It was less than a decade ago (November 2006) when Nintendo revolutionized the video game marketplace with its interactive — and highly successful — Wii. But, the landscape has gotten a lot more competitive since then, especially since Microsoft’s Xbox Kinect introduction.
As Nick Winfield reports for the New York Times: “Nintendo’s enemies have arrived by battalions. Angry Birds, Fruit Ninja, and other inexpensive, downloadable games, particularly for cellphones and tablets, have invaded its turf. Changing tastes and technology have called into question the economics of traditional game consoles, whether from Nintendo or Microsoft, maker of the Xbox. Nintendo recently posted the first loss in its era as a video games company, a prospect that would have been unimaginable only a few years ago. And while game consoles aren’t going away, analysts are skeptical that the business will regain its former stature soon.”
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Perhaps Nintendo should implement the networking effects of internet. Microsoft and Sony are offering a wide variety of titles where you can connect online and play with others. Activision Call of Duty Black Ops II is a perfect example. Not only is a huge hit for the company that managed to turned positive its year outcome, but also it is an example of how the industry is developing. Similar to what professor Ted Levett was saying when he was talking about the Marketing Myopia theory in the 60’s
Interesting viewpoint.
Being that Nintendo is such an innovative company I am certain it will bounce back. It has just recently released the Wii U which is basically a video gaming tablet and could effectively compete with Angry Birds or similar games. They also have room to expand their video game library and include titles such as Call of Duty Black Ops instead of mainly featuring the classic Mario etc. and emphasize that they too have an online capabilities.
We’ll see. 🙂
As someone who used to have all of the gaming consoles such as the nintendo and the playstation and even the wii, they all seem to be a bit outdated now. With my generation being attached to their smartphones, sitting down with a bulky game console seems inconvenient not needed. I believe that as my generation gets older and the generations below me are raised with smart phones instead of gaming consoles, they will eventually become extinct.
As apps on cell phones and tablets become more popular and more advanced, Nintendo, Microsoft and Sony will have to advance their systems to a position that apps on cell phones and tablets can’t compete in. Nintendo may have to go down the road of a completely virtual gaming console to regain their profitably. They have to offer a different experience then the apps do, in order for people to purchase their games, which is where they make there money not on the consoles themselves.
What about the physical movement part of Wii and Kincet?
That technology would have to be used as well, but by virtual I mean some sort of a helmet or goggles along with gloves. This way the gamer truly get immersed in a virtual world. This is something that a cell phone and tablet cannot deliver.
Nintendo should predict the developing trend of the industry. Perhaps, they may define their business widely such as gaming, instead of just TV Video gaming. Sometimes, companies are facing the competitors from other neighbor business.
Hard to do.
cell phone were invented a lot of new applications, therefore, some big game company will have much more competitors.
Nintendo should take advantage of phones that have touch screens as a way of utilizing their consoles. It will appease loyal Nintendo fans who do not want to see the consoles disappear and it offers an innovative way of distinguishing itself from competition while keeping its traditional set up.