Dear Malstrom,
After reading through your articles and looking at the market’s reaction to the Wii over the past few years I’ve realized, that the best years of the Wii are still to come. (Perhaps this is all obvious to you, but it seems like a revelation to me.) Looking at things from the perspective of the expanded market, I believe the Wii will parallel the success of the Atari and the NES put together, and the life span of it will be about 3-4 years longer than the NES. Specifically I think the lifespan of the Wii will look like this.
Stage 1: Microcosm of Atari years (late 2006 through most of 2009)
Stage 2: Parallel of early NES years (late 2009 – 2011 or 2012)
Stage 3: Parallel of late NES years (2011/2012 - ??)
I know in your articles that you compare the Wii to both the NES and the Atari, but if you look at the games that really propelled the Wii early on, they resemble early Atari games more than early NES games. Wii tennis is definitely like Pong, and bowling and tanks both resemble early Atari games. Also the Atari had a lot of crappy software put out by third party companies, much like the Wii did. Lastly the market for Atari games collapsed in 1983, and the Wii had a (lessened) parallel of this during it’s dry spell of late 2008 through most of 2009.
In 1985 console gaming was revived by the NES and specificially Super Mario Bros. In late 2009 the Wii console was revived by New Super Mario Bros. Wii. In 1986 the NES got another jolt to its momentum from The Legend of Zelda. Right now it looks like the Wii is going to have a Zelda game released in late 2010. More imporantly this Zelda game will have motion plus which means it will have expanded market values. It is primed to parallel the success of the original Zelda. Nintendo can keep its momentum going with expanded market sequels to Mario and Zelda much like the NES years.
The late NES years had a lot of great third party software, but I don’t think we’ll see this phase on the Wii until late 2011 or 2012. The need to see Move and Natal fail, before they realize that the Wii is the viable place to make quality console games. By 2012 I think there will be several third party developers that will give Wii a serious try. From 2012 on the Wii will see its best years as several third party developers put out some quality innovative games for the Wii.
What do you think?
I don’t think the future of Wii will resemble the past.
The 7th Generation began with Nintendo giving a prophecy: gaming will collapse unless it is expanded. Everyone laughed at this prophecy. The Old School Gamers have been saying this for quite some time due to the deterioration of quality games.
The gaming market has certainly not collapsed in markets like North America yet. The Wii performed extremely strongly. There was enough strength in the market to somewhat support $600-$400 game consoles. People looked at the strength of the DS and Wii and wrote it off as ‘casual gamers’.
But everyone has forgotten about the prophecy. Even Nintendo has forgotten about it. It takes games around two years to fully gestate and hatch from their eggs. After the success of the Wii became clear, Nintendo developers were greenlighted to work on their own pet projects such as a sequel to Super Mario Galaxy or Metroid: Other M or the radical experiment of Wii Music. If market conditions were different, these games would most certainly not have been made. They were being made because Nintendo felt comfortable.
The Nintendo prophecy is going to come true and the ugly reality will devour the markets like a sea monster devouring a boat. The bottom is going to fall out. You have already gotten a taste of it in the last NPD. But it is going to get much, much worse.
Longtime readers will note how I said back in 2007 about the upcoming depression. I even went so far to say that I was looking to get out of the country by 2012. (But where would I go? I cannot think of a more economically stable area than where I am currently located.) People thought the Lehman Brothers collapse was what I was referring to as the upcoming depression. To the contrary, that will be remembered as the ‘good times’.
Taxes are going up in 2011 and corporate profits are trying to jam in as much as they can in 2010. 2011 will be a very different story. The economic conditions will suffer much, much more. There will be less games made in the following years.
What I refer to as a ‘depression’ will be your realization that you will live economically worse off than your parents. The ‘depression’ will be older people realizing that their life savings have gone up in smoke and that they will never be able to retire. They will have to work until the day they die.
I’ve been attacking how Nintendo is making ‘sequel to 3d Mario’ to ‘maternal instincts’ Metroid and other ‘pet projects’ not so much because I have something against those pet projects but because time is running out. Nintendo should be exploring new content possibilities and new forms of games NOW when the macro conditions are good. But they wasted the prime years of the Wii on self-indulgence. The market conditions are going to get much, much worse than they are today. The focus of Nintendo will shift from ‘expanding’ to merely ‘looking to survive’. We are going to lose many, many game companies.
Let me put it this way. If the Wii came out in 2010 instead of 2006, it would not have sold out but would have sold ‘well’. Before, Nintendo bringing their A game resulted in social phenomena and extreme excitement. Now, Nintendo bringing their A game results in merely ‘good sales’. A year or two from now, when Nintendo brings their A game, they may even have mediocre sales. This is because the macro conditions will be so slanted uphill.
What if the Euro is destroyed? It is not improbable. You can kiss an entire main continent goodbye. Nintendo’s best performing market, North America, is going to be hard hit in the upcoming years due to skyrocketing taxes and lack of investing. Japan is already in decline. I expect the decline to strengthen.
As history has shown, periods of economic decline breed wars. Think of the economically devastated Germany before Hitler came to seen. Look at the unrest of Greece today with the fire bombings and mass riots. Violence is going to increase within the next few years, not decrease. It is not inconceivable that North Korea and South Korea could go to war (right on the eve of Starcraft 2 being released).
I think Nintendo, Microsoft, and Sony will be fighting to survive in the upcoming years, not fighting a ‘console war’.
The Eighth Generation of Video Games will be a generation of austerity and decline. Despite how good Nintendo’s expansion methods are, they will be fighting a mad current of water against them. These expansionary moves will cancel out the current so Nintendo, at best, will be sitting at ‘status quo’. Microsoft and Sony, who are trapped in their shrinking box, may be swept away by the current like a large animal swept off its feet by the flash flood.
Around 2014 or after, the economy will truly rebound. Nintendo and the surviving game companies will be very different then. They will incorporate their expansionary tactics as part of the company DNA. Much of the bad habits of the past, of the habit of making games as part of self-indulgence, will be a thing of the past (because no game company will be able to afford them during the Eighth Generation). It is because of this that when the Ninth Generation rolls around, gaming, as a medium, could explode into popularity as the economy rebounds. Hollywood and other mediums may not survive or be very crippled. Gaming could become poised to be the dominant entertainment medium at that point.
Decline. Decline. Decline. That is the future of gaming in the near future. Blue Ocean expansion will no longer mean ‘market domination’ and ‘sold out systems’; it will mean ‘head above water’ because the economic currents below are going to suck in most of the market.