Evaluating Nintendo's Next-Gen Strategy

adamba4e · 08-24-2005

If you are a Nintendo fan then this is a nice article.

Viva La Revolution: Evaluating Nintendo's Next-Gen Strategy
08/24/05

With all the hubbub about the Xbox 360 in the past week (read DailyGame's first and second columns on the bundles and configurations), plus the ongoing speculation about PlayStation 3, it's important to remember the third party in the next-gen consoles wars, a company synonymous with gaming: Nintendo.

This generation, Nintendo seems to be acknowledging that graphics are important, but they’re insisting that graphics aren't the only thing that matters. While Sony and Microsoft chase high-definition technology, Nintendo will be focused on what most consumers have now: standard-definition TVs. Nintendo is also content with letting Microsoft and Sony duke it out for best multimedia machine, focusing their time instead on providing an alternative: a lower-cost, games-only platform.

What are the advantages of this strategy? What are the advantages of the Revolution? What factors may quell the Revolution? These are the types of questions I asked myself when I looked up into the evening sky....

Advantages of the Revolution

Lower price point: Will the Revolution be $199? To many gamers, that would be a dream come true. Lower prices never hurt anyone. Of course we don't know the price yet, but it's generally accepted Nintendo will hit a lower price point than the Xbox 360 and PS3.

Takes advantage of its power at 480p/i: Nintendo might be able to get away with a console that has lower specs yet still have its games look just as good as the other consoles' on a regular TV, perhaps even better. Why? Because development on the Revoluton will only be at 480p/i, while the other consoles must be shoot for 720p or higher resolution. This is relevant because a 720p game (every Xbox 360 or PS3 game) needs as little as 50 percent of the horsepower to run at the lower 480p/i resolution. If the Revolution is, say, 75 percent as powerful as the Xbox 360 and PS3, you'll be hard-pressed to tell the difference between games on it and the other consoles if they’re being played on a TV at 480p/i.

Free online play: Xbox Live is nice, and $4 per month isn't bad, but even that small amount adds up over four or five years. Do the math, and it could mean one game a year or a new console every generation. Online gaming on the Revolution will be free. Combined with a lower price point for the console itself, the Revolution will definitely be the less-expensive choice. With its SD/Flash memory and USB support, the Revolution should also be capable of content downloads, patches and more.

Downloadable catalog of games: Who wouldn't spend a couple of bucks to download an oldie-but-a-goodie game every now and then? I personally missed out on the SNES/N64 era, so this has appeal. I wouldn't mind playing an N64 Zelda game, for example. Nintendo might even update graphics and offer online play for some of these games. Of course the appeal is largely based on what they will charge you to download a game, which remains a mystery. If they are mainly looking to cover bandwidth costs, then it will be a plus. If not, this feature will be there for you if you want to use it, and you can take comfort that it won't add to the cost of the Revolution.

Backwards compatibility with GameCube: This may be attractive to those who missed out on the GameCube (and there are a lot of them), as well as to Nintendo fanboys who hang on to all their 'Cube titles. But realistically, I wonder how much I would use it. There's just not enough time in the day to revisit your old titles while playing new ones. With that said, there's definitely a core group of ‘Cube titles I'd like to keep around, and there are lots of folks who don't own GameCubes who wouldn't mind playing Resident Evil 4 or Zelda: Wind Waker or... basically, any of the games I’d keep on the shelf.

Smallest and perhaps nicest-looking next-gen console: I think the Revolution looks pretty slick, and being small was never a disadvantage to a console. While the 'Cube was cute, the Revolution is fairly sleek. You have to like the self-loading optical disc slot. I'll also throw in that it's supposed to come with built in wi-fi and a wireless controller.

Nintendo first-party games: You might say they are too kiddie, but the fact remains that you can't find Nintendo games anywhere else. Most gamers also agree that Nintendo makes quality titles and have some of the most well-known franchises. Let's face it: Nintendo's own software is the biggest reason folks buy Nintendo's consoles.

Given the advantages above, the Revolution has several positives going for it. But what's going to work against it in the next generation of consoles? Maybe some of the same things that make it an attractive alternative.

Disadvantages

No high-definition support: Is this another Achilles’ heel, like the lack of online play is in the current generation? Is it a feature that not many people may use now but that they’d like to have down the road? It could turn out that way. Nintendo says that since most consumers don't have HDTVs right now, it makes no sense for them to make an expensive console to support high definition. I don't think it makes sense to them from a software development perspective yet, either.

Surely HDTV is the future, but the future isn't here yet. And even if your home owns a HDTV, there's a good chance you might still be gaming on a regular 27" TV in your bedroom. As much flak as Nintendo gets for not supporting online play in the current generation, the fact remains that the vast majority of gamers who own the other consoles aren't online. And this seems to be some of the same reasoning that Nintendo has used in its decision to not yet support high-definition gaming.

Image: Nintendo doesn't seem to have a good image among the late-teen and 20-something crowd. "Too kiddie" is the stereotype, and although I find that an overreaction and a bit superficial, it's definitely there. And perception is often hard to overcome. The perception of being the third-place console in America can't exactly help them with consumers, developers or retailers either.

First-party support: Does Nintendo's own software hurt them as much as it helps them? Their software certainly maintains the "kiddie" image, with its mostly cheerful characters. But while Nintendo’s software still sells well and the company is one the biggest game publishers/developers in the world, Nintendo's consoles are so closely tied to Nintendo's own games that it's easy to forget there are other games on the system. Madden is there, as well as nearly every other EA sports game. Ubisoft puts most of its titles on the 'Cube as well. Some of this seems lost on consumers, and it's probably because everyone thinks of Mario and Zelda when they think of Nintendo.

Less power: This goes hand in hand with the lack of high-definition support and a lower price point. Less memory, a lower-speed CPU and reduced graphics power are likely for the Revolution. If Nintendo can make it so the Revolution can keep up with the other consoles at 480p/i, then this won't be so much of a disadvantage. But if it can’t....

Also, let's recognize that the GameCube was pretty comparable to the Xbox in terms of power, yet it came in at quite a lower price point. That’s not to mention it was also profitable compared to Xbox. The Revolution coming out a year later than the Xbox 360 and PS3 could feasibly mean more power for less money than if it was released this year. So less power is a disadvantage, but it also means lower cost.

So what about the tricks up Nintendo's sleeve? What rabbits do they need pull out of Miyamoto’s hat? What are the aces in the hole that Nintendo either is holding or is hoping to draw out of the deck. In other words, what are...

The X-Factors

The controller: Will it be a gimmick? Will it offer a precise control that would be perfect for FPS games? Will it have a wacky gyro control system that might be great for racing games? Will you (literally) swing the controller to swing Link's sword? What will it offer? There isn’t much of a downside here, because the Revolution is compatible with GameCube controllers, and the new controller is supposed to be compatible with GameCube and even older games. So the question, in my opinion, becomes: how much of an upside will this have? And that we just don't know.

Could this help turn the Revolution into the hot console? For folks like me it could, because in my opinion the controller wasn't suddenly perfected in the current generation. If Nintendo, for example, puts some tilt-technology into the controller, it will only be good. The tilting mechanism could be used for steering or turning or even to mimic a button. Say you're walking around in an FPS and want to switch to grenades. A quick and generous tilt upwards, and BAM!, you've switched to grenades without taking any of your fingers off the other controls.

The downside of trying to innovate with the controller is that Sony and Microsoft will copy Nintendo if they come up with something good. And will the average Joe Mainstream in America be impressed? Will they care?

Third-party support: This is also a bit of an X-factor. The Revolution needs to get the third-party titles. Ubisoft said it's developing for the platform, and I'm sure EA will publish many of their biggest titles on the Revolution as well. These announcements alone guarantee Nintendo some big multi-platform titles. They also need to make sure these titles aren't also-rans on their system. For example, Ubisoft ported some titles to the GameCube that could have used more polish. Nintendo needs to make sure the same titles on their system aren't inferior.

Nintendo also needs a couple of other big third-party multiplatform titles to grace their console, like the next GTA, Burnout, Battlefield, Unreal, etc. They need a Valve, id or Blizzard-type company to also develop for their console. They need a coup.

Of course third-party support is a Catch 22. If the Revolution sells well it will get third-party support, but it probably needs good third-party support to sell well. Resident Evil 4 could have been that coup on the 'Cube, but it came out late in the game and wasn't quite exclusive.

First-party support: This is an advantage, disadvantage and an X-factor. Nintendo generally releases quality games compared to others in the industry, and although the company has made many Mario games, it really doesn’t seem to spam the marketplace with titles like other large publishers do. For instance, Nintendo could have easily released a Super Smash Bros Melee sequel (since SSBM is the best-selling GameCube title), and it would have sold a ton. But they didn't. Meanwhile, others including EA and (lately) Ubisoft hammer the market with their titles year after year.

The availability of quality launch titles, as well as new IPs from Nintendo, will help determine the Revolution's fate. Will Nintendo come out with some incredible new must-play games? Will the company increase its output without hurting the quality? It also remains a mystery as to how Nintendo will fare with its titles’ online play. The Nintendo DS will eventually have online capabilities like friends lists and matchmaking, and the same promising functionality will come to the Revolution as well. Only time will tell how it compares to the other consoles.

So with all that said, does Nintendo have a chance in the next generation? Will consumers wince at paying $400+ for a console, plus online fees, plus $60 for a game and thousands for a new HDTV? Have consumers been away from Mario and Co. for too long now, meaning they have a pent-up thirst for Nintendo games? Does Microsoft just have too much money, which will allow them to simply out-advertise their competitors? Or has the PlayStation brand become too associated with mainstream console gaming to give the others any breathing room?

I’d like to think Nintendo can surprise folks in the next generation. That their controller will bring interesting developers on board and provide some fun experiences. That Nintendo will work on a few “darker” IPs while still giving us the franchise favorites. That the company will spend a bit more cash to ensure the Revolution isn't left out on big third-party titles.

In the end, the consumer needs a reason to go with Nintendo next generation. And Nintendo needs to provide them with one. Peter Molyneux has said this about the Revolution's new controller: "There is a line at the end of the book 'Game Over,' and it is: 'Never underestimate Nintendo.' That is all I can say about the controller."

And that's all I can say about Nintendo.

-- Chris Karalus

http://www.dailygame.net/news/archives/004467.php

**homer** · 08-24-2005

can someone summarise its a bit too long

adamba4e · 08-24-2005

Originally Posted by homer

can someone summarise its a bit too long

Well it basically just evaluates Nintendo's next gen strategy.

**The Chocobo Kid** · 08-24-2005

I read it, and things are going both ways here. nintendo could flop or do great. I sure they won't Flop but just will sell less this time around.

adamba4e · 08-24-2005

They will probably get a lot of sales from parents buying a present for young kids.

**The Chocobo Kid** · 08-24-2005

Originally Posted by adamba4e

They will probably get a lot of sales from parents buying a present for young kids.

if that's nintendo only hope then they are in troble here.

**smitty61** · 08-24-2005

they will probabley do well because they have a good line-up including Zelda and Metroid and because of the downloading games.

**DeputyDon** · 08-24-2005

I've come to the conclusion that im poor. My family is living paycheck to paycheck even with food stamps and child support coming from my dad. I was thinking I could manage all three systems but I now realize that I can only afford one and then maybe two or three years after a system comes out I can get that.

I say screw the PS3 and Xbox 360. Nintendo All the way. Im not a Nintendo Lover, (Darn it I just remember all the beautiful times I've had playing Metal Gear Solid, God of War, and Grand Turismo. AHH Can't decide.

Whatever. I'll just go rob a bank.

**homer** · 08-24-2005

Originally Posted by smitty61

they will probabley do well because they have a good line-up including Zelda and Metroid and because of the downloading games.

THe reason I don't play those games are because they are old. I would rather spend my money on nex-gen games. I mean I have already played those games and the reason I don't play them anymore is because a lot of better games have come out

**Reiaz** · 08-25-2005

I think a good Strategy for Nintendo would be to kill their Handheld and console developments and just develop games for Sony and M$. They would be more profitable and alot less headaches imo. Nintendo still makes great quality games even though they never grew up.

**Mastur Debater** · 08-25-2005

Originally Posted by Reiaz

I think a good Strategy for Nintendo would be to kill their Handheld and console developments and just develop games for Sony and M$. They would be more profitable and alot less headaches imo. Nintendo still makes great quality games even though they never grew up.

How would that be a good strategy? They make a lot of money off of handhelds, and even the Gamecube system itself. They would throwing away a ton of money making a move like that.

**Reiaz** · 08-25-2005

Originally Posted by Mastur Debater

Originally Posted by Reiaz

I think a good Strategy for Nintendo would be to kill their Handheld and console developments and just develop games for Sony and M$. They would be more profitable and alot less headaches imo. Nintendo still makes great quality games even though they never grew up.

How would that be a good strategy? They make a lot of money off of handhelds, and even the Gamecube system itself. They would throwing away a ton of money making a move like that.

Ok maybe I jumped the gun on the Handheld portion of my reply. But if PS3 and Xbox360 users had the option of playing Nintendo games on their systems rather then having to buy a revolution, game cube etc, to play them, they would. It would be the best of both worlds, its a shame Nintendo and Sony couldn't see eye to eye and come out with a joint project for a console.

**heerokenshin** · 09-06-2007

Famitsu is reporting that Valhalla Knights 2 will be hitting the PSP sometime in the spring of 2008.

Valhalla Knights is a very unique RPG for the PSP, dealing mainly with Norse mythology. The game takes a spin into other realms by throwing in robots, ninjas and the like. It is definitely a unique dungeon crawling RPG.

This sequel will expand upon it's predecessor with more customization, new characters, and several new items, armor, and races. Supposedly, over 80,000 combinations will be possible from over 370 different types of armor.

Like the original, this game will feature not only an immense single player campaign, but also a full-featured multi-player mode. The game will have coop mode and versus battle mode, although details are scarce on both at this point.

Be sure to check back for more details on this game as soon as they become available.