Showing posts with label videogames. Show all posts
Showing posts with label videogames. Show all posts

Friday, 15 February 2013

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 is a graph for Nintendo fanboys so that you can somewhat grasp what kind of shape the company is in. I know you go on Nintendo fan pages and see the upbeat version of a press release about the Wii U sales but they just aren’t great. There also isn’t much to indicate they will get better any time soon. The above graph is what the net sales & net income (in Yen) looks like for Nintendo over the last 4 years. 
Iwata (Nintendo’s CEO) has said there will not be a price mark down. That almost goes without saying. A price markdown in the 1st year or even 2 is likely a sign of collapse with any console. Nintendo lost almost a half of a billion last year and it looks like they will make a slight profit this (fiscal) year. If they don’t, who knows what the future holds. I understand the profits were really high in the past which makes the incline even sharper.  I know you might not want to think it but what you are seeing is a near catastrophic collapse of a company. 

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.

Thursday, 17 January 2013

Next Gen: The Generation of Casuals and Blockbusters


As you've noticed on this blog, my posts are starting to focus on the next generation of console's. Looking back, this gen has seen some new trends. The casual market has really picked up with the Wii and Kinect. However, there has been question marks regarding the longevity of the casual market. Wii's sales quickly took a nosedive while Kinect and Move have been criticised for the lack of games that really utilise the technology. We have seen the rise of blockbuster titles that have smashed records and put video games's on par with movies. This article looks at why the next generation of consoles will focus on blockbuster titles and improving the casual market.

Companies investing in blockbusters

As is seemingly the case with every new generation, costs rise as developers invest more in graphics, sound, research and marketing. Publishers are looking for the next big thing, an existing franchise or a new IP that can last a whole console generation. The risks are high but the rewards can be huge. It will mean that we will see a lower number of games coming out, with a focus on a few big budget, blockbuster titles. In the first couple of years of the next console cycle, expect to see new IP's look to quickly establish themselves.











Next-gen game Watch Dogs has all the hallmarks of a blockbuster title.

Along with the new IP's, the successful current franchises will continue to sell incredibly well. The next Assassins Creed trilogy will continue on next-gen consoles and so will Call of Duty. These are cash cows that don't look like dwindling.












Of course, expect Activision to invest heavily in the COD franchise

Simply put. Publishers will be less inclined to invest in lots of different games. Instead they will hedge their bets on a fewer number of blockbuster titles.

The Casuals are here to stay


Disney Infinity was announced a few days ago and is set to combat the extremely  popular, Activision owned, Skylanders series. The concept sees video games crossed over with real action figures. Unlike Activision, Disney have access to a wide range of Disney, Marvel and Star Wars characters. The casual market will eat this game up. Although the game is set to be released on current-gen consoles, expect it to be on next-gen consoles when they are announced.










Disney Infinity will capture the casual markets attention for years to come.

Developers and publishers will continue to find concepts like this that look to keep the casual market engaged. The problem with party games such as 'Just-Dance' and 'Wii Sports' is that the casual market got bored of these titles quickly and therefore, there wasn't longevity when it came to usage. Just Dance rolled out the sequels to great success but eventually people will get sick of it, the market for these types of games are already saturated. Games like Disney Infinity will add DLC and extras to maintain sales and interest of the casual market for years.


What new trends do you think will arise from the next generation of consoles? Let me know in the comments below.