Perspective: A Nintendo surprise? Mais Wii!

Nintendo hasn't been the hot game console maker for quite some time. But thanks to its own design inspiration, Nintendo has become the talk of the blogosphere.

As the holiday-shopping season gets under way, Nintendo is reaping the sort of public relations bonanza we've come to associate with the likes of a Steve Jobs product demo. Part of this is obvious media manipulation. Even though Sony and Microsoft dwarf Nintendo in total revenue, we're still talking about a multibillion-dollar corporation with ample means to stoke the PR cycle.

But whatever its origins, buzz soon takes on a life of its own. The big research houses tend to frame the debate about the future of the game console business as a battle between Microsoft and Sony. Chalk it up, perhaps, to institutional bias.

In the meantime, with the first Wii consoles going on sale November 19, early reviews suggest that Nintendo has got a beaucoup hot product on its hands. So much so that the president of the company's U.S. division is warning shoppers that there may be too much demand to satisfy. Even with the approximately 4 million Wii consoles expected to become available worldwide after the mid-November launch, Nintendo predicts that the systems will soon become scarce.

The winners...will be those machines that comprise more than the sum of their technical specs.

"We're urging shoppers not to get complacent," said Reggie Fils-Aime, president of Nintendo America. "The level of demand we're seeing goes beyond the ordinary. Retailers are telling us a significant fraction of customers preordering Wii are nontraditional gamers."

Fils-Aime is begging for a 15-yard penalty due to unnecessary self-promotion, and none of this is surprising since all the major consoles sell out at launch. But Nintendo recently did take out an exhibit at Life@50+, an annual event sponsored by the American Association of Retired People.

Maybe Nintendo is on to something that Microsoft and Sony will decide to tap. With the aging of the Baby Boomer generation, more and more over-50 types (such as moi) are skewing the normal demographic of the "average gamer."

The winners in the game console wars will be those machines that comprise more than the sum of their technical specs. Sum it all up with that much overused phrase, the "user experience." In this latest go-round of next-generation game consoles, Nintendo, Sony and Microsoft all packed their systems with doo-dads to make sure their list is oh-so impressive. But if that's your way of comparing, be my guest. Remember that on paper, the New York Yankees are a World Series caliber club; on the field, they're also-rans.

No doubt Nintendo's engineers believed that the company's previous entry, the ill-fated GameCube, had a respectable list of fancy specifications. Unfortunately for Nintendo, gamers were less impressed by a glossy laundry list than by what the system could--or in this case, could not--do. The blunt truth is that the GameCube was a me-too console with weak third-party support and absent real online gameplay. Any wonder then that it failed to stand up against the Sony PlayStation 2 and the Microsoft Xbox?

With the Wii, Nintendo learned from its mistakes. Reviewers have fallen in love with the fun motion-sensitive control system that translates hand movements onscreen. Even if the graphics aren't Xbox 360 or PS3 worthy, at $250, the price is probably right for millions of holiday shoppers who may hesitate to shell out $400 for a fully featured Xbox 360 or $600 for the PlayStation 3.

Something else about this makes for an intriguing story. Both Sony and Microsoft have wider ambitions than simply offering gameplay: Sony views the PS3 as a way to promote the Blu-ray format while Microsoft dreams of displacing Apple Computer as the central technology provider for so-called entertainment hubs.

With so much at stake, the game console market has turned into quite the show--and may turn out to be the most interesting tech story for the remainder of this year.

Biography
Charles Cooper is CNET News.com's executive editor of commentary.

More Perspectives

[jeph4e]

Money Talks

For the adult gamers + children the price is important.

[bobj123]

Say hello...

...to the iPod, in terms of marketing, of tommorrow. This is going to be the MUST HAVE way before the PS3. Sure they are both different categories but the Wii has a sleek sex-apeal that is going to make it the new trendy. Did they tap into the Apple marketing scheme or what?

[itworker--2008]

Money lost per unit?

One thing I have not read in ANY Wii story, are they going to lose money per unit sold?<br /><br />We all know 360 and PS3 lose money per unit sold and they are trying to make up for the loss by the sale of games and licensing. <br /><br />I figure Wii is not going to lose money per unit or at least not as much as 360 or PS3, I give the profit edge to Wii in the short term

[Yumil1988]

Wii Makes $$$ Immediately

Back in September, Mr. Fils-Aime said that the Wii is profitable from start.<br /><br />For the full story, you can read the article at GameSpot: <a class="jive-link-external" href="http://www.gamespot.com/news/6157690.html" target="_newWindow">http://www.gamespot.com/news/6157690.html</a>

[Dr. B]

Subject line:

I don't think that Nintendo will loose any money on each <br />wiivolution. If they don't make a profit on each one, they'll at least <br />break even.<br /><br />Another thing that Nintendo seems to have in its favor for this is <br />that wii games arn't suppose to be more than 50, $10 less than <br />what PS3 and 360 games have been stated at. if this turns out to be <br />true, the wii won't only be cheaper in the short run, it'll be cheaper <br />in the long run too.

[dbw784]

Nope!

Nintendo will not lose a cent with the sale of the Wii. Read on.<br /><br />"We will make a profit on the entire Wii proposition out of the box<br />?hardware and software." -Fils-Aimes<br /><br />Article can be found here:<br /><a class="jive-link-external" href="http://arstechnica.com/news.ars/post/20060915-7752.html" target="_newWindow">http://arstechnica.com/news.ars/post/20060915-7752.html</a>

[the liquid man]

I want a WII !!!!!

GOGOGO Nintendo!

[8ball629]

Freeze Myself

I'm going to freeze myself in the snow until the Wii is released - I can't wait!

[tmhartnell]

Profitability of Wii

A month ago there was an analysis of the cost of peripheral and the console units that suggested the Wii consoles would make less than 10 USD a unit. Unlike other consoles, they are making a small profit leaving them with more scope to cut prices as the console wars heat up.

[ragusivan]

Buying decision of PS3 Top 10 things to know

Buying decision of PS3 Top 10 things to know<br /><br />Public has to go through the process of decision making in the next short period. Interesting times ahead for electronic gaming entertainment.Here is good one to help the public<br /><br /><a class="jive-link-external" href="http://ragusivanmalai.blogspot.com/2006/11/buying-decision-of-ps3-top-10-things.html" target="_newWindow">http://ragusivanmalai.blogspot.com/2006/11/buying-decision-of-ps3-top-10-things.html</a>

[slim-1]

Buying decision of PS3 Top 1 thing to know

Root Kit = Boycott Sony<br /><br />Boycott Sony = Dead Sony

[sigma8]

Nintendo should work with Apple

I'm not sure how they'd do it, but I think both companies are being <br />perceived in similar ways, as innovative and user-focused.

[Dr. B]

I so agree with that statement

I keep wishing that Apple and Nintendo would get together and <br />make the Mac and Nintendo systems naturally compatable. DS <br />compatability for Mac, iPod hookup for the Wii, all that good stuff.

[niceyuk]

Oh my science!

Oh my science!

[Chase211]

????

Nintendo has been "THE" Hot game...wait what? what year is this? is it the 80s and no one told me? Nintendo hasn't been "the hot" anything sense the NES, it has been in a HORRIBLE decline ever sense the N64 (good system, dunno why) hell the new kid on the block the X-Box was beating up the gamecube and taking its lunch money from day one. The new controller is somthing interesting, but lets not lie CNet. The Wii is two gamecubes stuck in a box together with a new controller, every one is rediculously priced and nintendo is gouging its loyal customers. Both PS3 and the 360 take huge losses per system, the wii makes a profit due to its incredibly old hardware. this thing is last gen, I kid you not there was a larger % upgrade in the move from the NES to the SNES hardware wise, in EVERY system actualy...every system ever made was a larger upgrade from generation to generation. This is last gen saying otherwise is a lie. I would rather a decent motion synsitive atatchment on a good console than paying 250 to play rehashed games released on both systems that just happen to have a new controller. I'll buy a golf game that comes with a wireless golfclub or play guitarhero because thats far better than some sort of generic motionsinsitive TV remote.<br /><br /><br />3/10 for trying.

[slim-1]

Since I'm boycotting both Sony & Microsoft all that is left is Nintendo

Besides I like the games. Mario anyone.

[regan2]

it's the not the hardware, stupid

People don't line up for Nintendo products because it's the latest <br />and greatest hardware. It never has been and there's no use <br />competing with Sony and Microsoft to create the exact same <br />product. You can pick up a PS3 or a 360 and it's the same <br />machine with the same games.<br /><br />Or you can buy a Wii for considerably cheaper, have a good time <br />playing a system that's radically different. <br /><br />I don't even see how that's not an easy choice?<br /><br />Nintendo will get my dollars as I've seen the 360 and PS3 in <br />action and wasn't that impressed.

[TMB333]

Bravo!

Your diatribe has proven to me one thing and one thing only. Yep, you're a doofus.

[Tomcat Adam]

A few points you should know:

-Superior graphics/speed has hardly ever won. (It has before, but not even close to always) Case in point: PS2<br /><br />-The Gamecube, while severely underpowered, was capable of producing stunning graphics that beat out most of that on the Xbox.<br /><br />-Nintendo makes money on every hardware and software unit sold, whereas Sony and MS lose money on their hardware. This puts Nintendo into quite decent profits for being soley a game company.<br /><br />-You're judging "generations" in terms of graphical upgrades. The difference now, however, is that the newest leap in graphics doesn't change anything to the extent that 8 bit to 16/32 bit did, or 2d to 3d.<br /><br />"I'll buy a golf game that comes with a wireless golfclub or play guitarhero because thats far better than some sort of generic motionsinsitive TV remote"<br /><br />-The point of what they are doing is to make the fun gameplay you see in these games, that you get from their pieces, universal and familiarly controlled.

[gpenglase]

it's lose NOT loose

aaaaggghh - can't American's spell?

[refused14]

it is Americans not American's

Can't foreigners punctuate?

[refused14]

it is Americans not American's

Can't foreigners punctuate?

[Ryo Hazuki]

Nintendo = Apple of console business? Let's praise them then!

It's quite interesting to realize that, ever since someone compared Nintendo to Apple, everybody, from the media to the users, praises Nintendo and seems to be affraid of criticising them (just like what happens towards Apple); it's the new cool thing in games business: praise Nintendo, just like it's cool to praise Apple in the computer world; interestingly enough too, Sony seems to be the Microsoft of console business for people.<br />It's like everybody knows that, in the end, what matters is games, but, suddenly, nobody cares about games for a while and it all seems like the Wii will win just because it has an unusual remote, which will probably be good to play like 25% of today's games.<br />I admire Nintendo's continuous quest and push for innovation, but, no matter what people say, Nintendo will, once again, come out in 3rd, IMHO, and I wanna see what all these smart people have to say then.

[Dachi]

origins explained

Sony's image has shifted recently to a DRM happy mega co after the root kit thing. <br /><br />Next, some people are getting sick of being on the $65+tax 'NFL Football upgrade 34' and $60+tax 'Race Game version 78' hamster wheel.<br /><br />Improved graphics are nice, but people are sick of shelling out $50+ for upgraded versions of the same thing every few years.<br /><br />With Sony's slumping reputation with the online community and the $600 unit price +60 games I think at least some people are getting off the Sony wagon.<br /><br />The PS3 with a few needed extras and ~3 games will come to nearly $1,000 with tax and I don't think I am alone in saying Need for Speed Plaid probably isn't worth it.<br /><br />Even after it nearly cost them the company, Nintendo didn't lose sight of their goal to make games that are fun and that are mostly family oriented.<br /><br />So at least morally Sony = bad, Nintendo = Good.<br /><br />If the availibility of the Wii is there, and the wiimote is natual enough, I think they could be back in the game.

[superman9956]

gamecube rocks

the ps2 sucks and the xbox sucks