This Week In The Business: 'Nintendo Will Be Forced To Prematurely Lower The Wii U Price'

What's happened in the business of video games this past week ...

QUOTE | "Nintendo will be forced to prematurely lower the Wii U price." — Colin Sebastian of RW Baird, talking with other analysts about Nintendo's lackluster performance in 2012 and whether the company should go platform-agnostic with its games.

QUOTE | "You can't have 18-34 year old men making games for every type of demographic." — Laura Naviaux, senior VP of global sales & marketing for Sony Online Entertainment, talking about why it's important to have more women in the game industry.

QUOTE | "This is a culture war, a clash not of scientific evidence but of firmly held beliefs, so rationality isn't invited." — Rob Fahey, former editor of GI.biz, talking about the debate over violent games and real-world violence.

STAT | $US400 — Possible price point for the next-gen PlayStation, Xbox consoles, according to Baird Equity Research; this compares to $US399 for the Xbox 360 initially and $US499/$599 for the PS3.

QUOTE | "Traditional games have become bloated with too much that isn't really vital to the gameplay." — Steve Peterson, West Coast Editor for GamesIndustry International, talking about how game design should change for traditional game companies.

QUOTE | "A lot of companies enter this space without truly having a sense of fun." — Jamil Moledina, co-founder of new gaming company Wormhole Games, talking about what will distinguish their company's games.

STAT | 9.7 million — Number of daily active users for King.com's Candy Crush Saga, making it the #1 game on Facebook; this bumps Zynga from the top position it's held for several years.

QUOTE | "The last thing parents want to hear is denial and deflection from the people trying to sell their kids on gore and violence." — Brendan Sinclair, GamesIndustry International journalist, talking about how the industry should respond when called out about violent games.

STAT | 3 million — Number of units Guild Wars 2 has sold in under five months; this compares to 1 million units of Guild Wars sold in its first five months.

QUOTE | "It's always been a good idea to make a game for a niche." — Simon Roth, indie developer, talking about why niche games can be a good way to make a living.

STAT | $US1.1 billion — Amount Sony just made by selling their US headquarters building in New York; Sony has not yet decided where they will move to in Manhattan.

QUOTE | "I'm calling it a gaming revolution." — Chris Taylor, designer of Dungeon Siege, talking about the advent of Kickstarter and how it lets developers work directly with customers on game design.

This Week in the Business courtesy of GamesIndustry International

Image from Shutterstock


Comments

    Cool, $250 and I'm in....

    Nintendo will drop it 2 months before Xbox launch.

    Every single week there's something about Nintendo making games for other platforms! It's not happening! You would have to be mentally retarded to keep believing that it might. As long as they still have a console, their games will not be on another platform.

    Why don't MS and Sony ever get this treatment? Is it all just wishful thinking or has nobody bothered to look at Nintendo's first party sales numbers? Because here's a little fact, their games sell pretty damn well as they are.

      Probably the main difference is that games are only a small part of Microsoft and Sony's businesses and they don't develop many big games in-house. Nintendo is only in the games market and makes a ton of games themselves.

      At one stage, people furiously believed Sega never would as well with Sonic. Maybe one day Nintendo will. Doesn't matter how giant a company is, it eventually, eventually comes down. One day Nintendo will fall. On that day, they may indeed decide to go software oriented rather than hardware like Sega did. Personally, I don't see that happening in that way but others do. It's not outside the realms of possibility.

        I'm not saying it will never happen, it's just not going to happen at least within the next couple of console generations. That's why all this talk is useless. Nintendo are still relatively healthy right now.

        Last edited 20/01/13 2:40 pm

          How is this conversation even happening, though? This is the company that sold, by a landslide, the most consoles this generation. Have I missed something? Why is this all anyone is discussing these days.

          Of the three consoles I own, Nintendo's is the one I have the least investment in, but still, what are they doing so wrong that a few years of disappointing sales can undo an entire generation of massive success?

            People like to see once great companies turn into shells I guess. Business Analysts get off on this kind of stuff. It makes them look like they're doing something.

            Every company goes through these kinds of lulls. Sony (both Playstation and the rest of the company) is in an even worse position at the moment. It doesn't mean that either one of them are going to fold though. Their cash reserves are both strong enough to see them get through a softer sales period. As long as the sales are a bit lower though, people are going to be calling for the end of their consoles. Just because they can. And just because sites like Kotaku like to report it.

            Plus, as they say, never doubt Nintendo. They have an uncanny ability to completely turn everything around.

            selling consoles wont get you rich... its selling products for those consoles that make you rich... attachment rate of 1.5 games for every wii console is not good! hence why they had to roll into the next gen (for them that is) as opposed to the 8-9 xbox have.. a console has to keep its consumers interested so when the consumers realised the wii was fun for 5 minutes they left it there to collect dust. Nintendo got lucky in the fact that their product was a re-badged gamecube and could actually make money off their console sales alone but a consoles success is measured in ongoing sales of games which it hasn't been doing for years now.

            I don't think the wiiU is going sell that well at all. People will remember how the wii was awesome for a whole 5 minutes and won't justify spending another $400 on something else to do the same. It's gonna be a tough ride for Nintendo, I fear..

            They'll join sega soon enough. sad, but true.

              Nintendo's software sells a truckload! Both the handheld (a market they have had stitched up for the last forever) and console games they create sell well into the millions with great regularity. The fact that they don't lose money on hardware (or much, and never for long), also means they aren't hindered in that money printing.

              As long as the DS line dominates the handheld space, they could afford to blow a console. Not that i think that's the case at all with the WiiU. We'll see what happens when the competitors cards are revealed, but it'll take more than the WiiU being beaten to take them out of the game.

        Sega still make Arcade Hardware, that being said if Nintendo did not have a console yes I could see them going software only instead of going belly up. But I honestly hope they can continue to make both Hardware and Software.

        And at the present point in time, anyone saying it's in Nintendo's best interest to sell on other platforms just isn't thinking it through.

          Indeed, its starting to look a bit wavy for Sony at the current time. PSVita is a complete, undeniable flop. PS3 is a hit no doubt but all other areas of the company have suffered incredibly. PS4 is going to be a major gamble too. It's going to be interesting to see if this will be a succesful generation for Sony as well or not.

            Honestly I feel it's a bit early to call the Vita a flop, but they need to release some quality exclusive software and that's Sony's biggest problem they lack exclusives for the Vita. The upcoming Monster Hunter (a Capcom property that isn't nessecaryily exclusive) and the new Pokemon game will move 3DS units and what does Sony have?

            Edit: I may say the Vita isn't dead, but I admit it's on Life Support.

            The other thing is Nintendo can win a fight with an underpowered machine, they've done it before (Gameboy vs Lynx and Game Gear) because they can put the must own games on their machines.

            Last edited 20/01/13 11:20 pm

              Nintendo are without a *doubt* the Kings of the handheld market. This is without question and there's mountains of proof undeniable. The Wii was not a flop by any means sales wise, but however, when you look at what games are made by third party studios from say, midway through its lifespan to end, it's not a great picture. I do hope the same pattern doesn't befall the WiiU.

      I think the reasoning here is because both Sony and Microsoft to some certain extent do make games for other platforms. Sony has the PlayStation mobile suite which works for an array of both Sony and other branded Android smartphones, which in turn gives access to a handful of games from the PSone Library.

      Microsoft has Windows Phone 8, a phone OS running on multiple different smartphones by manufacturers such as HTC, Huawei, Nokia and Samsung. Windows Phone 8 has access to the Xbox Live infrastructure which could mean sometime down the track, if not already to some degree they could implement support to play some of the games available on Xbox (not physical boxed games, but some of the casual games available in their online store and such).

      In reality the only company that isn't in some way testing the water with other platforms is Nintendo, that's why people keep bringing it up every other week.

      Last edited 20/01/13 4:48 pm

    Missing from the list: "If it can be remade in 2D, Zynga will rip it off."

      '2D' is a stretch though - more like 'coloured-tiles'

    Xbox360 was AU$649 here in Australia at launch...

    “Traditional games have become bloated with too much that isn’t really vital to the gameplay.”
    I find many games are, lacking, in incidental detail. Have fun playing Candy Crush Saga - I'll be over here playing Grand Theft Auto V.

    “A lot of companies enter this space without truly having a sense of fun.”
    And a basic knowledge in Game Design.

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