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Nintendo Posts Yet Another Loss, Despite Mario Kart 8

redletterdave (2493036) writes Nintendo posted its third loss in four quarters on Wednesday. Even though Mario Kart 8, its big first-party game released in May, shipped more than 2.82 million copies by the end of June, the Mario-themed racing game was not enough to help Nintendo's struggling Wii U console perform in this particular quarter. The company said it lost $97 million between March and June. Nintendo shipped 510,000 units of the Wii U in the June quarter, bringing the total to 6.68 million consoles sold — it's a big jump from the 160,000 units it sold in the same quarter a year ago and a small improvement over the 310,000 units it sold in the March quarter. Still, the Wii U is still lagging behind the PlayStation 4 and Xbox One consoles, and Nintendo must also contend with mobile games available on Apple and Google's app stores, which cost but a fraction of a Nintendo game.

42 of 203 comments (clear)

  1. Here's an idea! by EzInKy · · Score: 4, Insightful

    Open up your platform so that anybody who wishes to can program for it, that way you aren't dependent on just a few titles.

    --
    Time is what keeps everything from happening all at once.
    1. Re:Here's an idea! by EzInKy · · Score: 2

      Companies hate the idea of openness, so I doubt that will happen.

      Shame so many of them chose death over sharing, isn't it? Even if they still die, their platform could live on indefinitely. Think of what would have happened if it weren't for the x86 clones.

      --
      Time is what keeps everything from happening all at once.
    2. Re:Here's an idea! by blackraven14250 · · Score: 5, Interesting

      Shame so many of them chose death over sharing, isn't it?

      The last time sharing was the norm, it caused the entire industry to collapse. There's a reason it was called the Nintendo Entertainment System, and not console. Nintendo, as it turns out, were the ones who led the industry's recovery, largely by instituting strict third party licensing. Sid Meier considers the Nintendo "Seal of Quality" one of the three most important innovations in gaming history because of the impact that it had.

      Coming from that background, you can understand why Nintendo isn't going to take the decision to open up the platform as lightly as some open source keyboard warriors on Slashdot.

    3. Re:Here's an idea! by Shadow+of+Eternity · · Score: 2, Insightful

      You mean nintendo's price-fixing and marketing gimmick?

      --
      A bullet may have your name on it but splash damage is addressed "To whom it may concern."
    4. Re:Here's an idea! by tibit · · Score: 2

      Too little, too late. Their major problem is that, for whatever reason, there are no fucking games for it - and I don't mean indie games, I mean serious stuff. Just look at what comes out for PS3/PS4 - most definitely closed platforms. Then look at what comes out for Wii U. I made the mistake of buying one. Sure, I like the console, but after playing through every major title available for it (with exception of broken-by-ui-design AC3), there's simply nothing else left for me to do on it. And no, I don't consider junk like "NintendoLand" to be a major title. It's a game collection, with some good games, but once you master one or two of them, it all becomes rather tedious. Heck, I even got the Wii Fit U. What a total waste of perfectly good hardware. The mini games ("exercises") seem to be something students would do for a class project, and the setup is the most annoying thing ever. You can't simply just get on it and have fun, nosiree.

      --
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    5. Re:Here's an idea! by blackraven14250 · · Score: 4, Insightful

      It's 1983. Atari just settled a lawsuit over Activision's ability to create games for the 2600, and did not get a restraining order against the practice. Shovelware is running rampant, and many of the companies creating the shovelware are small startups. Games are not selling because they were overall fucking terrible. Stores lose a ton of money on having merchandise they couldn't sell. Many of both the distributors and developers are going of business. The distributors that are diversified and survive, like Toys 'R Us, refuse to use inventory space on games. It's a business decision they're making based on what happens when games are completely shitty.

      In comes Nintendo with a way to ensure that truly shitty games don't make it onto their console, and they rejuvenate an industry that almost killed itself entirely with too much openness.

      Again, this isn't some hypothetical bullshit argument about whether open source is superior on moral grounds from someone who holds no real stake in the outcome. It's what actually happened in the industry.

    6. Re:Here's an idea! by blackraven14250 · · Score: 3, Informative
    7. Re:Here's an idea! by Anonymous Coward · · Score: 4, Insightful

      But it's not 1983 any more. Shelf space is not really an issue. An abundance of crappy games does no harm in the age of the internet since they can easily be ignored.
      Back then gems would not find their way into stores because they got drowned in all the crappy games. Now with all the information at our fingertips this won't be an issue. Opening up a platform now will make it more successfull and it will result in tons of great games which can easily be recognized.

    8. Re:Here's an idea! by Anonymous Coward · · Score: 5, Insightful

      Have you tried browsing in the iStore, Google Play, or to a lesser extent, Steam. If you just want to see what is there, you have to wade through pages of flappy bird clones, runners, and all the other crap just to see anything interesting. Don't count on ratings either, many of the good games get bogged down with "Overrated - 1 Star" and "Doesn't fold my laundry - 1 star" while the horrible shit games get enough 5 star reviews (usually by the developer and their friends) to at least look legitimate.

    9. Re:Here's an idea! by Alioth · · Score: 2

      As an antidote to that anecdote, in the UK during the same period the completely open Sinclair ZX Spectrum had one of its best game years, along with the completely open Commodore 64. Titles for both machines kept selling well right through the 1980s. Shops stocked games. It may have also been that a full price C64 or Spectrum game was half the price of a full price cartridge game.

    10. Re:Here's an idea! by evilviper · · Score: 2

      The last time sharing was the norm, it caused the entire industry to collapse.

      It was retailers falling for the stupid scams, that caused the collapse.

      Nintendo, as it turns out, were the ones who led the industry's recovery, largely by instituting strict third party licensing. Sid Meier considers the Nintendo "Seal of Quality" one of the three most important innovations in gaming history because of the impact that it had.

      Yes, and it was important at the time, when people had very little confidence in the quality of games, games were expensive, and there were no magazines doing reviews, services that allowed gamer rentals, etc., etc.

      IMHO, whatever high standards Nintendo may have set in the 80s, were gone in one fell swoop, with the flood of crap games on the PSX.

      And PC games never had a central authority, yet they did just fine.

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    11. Re:Here's an idea! by evilviper · · Score: 2, Interesting

      Games are not selling because they were overall fucking terrible. Stores lose a ton of money on having merchandise they couldn't sell.

      No, stores bought a bunch of fucking terrible games that wouldn't sell, because it was common practice that unsold units could be returned to the manufacturer for refund, so they didn't expect any downside. A ton of sham game companies sprung up over-night, unloaded a ton of merchandise on toy stores, cashed the check, and then closed-up shop before anybody asked about returns.

      The stores set themselves up for a failure, and the video game industry was only involved because it was the hot market at the time... kinda like smartphones today.

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      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
    12. Re:Here's an idea! by Anonymous Coward · · Score: 4, Interesting

      Here's some details about modern and historical game markets that make the "Nintendo's monopolistic licensing saved the industry" story less like settled history and more like propaganda:

        * European PS2 and worldwide Wii markets were absolutely flooded with shovelware and those systems did not suffer for it anywhere near the shovelware-laden Atari market did.
        * Atari itself was abandoning quality control even faster than the third-party software distributors.
        * The games market was not anywhere close to mature; as an offshoot of the fad-driven toy market, people left videogames because they assumed the fad was over.
        * Personal computer platforms did not see the same kind of massive games crash that console platforms did, despite being explicitly designed for unlicensed third-party development *and* having even more crapware than Atari ever did.
        * Nintendo's licensing program did not improve software quality. There were plenty of licensed Nintendo games which were absolute garbage. While Nintendo may have started the program specifically to avoid another Atari crash, they were sure happy to license everything LJN put out, despite said games being barely-functional licensed titles of at-best mediocre quality. The main purpose of the licensing program was to monopolize third-party software and skim a royalty fee off the top of everything.

      Nintendo primarily won on the strength of their own first-party software, not because they had a stricter licensing program.

    13. Re:Here's an idea! by MitchDev · · Score: 2

      Seriously.

      Nintendo is still missing some of it's big franchises on the Wii U (Zelda, Pokemon, Metroid, Smash Bros is months off still, etc) and checking the stores there's not a lot out there by comparison to the Wii or the Xbox360/1 and/or PS3/4

    14. Re:Here's an idea! by hairyfeet · · Score: 4, Interesting

      Riiight, because LJN didn't exist on the NES, there weren't games like Friday the 13th and Dark Tower on the NES. I think there is somebody you ought to meet, seeing as how he makes his living reviewing shitty NES games.

      Oh and just FYI, from somebody that was actually working in retail during the crash? The "prevailing wisdom" is a big steaming pile of horseshit. gather around childrens and let this old greybeard tell ya what REALLY caused the crash!

      Ya see little childrens the industry had back then what was called a "stock and swap" business model going and here is how it worked...you are a retailer, and the distributor wants you to sell games, but you don't know anything about games and are leery...what to do? "Simple" says Mr Distributor, "all you have to do is hand me any unsold games and I'll give you brand NEW games in return until they DO sell, you can't lose!"....Now I bet all you can see the big gaping flaw in this model, can't you kids? By taking out any risk it caused retailers to overstock to the extreme because it was like money in the bank, right? Every one that doesn't sell will be replaced for a new title until it sells and with each sale I make a nice profit so I should have a TON of games so I can have a TON of profits...yay!

      And THIS boys and girls NOT the Atarti case, is what caused the crash. Even at the little Magic Mart I was working part time at in the middle of a town with only 10k people at the time there was 7 different game systems and over 1000 titles because it was like money in the bank, right? Well the distributors started to take any game for any system made by any company just to get new products they could flip, the markets became completely saturated with systems and games and all it took was a couple of the middlemen to go under for the whole thing to collapse. the retailers panicked when they couldn't just turn in old carts and systems for new, started dumping product in the channel trying to get out, and the whole thing went to shit.

      So there it is boys and girls, the same thing that caused so many other crashes, gambling in the market caused by shady systems and promises of easy money without risk. By the middle of 84 I was walking out of Magic Mart with over a thousand bucks worth of games and systems for my $50 check and needless to say I wasn't buying any full price games when I was getting 4 Coleco games for a buck or 10 Atari which just made the few companies left cash starved as their new product had to compete with 10c games.....is it any wonder so many went tits up?

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    15. Re:Here's an idea! by Dogtanian · · Score: 2

      Don't compare the ZX Specturm with 16KB to the C64.

      Why not? For the purposes of the argument being made with respect to the UK market, they were both in the same boat.

      Besides which, there were two versions of the Spectrum when originally released; the aforementioned 16K model, and an otherwise identical 48K model. The 16K spec was rendered increasingly irrelevant as time went on and the 48K version became the de facto "base model" required for Spectrum games.

      Still wasn't as good a machine overall as the C64 (BASIC and faster CPU aside), but that's neither here nor there.

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  2. Re:so you want color dreams level games on wii? by EzInKy · · Score: 2

    If that sells more Wiis, and more Wii games, why not?

    --
    Time is what keeps everything from happening all at once.
  3. They lost their market by sandytaru · · Score: 2

    As the summary says, their market, the casual gamer, can get their fix on their cell phones. Candy Crush did more damage to Wii U sales than the PS4 or Xbone could do.

    Most people I know are still holding out until the next Zelda game, which might finally be the killer app Nintendo so desperately needs.

    --
    Occasionally living proof of the Ballmer peak.
    1. Re:They lost their market by Fallen+Kell · · Score: 3, Interesting

      They have been holding out for at least 3-4 games that people want to play. Right now, there are maybe 2 games that people want. That isn't enough to warrant a console purchase. When there is a Zelda, Metroid, Smash Bros., Mario Kart, and maybe a couple others out, people might finally pickup a Wii U. Otherwise, it just doesn't have anything worth getting that you can't get a better version/experience of on the other consoles.

      --
      We were all warned a long time ago that MS products sucked, remember the Magic 8 Ball said, "Outlook not so good"
  4. They should stop making consoles by Undead+Waffle · · Score: 2, Insightful

    With the Wii they realized they couldn't keep up with the PS and Xbox. Instead of trying to get people to buy their consoles for their games they should switch to just making games. Even if they required custom controllers for some of their games I doubt it would be hard to come out ahead.

    1. Re:They should stop making consoles by TitusC3v5 · · Score: 2

      There's no reason to try to keep up with the PS and Xbox. They're underpowered PCs. Nintendo at the very least is trying to enable experiences that can't be had on other mediums.

      --
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    2. Re:They should stop making consoles by evilviper · · Score: 4, Interesting

      With the Wii they realized they couldn't keep up with the PS and Xbox.

      They don't try (at all) to keep up on raw benchmark-type specs. That helps them sell their consoles at a profit instead of a loss. And yet the Wii really caught on, and looked like it was going to take over the world. The pundits were talking non-stop about how genius Nintendo was... until the Kinect and Move were rushed to market in response, and took the wind out of Nintendo's sales.

      Instead of trying to get people to buy their consoles for their games they should switch to just making games.

      Because that has worked out so incredibly well for Sega over the past decade???

      You might as well say that all 3 should pack it in, and just make games for PCs and smartphones/tablets.

      --
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  5. Continued (dodging Slashdot filter) by GoodNewsJimDotCom · · Score: 2

    Again, I'll say it that I think Nintendo would have a lot of success in Android/iOS/PC markets just making games and controllers. I mean what they could do easily is have their old games available on Android/iOS/PC through some sort of official emulator instead of the underground doing it. Then they could use Steam and people could buy old Nintendo games for whatever discounted price they wanted to sell them for. People living today can't get all those old games easily unless they go the illegal rom route, and not everyone feels it is right to use ROMs they didn't pay for. Sure some don't care, and I have nothing against piracy, but some do. I bet there would be a bunch of money in either: A: releasing those old games on other platforms, or B: Lowering the price drastically on the WiiU on those old games so they're not 30$, but maybe 1$. If people knew they could buy a WiiU and a ton of old games on the cheap, they would be buying the WiiU.

    So yes, if I was CEO of Nintendo, I'd have as many old games to buy on WiiU for as cheap as possible: like 30-90 cents. If your WiiU system had such legacy dominance that people could know they had all the old games, more people would be buying WiiU. I bet they'd fly off the shelves. Then once having paid the overhead of having the system, they'd buy more premium games. It is time to stop pretending pirates aren't out there, and competing with them for your legacy software. Every sale of legacy software is one more than you'd have otherwise. Not every 12 year old has been around for the past 30 years or has parents who have been video gamers. You start giving kids the ability to play video game history on the cheap, and your system will be loved.

    In fact I'd make it a selling point of every Nintendo system from here on out to provide an online network to buy legacy titles at the appropriate price point. There's a point where you don't want to sell the last generations titles which are still around for too cheap, but the general concept to allow legacy titles to be purchased on future Nintendo systems, and this could be a way Nintendo not only dodges today's storm, but sures up an unsinkable ship moving forward. It would be almost similar to a homebrew Steam store... Nintendo could even swing license deals with people who made old games to get them on there.

    1. Re:Continued (dodging Slashdot filter) by meta-monkey · · Score: 2

      As game designers, Nintendo is absolutely willing to be creative and take risks. As a business, they are absolutely not. I did some consulting work for them last summer as they were trying to roll out a new ERP system and data warehouse. Their corporate culture was...unfortunate. Everything was very top-down controlled with every little thing you wanted to do, tiny change you wanted to make, had to be presented with Word documents and screenshots and impact cases and blah blah blah that had to go through four levels of higher-up approval. And they claimed to be doing Agile development! This was their third attempt to get this system off the ground and it failed, too. It could have succeeded, it was almost ready, but Japan corporate refused because it wasn't already perfect. Of course it's impossible to be perfect when the requirements are constantly changing.

      Like I said, third attempt, with their third set of contractors. It's kind of like going on a date with a girl and she keeps talking about how shitty her last boyfriend was, and the failed relationship before that and before that and at some point you have to say, "You know what all these relationship horror stories have in common? You." That was the impression I got of Nintendo's corporate culture (from my tiny cube at the bottom of the pile as a coder, subcontracted by the subcontractor of one of the subcontractors subcontracted by the contractor).

      Point is, I don't see them making any grand sweeping changes to their business strategy. Game design? Console design? Yes. Business strategy? Nooooo ho ho ho.

      --
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  6. Re:The market is getting tighter and tighter by mandginguero · · Score: 4, Interesting

    The leap from SNES to N64 controller definitely took some brain rewiring, but the move to analog thumb controlled joysticks is a move that the other game developer consoles made as well. It freed up additional fingers for more buttons. I get what you're saying with regard to the inability to access every button without changing up hand configurations, a problem Xbox and Playstation never had with their models. Newly positioned buttons and motion sensors don't have to be distractions once you've reprogrammed your premotor cortex and cerebellum to deal with them. I think there is an aspect of timing that was integral for many older system games that may be less important for some games now. When you look at the feature space of games in the 8 bit era, there were very limited interactions you could have. You were relegated to 2 dimensional environments and games like side scrolling action were quite common and relied on incredibly precise timing to pull off. How many people made it past the damn rocket sleds on Battletoads consistently? But newer games with immersive 3D sandboxes to explore don't have to rely on tight timing to hook a gamer. These tight timing aspects are probably what attracted many gamers to action games, and continue to make first person shooters so appealing.

    As a researcher in brain computer interfaces (BCI), I have to disagree with the more literal interpretation of your statement that the best games link your brain with pure cerebral responses to gameplay. I think you're getting at very quick sensorimotor contingencies, where you get 'in the zone' but there is a huge amount of somatosensory/tactile feedback that goes into these sorts of interactions that are currently missing with direct brainwave interfaces. Let alone the fact that even the best BCI algorithms can classify a handful at most different responses, you have access to more combinations of discrete input with your fingers for now than reading brainwaves.

    --
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  7. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  8. Comment removed by account_deleted · · Score: 2, Interesting

    Comment removed based on user account deletion

  9. Re:I owned a WiiU for 1 month..... by Anonymous Coward · · Score: 5, Informative

    I'd just like to point out the WiiU changed significantly after the launch. The procedure nowadays is:

    1. Grab Tablet.
    2. Press home, click game from menu (in *under one second* if it's one of your eight most recent picks or the disc in the drive - Even many smartphones are slower than that).
    3. Modest load time (shorter than what it was at launch, comparing Nintendoland then versus Nintendoland now), and play.

    Pointedly, Nintendo's quick-in element is something that the PS4 and XBox One cannot emulate (since it relies to no small part on the screen on the controller, which can turn on faster than most modern TVs).

    That said, it's not like the PS4's short on good stuff either. Overpriced demo though it may be, Metal Gear Solid 5: Ground Zeroes is quite lovely.

  10. Content atrophying... by DKroos · · Score: 2

    I just went to a major game review site, scrolled down the ample front-page list of recently reviewed games...not a single one for Wii-U. Every other platform had multiple games reviewed in the last few weeks, not a single Wii-U title. Imagine saying that for any previous Nintendo platform - it's unthinkable.

  11. We have untouched 3DS's and a WII, why buy more ? by bobjr94 · · Score: 2

    Why keep paying 30$ - 50$ for each game the kids may play for a few hours to a few weeks at most. They can download tons of free to 3$ games on their tablets or phone.

  12. Re:Nintendo Has an R&D Problem by phantomfive · · Score: 5, Insightful

    FWIW the biggest problem in porting isn't the CPU architecture. It's not like you can share binaries between the platforms, and most of the code is not written in assembly anyway. The biggest time-suck tends to be different APIs

    --
    "First they came for the slanderers and i said nothing."
  13. That has changed. by thegarbz · · Score: 2

    There's been software updates recently that change that quite dramatically. There's no more waiting for the disc and there's no requirement to pick up the Wii U controller.

    With a single click on the controller the Wii you will power up and start the game. Just grab your controller of choice. If the game disc isn't in then it will ask you to insert it. I haven't seen the home screen of the Wii U for a long time.

  14. Re:Nintendo Has an R&D Problem by thegarbz · · Score: 2

    Who cares about the architecture? You're talking as if people didn't port games between consoles on the XBox 360 and the PS3 the latter which was also a Power based architecture.

    People program in high level languages and then compile for different systems. The only thing really left then is optimising, and that is still an incredibly complicated task because while the remainder of the systems are x86 based, they are actually very different hardware architectures. Arguably the most portable is the Xbox and the PC since programming for either can be done using DirectX, however even then there are some massive differences between optimising a game for a PC and the Xbox, which has lead to some horrendous experiences on both platforms due to poor porting.

    All of this doesn't really matter for Nintendo, just look at the titles they have released. They have always played their console hand very close to the chest and the vast majority of hit titles on their console are actually their own titles.

  15. Re:The market is getting tighter and tighter by evilviper · · Score: 2

    As a researcher in brain computer interfaces (BCI), I have to disagree with the more literal interpretation of your statement that the best games link your brain with pure cerebral responses to gameplay.

    Slashdot... it's a lot like Central Park... except PhDs may stop by at any time to painstakingly pick-apart the logical and factual errors in the rant of the crazy homeless guy that's yelling at the pigeons.

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  16. Re:The market is getting tighter and tighter by Anne+Thwacks · · Score: 2
    except PhDs may stop by at any time to painstakingly pick-apart the logical and factual errors in the rant of the crazy homeless guy that's yelling at the pigeons.

    But what makes it worth while is that the pigeons often win the argument!

    --
    Sent from my ASR33 using ASCII
  17. Re: Nintendo bleeds by O('_')O_Bush · · Score: 2

    Call of Duty and Halo don't make an impressive library. What the other two consoles have is diehard brand loyalty(fanboism), which cause cause sales of their consoles despite having an unimpressive game library.

    --
    while(1) attack(People.Sandy);
  18. Re:Here's another idea by MitchDev · · Score: 2

    I dunno, my 5 year old daughter often uses the game pad on the Wii U and she gets more active jumping around than she gets on the playground sometimes....

  19. Need more than a cheap box by sjbe · · Score: 2

    The reality is that you can build a decent set top box for casual gaming for under $50.

    If it is so easy then why haven't you or anyone else done it? Sure you could probably come up with a cheap piece of hardware that can play simple games, though $50 is probably pushing it a bit. You'd have to do some serious volume to get to that sort of price point and to get that volume you'd have to have the software ready to go on day one or else no one will buy it. Chicken meet egg. Furthermore people already have a device they carry with them for casual gaming in the form of a smartphone. Why would they spend an extra $50 plus more for games to get something they already have in less convenient form. FDevices like Roku (which are close to that price point) could fill this function but pretty much nobody uses it for that even though it is possible today.

    The reality is that the economics of that business are more complicated than building a cheap box and then hoping developers will flock to it. "Build it and they will come" is a pretty shitty business model in most cases.

  20. Not the same markets by wynterwynd · · Score: 2

    iOS and Android games don't share the same market as the Wii U, it's dumb to compare them just because they're games. PS4 and Xbox One, sure, but mobile gaming is its own ecosystem. 95% of the iOS and Android games available don't even come close to major release titles in terms of scope and depth, and their prices reflect that. A person is extremely likely to own both a smartphone/tablet and a gaming console, and I seriously doubt anyone is going to have to weigh a purchase of a console game against that of a mobile game. It's like comparing Wii U games to board games just because they share a word.

    --
    "Not all who wander are lost" -- JRR Tolkien
  21. I'm buying games, not consoles by ArcadeMan · · Score: 3, Insightful

    If there's both Zelda and Metroid made for the Wii U, I'll strongly consider buying it.

  22. Re:I owned a WiiU for 1 month..... by gmhowell · · Score: 2

    I've heard of lazy, but this takes the cake. Or maybe, in your case, has the cake delivered, not to your front door, but to your sofa.

    --
    Jesus was all right but his disciples were thick and ordinary. -John Lennon
  23. Re:App stores compete with the 3DS by captjc · · Score: 2

    A single title like MarioKart is a shot in the arm but it can't turn the ship around by itself. Nintendo will have to hope they can keep throwing out good titles for long enough that sales pick up and some 3rd parties come back.

    Worked for Sony. Remember for the first 4 years of the PS3's life, it was a joke. Horribly expensive, almost no games worth playing, and it took developers years to finally figure out how to make game on par with the 360, much less better. Then there were the cries that Blu-Ray was just a gimmick and that they should have gotten rid of it. After a few price cuts and once Sony stepped up their game with first party and indie titles did the PS3 finally gain steam. And this was against a console with paid subscription multiplayer, a start screen full of ads and the worst quality control blunder in the history of consoles!

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