charlequin said:You're overreaching with one of the lessons of Nintendo's success. The GameCube proved something about the market -- that you don't need X% marketshare to make a profit -- but it doesn't follow from there that marketshare isn't still relevant. Marketshare always leads to an increase in absolute software sales and, when one makes a profit on hardware, an increase of hardware profits.
I'm not arguing that Nintendo shouldn't value both (I would argue that, inevitably, they do), but that to do so will require necessarily one to prioritise either profit or marketshare.
stump's post is very relevant here. "Paying" suggests a series of hemmhorage-esque huge cash outlays, but the actual process involves a consistent pattern of individually inexpensive but beneficial actions that combine holistically into a much greater level of effect.
But I would argue that much of what Stump suggests wouldn't actually offer any real incentive for third-parties to willingly develop for the Wii. Granted, it might make the actual development process easier, but I don't believe that the type of changes listed would have actually attracted developers to the Wii who weren't attracted to it otherwise: this still would have had to "moneyhat", in whatever form it would have taken.
It's also important to consider the inertia issue here. Most people seem to agree that third parties would have been better off (profit-wise) developing "real" software for Wii, but that a first-into-the-pool problem (no one wanted to risk their own capital to be a trial balloon for other thir parties) kept all of them from committing. A few paid or influenced exclusives could serve the purpose of demonstrating that Wii development (starting immediately with "huge" franchises) was profitable, leaving others to chase the now clearly-visible money without needing upfront cash to do so. (You can see evidence of this with MS, who have now been able to safely move away from paying for lots of exclusives since the benefits of developing for 360 are now so clear.)
I just don't think it would have worked, especially in regards to the FPS market. It is clear that, while many new gamers do value motion controls, many don't. So short of bagging many exclusive titles in AAA franchises (say, multiple consecutive CoD games), Nintendo's action wouldn't have convinced legions of FPS fans to jump ship, especially if one believe that Microsoft's MMO-like online features are so enticing. I agree that moneyhats would have been more effective in genres which are currently underserved. For example, moneyhatting JRPGs would probably have been successful in convincing that audience to buy a Wii, and and may have given the Wii a boost in Japan. However, I don't see why, if it is so easy to buy over that audience now, it won't be equally easy (if not easier) to do so at the start of next generation.
Ultimately, I understand what you're saying: Nintendo's action has been wrong because its consequences are a disservice to Nintendo and Nintendo alone. However, for the life of me - honest-to-God - I just can't see what these disservices are. I'm not even arguing that Nintendo should never try to go after third-party developers, but simply that the Wii was not the console to do it for, and the past few years were not the time to do it. Rather, I think it was/is much more wise of Nintendo to target these developers at the start of next-generation, and I would be surprised if Nintendo did not make a concerted effort to do so then.
I think we are talking about how the weaknesses in Nintendo's strategy... are now being reflected in their significant drop in hardware sales,
I can't see this as representative of weak software support from external developers. If Nintendo's internal plans had gone as they had desired, Wii Sports Resort would have been released by Christmas, and the decline in Wii's sales would arguably never have happened.
Perhaps not lining anything up as a replacement for Wii Sports Resort was a mistake, but how was Nintendo to know that it would be delayed so severely? Mistakes happen.
flat YoY H1 software sales when both 360 and PS3 software is growing, etc.
The difference (wasn't the growth on the 360 and PS3 around three million units?) could easily have been overcome by an earlier launch of Wii Sports Resort. So again, this doesn't seem to have been affected by Nintendo's third-party strategy.
Flying_Phoenix said:You bring upon SONY gimping the PS3 for another market and use than using the PS3 (the sacrifice SONY intentionally made) as using that as an example of an investment that wasn't worthwhile when in reality the investment they made was by adding the huge loss rate on the PS3's was for the home movie market (Blu-ray). That really doesn't correlate with the discussion.
It would be really helpful if you actually quoted what you are responding to. At the moment, all I can really say is that you don't seem to understand what I am saying.
If you were saying that SONY took a huge loss on the PS3 for Blu-ray and the format failed and you used Blu-ray for an example that would make sense, but as of now you are using the sacrifice they made to get that gain and only focusing on the sacrifice. It doesn't make sense.
I'm not saying that it was stupid for Sony to include Blu-Ray in the PS3 (or make any of the other major design-related decisions they made) because it lost them money. I'm saying that it was stupid because it lost them market share. This was stupid because the purpose of these decisions was to gain marketshare. If a decision designed to gain marketshare ends up losing you marketshare, I'd say it was a pretty stupid decision.
Look Nintendo is currently on top. Therefore it is FAR easier with convincing third parties to develop titles for your platform.
Why? This is not self-evident.
If they get third party publishers on board this will greatly secure their position at number 1.
Why? This is not self-evident.
Like every market (movies, books, music, etc.) the gamings market third party support starts with the more serious titles and than it works its way up.
I don't understand what you mean by this.
"What if Nintendo invests millions and billions into trying to convince publishers and they don't come?" simple they are idiots. If they are THAT bad and blind that they can't even so much as glance of what Microsoft and SONY have done earlier on their generations and copy them than just wow.
wat
Sony and Microsoft operate entirely on spending billions of dollars. I'm sure Nintendo knows exactly what they have done that has made them so successful.
And the question isn't even "What if Nintendo invests money trying to convince developers to make games for their system, and these developers don't listen?" It's "What if Nintendo invests money trying to convince developers to make games for their system, and the ensuing games don't aid Nintendo's sales?"
But you know what is even more risky than that? Not investing in building third party relations and have someone else take those third parties and eventually build on to what you done and offer MORE than what you have thus eventually surpassing you in market share.
This suggests that Nintendo does nothing else to try and stay ahead of the competition.
Which since this is a business world WILL happen and result in Nintendo losing potential billions upon billions of future profit.
Why? This is not self-evident.
I mean I could see if this argument was taking place if Nintendo was at second place or a not to far ahead first, but as of now they are dominating the gaming market. Don't you think it's silly that they shouldn't just take away some of their millions to secure their position just to save it and keep them highly vulnerable to competitors?
Not if their actions won't aid their success. Which is not clear.