Just some general points while I wait for charlequin to reply. (Although I imagine that a lot I say here will be relevant to my discussion with him.)
Opiate said:
I agree. As someone who values skill/challenge over presentation/graphics, this is a shame for me, but it hardly affects me anyway. The highest skill quotient available for such games can be found on PC, and that's not affected. Essentially, I just wish more people shared my value for challenge and skill, but that isn't happening. The answer to my wish is, "too bad, Opiate."
Not that I necessarily disagree with your opinion here, but I believe that (perhaps somewhat
unlike Blu-ray and DVD) gamers will be made to evaluate consoles on the basis of their motion controls, whether they really want to or not. If the current escalating costs of development haven't already assured that coming generations of consoles didn't offer the same leap in graphics that we have come to known (thus shifting the differentiating features between generations to another quality), Microsoft and Sony's ventures into motion controls have sealed it. Nintendo's paradigm shift has worked: motion controls as the way of the future is an inevitability.
Opiate said:
Right. That part succeeded. And then from there, they were supposed to move upstream. That part failed.
Not that I disagree with the theory of disruption, but can I ask what people mean when they say that Nintendo should have moved upstream? Some people argue that this means that Nintendo should have gone after so-called "core gamers" - which appears to be much of a synonym for the 18-35 male demographic - but I disagree with this. To me, this demographic is still a very casual, downstream audience. I agree that they may be more hardcore than younger or older demographics, but if we were to imagine "hardcoreness" on a one to ten scale, I would suggest that the majority of them are at, say, five. I agree that theoretically, one can be at any place on the scale, but realistically and pragmatically I would argue that this is unlikely. If we try to place the whole videogame market on this scale, it wouldn't surprise me if we saw a high population between places one to five, and then an almost sudden shift to people who are at nine or ten. This is not to suggest that there is no "core gamer" market, but that the difference between a "core gamer" and a "hardcore gamer" is probably larger than we may have thought.
To summarise, I believe that to move upstream does not mean to target "core gamers". If we use the metaphor of moving upstream almost literally, I would suggest that Nintendo made the move (selling the Wii to most hardcore gamers), but left some pieces of furniture (core gamers - the 18-35 male market) behind.
Flying_Phoenix said:
Nintendo has failed in this aspect. With the DS and Wii, outside of 3 exceptions (though I must say they are pretty major exceptions) they haven't tried swaying the traditional market segment at all. Now people can argue all they want that it's the third parties fault for not capitalizing on the Wii, but now that's just ridiculous. It's NINTENDO'S job to convince third parties to develop on their platforms and noone else's. Did you see Microsoft blow over Japanese publishers when they ignored the very large Western market that the 360 was targeting toward? Did SONY blow over publishers who didn't believe in 3D gaming? The point is that it doesn't matter who's "fault" it is, the only thing that matters is that you get that support on your platform to capitalize on the highest profit margin thus is the basics of business in this industry. Facing an uphill battle is a challenge you have to rise up to not ignore.
This is where I disagree heavily.
To borrow a phrase or two from Kantian philosophy, you are providing me with hypothetical imperatives when you require a categorical imperative. In case you are unfamiliar with these terms, an hypothetical imperative takes the form of "if X, then Y". For example: "if you are hungry, go to the fridge", or "if you are tired, go to bed". However, these only apply to certain situations where there is a contingent demand upon a person. You would not say, for example, that someone
should go to the fridge if they are not hungry, or that they
should go to bed if they are not tired. By contrast, categorical imperatives are timeless, necessary demands that take the form of "do X", or "do not do Y". They make no reference to contingent situations, and are derived from logic alone. Kant would argue that "do not steal" and "do not lie" are categorical imperatives - they are demands and duties that we
must and
should fill always for duty's sake.
What is the relevancy of this? Because I believe greatly that the statement "Nintendo should go after third-parties" is entirely an hypothetical imperative. It is based entirely around the contingent belief that it is best to sacrifice profits for marketshare. However, you have not proved that this is true. In fact, I would offer a counterpoint to this claim: Sony. They sacrificed profits for marketshare with the PS3, and have landed several billion dollars in the red. To prove to me that Nintendo
ought to actively pursue third-parties - that this is a timeless demand that it
must fulfill - you would need to prove that it is always the best course of action in all situations, that it is a categorical imperative.
Rather, I suggest we view a company's actions against its motivations and desires. In this manner, we may take a look at Microsoft: clearly their desire is to gain as much marketshare as possible, establishing a foothold in the gaming industry so that they can later conquer it. Clearly, they have been very successful in achieving this goal, successfully disrupting Sony's business plans and conquering a large demographic within the industry. However, in doing so they have lost billions of dollars. And yet, I would never criticise harshly Microsoft for doing so - I would never highlight it as an unintended consequence of their actions. I might point this out as a weakness of their corporate strategy, but to criticise them for it would be to misunderstand their strategy. They
knew that they would be losing money, but they intended to do so - they clearly feel that making money is less important than gaining marketshare.
Similarly, when we look at Nintendo's relationships with third-parties, we need to look at it in comparison with their desired strategy. I imagine that Nintendo knows that it hasn't built strong relationships with other developers, and I would argue that they have purposefully chosen not to do so. I agree that
IF someone is to build concrete relationships with these developers, then it is the platform manufacturer that should do so. But I would argue that it is not always the case that a manufacturer
should develop these relationships in the first place. To criticise Nintendo for doing so would be like going up to Microsoft and shouting "But you've lost billions of dollars!".
Of course, I'm not trying to argue that Nintendo's strategy is correct. It may turn out to be the case that building relationships with third-parties generates more profits than doing otherwise would not. However, to evaluate their strategy in such a way again we need to look at it in regards to that strategy's purpose - we can only evaluate a corporate strategy within the framework of the hypothetical imperative. Again, imagine the hypothetical imperative "if you are hungry, go to the fridge". Now imagine that someone is hungry, and goes to the fridge and eats a sandwich to satisfy their hungry. If they are still hungry after they have done this, then clearly their action was a failure. Let's apply this to Nintendo's strategy, which seems to be something akin to "if you want to make money, don't spend millions of dollars cultivating third-party relationships". We can only evaluate the success of Nintendo's strategy in regards to how much money it makes for them. I will gladly admit that if Nintendo doesn't make as much money as they otherwise might, then their strategy is a failure and they
should cultivate third-party relationships. But we don't know this, and so we cannot say they
should cultivate third-party relationships.
I understand that this whole monologue may not be entirely relevant to your original post, Flying_Phoenix, but it is something that I feel is relevant to the discussion as a whole.