendo games with the same relevancy as Minecraft and Angry Birds and Frozen and Star Wars and every other brand that isn't hidden behind a $300 experience barrier.
That's why I compare Nintendo's mobile decision to their decision to open their IP to TV shows and movies, starting the N-Box loot crate-like service, Amiibo, and the theme park deal with Universal. Donkey Kong wasn't in Pixels to sell Wii U's. He was in Pixels to make Donkey Kong more relevant today.
I think there is a difference with Sonic though. Those Sonic games have done nothing for his brand, because they aren't very good mobile games. They were successful, but not Angry Birds successful. Nintendo wants that. Again, Nintendo isn't expecting the hundreds of millions of people who play all their mobile games to to get up and buy an NX, but the positive mainstream relevance and the new found familiarity with their brand will be a huge factor in the success of their platform.
It's not about the money, though. Obviously they stand to make money, but this decision was made because it is in line with their future plans. Their monetization isn't even built around maximum profits. It's built around maximum discoverability. It's absolutely not an "if you can't beat them" situation. They've figured out a way to fit mobile into their plans for the future, and the goal behind their platform. I definitely don't think mobile will overtake their core gaming business, though. I think the NX will be massively successful.
I think all of this stuff they've been planning the last two years are going to absolutely blow up starting 2017. It starts with the membership program this month and mobile, but the full swing will happen in 2017. I'd be money you're going to see the first Mario movie that year, and that's when their brand absolutely explodes back into prevalance again. You'll have the mobile in full swing, the membership program will already be widely adopted because of the association with the smash hit mobile games, the NX will be out and gaining steam, a CGI Mario movie will likely come out at the end of that year which will be huge if handled correctly, we might see some Nintendo TV shows return, solid details on the Nintendo themepark will likely be out by that point, etc. It's going to be monumental.