Nintendo's business strategy

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Avatar Roku

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According to an article I found, [http://videogames.yahoo.com/feature/wii-s-future-in-motion/1270287] because of Nintendo's apparently superior marketing strategy, they make $6 on each Wii sold, while MS breaks even with each 360 and Sony actually loses money with each PS3 sold. What so you think of this?
 

GloatingSwine

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Nintendo's business strategy isn't directly comparable to Microsoft or Sony's though, because Nintendo only makes money on selling games and game hardware.

Microsoft, by contrast, makes it's biggest money from it's Server and Office divisions, and can then spend that money on living room adventures like the Home Entertainment division. Losses taken on the Xbox disappear when compared with the profits made by Server and Office. Nintendo can't eat losses on the Wii like that, so they don't.
 

data_not_found

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Nintendo just makes games that look like a lot of fun, but after 2 hours they lose all their appeal. $30 bucks an hour per game sold? Not a bad strategy for them, shafts gamers though...
 

NewClassic_v1legacy

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orannis62 said:
According to an article I found, [http://videogames.yahoo.com/feature/wii-s-future-in-motion/1270287] because of Nintendo's apparently superior marketing lower-manufactoring cost strategy, they make $6 on each Wii sold, while MS breaks even with each 360 and Sony actually loses money with each PS3 sold. What so you think of this?
Last I heard, Microsoft still loses a bit with every 360, although not nearly as much as the PS3. Although companies losing money per console sold isn't all that new, as companies have been doing it for several generations now.

As far as the marketing, it's really that Nintendo has a larger audience to build off of. Games like GTA IV, Assassin's Creed, Halo III, etc. all fall to the Nintendo simply because that even if a game appeals to 100% of gamers, the Wii will still pick up countless non-gamers. Instead of just teens-and-college, the Wii gets soccer moms, grandmothers, grandfathers, mothers, fathers.

Although, I don't think it's a market that can last. Nintendo has a shrewd business strategy, but if you ask any gamer what system they think a gamer should buy, none of them will suggest the Wii. Titles like Twilight Princess, Trauma Center, Metroid, and No More Heroes will be overwhelmed by the "1001 Fun Carnival Games!" and "Nintendo Puppies: Now with less social interaction!" Which, in turn, has sort of alienated gamers from the Wii, despite having several fantastic titles.

The reason is because the awesome titles are so inconsistent. For ever single excellent game, the player is pelted with countless bad ones. Especially because the console seems so gimmicky because developers can't seem to separate gimmick from mechanic while writing for the Wii.

So, Nintendo is making a lot of money out of the door, and a lot more for every release similar to Wii Fit. But every time you look at it from a gamer's perspective, Nintendo is letting gamers down.

Not because the Wii is just a paltry casual-gamers' console, but because while they're still making amazing first-party content (Metroid comes to mind), the third party hasn't figured out that the Wii is still a gaming console, not a messenger for PopCap. Until they figure that out, and start treating the Wii more like a console, then the Wii's market will be flooded with drivel.

Nintendo, use your brain here. Teach third party how to write for the Wii. Games like LostWind and World of Goo show that developers can do such amazing things with the gameplay. Why don't you slap the devs around until they start treating it as such? You're killing your home market, guys.

And you, third party developers. Don't be idiots. You're pretending all the Wii has is casual games. Stop it. Every flash game that's appealed to a hardcore gamer audience (Look around, they're everywhere!) has shown that the Wii can do some awesome stuff, regardless of the format. All PC games don't force the mouse on you, so not all Wii Games should force the Wii-Mote either. Use your head, and develop fun games for the Wii.
 

electric discordian

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Oh this will turn into yet another "Nintendo is the great Satan" threads, they make games that appeal to demographics other then hardcore gamers, get over it! Nintendos business model is obviously working for them so fair play.

The only thing I would criticise them on is the fact that there console is the least enviromentally friendly of the new Next gen consoles due to the use of arsenides in their circuit boards apparently.

Kids no matter hom much you like your wii DONT LICK IT!
 

Zippy1313

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The Wii does not have half the power of the other two. With cheaper parts comes cheaper systems.
 

Avatar Roku

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NewClassic said:
orannis62 said:
According to an article I found, [http://videogames.yahoo.com/feature/wii-s-future-in-motion/1270287] because of Nintendo's apparently superior marketing lower-manufactoring cost strategy, they make $6 on each Wii sold, while MS breaks even with each 360 and Sony actually loses money with each PS3 sold. What so you think of this?
Last I heard, Microsoft still loses a bit with every 360, although not nearly as much as the PS3. Although companies losing money per console sold isn't all that new, as companies have been doing it for several generations now.

As far as the marketing, it's really that Nintendo has a larger audience to build off of. Games like GTA IV, Assassin's Creed, Halo III, etc. all fall to the Nintendo simply because that even if a game appeals to 100% of gamers, the Wii will still pick up countless non-gamers. Instead of just teens-and-college, the Wii gets soccer moms, grandmothers, grandfathers, mothers, fathers.

Although, I don't think it's a market that can last. Nintendo has a shrewd business strategy, but if you ask any gamer what system they think a gamer should buy, none of them will suggest the Wii. Titles like Twilight Princess, Trauma Center, Metroid, and No More Heroes will be overwhelmed by the "1001 Fun Carnival Games!" and "Nintendo Puppies: Now with less social interaction!" Which, in turn, has sort of alienated gamers from the Wii, despite having several fantastic titles.

The reason is because the awesome titles are so inconsistent. For ever single excellent game, the player is pelted with countless bad ones. Especially because the console seems so gimmicky because developers can't seem to separate gimmick from mechanic while writing for the Wii.

So, Nintendo is making a lot of money out of the door, and a lot more for every release similar to Wii Fit. But every time you look at it from a gamer's perspective, Nintendo is letting gamers down.

Not because the Wii is just a paltry casual-gamers' console, but because while they're still making amazing first-party content (Metroid comes to mind), the third party hasn't figured out that the Wii is still a gaming console, not a messenger for PopCap. Until they figure that out, and start treating the Wii more like a console, then the Wii's market will be flooded with drivel.

Nintendo, use your brain here. Teach third party how to write for the Wii. Games like LostWind and World of Goo show that developers can do such amazing things with the gameplay. Why don't you slap the devs around until they start treating it as such? You're killing your home market, guys.

And you, third party developers. Don't be idiots. You're pretending all the Wii has is casual games. Stop it. Every flash game that's appealed to a hardcore gamer audience (Look around, they're everywhere!) has shown that the Wii can do some awesome stuff, regardless of the format. All PC games don't force the mouse on you, so not all Wii Games should force the Wii-Mote either. Use your head, and develop fun games for the Wii.
Wow, seems I had a bit of lack of understanding on the whole thing. My bad.
 

xitel

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Well, Nintendo has been in the console market MUCH longer than Microsoft and Sony, so it makes sense that their business strategy would be more effective than the others.
 

GloatingSwine

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NewClassic said:
Last I heard, Microsoft still loses a bit with every 360, although not nearly as much as the PS3. Although companies losing money per console sold isn't all that new, as companies have been doing it for several generations now.
Depends which model. They make some money on the Pro and Elite models, but lose some on the Arcade.
 

NewClassic_v1legacy

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orannis62 said:
NewClassic said:
orannis62 said:
According to an article I found [http://videogames.yahoo.com/feature/wii-s-future-in-motion/1270287], because of Nintendo's apparently superior marketing lower-manufactoring cost strategy, they make $6 on each Wii sold, while MS breaks even with each 360 and Sony actually loses money with each PS3 sold. What so you think of this?
Last I heard, Microsoft still loses a bit with every 360, although not nearly as much as the PS3. Although companies losing money per console sold isn't all that new, as companies have been doing it for several generations now.
Wow, seems I had a bit of lack of understanding on the whole thing. My bad.
Naw, it's cool. It's just that the 360 and PS3 have new hardware to push, while the Wii is keeping the hardware relatively light. Part of the reason it's so cheap to manufacture is because it's using 1 to 2 year old tech.

Conversely, Microsoft [http://www.ubergizmo.com/15/archives/2005/11/xbox_360_estima.html] and Sony [http://ps3.ign.com/articles/746/746482p1.html] pay a pretty penny for every console sold.
 

Avatar Roku

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NewClassic said:
Naw, it's cool. It's just that the 360 and PS3 have new hardware to push, while the Wii is keeping the hardware relatively light. Part of the reason it's so cheap to manufacture is because it's using 1 to 2 year old tech.

Conversely, Microsoft [http://www.ubergizmo.com/15/archives/2005/11/xbox_360_estima.html] and Sony [http://ps3.ign.com/articles/746/746482p1.html] pay a pretty penny for every console sold.
But I imagine that they make up for it, at least partially, with Games and DLC, right?
 

NewClassic_v1legacy

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orannis62 said:
NewClassic said:
Naw, it's cool. It's just that the 360 and PS3 have new hardware to push, while the Wii is keeping the hardware relatively light. Part of the reason it's so cheap to manufacture is because it's using 1 to 2 year old tech.

Conversely, Microsoft [http://www.ubergizmo.com/15/archives/2005/11/xbox_360_estima.html] and Sony [http://ps3.ign.com/articles/746/746482p1.html] pay a pretty penny for every console sold.
But I imagine that they make up for it, at least partially, with Games and DLC, right?
Oh, they're making a killing on that. It's how standard operating procedure has been for gaming for a while now. I think this is the first time Nintendo's selling consoles at a profit for several generations, although I don't know this, so don't take it as fact.