Why Nintendo has Failed.

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Posted by jerseyscum (862 posts) -

Nintendo's massive financial woes are sadly a long time coming. I'm honestly going to miss Nintendo when they're gone, but they've done it to themselves. I might even shead a tear. I am also not an economist or a gaming industry expert, I just play one on the Internet.

(This is going to be long, so bear with me.)

Let's go back to the SNES. At the time, it was the most technologically advanced and sound platform with oodles of classic games. Chrono Trigger, fucking Earthbound dude. They were really riding high for a long time. Nintendo of course had their competition with Sega's Genesis, which also offered some solid titles. At least until they went to the Dark Side and tried to extend the life of the Genesis with the Sega CD and 32X. Sega tried releasing.... ugh FMV games on their awful platforms, while Nintendo kept going on strong. At least until they fucked up completely by not going to a CD format, which is what Sony did for the first Playstation. The Playstation sold like gangbusters and had the games to back it up. The N64 used a dated cartridge system and still had some killer games on the platform (Goldeneye, Conker's Bad Fur Day and of course Smash Brothers). Still, they lost the hardware fight while more and more developers jumped ship and defected to Sony's camp. Losing Square on Final Fantasy was bad enough, but it was only the beginning.

Then the Xbox came out. Most important about it was the fact you could FINALLY play games online like the PC Gaming Master Race (the people who spent exorbitant amounts of cash on gaming rigs) had been doing for years. The unwashed console masses could play online with their friends, which changed everything. Halo didn't sell zillions of copies for the single player campaign. The market and the consumer now expects good online play out of the goddamn box.

Then Nintendo makes the worst financial decision of their life. They create a entire gaming console based on a motion control gimmick and see bored housewives and eight-year olds as their ticket to riches. The Wii actually worked for a while financially. However, the problems of the system were glaring. The processing power was weak, the motion controls alienated 3rd party developers even more and the shitty excuse for on-line connectivity completely froze them out from online sales of downloadable content. You couldn't play the big blockbuster releases on the Wii. You couldn't play with your friends on a reliable network. You can't even play the cool little indie releases on the Wii. The housewives would bought the thing just for Wii Sports didn't buy anything else!

Nintendo is now basically the sole producer of quality games on their own system which is the kiss of death for a hardware maker. Rare completely became more and more of a punchline instead of Nintendo's vanguard (ok Rare WAS bought by Microsoft before sucking it up, thanks to whoever corrected me). Nintendo's own 1st party releases even got delayed numerous times! All the Wii's they sold started collecting dust in households, or sold for beer/weed money at greatly reduced value. When I can count the amount of good third party titles on LITERALLY one hand, you've got a SERIOUS problem. (Trauma Team, No More Heroes 1/2, Silent Hill: Shattered Memories. I didn't include Resident Evil 4 for personal taste)

The game manufactures in general lost the handheld market to Android and Apple, who are now making money hand over fist on cellphone gaming. I don't think the gaming companies are going to take that market back anytime soon.

People abandoned them in droves and Nintendo started to hemorrhage money until they can make a new console which looks even more bizarre than the last one, when the developers and the users have abandoned them in droves. But hey, another Mario Kart or Mario Party might keep the lights turned on in your office building for a while.

To quote Gordon Gekko, "You either do it right....or you get eliminated". Sorry Nintendo, but it's really been fun.

#1 Edited by jerseyscum (862 posts) -

Nintendo's massive financial woes are sadly a long time coming. I'm honestly going to miss Nintendo when they're gone, but they've done it to themselves. I might even shead a tear. I am also not an economist or a gaming industry expert, I just play one on the Internet.

(This is going to be long, so bear with me.)

Let's go back to the SNES. At the time, it was the most technologically advanced and sound platform with oodles of classic games. Chrono Trigger, fucking Earthbound dude. They were really riding high for a long time. Nintendo of course had their competition with Sega's Genesis, which also offered some solid titles. At least until they went to the Dark Side and tried to extend the life of the Genesis with the Sega CD and 32X. Sega tried releasing.... ugh FMV games on their awful platforms, while Nintendo kept going on strong. At least until they fucked up completely by not going to a CD format, which is what Sony did for the first Playstation. The Playstation sold like gangbusters and had the games to back it up. The N64 used a dated cartridge system and still had some killer games on the platform (Goldeneye, Conker's Bad Fur Day and of course Smash Brothers). Still, they lost the hardware fight while more and more developers jumped ship and defected to Sony's camp. Losing Square on Final Fantasy was bad enough, but it was only the beginning.

Then the Xbox came out. Most important about it was the fact you could FINALLY play games online like the PC Gaming Master Race (the people who spent exorbitant amounts of cash on gaming rigs) had been doing for years. The unwashed console masses could play online with their friends, which changed everything. Halo didn't sell zillions of copies for the single player campaign. The market and the consumer now expects good online play out of the goddamn box.

Then Nintendo makes the worst financial decision of their life. They create a entire gaming console based on a motion control gimmick and see bored housewives and eight-year olds as their ticket to riches. The Wii actually worked for a while financially. However, the problems of the system were glaring. The processing power was weak, the motion controls alienated 3rd party developers even more and the shitty excuse for on-line connectivity completely froze them out from online sales of downloadable content. You couldn't play the big blockbuster releases on the Wii. You couldn't play with your friends on a reliable network. You can't even play the cool little indie releases on the Wii. The housewives would bought the thing just for Wii Sports didn't buy anything else!

Nintendo is now basically the sole producer of quality games on their own system which is the kiss of death for a hardware maker. Rare completely became more and more of a punchline instead of Nintendo's vanguard (ok Rare WAS bought by Microsoft before sucking it up, thanks to whoever corrected me). Nintendo's own 1st party releases even got delayed numerous times! All the Wii's they sold started collecting dust in households, or sold for beer/weed money at greatly reduced value. When I can count the amount of good third party titles on LITERALLY one hand, you've got a SERIOUS problem. (Trauma Team, No More Heroes 1/2, Silent Hill: Shattered Memories. I didn't include Resident Evil 4 for personal taste)

The game manufactures in general lost the handheld market to Android and Apple, who are now making money hand over fist on cellphone gaming. I don't think the gaming companies are going to take that market back anytime soon.

People abandoned them in droves and Nintendo started to hemorrhage money until they can make a new console which looks even more bizarre than the last one, when the developers and the users have abandoned them in droves. But hey, another Mario Kart or Mario Party might keep the lights turned on in your office building for a while.

To quote Gordon Gekko, "You either do it right....or you get eliminated". Sorry Nintendo, but it's really been fun.

#2 Edited by believer258 (11634 posts) -

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until Q4 2004? Halo.

#3 Edited by Contrarian (1143 posts) -

Sorry. Am I supposed to take this seriously?

Meh, it must be a jersey thing.

#4 Posted by TehFlan (1944 posts) -

Guys, we'll all be playing games exclusively on our iphones in a few years.

#5 Posted by Giantstalker (1532 posts) -

@believer258 said:

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until the Q4 2004? Halo.

Is this sarcastic? I legitimately have a hard time telling on forums...

To the OP, as well intentioned as your post may be, this is largely information everyone already knows and has been discussed to death. I think you're exaggerating things a bit.

#6 Posted by SlightConfuse (3963 posts) -

having one bad year is nothing especially with a console launching this year and 14 billion in the bank. if they continue to loose money then we can worry.

#7 Posted by believer258 (11634 posts) -

@Giantstalker said:

@believer258 said:

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until the Q4 2004? Halo.

Is this sarcastic? I legitimately have a hard time telling on forums...

Hell to the naw.

#8 Posted by spiceninja (3055 posts) -

#9 Posted by 71Ranchero (2675 posts) -

This is all just silly talk.

#10 Posted by TheUnsavedHero (1255 posts) -

Wait... I bought Halo because it was a great console FPS and loved the Single Player/ Co-op Campaign. Never even touched Multiplayer since it wasn't an online game.

#11 Posted by Dagbiker (6939 posts) -

@jerseyscum said:

Nintendo's massive financial woes are sadly a long time coming.

What about Sony's - 6.4 billion

Or Microsoft - 229 Million

I'm honestly going to miss Nintendo when they're gone, but they've done it to themselves. I might even shead a tear.

Why is Nintendo going, Where is Nintendo going?

ugh FMV games on their awful platforms,

Perhaps you didnt live through it, perhaps you did, but dont remember, but FMV games where the shit. They looked like shit, but compared to what 3d looked like back then I would take FMV any day.

Rare completely became more and more of a punchline instead of Nintendo's vanguard.

Rare is owned by Microsoft, I hope you know.

When I can count the amount of good third party titles on LITERALLY one hand, you've got a SERIOUS problem. (Trauma Team, No More Heroes 1/2, Silent Hill: Shattered Memories. I didn't include Resident Evil 4 for personal taste)

You also didnt include:

Metroid Prime

Zelda Twilight Princess

Crystal Bearers

Zelda Skyward Sword

#12 Edited by JasonR86 (9608 posts) -

A financial loss does not foretell the fall of a company or its determination of being a success or failure.

#13 Posted by Thoseposers (780 posts) -

it really is too bad that nintendo has sold the most consoles and handhelds out of the big three, that really sucks for them.

#14 Posted by LordAndrew (14424 posts) -

You know what Nintendo's problem is? They don't watch Wall Street often enough. That'll solve tbeir problems.

#15 Posted by killacam (1284 posts) -

hahah loving these comments!

#16 Posted by Claude (16254 posts) -

Nintendo might be operating at a loss, but they're sitting on a boat load of cash. 14 billion is what I heard.

#17 Posted by Dylabaloo (1549 posts) -

We need a dramatic reading of this.

#18 Posted by DrDarkStryfe (1087 posts) -

Nintendo is doomed, since 2001.

#19 Posted by Landon (4130 posts) -

@Dagbiker said:

.

When I can count the amount of good third party titles on LITERALLY one hand, you've got a SERIOUS problem. (Trauma Team, No More Heroes 1/2, Silent Hill: Shattered Memories. I didn't include Resident Evil 4 for personal taste)

You also didnt include:

Metroid Prime

Zelda Twilight Princess

Crystal Bearers

Zelda Skyward Sword

Or Zack and Wiki, Murumasa: The Demon Blade, Red Steel 2, Goldeneye, Xenoblade Chronicles, The Last Story, Rabbids Go Home

#20 Posted by Furman (3 posts) -

Nintendo is in trouble cuz the needed more sequels to Karnov.

#21 Edited by Clinkz (1118 posts) -

I'm buying 3 copies of Mario Party 9 just to prove the OP wrong.

#22 Posted by Brendan (7687 posts) -

@DrDarkStryfe said:

Nintendo is doomed, since 2001.

If there's anything gamers are fantastic at, it's short-term business thinking.

#23 Posted by Contrarian (1143 posts) -

@Dylabaloo said:

We need a dramatic reading of this.

Who would do it justice?

#24 Posted by Landon (4130 posts) -

@jerseyscum:

#25 Posted by Kill (298 posts) -

@Dylabaloo said:

We need a dramatic reading of this.

It has to be read by a dopey sounding teenage boy. That would be comedy gold!

#26 Posted by SkyTown_Drifts (47 posts) -

@Landon said:

@jerseyscum:

fucking lol. Yep, end of Nintendo cause this one time they lost what is equivalent to $5 to them compared to the boat loads of cash they've made since Donkey Kong back in 81.

THEY ARE DOOOOOOOMMMMMMMEEEEEEEDDDDDDDDDD

#27 Posted by jerseyscum (862 posts) -

@Kill said:

@Dylabaloo said:

We need a dramatic reading of this.

It has to be read by a dopey sounding teenage boy. That would be comedy gold!

Ok, I though that one was pretty funny.

#28 Posted by Kidavenger (3510 posts) -

@jerseyscum said:

Nintendo's massive financial woes are sadly a long time coming. I'm honestly going to miss Nintendo when they're gone, but they've done it to themselves. I might even shead a tear. I am also not an economist or a gaming industry expert, I just play one on the Internet.

(This is going to be long, so bear with me.)

Let's go back to the SNES. At the time, it was the most technologically advanced and sound platform with oodles of classic games. Chrono Trigger, fucking Earthbound dude. They were really riding high for a long time. Nintendo of course had their competition with Sega's Genesis, which also offered some solid titles. At least until they went to the Dark Side and tried to extend the life of the Genesis with the Sega CD and 32X. Sega tried releasing.... ugh FMV games on their awful platforms, while Nintendo kept going on strong. At least until they fucked up completely by not going to a CD format, which is what Sony did for the first Playstation. The Playstation sold like gangbusters and had the games to back it up. The N64 used a dated cartridge system and still had some killer games on the platform (Goldeneye, Conker's Bad Fur Day and of course Smash Brothers). Still, they lost the hardware fight while more and more developers jumped ship and defected to Sony's camp. Losing Square on Final Fantasy was bad enough, but it was only the beginning.

Then the Xbox came out. Most important about it was the fact you could FINALLY play games online like the PC Gaming Master Race (the people who spent exorbitant amounts of cash on gaming rigs) had been doing for years. The unwashed console masses could play online with their friends, which changed everything. Halo didn't sell zillions of copies for the single player campaign. The market and the consumer now expects good online play out of the goddamn box.

Then Nintendo makes the worst financial decision of their life. They create a entire gaming console based on a motion control gimmick and see bored housewives and eight-year olds as their ticket to riches. The Wii actually worked for a while financially. However, the problems of the system were glaring. The processing power was weak, the motion controls alienated 3rd party developers even more and the shitty excuse for on-line connectivity completely froze them out from online sales of downloadable content. You couldn't play the big blockbuster releases on the Wii. You couldn't play with your friends on a reliable network. You can't even play the cool little indie releases on the Wii. The housewives would bought the thing just for Wii Sports didn't buy anything else!

Nintendo is now basically the sole producer of quality games on their own system which is the kiss of death for a hardware maker. Rare completely became more and more of a punchline instead of Nintendo's vanguard. Nintendo's own 1st party releases even got delayed numerous times! All the Wii's they sold started collecting dust in households, or sold for beer/weed money at greatly reduced value. When I can count the amount of good third party titles on LITERALLY one hand, you've got a SERIOUS problem. (Trauma Team, No More Heroes 1/2, Silent Hill: Shattered Memories. I didn't include Resident Evil 4 for personal taste)

The game manufactures in general lost the handheld market to Android and Apple, who are now making money hand over fist on cellphone gaming. I don't think the gaming companies are going to take that market back anytime soon.

People abandoned them in droves and Nintendo started to hemorrhage money until they can make a new console which looks even more bizarre than the last one, when the developers and the users have abandoned them in droves. But hey, another Mario Kart or Mario Party might keep the lights turned on in your office building for a while.

To quote Gordon Gekko, "You either do it right....or you get eliminated". Sorry Nintendo, but it's really been fun.

Your personal gaming history isn't a valid factor in determining Nintendo's long-term success or failure. The life-long gamer isn't the typical gamer, nor is it Nintendo's target demographic, Every year millions of people grow up and make the decision to stop playing video games and millions of kids reach the age that they start playing games; these kids are Nintendo's bread and butter, and they always will be. Nintendo has always specifically targeted this group, their games are always safe content wise for kids, easy to learn, and fun for parents and kids. Parents aren't going to buy an iphone for the same kid that would be playing a 3ds, nor will they buy a xbox360 for their child's first console.

The only reason they had a single bad year out of 25+years is that they have waited too long to release their next home console, every other generation was 5 years between console releases, it's been almost 6 years since the Wii came out.

I wouldn't expect Nintendo's woes to be a long-term trend, come back after they have 3 years of losses and maybe you'll have a point but for now this isn't anything more than an anomaly.

#29 Posted by Psykhophear (939 posts) -

I hate to admit it but your article makes sense. Nintendo has made a few blunders in recent years with the augmented controls and family games. While it sounded like a brilliant idea for the time - to go to that spectrum of choices, now it seemed like Nintendo will have to buckle up and make a few changes. They should start going to the HD and online market if they ever want to survive in this race.

But honestly, for what it is, Nintendo is not doing that bad. It's because of the tsunami that they hit a few snags and did badly with the 3DS.

#30 Posted by DriveupLife (909 posts) -

Too long, didn't read, OP is a _______.

#31 Posted by tourgen (4427 posts) -

hahahha great thread title.

#32 Posted by acarab1981 (32 posts) -

I'm done with video games the day Nintendo is done with video games, even though I haven't touched my Wii in over a year

#33 Posted by Hailinel (23891 posts) -

@PlasmaBeam44 said:

Succinct. I like it.

#34 Posted by PrivateIronTFU (3874 posts) -

@LordAndrew said:

You know what Nintendo's problem is? They don't watch Wall Street often enough. That'll solve tbeir problems.

Greed is good. And so forth.

#35 Posted by Contrarian (1143 posts) -

Have we discussed that most of Nintendo financial pain is due to currency exchange? It was wasn't it? I am sure they are making money on what they sell. R&D of the WiiU would be a cost factor though.

#36 Posted by LordXavierBritish (6320 posts) -

Where do they find you people.

#37 Posted by ArbitraryWater (11476 posts) -

@Kill said:

@Dylabaloo said:

We need a dramatic reading of this.

It has to be read by a dopey sounding teenage boy. That would be comedy gold!

I'm thinking Shawn Elliot using his Ralphie voice. While not quite people marrying video game characters levels of stupid, this is Heroes of the Internet worthy.

#38 Edited by evanbower (1210 posts) -

@Contrarian said:

@Dylabaloo said:

We need a dramatic reading of this.

Who would do it justice?

I know a guy who knows James Lipton. I'm on it.

#39 Posted by BestUsernameEver (4825 posts) -

@believer258 said:

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until Q4 2004? Halo.

Steam completely shits on your argument about PC gaming.

#40 Posted by BestUsernameEver (4825 posts) -

@Landon: That picture makes no sense because people doubted Nintendo a long time, and now those concerns are becoming a reality for nintendo.

#41 Edited by evanbower (1210 posts) -

@jerseyscum said:

Let's go back to the SNES. At the time, it was the most technologically advanced and sound platform with oodles of classic games. Chrono Trigger, fucking Earthbound dude. They were really riding high for a long time. Nintendo of course had their competition with Sega's Genesis, which also offered some solid titles. At least until they went to the Dark Side and tried to extend the life of the Genesis with the Sega CD and 32X. Sega tried releasing.... ugh FMV games on their awful platforms, while Nintendo kept going on strong. At least until they fucked up completely by not going to a CD format, which is what Sony did for the first Playstation.

Thanks for bringing us all up to speed.

Nintendo's own 1st party releases even got delayed numerous times!

Ok, I was digging on this post real hard until it came to this. You're telling me a video game was delayed? Shut your fucking mouth!

#42 Edited by Kill (298 posts) -

@BestUsernameEver said:

@believer258 said:

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until Q4 2004? Halo.

Steam completely shits on your argument about PC gaming.

sarcasmdetect.exe fails to boot.

#43 Posted by LordAndrew (14424 posts) -

@BestUsernameEver said:

@believer258 said:

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until Q4 2004? Halo.

Steam completely shits on your argument about PC gaming.

In your own words, summarize what you think his argument is.

#44 Posted by BestUsernameEver (4825 posts) -

@Kill said:

@BestUsernameEver said:

@believer258 said:

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until Q4 2004? Halo.

Steam completely shits on your argument about PC gaming.

sarcasmdetect.exe fails to boot.

ok.

#45 Edited by hershelgeorgelives (78 posts) -

I agree, Nintendo will fall. Might even happen in the next 50 years.

#46 Posted by Landon (4130 posts) -

@BestUsernameEver said:

@Landon: That picture makes no sense because people doubted Nintendo a long time, and now those concerns are becoming a reality for nintendo.

What are you even talking about.

#47 Posted by BestUsernameEver (4825 posts) -

@Kill said:

@BestUsernameEver said:

@believer258 said:

You know what else is, like, totally failing, bro? PC gaming.

Also, you know what didn't have online until Q4 2004? Halo.

Steam completely shits on your argument about PC gaming.

sarcasmdetect.exe fails to boot.

Oh yes, I took him seriously. Ignore.

#48 Posted by Bribo (592 posts) -

@Contrarian said:

Have we discussed that most of Nintendo financial pain is due to currency exchange? It was wasn't it? I am sure they are making money on what they sell. R&D of the WiiU would be a cost factor though.

They stopped making a profit from each 3DS sale since the price cut, but your other points are spot on.

#49 Posted by CJduke (782 posts) -

I don't understand, is this entire post sarcastic? How is Nintendo going anywhere when the Wii has sold more than any other console?

#50 Posted by BigChickenDinner (766 posts) -

People have no idea about numbers sometimes. Or what a "posted-loss" means for a company like Nintendo.

This edit will also create new pages on Giant Bomb for:

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