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Wii 2 Delay Is Hurting Nintendo
BanjoTed writes "Michael Pachter's ongoing spat with Nintendo regarding the Wii 2 is well documented. Pachter is sure it's coming, Nintendo says it's not. Now the analyst has gone one further by claiming that the declining sales of the Wii documented in the platform holder's recent financial statements will only get worse unless it speeds up attempts to get its successor to market. He said, 'The reason for this is clear: the software being created is just not interesting enough or compelling enough to drive Wii owners to buy more than two [games] per year, and most of those purchases are first party software. We can blame the third party publishers for making shovelware, or for misjudging the Wii market, but the simple fact is that the publishers have to develop completely separate games for the Wii because its CPU is not powerful.'"
So what if it sucks? it's cheap to produce and sells acceptably well. While Sony and Microsoft lost a fortune with their super-duper-powerful machines, Nintendo is profitable all the way. IT PRINTS MONEY!
Circumcision is child abuse.
The money in gaming consoles is typically in the licensing fees attached to each disc sold. The biggest problem that Nintendo faces is that there is now a great deal of either inexpensive, "oldies but goodies", or used games in the Wii market. Just look at it this way. People are still buying PS2 games like they're the hottest thing out there. Publishers are still producing PS2 games as well. The reason is, market saturation.
Head to your local GameStop, the used game section is incredibly active for PS2, yet the PS3 selection is piss poor in comparison.
Nintendo has managed to achieve tremendous market proliferation and has placed a Wii in more houses than anyone would have ever imagined. A new Wii, which costs a bunch more money may sell well to many people, but in reality, it won't achieve the same levels as Wii. Nintendo knows this. They need to focus on making the current console more attractive. A simple external storage device for downloadable games would be the next real logical step for them.
Downloadable games are really the way to go for them. They already do quite well selling old games (and a few new) through their online store, but there are no new and fancy games for the console out there. The console vendors are desperate for solutions through downloadable content since they can full control over how the game is resold after the fact. If they make the games less expensive by selling them online, they can close the "used game" hole which is hurting them.
With an external harddrive/network adapter combination device (wired network should have been standard to start), they could then run a HUGE marketing campaign to get people to start buying the games online instead of in the stores. It would increase margins across the board for everyone. Additionally, to get past the typical nervous online consumers issue (meaning people not liking using credit cards online), they could sell a package from a game at a store like GameStop with a serial number to allow them to download the game to their Wii.
The important thing they must do though is to lock the store to a user instead of a console. This way if a device breaks down, the consumer would be able to transfer their purchases to the new unit.
So, a Wii 2 would do nothing more than introduce new hardware which they would have to try and get into everyone's homes where there is still so much more to be done with the Wii before it's "old and crappy".