Various video game analysts have spoken to Games Industry International to discuss just how Nintendo can stay relevant in the hardware business. Robert W. Baird & Co analyst Colin Sebastian believes that Nintendo really needs to show their holiday lineup in order to build momentum for the Wii U. Wedbush Morgan analyst Michael Pachter has expressed his desire to see Nintendo bring their franchises to mobile devices, but he concedes that under Iwata’s helm it will probably never happen. Here’s what the analysts had to say.
“In a negative scenario, Nintendo will be forced to prematurely lower the Wii U price, and over the course of this cycle, we expect consideration will be given to extending first party franchises to other platforms. I think the pressure is on Nintendo to deliver better momentum with consumers in the next 9 months; some view into the next holiday title lineup would help.”
– RW Baird analyst Colin Sebastian
“Going the way of Sega and only doing software is simply not the best route. But if they are going to do hardware they need to do some marketing for that hardware.”
“Nintendo’s performance the last year was a disaster. It was almost like they rolled over and played dead with less than zero marketing for both the Wii U and the 3DSXL. This is something that can be changed. I don’t understand what their thinking was, but in an age when consumers are clamoring for portable/tablet hardware it would seem to be a huge opportunity for Nintendo. Nintendo used to be great at marketing hardware and if they could bring that back I think there is opportunity.”
– DFC Intelligence’s David Cole
“So long as [Satoru] Iwata is CEO, I don’t think there is a prayer that they allow their software to show up on third-party platforms. If they are considering it, we’ll see GBA software on mobile phones first… If Nintendo decides to go the way of Sega, it will be because a new CEO takes them in that direction. I don’t see Iwata making a decision like that, it is not his nature.”
– Michael Pachter, Wedbush Morgan
“Nintendo’s market dominance has always come on the back of its hardware. Their hardware has been a key factor in driving the growth of their brands and products.”
“While I do agree that Nintendo should explore releasing products on other platforms, there holds a significant risk that it could marginalize the benefits of owning a piece of Nintendo hardware and could create a cascading impact on the health of their hardware division.If the Wii U turns into a market failure, I’d suspect that a software only approach becomes a serious consideration; however, it would likely cut the company’s valuation in half. The transition alone would spiritually kill the company for many years.”
– EEDAR’s Jesse Divnich
“I believe the console business has changed fundamentally, and there will be slow uptake and increased downward price pressure not only for the Wii U but also for the next generation from Microsoft and Sony. Hardware expectations will be overly high for all three vendors, but I don’t expect the numbers to match this generation. Nintendo can realize strong profits with a smaller base if Wii U (and 3DS) gamers buy more software, particularly paid digital downloads.”
“I think Sony and Microsoft will also need to sell more digital downloads to increase the software spend to base ratio. Microsoft will have an advantage here because of the lead Xbox LIVE has in PC, tablet and smartphone integration. Nintendo and Sony should both reconsider competition and potential co-operation with Android and iOS devices,”
– Inside Network’s Billy Pidgeon
I entirely agree with the last analyst.
I mean the SECOND TO LAST! “Jesse”
Why ? He’s just waffling about a load of theoretical BS that is not gunna happen.
Would love to here what they think about Sony ? You know being in a much much much worse situation than Nintendo financially and being worth less than Nintendo and having a credit rating of ”Junk” and the ps vita looming over their shoulders which is the biggest ”fail” since the Dreamcast. It’s already clear that the wiiu will be massively more successfull than the Vita.
I think both pigeon and cole gave honesta and realistic analisetion.
Well Saying Nintendo should consider putting their stuff on IOS is stupid , because that’s never gunna happen. They need their exclusive software to drive their hardware. Smash bros U will sell millions of wiiu’s on its own.
New stuff can sell hardware, but their older, retro software could be ported on iOS.
They should put it on 3DS and wiiu exclusively. You want retro Nintendo software ? You got to buy a Nintendo….
But that’s the point. People aren’t likely to buy Nintendo hardware just for retro titles, especially people who thrive off of nostalgia.
They might not be “gamers” in the truest sense of the word, so they wouldn’t go out and buy Nintendo hardware, but they would probably be willing to drop a couple of bucks to buy an old Mario game on their iPad to relive their childhood if they saw it on the stores.
It’s really about reaching out to more demographics. There are people who will NEVER buy a dedicated gaming system but will spend loads of money on games and apps on their mobile devices.
Of course, as I stated before, Nintendo is doing great with 3DS sales and it’s way too early to see where the Wii U is going (although it’s off to a good start). So would I say it’s necessary for them to put games on other platforms? No. Could it hurt? Probably not. In fact they might see some decent profit from it.
But that is not a smart bussines move, if people want his gaming need they need to buy it the way his seller provide it or not
You have good points. And I’m not talking about your nipples…
That would be equivalent to selling out, though.
Tell ya what; let’s see the OTHER systems do that first.
It stuns me that people keep saying Nintendo should do it but never mention the move for anyone else.
Sony does it. Microsoft does it. SEGA does it. Square-Enix does it. EA does it. Activision does it. etc. etc.
They have said a crap ton about Sony too. This is just a Nintendo website, so of course it’s not going to be reported here.
Do a quick Google search and you’ll see all the doom and gloom they have been saying about Sony too.
Good. I just don’t understand the way some of these analysts are saying they should consider putting their franchises on other platform. Like are they serious ? the 3DS is selling FAST. The wiiu has only just came ou so we don’t know yet. But as long as it sells more than 50M , Nintendo will be ecstatic with that as long as the Software sales are awesome…
Yeah, it’s a bit too early to be talking about the Wii U since it just came out and the 3DS is selling great.
What this all really boils down to is making money. The media loves to sensationalize things, spread hype, and strip up the fire. It’s how they get hits on their websites which in turn attracts more advertisers and investors, which in turn = $$$.
It’s true. like news reportes deliberately exagerate , misslead and even lie on the news and in newspapers , it’s the same thing.
The problem is we already know the WiiU isn’t selling fantastically. Probably what’s going happen is Nintendo will give the WiiU a price cut, and then it will start selling like gangbusters, just like the 3DS did.
It doesn’t need a price drop, it needs E3, and big software announcements. I remember I wasn’t too hyped for the wii, but when E3 2006 came around, and that first trailer for Brawl was released, you bet I was hyped, and so were a lot of other people. Same with Super Mario Galaxy, I was RIDICULIOUSLY excited for that game. What the Wii U has now is nice, we have a decent Mario game, and we’re getting Pikmin 3 soon, but we need a big AAA title like Smash Bros. 4, or the new 3D Mario game. Even a Star Fox or a Metroid announcement would stir up a lot of hype. Hype = Sales
strip? lol
*Sigh* I definitely meant to say,”stir up the fire.”*
The issue is that Sony is not just a video game company. Even if the vita does lousy, there is still potential and their other markets with their TVs, laptops, cell phones, etc.
All their other markets are flat on their assess aswell. That’s why they’ve done nothing but lose money for the past 7 years…
Their entertainment divisions are quite profitable – Music, TV (shows), movies, and gaming. Sony has stated, even as recently as CES, that the PlayStation brand will continue to be one of their primary focuses.
Even if the other divisions go under (unlikely any time soon) they still have others to profit from.
I mean, heck, Sony made over $1 Billion last year from the movie Skyfall alone. A film that was released in late 2012…. Add that to their other film releases throughout the year like Total Recall, The Amazing Spider-Man, Men in Black, Hotel Transylvania, Django Unchained, and Zero Dark Thirty, they made loads of money from theatrical releases alone in 2012.
Same. As I was reading what Pachter was saying I kept thinking that bringing Nintendo games to non-Nintendo systems would make Nintendo lose its only 1-Up on Sony and Microsoft. Nintendo’s first party games are the reasons why people buy Nintendo consoles. Take that away and they’ll lose most of their sales (most of Nintendo’s fan base will stay but no one else would buy a Nintendo system).
NIntendo does need to show a few games that look next gen that’s for sure.
These analysts… sigh
Steambox is going to kill Microsoft. PS3 will still retain some level of market share in the US but those with multiple consoles will no longer be buying PS3 for not but exclusives and teenagers. Sony will have to rely on the Japanese market. Which means less localizations. Nintendo will keep on innovating. What needs to happen is games need to lower their prices.Then the console will not have to incur a price drop
So pachter wants Iwata out of the way. Talk about a bad loser.
As for more Wii U titles, I think everyone with a brain not riddled with fanboyism can agree with that.
True but the things is wiiu is not lacking games what is lacking is more long therm game anouncement.
I didn’t really interpret it that way. I read it as though Pachter believes that as long as Iwata is in charge, Nintendo will continue to thrive as a Hardware and Software producing company and only if he is replaced, will there be the possibility of Nintendo going completely software based.
I doubt Nintendo will ever go completely software, because even if they drop out of the home console race, they are just completely unmatched in terms of handhelds.
All of these guys are complete ass holes. They all have it out for Nintendo ”Nintendo posted their first ever loss in 2012” and it was a distaster even though they have 15Billion in capital and could easily afford to keep making the same loss for 15 years….
It was at the end of the generation and new overpriced hardware was being developed and sold.
Wiiu and 3DS will be a success. No ifs or buts or maybe , you would have to be stupid or ignorant to think that either of those console will not at least have moderate success.
The analysts are actually correct. Nintendo is a horrible company that cannot manage their finances. Coupled with crappy baby games, no third party support, and shitty consoles, Nintendo will die pretty soon if they cannot become a manly company like Valve. HAHAHAHAHAHAHAHAHAHAHAHAHAHA
~THE REAL Bill~
Hahahaha , that’s why Nintendo has made the most money out of anyone in the game industry .
And that’s why the Wii had the most shovelware out of anyone.
that ios baby, go back to the bathroom to see if pubic haire has grow.
And ? The wii also had Twilight princess , Mario galaxy 1 and 2 , Smash bros brawl , Skyward sword , The last story , Xenoblade , DKCR , Metroid prime 3 / trilogy , NSMB wii , Mario kart wii , Monster Hunter tri and so forth.
Ghost squad from sega was also a great game people ignored.
The Wii had the most shovelware because developers saw its massive popularity and moved across to it from the PS2.
“No third part support”
Then explain games like Bayonetta 2 and Ninja Gaiden 3: Razor’s Edge? I bet you’re mad about the fact that there is no Diablo 4 Wii U announcement.
No diablo for wiiu yet :)
After Diablo 3’s apparent failure, why would anyone hype themselves up for another
I did like it for what it was a fun loot searching adventure but it also has his bad things like the real money market.
I hate real market money, it’s so cheap and abusable.
The analysts are correct (for the most part). I don’t agree with bringing first party games to other consoles, but the rest is spot-on.
SEBASTIAN: He’s right; Nintendo needs to get their momentum up during the next 9 months. A lot of Wii U owners haven’t bought any games (yes, I know some of you bought every single launch game -.-).
COLE: Absolutely correct. Releasing a 3DS XL, in my honest OPINION, was silly. The names are getting ridiculous. DS, DS Lite, DSi, DSi XL, 3DS, 3DS XL. If I was a little kid and my parents told my grandparents what I wanted for Christmas, they would probably get me the wrong DS.
But Cole talked more about the marketing. There was such little Wii U marketing. Nintendo DID keep quiet all 2012; don’t deny that.
PACHTER: He didn’t say anything like, “Nintendo SHOULD blahblahblah,” he just said, “IF they do blahblahblah, it’d have to happen with a new CEO and would start with GBA on mobile phones.” He’s absolutely correct.
JESSE: If you think this guy is an ***hole, then you didn’t read what he said. There’s nothing wrong with what he said.
PIDGEON: Correct, too.
None of these guys were Nintendo-hating. Even if they said something negative and mean, that doesn’t mean they’re hating on Nintendo. There aren’t ONLY positive things to say about Nintendo, especially now. They never even said a negative thing.
The funny thing is that digital sales are not even considered in the so-called sales figures. People seem to assume that Nintendo gamers don’t buy eshop games, that’s an outright falsehood.
A lot of their loss, if I recall, was actually due in part to the exchange rate, and if I’m not mistaken its because our dollar is sucking(though it could’ve been the yen, I don’t remember), but honestly I would bet on the dollar, seeing as how our worthless government and the fed seem to think that printing more ‘fiat’ money is the solution to a money crisis…
Sadly, inflation will be a major feature of our economy for years to come…. Elections have consequences.
Sadly, inflation will be a major feature of our economy for many years to come…. Elections have consquences, the uninformed and misinformed are in the drivers seat.
I can agree with the software appeal big-time. Software sells hardware. Nintendo should really start pumping out the 1st party games and gain appeal that way. It’s what they’re good at, but what they’ve been doing the least of… which doesn’t make much sense. I can’t tell you how many people literally said “I need to buy a 3DS now for Pokemon X/Y”. I don’t know what they’re thinking when it comes to marketing… but it’s not very good. D; c’mon Nintendo… I love you but you needa wake up and realize what your fans are expecting! It’s like they’ve lost touch with gamers.. :\
I just found it amazing how the small 1:30 trailer for Pokemon X/Y persuaded so many people that I know to want a 3DS. They need to make the magic happen that way! Take us by surprise! :D
I am 100% sure that Nintendo has atleast the double of big anouncement for wiiu. The year just started and they droped a big bomb whit the Pokémon anouncement,if that was the only anouncement people think Nintendo got for the year they are going to get cut whit there pants down.
How many people have said they need to buy a 3DS ? Nintendo isn’t fucking forceing people to buy 3DS’s , jesus christ the DS has had TOO MANY pokemon games and has been out for nearly 9 years and you still want Pokemon on the DS ? I thank god that X and Y is coming to 3DS. And quite frankly if you feel pressured into having to buy a 3DS for one game then either don’t buy it or go and buy some of the many other awesome 3DS games to justify your purchase.
Are 3DS’s too expensive for some people ? You can get them pre owned in England for £80. That’s peanuts…
but…they might come with porn on them Dx
I think I misunderstood you a bit lol , but still my point remains…
I was saving money for a 3DS, but when pokemon x/y was announced, the 3DS moved up to the top of my priority list. I’m now saving for a 3DS XL with Paper Mario, Kid Icarus and Ocarina of Time 3D :D
http://yfrog.com/scaled/landing/616/440ctu.jpg get this then
I think everyone needs to relax. E3 is just around the corner, its going to be Nintendo’s chance to show off some upcoming games.
Even if Nintendo does this, the Wii U will never succeed. It is such a baby console. Nintendo needs to learn from the manly Valve company and learn how to cater to professional, manly, hardcore gamers like me. If not, Nintendo will be finished!
~THE REAL Bill~
Everyone ignore this guy. Life gets easier this way.
Nintendo has an advanced civilization now.
We don’t behave like apes thank you.
Other than that, they seriously need to market Wii U a bit…right nowl…especially in Europe it is basicly quiet…
I would buy a Wii U if the price was lower and some really exiting nintendo-onlys would come. i WILL buy it sooner or later, but at the moment it’s not interesting enough for me to pay such a price. nintendo must NOT offer their best franchises on other platforms than their own i think. this is what nintendo still makes special.
They’re already selling the console at a loss. Don’t expect that to happen any time soon.
Not a big deal, I’m sure they are making money…
I think Nintendo is allowing third parties to have at it for awhile before they start pushing out titles…. Its really hard for developers to compete once Nintendo starts pushing out their famous IP’s.
Wow…at least someone else sees the reasoning in not announcing big titles…let the third parties gain a foothold, so they don’t go jumping off the boat just out of port, trying to swim for shore, much like the Wii, where most tried to get back on later and forgot their baggage(cheap ports and shovelware)…
Really? Nintendo need to show new games?
I just thought they were going sell SNES games -__-
And 3do disk :)
Gona pull out that Zelda: Wand of Gamelon at E3
And hotel Mario hd xD
I HOPE THEY HAVE SPAGHETTI!
I actually agree with some of these. Nintendo kinda crapped out on marketing for Wii U and there were no announcements till a few months before the release. They need to put out some type of software for smartphones; it’ll be good for them I think. Maybe a Nintendo direct mobile or something similar to the Nintendo news for the 3ds.
You shouldn’t agree with any of them..if Nintendo actually took these analysts’ advice, Nintendo would be wiped off the face of the EARTH!
I agree. These analyst want to see Nintendo out of the hardware business for good. The best way to do that is allow Nintendo games on other platforms… It will happen eventually, but it will only happen after the console market is completely gone, which will probably happen in the next 3-5 years as smartphones, tablets can do just about as good as current console hardware like the ps3 and 360, although they are not up to the speed of the Wii U yet, but they will be 3 years down the road.
I don’t think nintendo should put any of their old games into mobile/tablet devices. They would lose so much credibility in people’s eyes.
Nintendo should market the Wii U better. They should’ve shown how the Wii U could change the way you play games. Just like how they did in E3 2011.
Also, WHY THE FUCK IS PACHTER STILL WORKING!?
Seriously, the guy is a moron.
“Oh Nintendo wont do well if they dont make their IP’s third party. What? What kind of nonsense is that?
“GBA games will most likely come to mobile”
Not a fuccccccking chaaaaance
He did have a decent point in the Iwata thing though. While bringing older games to mobiles will not help Nintendo at all and they’re not going to any time soon, a lot of this is due to Iwata’s leadership. The man who has led Nintendo through the last decade and the incredible success in the seventh generation. There is no chance that Nintendo will push software out onto other hardware as long as he’s in charge, thank goodness.
His point was right, but unintentional for him.
I mean seriously, why would they do that?
Thats really what i want, an unpolished unimaginative Nintendo game because the system has to cater to every system, fuck that.
Exactly. Iwata has proven Nintendo is a successful hardware company, so the analysts should really shut it about them putting software on other consoles.
Pachter is a twat. The man is like the weatherman of analysts, mostly wrong but still keeps his job…
why the hell is pachter always wrong about everything? is he doing it on purpose?
I don’t think the 4sword is coming to The iphone
Disagree with ALL these analysts! While I would love to play Halo 4 on my Wii U, the strength of Nintendo, Sony, and Microsoft is its software. Nintendo would be a fool to release their software on anything other than a Nintendo console. I love Sony, but with their financial woes, maybe these analysts should be offering this advice to them!
Couldn’t agree more!^
The day a Nintendo 1st party title shows up on a 3rd party system is the day Nintendo dies….THAT is what makes Nintendo special. Why own a Nintendo console if you can get their games on say an Xbox or Sony console??? THESE ANALYSTS ARE IDIOTS!!!
I forgot to mention that for the last 2 years, Nintendo has done a Nintendo direct in February to talk about all the games releasing up til E3, with a 1st party game releasing in May. I expect them to do this again this year, with Pikmin 3 releasing in May! This is why I believe Pikmin 3 was pushed back till second quarter.
Nintendo’s franchises on mobile devices ?
NO.jpg
Screw you Pachter.
Well idk about other people, but I don’t want Nintendo to become another Sega.
Man I’m really getting tired of analysts. They either say the most obvious stuff that everyone knows, like “Nintendo needs to put out more games and make a larger presence”, or complete garbage like “Nintendo needs to go third party”.
They will, it’s just Nintendo is playing it smart and waiting.
A 3DS with larger screens, like 7 inches and a web browsers like the Wii U and MiiVerse on 3DS and integration between Wii U and 3DS and you have huge success, plus a new Wii U Sports and Mario Kart Wii U.
How can the #1 gaming company build momentum? They’re already on top so they got that down. And E3 is coming soon, dudes. Just relax and leave luck to heaven.
You can say that again. I’m so darn bored with the Wii U at the moment that I don’t see me EVER buying one. Even when Pikmin 3 comes out, I’m not sure if I’ll buy the Wii U. It’s not worth buying a new console just for one game that I care about.