I have a WiiU. I am totally disappointed with some of the choices Nintendo is making, I completely agree with Hsu on needing a new, hardcore franchise and I was hoping that was what the Retro reveal would be.
That said, Sessler is talking out of his ass. We all know why there wasn't a crazy huge first party line up at launch, it's because Nintendo wanted to make a more hospitable climate for third parties to release their games so they wouldn't have to go up against some of gaming's most beloved franchises. The 3ds launch was the same way. It fell flat on them the same way as well, but it's kind of a rock and a hard place dilemma. You either release all of your goods, guns blazing and create another Wii environment where the only big sellers are Nintendo games and third parties have to room to make ground with their bigger franchises, or you allow third parties to take control and leave it up to them to create a good launch line up.
With the 360, I remember the exact same scenario. There was nothing at launch but a luke warm Perfect Dark Zero and Geometry Wars. Neither one of them were doing the xbox any favors Fans whined and moaned that it didn't launch with a new Halo but it all worked out when they finally showed off Halo 3.
Kinda looks like the same thing is happening with Smash Bros.
Also, Iwata should go? Why? because he's a name he recognizes? Seems to me like Iwata is kind of doing some good work, especially with the Nintendo Direct. Mini pressers every other month, good way to drum up hype and keep the fans satiated. Really, to fire him would also kind of throw away all the work they'er doing to make Iwata the face of nintendo in the wake of Miyamoto's coming retirement, that would be dumb.
If Nintendo wants to go in a certain direction, it's pick up more studious like Platinum games and make a dreamcast esque library of quirky titles that really set a mood for the hardware. It's a very unique console and that's it's biggest strength and greatest weakness. It can allow for really interesting, engaging gameplay in things like ZombiU or much of the games in Nintendo land, but it's too underpowered to really take that next step and apply it to the multiplatform franchises, and the publishers just don't really want to do it.
The thing will start selling when Smash comes around, but what it does until then is crucial to preparing it for the time when the 360 and Ps3 will no longer be supported and they can't rely on ports.
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