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Gates Pegs Nintendo, Not Sony, as Toughest Competition
njkid1 writes "Microsoft's Bill Gates thinks that because of the 'impressive strength' of the company and its new Wii console Nintendo is now Microsoft's biggest competition when it comes to videogames. This is somewhat understandable, given Nintendo's new projections for this year. The Japanese game maker plans to sell an impressive 100 Million DS games this year, along with 21 Million Wii games and some six million consoles. This may seem to be just more flack, to go along with Peter Moore's dismissive comments towards Sony at CES this week, but news of the Halo DS game that almost was puts credence to Microsoft's new priorities."
Damn. I thought that was true until I found out that it's what Gates wants us to think. Then again, maybe it's a clever double bluff. Or maybe he's just desperately trying to make it sound like the 360 is still relevant, regardless of how you rate the other two consoles.
You don't have to be Kreskin to read the writing on the wall.
The plain and simple fact is that the Wii is doing spectacularly well for itself while the PS3 is receiving a slightly less enthusiastic reception. Only an idiot would turn around and say, "Yeah, we think Sony is going to turn things around and kick our asses."
Instead, they're going to fuel the flames by pointing to their indirect competitor over there. Hopefully at the expense of their biggest competition. Then Microsoft will ride the coattails of the Wii's success by repeating the "Wii60 For the Win!" jingle. A large portion of gamers already think they need both consoles, so why not go with it?
Javascript + Nintendo DSi = DSiCade
I've been pretty impressed by what I hear about the Wii, but I wouldn't consider it a bigger threat than Sony. From where I sit, it looks like Nintendo are perfectly content to do lots of business without being the market leaders - but Sony seem very fixated on the "being number one" mentality. I'd be inclined to promote Nintendo's competition factor, but I wouldn't start counting them as a threat (they don't seem to feel any need to eliminate competitors), and I think it's a BIG mistake to count Sony out as a threat.
Of course, this could just be a bluff to drive Sony insane with the idea that they aren't even relevant to us anymore.
Microsoft cheerleader, blue flag waving, you got a problem with that?
The PS3 has the same controls/game style as the XboX, and the XboX is cheaper and more readily availibe. It has almost all the features, too. So I wouldn't think that would be serious competition. The Wii, on the other hand, is so distinct and plain-fun, Microsoft faces losing old-style gamers to the new Wii-style of gaming. I predict Microsoft will get a grip on the button-mashers, but still lose market share because the Wii is, frankly, more fun. It must be embarassing, too. Losing market share to something called the Wii...
You don't need netcraft to tell you the PS3 is essentially stillborn. Their sales are 50% lower than expected. Right now Microsoft is beating Sony at it's own game (high end console for hardcore gamers) and Nintendo is running unopposed in it's niche (middle-end console for casual gamers).
Thats great Bill, but tell us something Wii didn't know.
Can't watch the clip at work. What is the context of this remark? Everyone is assuming this is some sort of 360 vs. Wii vs. PS3 context but I wonder if Gates isn't more concerned with the upcoming support of gaming on the Zune vs. the very well entrenched Game Boy line than he is with the success or failure of the 360.
In terms of market share, looking solely at the new generation of home consoles atleast. Nintendo is survivor. At just over 117 years old and consistently generating net revenue, Nintendo has the kind of financial longevity Sony aspires to and the market experience Microsoft admires. Each of the Big Three have aspects that have them firmly cemented in the market, but Nintendo and Microsoft have real potential for market gain; Sony (without even considering it's pr flops) doesn't have anywhere to go but down in this generation. Sony indicates this is ok with them as "the industy is growing and the tide raises all boats." Although, If I were a Sony, investor...well, I wouldn't be soon. But what does Nintendo have that Microsoft thinks makes it it's biggest competition?
Japan.
Microsoft has been making substantial attempts to push it's X-box 360 in Japan, which it is sevearly deficient in. Latest word indicates Nintendo is the force to contend with in Japan, with the Wii beating out Sony's machine. Microsoft is in a position to ride the wave of the Wii's big splash down in Japan by touting itself as the true 'middle of the road' best deal console. Microsoft realises if it wants to succeed in Japan, it's not the hardware, it's the games; specifically Japanese games. They'll face major competition as they try to sweep up Japanese developers with Nintendo looking for the same.
Demented But Determined.
Japan plays a large part in whether a system becomes successfull or not...
1. Nintendo has (for the most part) enjoyed good success in japan
2. The DS and DS lite are a legal drug in japan
3. The original Xbox did bad in japan, and one couldn't reasonably expect the 360 to do differently there
4. The 360 definately has an american "feel" to it, if you know what I mean. I don't mean it's cheap or anything, what I mean is by the way the console itself looks and controls, and by the way the interface looks and controls, and by the FEELING of the games...I dunno, it just seems more like a console that is aimed at american gamers moreso than anyone else.
5. Microsoft is an american company, and it's no secret that american culture is both loved and hated in japan.
6. Nintendo is japanese in it's origins...kinda like buying a book from a local mom-and-pop rather than amazon.
various other reasons as well...keep in mind these are only my opinions and from what I have seen...I've been gaming since the commodore 64 days, so I figure my opinion has to have at least SOME kind of value, right? Or not...whatever. Suffice it to say, these are my opinions and nothing more. Dissect them to your heart's content.
Living With a Nerd
Did I miss something? How did DS game sales and comments about the Wii end up in the same write-up? Did Microsoft start planning on producing a handheld while I was hiding under a rock or is there some other Microsoft vs. DS competition I'm missing?
As far as the Wii is concerned, I think Bill has less to worry about than he's letting on. The two are practically in a different market. The big draws of the 360 are visually impressive games, High Definition and media center functionality, none of which are big selling points of the Wii. On the other hand, people interested only in the unique controller and game lineup on the Wii wouldn't give the 360 any serious thought.
Nintendo's spent quite a bit of energy trying to distance itself from direct competition with Microsoft and Sony. In my opinion, they've succeeded. The only competition that's really there is whether you like the Sony/Microsoft style of gaming or the Wii's.
SUVs don't compete with sports cars. People just chose which they'd rather have and then go choose from the available SUVs or the available sports cars. Nintendo is in the enviable position of having lots and lots of people chose their style, but as it turns out, they're the only company offering it.
TW
In order for any console to succeed in Japan, it needs to have the kind of games the Japanese play. Madden just won't sell, nor will Halo. (most of the people I know, bought their Xbox for Halo.)
However, Blue Dragon may seems to be having an impact. According to this article, it sold 80K copies in its first week and increased XBox360 sales over 500% that week vs the previous week. It's not that the XBox is American, it's that the XBox has Halo and the PS2 had Final Fantasy.
-- Political fascism requires a Fuhrer.
or D) Refering to the Japanese market.
Ok, just for the record I'm a Wii60 owner and currently on Gears of War - Act 2, on Insane. I love the 360 and LIVE in particular.
However the 360 has done shit for business in Japan. Nintendo sold more Wii's on Launch day than the 360 sold (in Japan) to date. (400,000 units vs 280,000). I honestly don't know the problem and why Microsoft can't sell to the Japanese, but 2 X-boxes later they still don't understand the market.
The Xbox 360 and the Wii have completely different paradigms. The Xbox 360 is about ultra realistic graphics, fast paced driving and brutal violence in which strangers are humiliated through Xbox Live. The Wii is about fun games that often can involve friends and family. One is not better than the other, they are simply very different. Which is better: a car or a sheep? On the other hand, the PS3 and Xbox 360 are trying to fill the same purpose. Unless you feel the SIXAXIS feature of the PS3 is equivalent to the Wiimote's functionality.
Sony thought the console market was theirs. They believed they owned it. They felt that they could abuse the loyalty of the gamer market by winning the high definition video disc market on the backs of their customers. They think that the average Sony customer will work their fingers to the bone to buy their console at its outrageous price. Remember, the PS2 started at a price of $300. Since the PS3 is $600, will the PS4 be $900 or $1200? Oddly enough, in the upper middle class area in which I live, the PS3s are not flying off the shelves.
and he apparently has noticed that while he was fighting head-to-head with Sony's PS3, Nintendo's Wii embraced and extended themselves and created a new battlefield - old people, women, and girls - while also winning over most of the "market" of 13-35 year old males traditionally thought of as the focus.
That plus the Nintendo Wii is selling way more consoles and games in Japan, according to an article I just read in the New York Times in the tech section.
-- Tigger warning: This post may contain tiggers! --
The Wii is a competitor for both the PS3 and the Xbox 360, and here's why.
1) Developers - Game studios only have so many resources to devote to game developement. Any that are spent on the Wii are not spent on the PS3 and Xbox 360, even if it is just a port. The cumulative effect of this is less developement for the Xbox 360 and PS3.
2) Follow the Leader - If the Wii gains a significant lead on the other consoles in market share, this will further compound #1 due to the "Follow the Leader" syndrome for game developement. While a lot of games for the PS1 and PS2 were very crappy, having that kind of third party support is any console manufacturer's dream. Stealing that dream hurts the PS3 and Xbox 360.
3) Hardcore - Even though the Wii and DS have been designed to be friendlier systems, there is definately a strong appeal for many hardcore gamers. While hardcore gamers often spend much more money on video games and are thus very likely to own multiple systems, having any portion of said funds diverted to the Wii places it in competition.
4) Casual Understanding - The nerdy, informed, and hardcore may know all about Nintendo's "Blue Ocean" strategy, but more people only know it's a game system, and so are the PS3 and Xbox 360. They aren't aware Nintendo is in a different market, because for them there is only one market.
5) Next Time Gadget - There will be another console generation, and it's pretty clear that barring unthinkable and unpredictable disasters Nintendo will be there. As much as they are competing for a place in this console generation, all of the big three are competing for pole position in the next generation. While not determinate, being the incumbent from the last generation is a significant advantage.
This is not to say that they are truly in direct competition. A better analogy is to say that Nintendo is targeting an entire pie, while Sony and Microsoft are aimed at a smaller piece. To an extent there is conflict, but Nintendo will be just as happy to have the 50-60% of the pie that Microsoft and Sony are only barely interested in.
Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
Hehe!
It's a valid point, of course. But then I doubt anyone would buy a PS3 on the strength of its current showing alone. It's a question of the entire life cycle of the machine and which titles are expected to end up where. Expectations are set relative to the PS2 and XBox lineups, so those expectations may prove wrong.
Let's put it this way - if most of the important games turn out to be cross platform across this generation then that's terrible for Sony and they effectively cede the top spot to Microsoft as a consequence.
Adding an HDMI port and harddrive capacity, while keeping the price the same, would ONLY compete with Sony, as it would only interest die-hard videophyles.
Implementation of such a hardware change would have started many months ago. Back when Nintendo still didn't register on Microsoft's radar.
The incentives to add HDMI (which costs a pretty penny, mind you)
It's only expensive because of the DRM, and I believe HDCP is already implemented inside the graphics chip for the 360 anyway... This means that the signals are already available, and all that was missing was the jack (and perhaps drivers). Dispite what high end AV equipment and cable vendors would like you to believe, HDMI is less expensive to implement than Component or S-Video because you don't need a RAMDAC.