FreddyCruder

Nintendo: The Wii Bubble Has Burst

I agree, Wii has become a fad due to very poor support by third party developers and Nintendo themselves. There just aren't any good games on the machine apart from the Wii Sports brand and Mario.

Was it a bubble? I don't think so, but it became a bad alternative when no new must have titles got published for it. I think they could have avoided this situation if they had managed to make the WiiWare store their key distribtuion channel for must have titles. After all, the console is regarded by most as a place for new experiences, Nintendo themselves say that graphics isn't what's most important but gameplay is. So... with the Wii they had created this machine that sported low-tech and an original, interesting interface. Thus, the best way to go for them from thereon would have been to get a lot of indie developers on board and allow them to distribute their titles on WiiWare and make a lot of advertisement for the WiiWare channel on TV and the net.
Future titles similar to Wii Sports Resort could have been distributed mainly here. This didn't happen.

So their problem is with the lack of any software at all to speak of. Not that the console isn't HD and lacks Blue-Ray. The concept of the Wii as a console was never flawed, the game distribution and lack of actual games was.

Wii Sports Resort is what the first Wii Sports should have been (although it still lacks online play similar to Mario Kart Wii), so a lot of consumers see this as one and the same product, and new consumers are confused as to why they need to buy Resort separately; they also don't see any other incentives to buy the console. Galaxy caters to the youngest demography as do Metroid and Zelda, but they don't really showcase the wiimote in any amazing new way, so the youngest demography are also slightly confused here. They like Galaxy, but that title alone isn't a reason to buy the console.

If it is as you say that the "Super Wii" will be released next year, then I hope that the new Zelda title they are developing is developed with HD graphics in mind so that they can easily convert it to the "Super Wii" when that console is released. As Nintendo has stated it's a lot more expensive to develop a title with HD graphics, but if they are investing a lot of time and effort in "new Zelda" in terms of story, gameplay, gameworld, then they should also invest in making the graphics compatible with their next console as well, even if it wont come out until 1 or 2 years from now. I'm just saying this because it would be a good idea considering Nintendos track record in releasing Zelda titles (they take a long time to develop). Then again, their next console will probably be immensely more powerful so it questionable if it's really such a good idea to develop with two so distinctly different platforms in mind.

Nintendo Wii's Price Cut Is Looking Likely

apparently my comments from yesterday or the day before yesterday have disappeared, I wont write them down again
just the most important stuff, such as: you forgot to mention that one of the most probably reasons for why we will see a price cut is because Nintendo will introduce "Wii 1,5" next year. They will sell the console together with the new enhanced wii controllers, and they can't sell the "Wii 1,0" package side by side with the new console package, so they might sell it for less soon in order to clear the stocks. Then again, considering how quickly they sell out on the console at the current price-point it's questionable that they will really need to cut the price to be able to sell out.
Another thing I mentioned was that... Nintendos console doesn't really need to adjust to Micorsofts or Sonys price-point, since their console is vastly different from Microsofts and Sonys. In fact, it's a bit dangerous for everyone involved if Microsofts continues to slash prices. I mean, they're not making profit on their console as it is already, so to slash prices again is suicide. You mention that the real profit comes from game sales and not console. Is that really how the market works right now? Nintendo is selling a console with last gen technology compared to Sony and Microsoft. They are making profit from their console sales, and they need that in order to stay in the business since they don't have enough games, and thus game sale revenues with the Wii. Microsoft can of course slash prices since they are selling a fair amount of games, but to loose as much as they will on every console when the new price-point kicks in is dangerous for all three players (if we, for the sake of making an argument, includes Nintendo in the group as well, because obviously they are affected by what the other two companies do, they are all console manufacturers, it's just that Nintendo is more mainstream this generation).
Microsofts problem is that they don't get that their "gameplay is last gen" compared to Nintendo. But again, it's not fair to simply say one is better than the other. For storydriven games it doesn't really matter that much what kind of controllers you have, for some of the more "complicated", hardcore games it's even better to stick with the "old" controllers that have more buttons and 2 analog sticks; and with Microsofts and Sonys consoles they also get top notch graphics (which is definitely possible with Nintendos console as well if you scratch one million waving blades of grass, but sure it's lacking a lot in the graphics department compared to the other two)
The problem for Nintendo I would say is that the western world isn't really doing anything for Wii. Which is strange, since the controllers makes possible a lot of innovating titles, but maybe this will change as soon as the new gyroscopic controllers become available. All this talk about 3d party developers not knowing that Wii would outsell the other 2 companies this generation, and that they started producing games for Wii too late seems a bit strange, I mean, they have had a lot of time now to prepare something, and could have showed something at e3 this summer. No one is to blame, but there's no question that Nintendo of America is having a hard time finding developers, and it's a shame.
But anyways, hope you understand from this comment that Nintendo wont really need to slash prices for the Wii next years, since by then it has morphed into "Wii 1,5" and everyone wants the new improved controllers. This is ingenious by Nintendo since these gyroscopes that are going to improve the motion detection of the controllers are actually very cheap.
My concern with Nintendo right now though is... DSi... now that's lame, I mean, ok so maybe the "i" is an intentional way of giving kudos to iPhone, and iPod touch for putting up a fight with Nintendo, and as we all now, Apple actually began showing interest in handheld devices with touch screen technology ages ago, (it was when Jobs was in his first run with Apple, before he left to return a couple of years ago). So Nintendo is maybe hinting at who they are actually competing with right now in the handheld market, at the same time it's a bit strange to call it DSi... anyways, the DSi has a flaw in that it has a camera that only works away from the user, you can't rotate it so that it points at the user as well. This means that you wont be able to use the camera for Eyetoy like games, or applications that reads your facial expressions (think Nintendogs with this function, exactly, you can compliment the dog simply by smiling, neat huh? Well, now you can't, effectively removing the scope of what you can do with the camera). It's a handheld device with the possibility to take photos, why don't I see the connection? I mean, there is one, and definitely there are games that can be made using a camera that isn't pointed at the user as well. But still, it confuses the market. Are developers going to have to develop games that can only played on the DSi now? How fat chance is there of developers doing that? Or is the DSi only the new DS with slightly bigger screens and worse battery time?
A cellphone is always on, so you can take a snap shot whenever you want, with DSi you have to turn on the machine and then point it at whatever you want to take of photo of, but it's not a device that's very handy to use as a camera, and also, the lens is not centered in the middle... ok, so this might not be a problem, but I have my doubts.

Waiting for the Wii Price Cut

one thing that might be seen as slightly contradictory with your article is this: you state that the companies don't make their money on the consoles, but on the games, and at the same time you state that Nintendo have run out of AAA titles. In other words, if they wont make much money on games as it is right now because there aren't any titles, then their only source of revenue is the actual consoles, and considering that Nintendo is selling the Wii with a relatively good profit. (It's last generation hardware compared to sony and microsofts consoles). It's doubtful if they can afford to slash prices on the Wii to stay competitive. But hey, I'm no economist, so I might get this wrong. As for the other two companies entering the casual gamer territory I don't think they will be able to with the same punch. This is the thing: Wii together with Wii sports is the most ingenious gaming platform offer ever. Why? Because you essentially get a package that "non-gamers" understands. It's great versions of tennis and all the other sports that's in the title, it resonates well with "non-gamers" since it's physical, and it's what games should have been from the very beginning. Now, when it comes to story driven games or shooters that's a completely different ballpark, and one that Nintendo haven't been able to capitalize on this generation. But anyways, what I'm trying to say is simply, that I don't think Sony or Microsoft will be able to pose any considerable threat to Nintendo and their pursuit of the casual gaming audience using only means of price point. They would need similar controllers as well, or something that's even more "I get it"-esque.
In a sense it's like comparing apples with oranges. Nintendo is the console with Wii Sports, and they have some great titles for kids like Mario etc. And when EA finally starts to deliver great sport titles next year together with Nintendos new controller I would say that it will be even harder for the competition to keep up.
But of course, you are absolutetly right that it's bizarre that Nintendo can sell their console for such a high price now that Microsoft is going to lower their price yet again; and of course, it's a bit dangerous for Nintendo here, because they don't have as large revenues on game sales as Microsoft. I'm not sure though that Microsoft knows what they're doing right now, I mean, how much money aren't they loosing on their consoles already, and to then lower the price yet again.. these are risky times in the video-games industry for the companies, but it's definitely not grave times for the consumer (unless you are a hardcore gamer owning only a Wii, or one of the people who stood in line to buy an xbox 360 when it was released at triple the price it's at now).

Waiting for the Wii Price Cut

hm.. another point to add to the list is the fact that "Wii 1,5" will be standard next year, where u will be able to buy the console with the new gyroscope enhanced controllers. so Nintendo might want to cut prices for holiday season to be able to sell all their old wii consoles, although that might not be an important point considering they don't have any problem with selling out all of their consoles as it is already, but still, I'd say it's one of the major reasons why we will see a price drop within this year.