Nintendo Dismisses Online For GC Successor
Thanks to an anonymous reader for pointing to a GamePro article discussing Nintendo's public attitude to online gaming, even as it extends to the GameCube successor. According to Nintendo's senior VP George Harrison, "[Online gaming] is a consideration. We're looking into it for the next iteration of the GameCube. We just don't believe consumers are ready for it. Right now, no one's paying for subscriptions. The real test comes when you have to start coughing up $15 per month." However, analyst Michael Goodman doesn't concur: "The game console isn't just a game console anymore. It's evolving into a home entertainment system. Nintendo has refused to acknowledge that and it's hurt them."
Why would anyone want to pay to play gamecube games online when no one wants to play gamecube games offline?
Personally I don't play my consoles online since I have my PC for that, but this sounds an awful lot like the time Nintendo brushed aside this new-fangled CD technology in place of good-ol cartridges for the N64...
Boy did that work out well. Didn't they learn anything?
to just concentrate on the pure gaming consoles; I personally think they'd need some better games to do that though. Thank god for Zelda.
Gaming companies are going to create games for the systems with the higest sales numbers; it's the best way to make sure that if you make a good game, it'll sell well.
The console public really is not ready for online gaming. Online gaming in general is a really neat sounding idea, but its just not what its cracked up to be. No one wants to pay 40-50 for the game then also have to pay a monthly fee to play online on top of their internet costs.
The analyst is wrong. Game consoles are NOT home entertainment devices, they are game consoles. Everyone who has tried to make them more than that have failed in the extras. PS2 dvd player isn't very good. XBox DVD player you had to pay extra to get the remove and abilities. No one is going to want to surf the web on their game console.
well, there's only one online game FOR The gamecube right now. I payed the $10 monthly fee for PSO for about 4 months, but got tired of it. the problem is, nintendo seems to expect third parties (like sega) to fill that void where there is no online multiplayer, and right now, the only really viable market for online console gaming is Live. nobody wants to have to set up their own network: "let microsoft do it for us!" except for sega, who has always boldly gone where no game company has gone before... often to their detriment, since they go there before the rest of the industry is ready to follow.
How many times can they miss the boat and still survive?
The Super Nintendo was a good product. The GBA was seriously flawed, as evidenced by the success of the GBA-SP, which is also a good product. (BTW, missing headphone port seriously overrated; I got the adapter and still almost never use it when traveling, which given the ease of folding the SP up and slapping it in my pocket is quite frequently. But this could too easily turn into an SP-love-fest...) The N64 was also seriously flawed because Nintendo missed the optical disk trend, and was seriously hobbled by using cartridges as a result.
The Gamecube is, as far as I know, a good product (don't own one, but haven't heard systematic complaints about it), so maybe they're due for a Major Boat Missing again. Will they be able to survive?
Granted, this isn't quite as bad as the N64 going with carts, despite the fact it had been obvious for multiple years that they could not hold enough data, especially for 3D, where a single good texture would be the size of a 1980 megahit videogame. Online gaming in the console arena is too new to be called a run-away success. On the other hand, the trend in the PC world is crystal clear; while not everything has to be playable online, anything that can be, should be, and it will contribute to its success in ways that a non-online experience couldn't have. (Would Diablo have been as much of a success without online support?) If nothing else, online play relieves the game house of the still-nearly-impossible task of writing an AI!
I'd feel pretty safe in predicting that if they don't include online capabilities in the base-unit, or as a really cheaply-priced upgrade, that it will be seen as a mistake on par with sticking a 3D system like the N64 with just cartridges for data storage. People like playing with people and that is not going to change.
In fact, phrase it that way and one almost wonders at the hubris of thinking you can discard the single best AI intelligence there is on your console and still compete against the console systems who will tap that AI to the fullest!
$15 for the subscription plus the $30~$60 for a cable modem (for those of us in the US). Plus you actually have to buy the game ($40-$60). In the end that's a lot of moolah to play what, F-Zero with 3 of your friends (or enemies)?
Game Consoles are NOT meant to evolve, they're meant to PLAY GAMES. I don't want an all-in-one-do-everything-WebTV. That's what my PC is for, thats what my Tivo is for. When I buy a console, I want to PLAY GAMES, and that's it! Online games are just an extra feature, there isn't anything special about them, and it certainly doesn't add anything to gameplay unless the single player is horrible to begin with. Playing with friends on a console needs to be done on the living room floor NEXT TO EACH OTHER. Doing it over the cable modem makes it feel so PC like.. It just isn't fun.
You're right, I wouldn't steal a car. But if it were possible, I sure as hell would download one!
I haven't heard much about either XBOX Live or the PS2 online stuff since they launched. I would be interested to see the numbers of XBox in the wild, and the number of those that are using XBOX Live. It seems to me that that the service has a pretty narrow audience. You have to have the XBOX, have to have broadband, have to be willing to get hardware to get it online (cable, hub, WiFi, etc), possibly run cable, and then buy the Live kit. How many people are actually doing this? Same goes for the PS2 network except I would think the audience is a bit wider there since some games will deal with dial-up.
I myself couldn't care less about online gaming, and I think Nintendo is right at this point. For many people it's to much bother, all to get your ass handed to you by somebody who lives to play xyz Online.
And offtopic but I think it'd be awesome if Rockstar used the PS2 network to stream new radio station content in GTA5(or whatever it'll be called). Radio stations were the best feature of that game, and that would be a nifty use of the PS2's online capability.
"Windows Me offers tremendous reliability and stability improvements..." -- Paul Thurott
The much better article on gamesindustry.biz doesn't leave out some important details that like this article. Mainly:
"Microsoft and Sony have now rolled out online services in all three major global territories for their consoles, but the numbers of subscribers remain relatively low - with estimates for the combined numbers of console online gamers ranging from one to two million players, only a tiny fraction of the 60-million odd installed base of the two consoles." (emphasis mine)
Yes, Sony and (especially) Microsoft may be establishing themselves as an 'online' brand. But they are not getting a very big finnancial benefit out of it, and will it be a big boost in the long run? If brand was all that mattered, shouldn't Atari be ruling the market right now?
They should concentrate on multiplayer games. It would be cool to be able to play Mario Tennis and Mario Kart online and it'd be even better if they had a voice communicator but yet again they don't seem to care. Why do I play my Xbox most of all? Because of its variety of voice-enabled multiplayer games.
Am I the only one who remembers that the SNES had an accessory that allowed you to play online way back in 1995? You'd pop your game into a modem, then stick it in the system, much like using Game Genie. I think they were the first console to do this, in fact. Now they seem to have changed their minds completely.
Plus is just dosent make any cents for publisher to set up a high overhead, high maintance product like on-line gaming when they can outsouce development to some low margin game shop and then just sell mass disk.
On-Line = Pain
Disks = Profit $$$
The Real problem with on-line is latency. Consoles do best at fast reaction games and net just is just not a low latency communication tool.
The problem with the N64 is that while it was profitable, many owners were unsatisfied with the lack of games. Sure, certain niches were popular (Party Games and Wrestling Games come to mind), but the 'casual gamer' doesn't stick with niches. They want to play the big, glitzy games, and publishers want the big, glitzy games to sell a lot to make up for the extra expenses (see: Enter the Matrix).
If Nintendo merely maintains the Status Quo, they will slowly turn away all 3rd party developers, and all their customers except for the core enthusiasts who love Zelda and Mario.
Nintendo doesn't need to be #1, but they do need a variety of games from a variety of sources to attract the casual gamer (read: easy money).
Don't believe me? Don't take my word for it. Nintendo has recently embarked on an effort to push 3rd party games to a level unprecendented with the company:
They've lowered the per-disc fee they collect to an all-time low.
They have recently bundled a demo disk with new GameCubes featuring only 3rd party games (Splinter Cell, Sonic, Viewtiful Joe, Soul Calibur).
They have started an advertising campaign for big-ticket games coming out months in the future (Star Wars, Soul Calibur)
I'm hoping this big push pulls off, as I am a long time Nintendo fan, but I can't tell if this will be succesful or not, and with the PSP coming out, soon Nintendo will be fighting a war on two fronts.
On-line gameplay looks very expensive to me (money for network adapter, money for game set-up, monthly money for ISP service, monthly money for each on-line game). I always remembered Nintendo at its best with either single-player games or two or four-way games that kids would play with friends. I even played single-player games with friends, where we would take turns or play in a driver/navigator mode.
It seems that on-line games are still in their infancy and are probably fueled most by PC gamers who already incurred the cost of the computer and ISP service. To PC gamers the game fees are really only an incremental cost that is more easily tolerated.
For consoles to really catch on on-line, the prices really need to get driven down, because the main reason for sucessful consoles is large numbers of people too cheap to buy a $2500 gaming PC. For example, consider an average family who recently justified the cost of a cell phone and cable TV in the past several years now confronted with whether to shell out more money per month on on-line games. It took over a decade for cell phones to be in everyone's pocket and often displacing land-line service (rich and poor, it seems); perhaps it will be similar for on-line games.
Healthcare article at Kuro5hin
I've looked at the on-line offerings for the PS2, GC and Xbox and by far the Xbox strategy is the most attractive. I know that with my subscription to Xbox Live and an on-line enabled game I can play on-line. The problem is even with the ease of Xbox Live I still do not necessarily want to invest hours of my life playing with complete strangers. It's a nice diversion, but it isn't the end-all-be-all that some companies think it will be. I can see Nintendo's point, to a degree, do they really want to invest all the time and energy into something that few people can either afford or have an interest in? It's the chicken and egg scenario, which comes first, the desire for on-line gaming or on-line games?
When Nintendo does go on-line, it should be a consistent experience like Xbox live coupled with a must have game like the Sims, or whatever.
Whatever does happen with the next console, actually right now, Nintendo needs to get their head out of the asses about adult games. Adults want adult driven games. No, I don't necesarily want to disembowel someone in a game, but give me something more than Pikmin, a little edge, give us the selection and a free hand to third party developers.
I love my Cube and I want to see it given a little more credence that it currently has.
Is there a central body that sets up an online environment for PC online games? If you play (played) an online game for PC, be it Ultima Online, Everquest or even Starcraft a few years back, you logged onto to that company's server. Sure, you had to logon to Battlenet for Blizzard games, but those were Blizzard's games. If a company wants to produce an online game for PC, they support the online functionality. Nintendo and SONY have it correct in that game vendors supply the servers.
Now, if Nintendo did it right, they would produce a broadband adapter (they have one for GCN) for the NextGen console and encourage vendors to port online games to the GCN. Ports that allow consoles to connect to the general severs that everyone else connects to. Isn't this what SONY does? No X-Box live type investment necessary. Then, if Nintendo wants to produce online versions of their games, they can support their own servers.
And don't bring up the processor argument, its all about badwidth. Plus GCN has a 400+ Mhz processor (i don't have the numbers, sorry if i'm off a bit.)
The cancel button is your friend. Do not hesitate to use it.
It doesn't matter that most people _don't_ use it, it matters that with the GameCube they _can't_ use it.
Even if people aren't particularly planning on getting online, there are good odds that they'll be influenced by the general atmosphere of "XBox is cool because it has online play and GameCube sucks cause it doesn't." Stop expecting people to be rational.
Microsoft's XBox Live is a selling point, even if people don't ever get around to using it. There have been a lot of games for the PC that advertised their multiplayer capability that influenced my opinion at least a little that i never actually got around to playing online or just played one or two games that way. But i bought the game, which is what's important to the company.
And if they don't think people will pay $15 a month for online service then just let them connect directly to each other through their ISP and host the games themselves. I'm far more interested in playing games online with my old college friends and people i know on the east coast than i am with random strangers i've never met on some online service.
This Space Intentionally Left Blank
Would Sony be happy if people were mainly using their Playstation 2s to do something other than play games?
In the US, the home entertainment system is a big cabinet full of technological entertainment equipment, including VCR, DVD Player, Stereo (with integrated CD Player), TV set, TIVO(For some) and Satellite/cable connection. So what is the analyst saying here? That everything is going to be integrated? It always seemed to me that the move was away from integrated systems and toward component systems.
Don't get me wrong, I loved using my Dreamcast to surf the Internet, and I was a freak who never bought a CD player and just used my SEGA CD instead. However, I was abnormal, a geek.
Now, in Japan, the culture of small and compact is better would seem to push XBOX (well, I mean, as second after Playstation 2), since it can double as a DVD and CD player, over the Gamecube. Which is more popular there?
Now, there are advantages to the fact that PS2 and XBOX have CD and DVD capability that Gamecube doesn't. Parents don't have to choose between getting their kid a DVD player or a gamesystem. Still, does anyone see the DVD player market disappearing, seriously?
Frankly, in my opinion, the current status of each system is due to exclusive game content. People aren't buying these as Swiss Army Knife home entertainment systems. The reason why online is important is because if a true killer app online game is released, the system without the infrastructure to roll out their own knock-off as soon as possible may end up hopelessly behind. I want to emphasize the "may" in that sentence, because most of the needed infrastructure (aka, the Internet) is already there. So, like everything else with game systems, this is ultimately only about games. This analysts comment seems to show he doesn't have a clue.
In fact, the closest home appliance to a Swiss Army Knife home entertainment system is the trusty PC. Mainly because the PC can sometimes be used in ways that haven't been thought of by the big corps, or better still in ways that the big corps hate. Even then though, it is mostly geeks who use them that way, though it is slowly filtering down to semi-geek mainstream users.
All the creatures will die, And all the things will be broken. That's the law of samurai. (Jubai, 1605)
There are some adult games for the NGC. Check out Eternal Darkness, one of the most underrated games out for the console. It seriously kicks ass. You can find it for $20 now, and that is a great price for such an excellent game.
On another note, they do have Resident Evil 1 and 0. 1 is a total remake. New graphics, new rooms etc etc etc and 0 is a whole new game. RE isnt my type of game, but maybe for you its a killer app.
Rent them, then decide, but for the love of all thats good, CHECK OUT ETERNAL DARKNESS
I agree with Nintendo's stance mostly. They've said that online hasn't been proven for anything except MMORPGs and FPSs, and that seems to be right.
Nintendo, unlike the other console makers, pretty much has to have some sort of kiddie-friendly system in place before they go online, IMO. As much as I want Xbox Live with a voice communicator, having kids randomly hear profanity is not something I would tolerate as a parent.
Fundamentally I think Nintendo can enter the market late and still dominate it. Nintendo makes some of the best multiplayer games, and I expect that could carry over to online games. Just a online Pokemon game would probably kick-start an online service quite well, not to mention Animal Crossing, Mario Kart, and Super Smash Brothers. Retro could probably make a great online FPS, Metroid or otherwise.
Of course, I think Nintendo makes the best games currently, and they're still not doing so well, so my judgement is suspect.
He bought that rediculous Animal Crossings game, and he told me that it was so great because you can trade items over the Internet. I said oh yeah, how?
turns out you get a code that you write down and you give it to someone else on the net and they and to type it in and then they get that item.
The part that scares me is that he (and I bet millions of other brainwashed Nintendo'ers) think that this is actually a cool way of doing this.
This is 2003. If I have to write something down because a video game told me to, I'm going to stop playing that game. It was cool when Kid Icarus was new. Now that shit should just be automatic. It's a no brainer.
If you read the article, he says it's a consideration that they're looking into. I'm not sure how that can be seen as dismissing. He's right about one thing though...no one is paying for subscriptions, or at least not enough for Nintendo to care. They have their revenue streams and the money is pouring in. MS and Sony are not exactly making a killing on those online subscriptions. Nonetheless in the future it will be interesting to see where Nintendo takes their console, since ... ;)
Sony is basically making a WWW enabled/Cable TV box/TIVO/DVD/MP3 player that also happens to play Playstation games.
Microsoft is on their way to making a (DRM restricted)Windows PC/TIVO/DVD/MP3 player that also happens to play Xbox games.
Nokia has that digital camera/video/text messaging/cellphone (I think) that also just happens to play games.
Nintendo has one console that ONLY plays games and one handheld that ONLY plays games(third party hardware excluded).
If the MS/Sony/Nokia way was better, we'd all be using sporks in our home for silverware. Me, I like my fork and my spoon separate.
I was speaking to some friends about the disparity in on-line gaming that you see between computers and consoles. Obviously, the almost ubiquitous presence of DSL or cable connections for computer users (at least in Canada) and the depth of market penetration for computers feeds the desire for on-line gaming.
If console users could participate in the same on-line games that computer users do, I think we would see a huge increase in on-line play for console owners. Sadly, the only console I see that has the technical and logistical capability is the Xbox. It would be fantastic if I could play Warcraft or similar with a friend regardless of the hardware used for the game.
Just an idea.
one thing that gets me is the people complaining "oh nintendo is so silly, not focusing on multiplayer". I disagree, and anyone who has ever enjoyed a good round of Super Smash Bros. Melee probably would, as well. the difference is that Nintendo's Multiplayer is much more intimate and personal. I find my Smash Bros. fests to be much more entertaining than fragging some faceless butthead who will probably just accuse me of cheating for being a better player than him. I rarely play games online anymore, but I play smash bros. at least once a week, and play many other multiplayer games on the console, too. (just last week, we linked several gameboys to the game boy player, had an AWESOME time playing puyo pop on the big screen.) I'd sooner stock up on mountain dew and doritos and have a few buddies over for our weekly game night, than sit in a room alone playing with people I don't know or care about. probably why I canceled my PSO account, now that I think of it: I was having more fun playing that offline in split screen mode with my friends, than I was playing it online with random asshole #87.
I don't even pay for games like EQ or AC, there is no way I would pay for a gamecube online gaming plan. Maybe it's just me, but I an content playing my offline games on GC.
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Check out Harvest Moon Online
(a free online game based on the SNES game)
Sony just takes advantage of what's new and doesn't take into consideration for if it is going to be good or not. IMHO the PS was a piece of junk. Load time sucked. Games weren't that great for the most part. And they would have hardware problems after a while.
I just checked Eternal Darkness out on Gamespot, it gets a fantastic review and the game looks fantastic. Sadly, almost no one I have talked to has ever heard of this game. I am going to have a peek for it at EB.
In fairness to the Cube, we do see pretty much the same games as you get on the Xbox, with some exceptions. It just seems that the heavily promoted games are the "kiddy" flavor that atracts families but not gamers.
Good point though.
- Owns an N64?
- Likes the N64 and its games?
- Likes the GameCube?
"Should have gone with CDs" this and "Missed the boat" that, I really don't care what the analysts (both real and self-imagined) have to say on the topic: I'm still tickled pink by my N64 library, even if you feel the games were "hopelessly cripled" by the "cramped memory" in the cartridge format.So Nintendo still isn't pushing the online aspect. So what? If I really wanted to play online games on a console, I would have gotten an Xbox or even a PS2. Guess what: I haven't. Even PC online games don't do much for me (I like being able to shout insults to my opponent in the next room). I myself don't really see how an internet connection could improve my Zelda or Metroid experiences. The only GameCube game I can think of that I'd like an online connection with is Animal Crossing, and even then I'd be perfectly happy with something akin to a Dex Drive.
So you feel that Nintendo is making another "big mistake." So you feel the original GBA was a "big mistake" (and neglect to mention that you bought one anyway). So what? I enjoy playing video games on a purple lunch box and I'm old enough now that other peoples' opinions mean squat to my enjoyment of them.
you forget that sporks dont work as well as forks and spoons. my XBOX plays DVDs just as well as any other DVD player, plays CDs as well as any other CD player (and has visualizations to boot), can double as an mp3 jukebox just as good as any other mp3 jukebox.... not to mention the stunning games that it is meant for. whereas a spork's spoon side has holes in it and is far too clumsy and blunt to use as a fork; my XBOX performs all the functions it claims to exceptionally.
Newsie, Moderator, www.tauniverse.com
You must have a magic x-box then cause mine doesn't quite live up to that image.
My $200 dedicated DVD player provides a far better picture and has oodles of better options than the x-box DVD player.
My nice, but rather old CD player holds upto 7 discs while my x-box holds but one.
My Gamecube and PS2 has dozens of great games, my x-box has about 6.
Sure the x-box costs what, like $250 and does all sorts of things half-assed, but lets face it: Combined devices just don't usually excell in any one area and the x-box is no exception.
On Wall Street they say "buy low, sell high" On the pad we say, "buy high, sell high" Isn't that somehow better?
If Nintendo had no competition, I'm sure that we'd be getting the N64 any year now...
[PowerPoint] is a tool for capitalist presentation
Repating ourselves a lot today are we?
Does Nintendo need online?
Well, their first party titles seem to stand well enough on their own (Mario, Metroid, Zelda etc) but I think that they are looking at this the wrong way.
X-box live isn't all that great right now, and neither is Sony's online plan, but at least they have their foot in the water. With the next generation of systems, MS and Sony will already be seen as online systems. Nintendo doesn't seem to want to get into the pool until they are sure that they can take it over and this in the long run is going to hurt them.
People are excited by the prospect of online console games. Sure, the PC and Mac crowd has had them for decades but for a lot of people it is a new experience. Novelty is going to drive sales, and with the next deluge of systems in 2005 Sony and MS are likely going to base a significant amount of their energies to providing online gaming.
Nintendo just needs to accept the fact that they are going to have to fight a losing battle for online gameplay for one generation before they are going to be able to profit from it. SOny and MS both are bleeding money this time around, but that will change eventually.
Nintendo could likely survive without online play, their first party software still sells well and it will move systems, but their following is going to dwindle, and if they don't try to get online, they are never going to be more than a distant second or third place share of the market.
On Wall Street they say "buy low, sell high" On the pad we say, "buy high, sell high" Isn't that somehow better?
"I don't even play my Gamecube or PS2 anymore. I just play the X-box."
Am I the only one that hears this jive? I'll bet I've heard it from 15 different employees this year - sometimes I wonder if they get paid for it.
Ask them what they are playing, I own all 3 consoles and my x-box has the thickest layer of dust on it for lack of good games to play. Maybe I just buy the wrong things.
On Wall Street they say "buy low, sell high" On the pad we say, "buy high, sell high" Isn't that somehow better?
Online gaming, to be honest, is overrated.Deatchmatching, to be honest is a waste. Good team-play as well is hard to find. What is fun??
MMORPGs, if you have the time and the money.
Diablo II, for the co-op play.
Counter-Strike and Day of Defeat for team-based FPS
Strategy games
Subspace/Continum for serious skill-based team competition. That's about it.
All PC apps..to be honest. Everything else, IMO dies with typical lag for online games. Predictive models break down for platforming/fighting type games.
Nintendo has the right idea. Ultra-tight controls are wasted on online play. It just would be sub-par for what I expect. Now, I would like to see Nintendo bring out an online adapter for the next-gen, so the option is there. But there's no way to really do it well on a console, so why dilute the quality of what matters? Local competition and one-player goodness.
Online gaming will eternally be marred by the fact that it involves dealing with human beings. To demonstrate the problem with human beings, I invite you to set your moderation threshold to -1, and begin reading Slashdot. When you play online, you are playing with these people.
Online gaming is popular right now among analysts and game makers, because they see that instead of just selling a $50 box, they can sell a $50 box and a $10 subscription every month too. And so quite a bit of fuss is being made about how online gaming is the hot new thing, because companies really want it to be the hot new thing.
Wait for a few more online games to be as massive a debacle as, say, The Sims Online, or Asheron's Call 2, and I'm sure you'll have a much more sensible market that realizes that, yes, online gaming may have some great financial potential, but come to think of it, so does single player gaming.
Meanwhile, Nintendo will have avoided flushing money down the toilet on a bubble market, and will be able to get about the business of making online games once a widescale adoption of broadband, and, more importantly, of home networking exists.
Until then, though, online gaming is a really big loss leader of the sort that Nintendo has never demonstrated much fondness for.
Philip Sandifer's academic website
Lets just call this the circle of life...
(I am sure that I am missing some things and probably have my chronology a bit off, but you get the point.)
-Atari rules the world... Everyone is happy.
-Colecovision and Intellivision come out and Atari dies.
-Sega Master System and Nintendo Entertainment System come out and Coleco and Intellivision die.
-Sony comes out and Sega (as we knew it) dies
-XBOX comes out and... Nintendo Dies?
Whether the consoles dying is a product of superior competition or stupid mistakes (in the case of Atari and current Nintendo) the industry can really only support 2 console systems at once. I guess the saving grace for all of the Micro$oft haters out there is that they probably only have 6 or 7 years left before a Mitsubishi, IBM, Toshiba, etc. system comes out and kills them off...
Feel free to flame me on my lack of accuracy on the timeline.
http://www.tomandemily.com
Instead of being another blind believer in Nintendo, I decided to search Google and see what I can find as far as MS's losses in regards to their push with the Xbox. This is what I found. MS is losing billions on the Xbox.
But we all knew this, because obviously their undercutting the costs of producing each Xbox console, but their Live! service isn't helping them either.
Subscription isn't going work, at least not now. Nintendo is not just taking this stance this stubbornly, but simply because they cannot afford to. Only Sony and MS can afford such a venture (loss).
I see it like this, either I buy the game, and do not pay a subscription fee, or, I get the game for free, then pay a subscription fee. Wtf do you think SOCOM on PS2 is so sucessful? Its gameplay? HELL NO! Its fucking free to play online, so I'll enjoy it regardless of the gameplay issues.