is nintendo the next sega?

[eduardo]

http://busk.com/news/is-nintendo-the-next-sega

If you’ve been following Nintendo news as of late, you know that the company is in trouble. During its last-reported quarter, its revenue slid considerably, it posted a loss, and hardware sales plummeted. In order to revive the ailing 3DS, Nintendo was forced to cut its price from $249.99 to $169.99.

With all these troubles, I can’t help but wonder if it’s time to sound the alarm on Nintendo. At this point, the company is hard-pressed to find a single business unit that’s operating even close to where it should be. And if it can’t jumpstart 3DS sales, there’s a good chance that Nintendo will find itself limping to the launch of the Wii U next year.

"Sony and Microsoft will have the luxury of seeing the Wii U in action"
Speaking of the Wii U, I’m not so convinced that it has what it takes to be a success. I think that the device’s controller will be a standout feature that will attract a host of consumers in the short-term. And its graphical capabilities should appeal more to the hardcore segment.

But its market appeal could be short-lived. Sony and Microsoft are both planning their own hardware refreshes, and chances are, those platforms will feature even better graphics than the Wii. Moreover, those companies will have the luxury of seeing the Wii U in action to find areas in which they can either deliver the same compelling features Nintendo’s device offers or improve upon the hardware’s shortcomings.

Considering all that, and keeping in mind where Nintendo stands right now, I can’t help but wonder if it’s in danger of becoming the next SEGA.

"If Nintendo hardware sales continue to plummet, how long before key stakeholders focus their efforts on competing devices?"
If we look back at SEGA during the 1990s, we’ll find a company that was performing relatively well in the hardware space after the Genesis was released. But after a few hardware missteps with the SEGA CD and Saturn, along with poor market strategies, the company was up against a wall. It released the Dreamcast too early, and saw that console get trumped by the PlayStation 2 and Xbox. And when it was all said and done, SEGA had no choice but to leave the hardware game altogether.

Now, I’ll admit that SEGA and Nintendo are in different situations right now, and the issues that were surrounding SEGA at the time, including trouble with developers and retailers, aren’t necessarily Nintendo’s problems right now. But could they be? If Nintendo hardware sales continue to plummet, how long will it take before key stakeholders focus more of their efforts on competing devices?

SEGA’s decision to end its hardware development and focus solely on software was a controversial one at the time, but it made quite a bit of sense. The company had solid game properties, led by Sonic, and it knew that it could sell them on multiple platforms.

It’s a similar story for Nintendo. If the game company sees its hardware business start to take it down, it has the software it needs to make the landing a bit softer. With Mario, Zelda, Donkey Kong, and others, Nintendo is arguably the most successful software developer in the game industry.

But before the Nintendo fans jump all over this, let me just say that I don’t know if Nintendo will ever be the next SEGA. And if it does eventually turn out that way, its transition might not happen for a long time. I’ll also freely admit that Nintendo’s demise has been predicted time and again over the years, and so far, it has triumphed.

But things aren’t going well at Nintendo. And unless the 3DS and Wii U can help the company overcome its issues, Nintendo’s future might not be as glorious as its past.


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Relevant Entries on SlashGear.com

[HowlingFear]

Nintendo already had these problems when the original DS was launched. I would say that the situation was even worse. Well, what do you know, DS has become the huge success of the big N after a short period of time. I suppose they will recover quickly.

[mazonemayu]

specially if you consider for how many gazillions nintendo has been ripping customers off for their games since the dawn of time. they were always the most expensive company to own stuff from so I guess they got a pretty fat bank account over the last years or so.

[Hiryosuke]

The wii u will be a massive success becuz ppl r stupid and like gimmicks. All they need is a good marketing campaign and they'll have all the suckers they need...of course in this economy launching that console at $450 when u can get the same thing cheaper from sony and Microsoft could be a problem...oh well even tho i hate nintendo they'll succeed again...probably...

[Gary_b]

450 is way to high. the wii sold so well because it was under $300. Sony seen slow sales due to their high price point. i think that is Nintendo wants to do well they got to get the price down to $350 or even $300

[Sorcerer]

From my observations , video game console manufactures who experience the biggest success in any given gen always seem to crash eventually.

It seems impossible to keep the momentum of success going for more than a generation or two.

No one has stayed on top for more than 2 gens so far. So if the Wii U turns out to be a dud it will be par for the course.

Microsoft has not had a reign at the top yet, but it seems likely they will get their turn in the next gen.

Nintendo is not out of course and oneday they will rise to the top once more.

[MrSega]

The more I read about the Wii U. The more I read about Nintendo fans extreme doubt about the console, the more I see 3DS suffer from lackluster sales,strong Japanese skepticism, the more signs indicate to me that Wii U is destined to suffer the same fate as the Atari 5200: Release an upgrade of a popluar console, with a new very expensive controller, the exact same titles just upgraded a bit to a complete disinterested demographic of gamers while trying to sell the same idea to non gamers who don't care or see a difference in thier novelty system and will think its like Nintendo is trying to force them to invest in a slighty different looking and more expensive DVD player that they've had for 6 years.

Wii U is destined to flop especially if like the 5200 the controller tablet is defective and overpriced.

[Mephiles550]

I wonder what the price for this demon must be....a controller alone must be near $100...The console will probably be 450-500$ at launch considering what they did with the 3ds even with the price drop.

[MrSega]

I wonder what the price for this demon must be....a controller alone must be near $100...The console will probably be 450-500$ at launch considering what they did with the 3ds even with the price drop.

I'd say $400-450. Either way, Wii U will FAIL.

[Hiryosuke]

Well imo the wii should have failed but look how that turned out...