Wii U in Dire Straights.

This article kicks off the beginning of a 3-part article looking at the three new consoles. With the PS4 being announced next week, Nintendo are in trouble. The Wii U hasn't taken off as they would have liked and with new consoles coming, Nintendo should be seriously worried. In fact, latest reports indicates that Nintendo sold less than 100,000 units with a figure of 59,000 being mooted. This is shocking for a new console and Nintendo should seriously be worried. The Wii U is already being sold at a loss, presumably because of the high cost of the controller.



This graph courtesy of Ron Workmans blog, (http://www.ronworkman.com/) highlights the trouble Nintendo are in. in the past 4 years sales and income has plummeted. The 3DS has taken a battering due to smartphone's and Nintendo's hope that the Wii U's innovative controller would lead them to the heights of the orginal Wii has not come to fruition.

The Big Worry

Some might say the Wii U has been out for a matter of months and therefore, they should be given more time to sort things out. It's clear to see now though, that Wii U will never reach the same popularity as the Wii did. The Wii did so well because of the innovative motion controller. Nintendo have gone for the same strategy but this time the casual gamers are nowhere near as excited as before and this,for me, provides the killer blow for Nintendo.

One year advantage?


The reason I really worry for Nintendo is that they have blown that year advantage. An opportunity that Microsoft used for the Xbox 360 to get some sort of foothold. Nintendo should have had a number of stellar games out during this year, yet Wii U owners have very little games to shout about.

The Position

What perplexes me is that they have a console that can't really be called next-gen or current-gen. Yes, it's slightly more powerful than the Xbox 360 and Ps3 but what about when the PS4 and next Xbox arrive? These devices will technically wipe the floor with the Wii U and will provide Nintendo with the same problem the Wii had once the hype died down. 3rd parties will be reluctant to release games on it while they focus development on the more powerful Sony and Microsoft consoles. The casual market is open to all now and Microsoft and Sony will make sure they take advantage of that market from the beginning.

Sony

Sony are going to hit next-gen hard with the PS4 and my next article examines this. That being said, Nintendo have got it all wrong. They never wanted to compete with Sony and Microsoft directly in technical terms, but the level of innovation doesn't catch the markets attention as it did with the Wii.

My Prediction

• Nintendo start a big marketing push to combat the release of new consoles. Expect big games with a big marketing budget. Don't expect a price drop.

• The next Xbox will pick up where the Wii left off and target the causal market leaving Nintendo in its wake.

• The future looks bleak with both the Wii U and 3ds struggling too find a position in the market which appeals.

The next few years will be bleak for Nintendo. They might have already reached the point of no return. Will they be the next Sega? Leave your opinions on the comment section.

How do you fix a problem like video game piracy?

Video game piracy is a beast that the industry just cannot tame. Many different techniques have been implemented to try and tackle this problem yet none seem to work. With pirated video games becoming more easily accessible by the day, it poses a massive hurdle for the industry and one that the industry is determined to crack. This article aims to examine the ways in which the video game industry tries to combat piracy and to see if those methods are effective.

The main thing that Video game publishers and developers must realise is that in their attempts to combat piracy they must punish the pirate without punishing the consumer. Many companies incorporated anti-piracy software onto the’ install disks’. Consumers were getting the sense that they were being punished for the actions of the pirates . EA games tried to do this with the game ‘Spore’, they added DRM software onto the disk. It backfired and the game went on to be one of the most pirated games ever. It turned out that pirates could bypass this software protection while consumers were forced to live with it. Publishers therefore must reward the consumer for purchasing the game.This can be done in many ways. They could offer money off the sequel of that game when it comes out, offer free downloadable content or offer free merchandise with every order. One of the main reasons for piracy is that people demand more for their money. More and more games are being released every year and the consumer only has a certain amount of money available to spend on video games. By offering a better value proposition the consumer is more likely to purchase the game rather than pirate the software. Punishing the pirates can be done through numerous ways but the traditional way of fining the odd pirate just does not work. Video games must play to their strengths; just recently EA games unveiled ‘Online pass’ which allows the consumer to enter a code to access the online play, a code is given to anybody who buys a new copy of the game. The importance of this is that people who pirate games will not be able to use one of the most important features in today’s games, online play. Of course people could still pirate these games and use the online feature by only paying $10 to acquire a code; this will allow publishers to get extra income from pirates who would not consider paying for any part of the game. As another bonus EA games will receive extra income from the used games market. Other publishers such as Activision must take note:, Call of Duty is famous for its online experience. If the consumer can utilise this same method you will see people purchasing the game rather than pirating it so that they can play online.

Another way to combat piracy is to simply make a good quality game with increased longevity. As stated earlier, consumers will not see the value of paying full price for a game that might be great but only lasts 10-12 hours. By making a game of good quality and longevity the consumers are going to see better value and will be more likely to buy the game. If individual’s were to evaluate a video game and realise it was not worth their money they are more likely to pirate the game instead of before when they would not buy it and consequently never play it, this is due to the convenience and easiness of pirating in modern times.

 Another point to consider for developers is which type of hardware they should develop for. The Sony Playsation 3 is notoriously hard to crack and therefore pirated games can’t be used on that system. On the other hand, the Xbox 360 and the Wii can be cracked by any individual who has access to the internet and a decent guide on how to crack the system. The PC needs no cracking at all and has become the pirate’s choice when choosing to pirate a game. Developers should work with these hardware companies to make sure that they are hard to crack or they could look at just developing solely on the playstation 3 as long as this trade off is a viable one.

The final point that could help combat piracy is by becoming a publisher or developer that listens to the community. By having a community that respects the organisation the chances are, it is  more likely to buy the game and discourage piracy. Companies can do this is by regularly communicating with people on forums, listening to their key consumers and offering incentives. These incentives could be  access to Beta’s or money off codes for being a member of the organisation’s forums or websites. More people will pirate a game if they feel the developer or publisher disregard the consumer’s desires or neglect them altogether. The developer’s ability to keep connected with their key audience is a very powerful tool and should be considered by publishers who have a poor relationship with their consumers. The knock on effect could lead to greater sales and thus profit margins. If all else fails developer’s 2D boy allowed consumers to name their price when purchasing ‘World of Goo. Although a lot of people chose to pay one penny for the game it was still a huge success. It could be said that would be pirates who had a chance to pay what they liked for the game would do so instead of pirating it.

In conclusion, there really is no sure fire way of stopping piracy. The old method of fining people randomly for downloading Illegal software is outdated and does not work. Publishers have to be creative and think outside the box, with people having less disposable income more and more will turn to piracy as a way of fulfilling their gaming desires. By using some of the methods stated in this article developers and publishers could start to see piracy for their game falling and their profits rising.

James Foti
Contact me: jamesfoti1@hotmail.com