Nintendo’s failure linked to technology, game sales, and indie developers

Nintendo’s recent financial troubles have opened the floodgates for discussion on where the gaming company went wrong. The recent stock price drop and projected decrease in sales numbers are just one of many woes in the wake of the release of the Wii-U.  Nintendo’s third-party relationships have failed and a formerly strong user base has been left feeling alienated by a company that seems stuck in the past.

Where did Nintendo go wrong? The lack of first-party titles? Marketing the Wii-U as a family device and failing to show consumers a difference between the new console and the Wii?

Any of these and more are valid criticism. The biggest contributors to the failure of the Wii-U are a poor and misguided use of technology and the internet, the rise and prevalence of game sales changing how consumers view the worth of Nintendo software, and Nintendo’s outright snubbing of an independent game developer community in their own back yard.

wii-u-panic

Nintendo has never been afraid to buck popular gaming trends in hardware and go their own direction. In the mid 90’s when CDs were becoming the favored media format, the company stuck with physical cartridges. The move would result in the creation of the PlayStation and the loss of the Final Fantasy franchise on Nintendo consoles for almost a decade. The GameCube saw Nintendo’s hesitance towards the growing trend of incorporating internet functionality into home consoles, giving the company a distinct disadvantage going forth. The Wii, for all of it’s originality in motion control, was viewed more as a toy than a game console, ignoring the high definition trend that Sony and Microsoft had already adopted.

This shirking of current technology has continued into the present day, with the Wii-U being considerably under powered when compared to the likes of the PlayStation 4 and X-Box One. Likewise, Nintendo’s digital distribution policies and inability to understand what consumers want out of internet functionality in the new age of gaming is puzzling. An anonymous developer that talked with EuroGamer confirmed these suspicions:

“[We]asked how certain scenarios might work with the Mii friends and networking, all the time referencing how Xbox Live and PSN achieve the same thing. At some point in this conversation we were informed that it was no good referencing Live and PSN as nobody in their development teams used those systems, so could we provide more detailed explanations for them? My only thought after this call was that they were struggling – badly – with the networking side as it was far more complicated than they anticipated. They were trying to play catch-up with the rival systems, but without the years of experience to back it up.”

how-to-get-ds-points_1

Nintendo has acted as if the company is allergic to current and popular hardware and software trends, an issue that is coming back to haunt them in the current console generation. Consumers require their system to be functional and up to date with what makes console gaming so appealing. The Wii-U lacks the functionality of PSN or XBLA and has none of the accessibility that makes Steam popular. Of course, another thing that Nintendo lacks that Steam does so well is the ability to move software.

However, the advent of the “Steam Sale” and the seeming decline in value of software may also be a contributor to Nintendo’s downfall.

Rampant game sales change consumer purchasing habits and how they relate to the software they buy. Whether consumers want to admit it or not, there is a mindset of waiting for a game to go on sale that–in combination with the idea that a game is only worth your time if it’s giving you quality content measured in hours played–has changed how consumers view software and the methods in which they purchase said software.

The comic book industry suffers from a similar problem where single issues of specific books will suffer in sales due to the consumer mindset of waiting for collected volumes called “trades.” In an industry where pre-orders and opening day sales can mean the difference between a book continuing or being cancelled after a few issues, this consumer mindset can be deadly to a creative team.

There is reason to believe that Nintendo is suffering from something very similar.

3DS-eShop-Sale

While everyone loves a good Steam sale, the mindset of waiting for the sale in question has changed how buyers view the value of the software. Unless the software is a AAA, high profile release like Grand Theft Auto or Bioshock Infinite, the resounding opinion is that buying a title can wait until said game goes on sale. This concept has changed how developers and consumers view the worth and timing of buying a game. In a recent interview with GiantBomb’s Patrick Klepek, independent game developer Jason Rohrer said:

“There’s a rush among game developers,” he told me. “All of my friends that I know that are multimillionaires, they made more than half of their money in these Steam sales. Over the past couple of years, I’ve just been hearing all these stories from people. ‘Oh, yeah, the sales are where you’re going to make your money, man! I did a midweek madness, and that doubled my money right there!” [laughs] ‘I was deal of the day a few weeks later–and again! I doubled!’ And they just act like this is the way it is and this is amazing. If you stop and ask one of them, ‘you realize that most of those people who bought it, when it was midweek madness or whatever, don’t actually play it?’ And they just shrug. ‘Who cares, as long as I get their money, right?'”

no-idea-whats-going-on

Nintendo has always been somewhat allergic to devaluing their first-party titles and placing the likes of Mario and Zelda on sale. The most expensive titles on the three most recent Nintendo home consoles have always been the games that the company is most known for. Even now, first-party Wii titles such as The Legend of Zelda: Skyward Sword, Mario Party, Mario Kart, and Super Mario Galaxy 2 are at or near their original full price MSRP, according to a price check on sites like GameStop and Target.

The reason is simple: Nintendo holds their top-tier games in high regard. The internal philosophy at Nintendo is that their games are quality of the highest and people will go out of their way to buy the Mario and Zelda of their console. Nintendo isn’t wrong. These games are the best of the best that the company has to offer, but the growing change of how consumers review games–especially older games that typically go on sale–has changed how consumers view Nintendo’s stance. It’s hard to convince consumers that older games are worth their full price in a world where the likes of Grand Theft Auto V and The Last of Us are 40% off, or more.

GS

The issue of game sales has also exposed Nintendo’s poor execution with digital distribution. An influx of users attempting to access the 3DS and Wii-U EShop over the Christmas holiday saw the service taken offline, most likely from the massive amount of new traffic. The apparent issue is that Nintendo had never planned for such a strain on their weak network infrastructure, as the outages lasted for almost two weeks after Christmas day.

This lack of reinforcing a cogent online strategy has hurt the independent gaming development community the most. Indie gaming has taken off and seen high sales numbers on the likes of PSN, Steam, and XBLA. Between Sony striking a deal with indie developers on the PS4 and Steam GreenLight, the current gaming cycle is seeing the rise of new talented developers expressing new ideas via digital distribution.

Meanwhile, Nintendo has been telling indie developers in their own country to not bother.

original

This stance by Nintendo is a shame, as Japan has a thriving indie scene that is looking for the same chance at success that their brethren in other countries have received. In a country where Steam and PC gaming don’t see the same success and numbers, the Japanese indie scene is desperate for a big company to give a helping hand. Nintendo could be that company, but considering their poor relationship with indie developers around the world and the small selection of games they offer on their service, the snub might be for the best. Nintendo doesn’t seem interested in growing the next generation of developers and is more concerned with what kind of suit they’ll put Mario in next.

With Nintendo’s sales forecast projections cut by almost 70 percent, it appears that the company is preparing for the worst. What this means for the future of the company remains unclear. At this point, ditching the Wii-U and starting from scratch so soon with a new home console would almost reek of the same desperation that SEGA suffered from towards the end of the Dreamcast era, when the company’s hardware hopes were all but over.

Maybe Nintendo is to face a similar endgame. Maybe the 3DS is enough to sustain the aging Japanese company. Who knows? While I think that the legacy of Mario, Metroid, and Zelda will live on, we as consumers may very well be seeing the dying days of Nintendo as the hardware giant that some of us grew up with.

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5 thoughts on “Nintendo’s failure linked to technology, game sales, and indie developers

    • It means journalists love nintendo, that’s not to say the public is reacting the same way, which is the premisse this article is based on: Poor Wii U sales projection, not enthusiast press reviews.

    • It’s because of people like you, that always defend and support Nintendo, no matter what they do or announce, that Nintendo remains on 1990.
      You guys have a chance to scream and tell Nintendo they need to change, adapt,evolve,listen,embrace 3rd party, etc etc, but instead, you keep praising them like they were Gods.
      -no 3rd party support, games and game engines for the Wii u?
      You guys praise the system, on forums, everywhere, and even say the Wii u doesn’t new it
      – the Wii u can’t even match a ps3 power( compare zombiu and the last of us, or inferior poor ports like mass effect 3, batman, etc), and you defend it again, by saying bla bla, once devs learn how to code better, games will look 10 times better
      – maybe 40% of the Wii u costs come from the touchpad, that force people to move their eyes up and down, tv-touchpad-tv-touchpad every 2 seconds, when they could have used the touchpad money, and put more ram and a much better CPU/GPU on the Wii u, and you guys defend it, and call it innovation, it’s fantastic, incredible, etc.
      – Nintendo have used old cheap components, like the 3x gamecube cpu, few ram, etc, and you guys scream that only innovation counts, and Nintendo games are fun, and only fan matters.
      -Nintendo keep making cartoon like games, with no textures, only flat colors and 2 color gradients and rainbows, like the tons and tons of shovel ware on the first Wii, while Sony and microsoft strive to make their games look life-like and photorealistic, and you guys keep saying those simple games a la pokemon,etc, are the best in the world
      – people spend +400$ on a Wii u, have barely no games to play, excepting marios, and while a ps3 receives tons of games each month, you guys scream and say you are OK to wait 18 months until X Nintendo game comes out.
      – the Wii u have ultra low poor sales, with a full year ahead of the ps4 and xbox one, and you guys keep praising the system, and say ‘oh, x Nintendo console also started slowly, and at the end it sold XXX million units’.even Nintendo themselves officially announcing ridiculous sales, and you still don’t believe it’s a true flop.
      – even a super Mario game, that normally, sells 10 million units in no time, had poor sales and didn’t sell Wii u consoles(no bundles existed) during Christmas.
      – Wii sold well because it became a trend, buying one for his 7yo kid, and the nunchuk looked fun.also, people bought it for hacking it.even a 58yo team mate, at work, asked me if I knew how to hack a Wii.maybe 30-40% of the sold Wii’s never played an original bought game. Nintendo thought all those moms, who saw the Wii gathering dust after 2 weeks, would run and buy the Wii u. Wrong.’fool me once, but not twice…’
      And the list goes on and on.
      So yeah, thanks to people like you, Nintendo never thought they needed to evolve,support 3rd party, etc. Devs say it’s almost impossible to sell a a game. Nintendo proudly makes them understand they are useless, and the Almighty Nintendo can do great without all those other devs. Pride and arrogance. As a result, most big game engines won’t be ported to the Wii u.that directly means hundreds of games will never exist on the Wii u.it’s that simple.
      But you guys, as long as you have another mario, Luigi, mario kart, xenoblade,Zelda game, everything else is useless.well, looks like those games alone aren’t enough to make +20yo fans go and spend 300-400$ on a Wii u.
      Fans had a full year to buy a Wii u.all those who didn’t, have saved money for next gen, where 99.99% of games are. With the ps4 and xbox one release, and all the announced games, the great network, PS+ 64 AAA games for free, each year, with cross play, cross buy(buy a ps3 version, get the ps4 and PS vita version, for free), with the tons of great games on the PS vita, etc etc, the Wii u is officially dead. Dead. DEAD.
      And the ps4-vita remote play, and vita TV, and the tons of games for the vita, the next victim is the Nintendo ds. Currently, the Nintendo fans number are the Wii u sold number. Those still buy ds games and everything Nintendo do.3-4 million isn’t much.

      If Nintendo don’t announce a new true next gen console soon, with incredible specs, a new network, new features, and start embracing all the other devs, in less than 9 months, Nintendo will be bought by Sony or microsoft, that would have a portable console to compete against the PS vita.
      They may have several billion $ in cash, but it can vanish really fast, if nothing is done.
      If they keep being proud and arrogant like they are, and stubborn, and keep saying FCK you to 3rd party devs, indie and big companies, they are the next Sega. It’s unavoidable.

      To the author, thank you for your excellent article, really amazing write up.I clicked on all Google ads, as a thank you. And I will come back, for sure.

      • “- the Wii u can’t even match a ps3 power( compare zombiu and the last of us, or inferior poor ports like mass effect 3, batman, etc)”

        Zombi-U used to be called “Attack of the Killer Rabbids” for the 360/PS3 then the game was ported to the Wii-U with the name “Killer Freaks From Outer Space” which then ended up as Zombi-U, comparing TLOU to that game doesn’t make sense since it doesn’t even come close to using the full power of the Wii-U.

        Ports were crappy because the devs didn’t want to take the little extra time to optimize it, the majority of 3rd party games only use 1 cpu core instead of all 3.

        “-Nintendo keep making cartoon like games, with no textures, only flat colors and 2 color gradients and rainbows, like the tons and tons of shovel ware on the first Wii, while Sony and microsoft strive to make their games look life-like and photorealistic”

        Okay then lol.

        Wii-U- http://mariopartylegacy.com/wp-content/uploads/2013/11/sm3dwguide146.png
        PS4-https://pbs.twimg.com/media/BZy2JjEIYAAb7j1.jpg:orig

        Sure Knack has more going on but it doesn’t look as sharp and it runs at 25-40 avg compared to 3D World lock 60 fps.

        “people spend +400$ on a Wii u, have barely no games to play, excepting marios, and while a ps3 receives tons of games each month, you guys scream and say you are OK to wait 18 months until X Nintendo game comes out.”

        The PS3 is how old now? Of course it will receive games on a more continual basis but that doesn’t mean nothing is coming out for the Wii-U lol.

        Exclusives Out now:
        Sonic Lost World
        Zombi-U
        Wonderful 101
        Pikmin 3
        Monster Hunter 3 Ultimate
        Lego City Undercover
        Windwaker HD
        3D World/NSMB-U/NSLB-U

        Out Later:
        Donkey Kong Tropical Freeze
        Smash Bro’s
        Bayonetta 2
        MK8
        X Monolith
        Shin Megami Tensei X Fire Emblem
        New Zelda
        Miyamoto’s new ip

        Plus whatever else they’re yet to announce.

        Your comment is biased lol.

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