Friday, May 30, 2008

Nintendo alienating consumers with supply mismanagement


By Tiberius Jonez

Before Nintendo launched the Wii they promised the console would expand the videogame market to previously untapped consumers with an easy, low-stress, user-friendly experience. Fast forward nearly two years later and the Wii experience is anything but stress-free. Angry consumers are being confronted by “sold out” signs at retailers instead of Wii Fit and Mario Kart games.

Nintendo’s hardware and software supply problems following the Wii’s launch have persisted for so long that what was once perceived as the result of unexpected success is now being recognized as an inexcusable mismanagement of the companies supply chain.

Rob Fahey of gamesindustry.biz has written a fairly scathing, but accurate, editorial about Nintendo’s negligence toward their newly found consumers. Essentially telling Nintendo if they want to be the market leader then they need to stop acting “like an overgrown cottage industry” and more like “the vast globe-spanning corporation it has grown to become.”

I have to whole-heartedly agree with him. Nintendo has a long history of inflexibility and straight-up hubris that once cost them the huge hardware advantage they held with the NES and Super Nintendo before the birth of the original Sony PlayStation. From inflexible licensing agreements to unwillingness to adapt to their own growth, Nintendo has repeatedly demonstrated a disregard for the very customers they are so proud of having garnered.

At some point the demand Nintendo thinks they are creating by holding back hardware becomes a backlash against their product with the end result being money left on the table that could have gone into the corporate coffers.

6 comments:

  1. I agree with the supply issue, its pretty sad that Wii's are still as hard to come by as they are. That said, I've managed to get every new "big" game on the release day with no problems.

    Being a fan of Nintendo since the mid 80's, its amazing to see them back on top. Their numbers are insane with this system.. and to be honest, after the gamecube, I definitely did not see this coming. People can argue that they are "kid" games, but whatever. They are outselling everyone else and here in America, the dollar is all that matters in the end. Keep going Nintendo, we need you guys to freshen things up every once in awhile.

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  2. Well said. I think the Wii is somewhat overrated just because there is all this hype around it but very few solid titles. Most of my friends who own a Wii only play it if they have a party or once in a while if kids are around - and the same is true in our house. Most of us play our 360's together online.

    I also have a PS3 which most of my friends don't have, and I find it to be in between the 360 and the Wii. It is a powerful system technically, but there needs to be more solid software for it.

    But there is no disputing the fact that Nintendo knows how to generate profits - that's the whole point of this story - how can they make such a huge blunder when they have pretty much created a license to print money? I don't get it.

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  3. Again I agree. I think the Wii is definitely overrated when comparing it directly to the 360. As for the PS3, I can't speak to that as I do not have one. They (Sony) have seemed to have Nintendo's old problem of having delay after delay as of late. I just think the Wii really is in a completely different video game category than its competitors. Microsoft and Sony are the arcade machines in the building while Nintendo is the skee ball or basketball shooting game. They are just VERY different. Nintendo's solid titles this generation may not appear as such to the more old school gamers just yet because its really something new. Now is the future of gaming going to go the way of the Wii?? I don't think so, but it seems to be introducing some ideas and concepts that can only only help the industry. What do you think? Where will the Wii stand when we look back on it..

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  4. Your skee ball analogy is an excellent one. My wife and I bought Wii Fit last night - it just happened to be in stock at Walmart while we were there shopping - and after playing the Skiing parts of it, I was having very similar thoughts. It reminded me of a skiing arcade game I played back in the 80's. Thing is, it was one of those games where you actually had skis and ski-poles - it was basically virtual skiing, and it stood right next to a skee ball machine.

    As far as where the Wii will stand in subsequent generations when we look back on it, I think it largely depends on the software legacy that it leaves behind. While the hardware is certainly innovative and can deliver great experiences when properly utilized, it can also suffer from the "fad" or "tacked on" feeling when motion-sensing is added to games as an afterthought rather than a focused element.

    While playing Wii Fit I was also thinking how easy it would be to make this game on the Xbox 360 or even PS3 - but primarily the 360 due to the excellence of Xbox Live. There is huge potential for online multiplayer with Wii Fit if properly implemented. You could have stepping classes where a group of people worked out together - women would totally dig that - and that's just the most basic implementation.

    Microsoft has already hinted at their willingness to add motion sensing if their customers want it - it will be interesting to see what transpires in that area over the next year or so.

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  5. I like your objective view on the industry, its refreshing that you have some good perspective and aren't a "fan-boy" of sorts... that seems to be the case pretty much everywhere else.

    As for Nintendo's case, I think you hit it on the head. The software is definitely going to be what defines the Wii, I couldn't agree more. The hardware is there for some cool things, now we'll just wait and see. I also picked up Wii Fit recently and actually was surprised at just how well the balance board detects everything. That being said, my question is this...

    You say Xbox could deliver some great online gaming with something like Wii Fit, and I don't disagree. The potential is HUGE. However.. could a game like Wii Fit even be greenlighted on this system? Or would it just be shot down and ridiculed by the 360 fan base?
    Maybe i'm jaded by the online community... but it almost feels like its OK for Nintendo to try games like these, but Microsoft and Sony need to keep away and stick to whats already worked for them.

    In the end you are correct in saying the answer is software. It ALWAYS is. Maybe the fact is Nintendo just does this sort of thing alot better than everyone else.

    I know I sound like a Nintendo homer.. but I play my 360 more than anything I own. I just respect Nintendo, simple as that.

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  6. Well, as far as Microsoft greenlighting a game like Wii Fit, I think they would if they thought the profits justified it. With the Xbox 360 Microsoft has debunked a lot of the myths associated with them last generation, such as they have no third party exclusives, they don't have any good games other than shooters and driving games and even befoe the new consoles were released, most people thought - due to Sony's hype machine - that the 360 would be inferior to the PS3 - and the fact is, the 360 is superior in many ways and equal in every other way, with the possible exception of Blu-Ray.

    As far as PS3, I think they would too - although they are taking some hits from the public for putting sensing tech in their controllers which was perceived by some as blatantly "copying" Nintendo - if the money is there, they can't ignore it forever. Honestly, the only game on PS3 that I've genuinely enjoyed the motion sensing at all is FLOW, which isn't really even a game, it's more like an interactive screensaver.

    I make a conscious effort to not come off as a fanboy because I am only a fanboy of games, not systems. Each manufacturer has made their share of mistakes and good moves this generation and I can appreciate and ridicule them all for different reasons. If you've been reading here for any length of time you will see an established pattern of objectiveness I hope.

    I really like your takes, if you are interested in doing some volunteer writing for GameJonez Blog send me an email and I'll give you more details.

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