Nintendo's new philosophy.. blessing or curse?

wazoo said:
Sonic said:
Brimstone, Nintendo has only done poorly towards the end of the N64's lifespan and into the GCN. My memory might be a bit poor but I seem to recall Nintendo being more profitable than ever in one of the N64 years.

Just from memory, over the 5 years of N64 life, the total of Nintendo and Sony (console division) profits (not revenue, Sony revenue is much higher) were equal, the difference being that Sony has very big loss followed by big gains, whereas Nintendo is always positive (and Nintendo has big margins on cheap things like GBA). Anyway, the total was more or less the same.

The success of the PS One is more than just Sony. The 3rd parties that supported the platform also did very well. Not just in the revenue/profit aspect either, but in mindshare (marketshare). These companies are in direct competion with Nintendo for consumers gaming dollars.

My point is when Sony first came out with the PS ONE, they had no comparable 1st party game software to Nintendo. Sony relied heavily on 3rd parties and they delivered. Nintendo with the N64 relied on themselves for game sales and they took the lions share of games sold on the platform.

In the grand scheme of things, since Sonys launch of the PS ONE, Nintendo's slice of the home consoles games market pie has gotten smaller and smaller. How long before this trend stops?

The same sort of thing looks like its going to happen again with the PSP. Sure compared to Nintendo, Sony won't sell anywhere near the same amount of first party games, so in a direct comparison things won't look bad at the start on paper. Third parties will end up selling lots of games slowing stealing marketshare from Nintendo.

The battle between the Sony business model vs. the Nintendo business model in my opinion is what is important. Can Nintendos strategy maintain itself? Not only is Sony gaining, but the 3rd parties on their platform are also. Soul Caliber 2 is one of the few games I can think of that did better on the Gamecube than on the PS2 and Xbox. When you look at the sales data of 3rd party software, copies sold favors the PS2 and Xbox. To counter this, sales from Nintendo's first party titles have to be very strong.
 
I haven't been reading everything, so if this has already been posted, I apologize

http://neasia.nikkeibp.com/wcs/leaf?CID=onair/asabt/news/290162

ANALYSIS: Nintendo Shying Away from Hardware Showdown with Sony
February 10, 2004 (TOKYO) -- In an effort to avoid competing head-on with the likes of Sony Corp, Nintendo Co Ltd has decided to concentrate on software development rather than hardware.



Fewer than 20 million units of Nintendo's GameCube, which went on sale in September 2001, have shipped to date -- less than the company's previous game machines. Consequently, reviving the home game business has become an urgent topic for the firm.

Nintendo designs its machines in-house, then acquires components from outside. Because it does not have development and manufacturing capabilities for key devices like semiconductors, it lacks the technical prowess to drive the hardware market like Sony.

"There is no way we are going to win competing in the same arena as electronics and computer makers," a senior Nintendo official said. "Our best option is to build on our software development abilities."

The company's recently announced double-screen DS hand-held game machine will not feature high-performance chips. Instead, Nintendo is aiming for a toylike device that attracts users with the quality of its software.

In fact, Nintendo's strength has been in software appealing to children, including games like its "Pokemon" and "Mario" titles -- a market into which Sony and Microsoft Corp have made few inroads.

So as the gaming market shrinks, Nintendo has declined to go face to face with Sony, which is taking its game machines into the realm of digital appliances, and will instead seek to survive by concentrating on the market for children.

(The Nihon Keizai Shimbun)
 
As long as console business is profitable for N, and considering that GC is a successful product (profit wise), N will be foolish to bow out from console race. And also as long as they are no 2; console business will be profitable for them. There were also some rumours of them aligning with likes of Matsushita for GC next.....so battle is far from over.
 
Brimstone said:
The success of the PS One is more than just Sony. The 3rd parties that supported the platform also did very well. Not just in the revenue/profit aspect either, but in mindshare (marketshare). These companies are in direct competion with Nintendo for consumers gaming dollars.

I was talking about Nintendo profits, the sony comparison was juste because Sony was the only VG company in the same range during that period (now EA joined the trio).

My point is when Sony first came out with the PS ONE, they had no comparable 1st party game software to Nintendo. Sony relied heavily on 3rd parties and they delivered. Nintendo with the N64 relied on themselves for game sales and they took the lions share of games sold on the platform.

2 valid different approaches.


The battle between the Sony business model vs. the Nintendo business model in my opinion is what is important. Can Nintendos strategy maintain itself?
Considering all Sony recent reports, it sems Sony has big risky plans for the Cell architecture. Can Sony strategy maintain itself ?? Nintendo president was not voted "worst manager of the year" recently, Sony president did.

Not only is Sony gaining, but the 3rd parties on their platform are also. Soul Caliber 2 is one of the few games I can think of that did better on the Gamecube than on the PS2 and Xbox. When you look at the sales data of 3rd party software, copies sold favors the PS2 and Xbox. To counter this, sales from Nintendo's first party titles have to be very strong.

2 different approaches. The market will decide if they want an all purpose system or if there is a place for a (almost) proprietary Nintendo oriented sytem. As long as they do not lose money on this venture, Nintendo should be allowed to try to be different.
 
Oh great another analyst report, what would we do without them...

Seriously The Sun would be ashamed of the sort of "journalism" shown in most 'analyst' reports. I really don't understand why anyone posts the majority of them.
 
Teasy said:
Seriously The Sun would be ashamed of the sort of "journalism" shown in most 'analyst' reports. I really don't understand why anyone posts the majority of them.
...nothing else going on?
 
Teasy said:
Oh great another analyst report, what would we do without them...

Seriously The Sun would be ashamed of the sort of "journalism" shown in most 'analyst' reports. I really don't understand why anyone posts the majority of them.

Nihon Keizai Shinbun (Japan Economic Times) isn't exactly The Sun.
 
Brimstone said:
The same sort of thing looks like its going to happen again with the PSP. Sure compared to Nintendo, Sony won't sell anywhere near the same amount of first party games, so in a direct comparison things won't look bad at the start on paper. Third parties will end up selling lots of games slowing stealing marketshare from Nintendo.

That's a huge assumption. GBA already has good third party support, and as a new platform PSP starts out with no third party support. Maybe developers will stop supporting GBA in favor of PSP, but then again maybe not. It's a different market, different situation.
 
That's a huge assumption. GBA already has good third party support, and as a new platform PSP starts out with no third party support. Maybe developers will stop supporting GBA in favor of PSP, but then again maybe not. It's a different market, different situation.
I disagree with "PSP starts out with no third party support". KOEI, Sega, Namco, EA and many more announced PSP support. I am also not so sure, if GBA developers would switch to PSP that easily since PSP is much closer to PSOne or PS2 in terms development requirements (effort, 3D engine,etc.). GBA devs switching to DS is IMHO more likely.
 
Nihon Keizai Shinbun (Japan Economic Times) isn't exactly The Sun.

No they're not, and in fact I didn't say they were. I said most analyst reports are of that sort of quality. It doesn't matter how good a publication is in general, it can always have some bad reporters/analysts. Look at the BBC, they're one of the most respected news sources in the world, yet look at the scandal going on with them ATM.

Anyway my main point was just that 90% of analyst reports I see are of extremely poor quality IMO. This one wasn't much better, but I'm really not trying to get at you for posting it.
 
Teasy said:
Nihon Keizai Shinbun (Japan Economic Times) isn't exactly The Sun.

No they're not, and in fact I didn't say they were. I said most analyst reports are of that sort of quality. It doesn't matter how good a publication is in general, it can always have some bad reporters/analysts. Look at the BBC, they're one of the most respected news sources in the world, yet look at the scandal going on with them ATM.

Anyway my main point was just that 90% of analyst reports I see are of extremely poor quality IMO. This one wasn't much better, but I'm really not trying to get at you for posting it.

haha, actually, I take that back. They may be more Sun-like than I thought!

For once, it wasn't just the usual unscrupulous online sources that ran with this nonsense, but some publications who should really have known better helped to perpetuate it as well. In fact, the ball was kicked off by generally reliable Japanese newspaper Nihon Keizai Shimbun, which Nintendo accuses of taking Iwata's comments out of context.

From: http://www.gamesindustry.biz/content_page.php?section_name=dev&aid=2959
 
ChryZ said:
That's a huge assumption. GBA already has good third party support, and as a new platform PSP starts out with no third party support. Maybe developers will stop supporting GBA in favor of PSP, but then again maybe not. It's a different market, different situation.
I disagree with "PSP starts out with no third party support". KOEI, Sega, Namco, EA and many more announced PSP support. I am also not so sure, if GBA developers would switch to PSP that easily since PSP is much closer to PSOne or PS2 in terms development requirements (effort, 3D engine,etc.). GBA devs switching to DS is IMHO more likely.

A LOT of developers pledged Jaguar support, too, not that it ever saw any of it.

Note that I'm not directly comparing Jaguar and PSP, just saying that devs 'announcing support' doesn't necessarily mean much.
 
<shrugs> Then I guess you can't make much of it anywhere.

Offhand, I'm don't remember who was saying what regarding Jaguar. I remember them bragging about a few dozen or more, though obviously Sega was not among that number. ;) I don't remember too many japanese developers among that total, though. EA would likely have been among the number, and they certainly ended up doing squat.

'course developers were put off by complex programming and later on by less-than-stellar console performance... In this case, they're all USED to the most complex programming in PS2, and the PSP is supposed to be much better on that front. ;)

As always, we'll see.
 
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