As I read the first part of a great 20-year recap of Nintendo’s successes and foibles over at Next Generation today, I couldn’t help but ask myself, “was Nintendo ever really out of the game?”
Common knowledge seems to accept that the GameCube was the sour cherry atop a sundae of failure that was initially created in the twilight years of the Nintendo 64, but I’m not so sure after reading this article. Even at it’s “worst” Nintendo was making profits of more than $315 million, and its software continued to innovate even if it wasn’t selling at a 90% market share like it did in the hay day of the NES and SNES (90% of the entire video games market in 1990 — that’s utterly ridiculous).
That $315 million slump was in 2004, when the GameCube was giving off a death rattle felt by the entire industry, and people were writing off Nintendo as a kid’s gaming company that lost its edge (some ill-informed individuals even suggested Nintendo pull a Sega and go software-only. Fools.) Nintendo may have been more of a portable gaming company during these Dark Ages, but then again, without this period in its history Nintendo might never have stated R&D on the Wii. How a company can be so easily written off by the mainstream gaming media with $315 million in the bank is beyond me. My checking account has less than $315 and I’m still doing just fine.
Following the slump was an avalanche of Game Boy SP and Nintendo DS sales. The clam shell clunker sold millions in its first few weeks, shutting up critics and naysayers with a slew of ports like Mario 64 DS and Band Bros. The Wii arrived the following year. This leads me to believe Nintendo was never in any real danger. It was a sleeping giant. Now it’s awake again and it decided to jump into the pool with a billion dollar sized cannon ball and disrupt the hell out of everyone. The water level rose, Nintendo landed on Sony’s head, and Microsoft got a cramp because it drank too much extreme-to-the-max Mountain Dew. That’s where things stand today.
[Thanks Paul and FnbyDstryr]
I realize that we're talking mainly about home consoles, but Sega isn't really software-only. They've just scaled the hardware part of the business back to their roots. Specifically, they are still making arcade games for their GameWorks franchise and other arcades. For example, Virtua Fighter 5 was an "arcade exclusive" for 6 months (in Japan) before it was released on PS3, and "House of the Dead 4 Special" (playable at GameWorks in Chaumberg, IL), was released this year.
The worst that could have happened to Nintendo would have been a shift to portables only, and look at them now. Maybe in time Sega will learn a few things from their arcade business and return to our living rooms, just as Nintendo has redeemed themselves by bringing the the ideas of the DS to Wii.
To zorikin: it's "Schaumburg, IL"….
About the posting: I actually think Nintendo is the only gaming company that has never been on the red since it started game console development. There were periods when they would rely on their handheld gaming profits to stay on the black, but, unlike Sony, Microsoft, and SEGA (and even the only-software developing firms), I don't think they have ever been on the red!
Can anyone confirm this?
It's hard to imagine Nintendo ever being in grave danger looking back from their position now, but don't any of you people remember 2003-2004 when stores actually began to stop carrying Nintendo products, especially in Europe? If they hadn't gotten the DS out when they did, they very likely would have ended up a Japanese company who didn't bother exporting their wares to the rest of the world.
Sure, they were still making money, but eventually, when stores refuse to sell your producs, you eventually stop making money. Thankfully they pulled out of their nose dive in time…. just as I suspect Sony will do over the next few years now that the albatross of Kutaragi is gone.
I disagree that Microsoft has stalled, too. Sure, they're sucking in Japan, but everyone who isn't Nintendo is sucking in Japan at this point. They've gone from being the only sucker to being just one of the suckers. Here in the US I think they may maintain their sales lead over the Wii until after Xmas 07. And don't forget, they're making money on the 360 now, even if not as much as Nintendo makes on the Wii.
I see the 360 and the Wii selling very close numbers this holiday season. The Wii will move as many units as they can crank out, mostly due to price and the novelty of the control scheme. Microsoft will enjoy a huge number of 360 sales with Halo 3 fueling the fire.
Personally, I have both a 360 and a Wii, but oddly enough I find myself
doing the bulk of my gaming on my trusty old PS2. I don't play my 360 very much due simply to the fact that games for it are too freakin' expensive at the moment. But, I will be plunking down for Mass
Effect, believe you me. The Wii is cool and all, for what it is, but I don't kid myself by trying to claim that it's anything other than a system for kids. The same goes for the DS (which I also own and don't play.) What serious games does the DS offer that go beyond Sudoku, movie licensed kiddie crap, and those weird ass quirky games that appeal mainly to a Japanese audience?
I'm happy for Nintendo for their success, and I wish them well in the
future, but after being badly disappointed by both the Wii (finally an online capable console and no online multiplayer? Da hell?! When it finally does arrive, it'll be for Pokemon? Again, da hell?) and the DS, I doubt I'll ever own another console from the big N.
Nintendo just needs to suck it up and admit that they're a kiddie console maker. It's their bread and butter, so there's no shame in denying the soccer mom market that's keeping them going. Own it, Nintendo. Embrace the fact that you are not and never will be taken seriously by people who enjoy games that don't involve bright colors
and plumbers. I cannot digest how very few of the games available
for the Wii aren't just video game iterations of the kiddie movie of
the week. My son plays the Wii, and loves it. But, he's 6. And,
most of what he does play on the system are Gamecube games.
I think that says a lot right there.
@ InvisibleMan – "Can anyone confirm this?"
Yes, it's definitely spelled "Schaumburg", you FIB!
I'd tend to agree that Nintendo has more than likely always been in the black (at least since they got into videogames). Even when stuff like the GameCube wasn't selling like they hoped, GBA was doing rather well.
And I'll say it again: I know a lot more adults (actual adults, not children in twentysomething men's bodies) who play the Wii and DS than children who do the same.
Personally, when I'm not using my DS as a media player, web browser, or for Nitrotracker, I enjoy Nanostray (yes, still), NSMB, Konami Arcade Classics, Clubhouse Games, and, yes, once in a while I still put in Brain Age. I can't wait for Zelda, though I imagine you're too "mature" to play something where the characters have such enormous eyes. I own no movie tie-in "kiddie crap" for either system, and the fact that I'm American, have never really been into Japanese culture, and still love Electroplankton should indicate that maybe you're just not smart enough to understand the "weird ass quirky games" you deride.
Unless the kiddie market has suddenly gotten bigger than the adolescent boy market, sales figures would appear to agree with me.