• Hey Guest. Check out your NeoGAF Wrapped 2025 results here!

Bad business decisions this gen?

You guys gotta realize how easy it is for a company like Microsoft and how hard it is for Nintendo to pay for everything Rare needs. Nintendo doesn't have that type of money, Microsoft does. An entire gen, and finally some Rare games are coming out for the Xbox? oh wait, Conker came out last month, MB.
 
you all have got it wrong, nintendo has not made a bad business decisions. they made bad market share decisions.

MS made the worst businees decision, in making the xbox. 4 billion dollars in loses says it all.
 
ThunderEmperor said:
you all have got it wrong, nintendo has not made a bad business decisions. they made bad market share decisions.

MS made the worst businees decision, in making the xbox. 4 billion dollars in loses says it all.

right...............
 
Well, I think I am going to buck a trend here and say that Enter the Matrix was not a bad business choice on the part of Atari, in fact they released that game at just the right time.
 
jj984jj said:
-Nintendo letting Silicon Knights get away although I see why when Dennis explained it

-Nintendo having Silicon Knights work on MGS:TTS

-GBA to GCN connectivity and its lack of continued support

-Nintendo switching presidents at the start of this generation (plans collide)
>One thing that was affected by this was Yamauchi's online plan for the GCN which Iwata didn't support

-Miyamoto not making many games him-self, trying out new talent at EAD too much

-Capcom's decision to support the Gamecube

-Capcom trying to abondon the Gamecube now and not at the beginning of next generation (Shows in ported games sales [VJ, K7])

-Sega's exclusive X-Box games (Panzer Dragoon, Jet Set Radio Future, Otogi, etc.)

-Sega building a fairly large fanbase on the Gamecube just to start ignoring it (Phantasy Star Universe, Super Monkey Ball Deluxe, etc.)

-Sony only having 2 controller ports on PS2

-Sony's PSX

-MS making a non-profitable console just to gain market share

-MS overpaying Nintendo/Stamper bros. for Rare

-Team Ninja making Ninja Gaiden exclusive to X-Box

Great post. I agree with each and every point in it.
 
connectivity.

I can't help but think it was a big experiment that may have helped with the wireless drive for the rev though.
 
Speevy said:
Nintendo not only lost market share and developers this generation, but also managed the unlikely feat of making its software brand even less popular, failing to crush a new handheld competitor (which it had done how many times before?), and recording its first loss in the company's history.

They split marketshare scraps with Microsoft. Nobody cleaned up except Sony.

And while their 3rd party support remains the worst, they still gained developers and development on Gamecube.
Gamecube has 3 TIMES the amount of third party software than N64. I'll try and find a comparison for you.

jj984jj said:
-Nintendo letting Silicon Knights get away although I see why when Dennis explained it

Agreed

-Nintendo having Silicon Knights work on MGS:TTS

-GBA to GCN connectivity and its lack of continued support

Disagreed. MGS:TTS would have been lauded in its existing state on any other console. It'd of been a big deal for Metal Gear fans, whether they prefer the original OST etc or not.

And connectivity was a worthwhile attempt to leverage the businesses even if it failed. Its gonna continue in future Nintendo products and it'll happen with PSP and PS3 too.
It may have paved the way for wifi in DS and Rev as previously mentioned...

Business accumen aside: Pacman VS and Zelda: FSA rule

-Nintendo switching presidents at the start of this generation (plans collide)
>One thing that was affected by this was Yamauchi's online plan for the GCN which Iwata didn't support

Agreed.
Factors I'd also say seem loathingly self evident about this poor transition would be GBA vs GBA SP, the fact that the Gamecube launched in purple, No-online VS No-line Nintendo Wifi Connection, Gamecube and GBA VS Revolution and DS. Its a different Nintendo now, but it was ugly getting there.

-Miyamoto not making many games him-self, trying out new talent at EAD too much

He hasn't directed a game for years... and some of the 'other' talent is pretty good. Takeshi Tezuka (direction) with Kensuke Tanabe (writing) on Zelda was killer. Aonuma is about to show his true mettle. The Tokyo studio is showing promise...

-Capcom's decision to support the Gamecube

Resident Evil and Resident Evil 0 met expectations. Viewtiful Joe met expectations.
Resident Evil 4 was ported but nowhere did that imply that the Gamecube support wasn't worthwhile too. Capcom will support Revolution, DS and GBA next just as much..

-Sega's exclusive X-Box games (Panzer Dragoon, Jet Set Radio Future, Otogi, etc.)

Yeah. SEGAs definition of "platform agnostic" left something to be desired. They basically split the best games among three different platforms... where really, the best games should be multi-platform.

-Sega building a fairly large fanbase on the Gamecube just to start ignoring it (Phantasy Star Universe, Super Monkey Ball Deluxe, etc.)

Again, infuriating. I agree.

-Sony only having 2 controller ports on PS2

Truly fucking stupid.

-MS making a non-profitable console just to gain market share

-MS overpaying Nintendo/Stamper bros. for Rare

Not bad ideas really when you think of them as long term investment. I mean 2 billions pissed away in the first couple of years, nice exclusives and the best online plan ever conceived -- and they were barely keeping toe to toe with the Gamecube? Imagine if they'd put less into it.

-Team Ninja making Ninja Gaiden exclusive to X-Box

Money hats?
 
Did two ports on the PS2 really hurt SONY? I doubt it very much.
Also a lot of the bad SEGA business decisions, are evenly split with MS. That is in a lot of the cases it was MS who lost more money on the deal. Werent a lot of the games partly or completely funded by MS?
 
My top ten:

1. Capcom 5 - absolutely horrible business decision that was disastrous for new franchises and even for RE. Capcom could have ruled the PS2 and sold tons of its games.

2. MS buying Rare for $375 million cash - My god, for that money MS could have commissioned between 10 to 30 AAA exclusive games. More than Rare will make in the next 2-3 generations.

3. Nintendo's confused approach with GameCube - was it a me-too console, or was it innovative? Was it mature or was it kiddy? Console with a bad positioning based on price only.

4. Original Ngage and the bad initial game lineup - one has to wonder what would have happened if Nokia would have launched with QD and the AAA exclusives they had later.

5. PSP - that shit bleeds money like a bad business plan infected with a financial ebola.

6. Whatever happened in Retro studios - when you kill three of your four games, something is going horribly wrong.

7. Square Hawaji studios - just because you can make beautiful animations doens't make you Pixar.

8. Investing in Gizmondo - essentially only to fund Ferraris and blowjobs to a British and a Swedish bloke.

9. Sony dropping the ball with digital distribution - having potentially the access to tens of millions of homes, PlayStation and PSP could have become what iTunes and iPod are today. Now it's too late. Even on the console side, Nintendo and Microsoft are leading the race.

10. Sega missing the mainstream - much like Capcom, too much love for niche audiences, leaving Western developers collect the money on PS2.
 
Chittagong said:
6. Whatever happened in Retro studios - when you kill three of your four games, something is going horribly wrong.

I think a good example of a correct business decision this gen is Nintendo's intervention with Retro. Yes, Retro was going down the toilet, but forcing them to kill three games and ending up with one of the masterpieces this gen and an able first-party developer is definitely a good business decision. The same probably had to happen to Rare, but Rare was probably too big to handle and I think it's still is.

As for Capcom 5, I think Capcom's reasoning was that if they succeeded (which they obviously didn't) in expanding GC's install base, they could enlarge the gaming market as a whole (or curb the shrinking in Japan's case). It's easy to say they could have made a lot more money in hindsight, but it's a calculated risk and even if it didn't pull off, Capcom didn't lose too much. In many cases, it's not a bad decision, but just bad execution. It is important to distinguish the two. Nintendo's worst mistakes are made in the N64 days, which the GC inherited, but the intention to recover was there. They wanted to diversify their portfolio and have mature content but ended up disappointed by their second-parties (SK, Rare and pre-Metroid Prime Retro) and pulling short themselves with EAD. They shouldn't exactly reverse all those decisions with Revolution.
 
I'm really confused by all the "Capcom 5" answers. Even with this minimal support for the Gamecube of mostly lower-cost projects (Barring RE4 and the animated cutscnes/voice work for K7), PS2 still got the vast majority of the support, most of which underperformed too. And of the Capcom 5, 3 have been ported and 2 of them bombed hardcore on the PS2 (We have yet to see how RE4 will perform). Are you saying they should've made PN 03 for the PS2? Would that of made a difference?
 
sonic4ever said:
Also, I don't see Namco bringing out any new tale games for the Gamecube. the support for the Nintendo gamecube is about dead. Deal with it and go on with you life.
This year alone, Namco teams have produced 5 GameCube games, all exclusives too. That number rises to 6 if you count TriForce.
 
typhonsentra said:
I'm really confused by all the "Capcom 5" answers. Even with this minimal support for the Gamecube of mostly lower-cost projects (Barring RE4 and the animated cutscnes/voice work for K7), PS2 still got the vast majority of the support, most of which underperformed too. And of the Capcom 5, 3 have been ported and 2 of them bombed hardcore on the PS2 (We have yet to see how RE4 will perform). Are you saying they should've made PN 03 for the PS2? Would that of made a difference?

I was just about to post something similar to this. As far as I remember, Capcom expected alot better sales from their PS2 projects and just didn't get them. From that viewpoint the Gamecube games did reasonably well considering the size of the userbase compared to the PS2.
 
radioheadrule83 said:
Resident Evil and Resident Evil 0 met expectations. Viewtiful Joe met expectations.
Resident Evil 4 was ported but nowhere did that imply that the Gamecube support wasn't worthwhile too. Capcom will support Revolution, DS and GBA next just as much..

It wasn't just a bad decision to move it exclusively to the GC, it was also a bad decision to move it exclusively to the DC, even if it was for a short amount of time. This is what they were accustomed to with each RE

02 Resident Evil 2 (PS1) 4.960.000
04 Resident Evil 3: Nemesis (PS1) 3.500.000
05 Resident Evil (PS1) 2.750.000
 
Deathcraze said:
I was just about to post something similar to this. As far as I remember, Capcom expected alot better sales from their PS2 projects and just didn't get them. From that viewpoint the Gamecube games did reasonably well considering the size of the userbase compared to the PS2.
in 2003 and 2004, Capcom only met their overall platform sales projections on GameCube and GBA. PS2 and Xbox both failed to hit their targets by significant margins and GameCube just barely made it's targets at that. Capcom's big problems this generation haven't been GameCube centric, they've been spread among all consoles really.
 
One thing I can say is that everyone keeps using the "PS2 has a bigger install base!" tag-line to glorify sales of a title on a GC.

Some things to note.

A lot more casuals own a PS2.

10,000x's as much piracy on the PS2. (the millions sold in Asia, yeah, only 3 people buy games over there)

Repeat purchases (broke ones, slim-line)

Maybe Need for Fuckin Speed might benefit from PS2's "omg larger install base." But a hardcore-esque oriented game like Resident Evil, or PN03, or Viewtiful Joe, wouldn't (maybe RE would, but not as much as some expect/say).
 
1. Capcom 5 - absolutely horrible business decision that was disastrous for new franchises and even for RE. Capcom could have ruled the PS2 and sold tons of its games.

2. MS buying Rare for $375 million cash - My god, for that money MS could have commissioned between 10 to 30 AAA exclusive games. More than Rare will make in the next 2-3 generations.

3. Nintendo's confused approach with GameCube - was it a me-too console, or was it innovative? Was it mature or was it kiddy? Console with a bad positioning based on price only.

These would be my picks, but for Gamecube I'd say the specific problem was the decline in how popular their console games are (look at Mario/Zelda sales on Gamecube vs. N64) and not doing more to get third party support. RE4 was their biggest third party exclusive but it didn't really move too much hardware and is ending up on the PS2 anyway. They would have been better off trying to get games more in tuned with the userbase as exclusives.
 
C- Warrior said:
Some things to note.

A lot more casuals own a PS2.

10,000x's as much piracy on the PS2. (the millions sold in Asia, yeah, only 3 people buy games over there)

Repeat purchases (broke ones, slim-line)

Maybe Need for Fuckin Speed might benefit from PS2's "omg larger install base." But a hardcore-esque oriented game like Resident Evil, or PN03, or Viewtiful Joe, wouldn't (maybe RE would, but not as much as some expect/say).

How's the PS2 any different from the PSone in terms of fanbase that ate up RE? The last time I saw a chart for the RE (back in June), RECVX and REOutbreak were the 2 best selling RE's this gen. Both of which are PS2 games. To top it off RECVX is a port and Outbreak isn't even a real RE, yet they still sold well on the system.
 
But a hardcore-esque oriented game like Resident Evil

Resident Evil was as mainstream as anything else before this gen. How many hardcore-esque franchises have two movies made based on the property?
 
SolidSnakex said:
How's the PS2 any different from the PSone in terms of fanbase that ate up RE? The last time I saw a chart for the RE (back in June), RECVX and REOutbreak were the 2 best selling RE's this gen. Both of which are PS2 games. To top it off RECVX is a port and Outbreak isn't even a real RE, yet they still sold well on the system.

I think the biggest thing is confusing the playstation RE fanbase, by making the RE exclusive yet not exclusive, really jerking it's fanbase around but despite that CVX and Outbreak show it's still there at some capacity. Since RE5 is multiplatform from the get go, it seems avoid all of that.
 
typhonsentra said:
I'm really confused by all the "Capcom 5" answers. Even with this minimal support for the Gamecube of mostly lower-cost projects (Barring RE4 and the animated cutscnes/voice work for K7), PS2 still got the vast majority of the support, most of which underperformed too. And of the Capcom 5, 3 have been ported and 2 of them bombed hardcore on the PS2 (We have yet to see how RE4 will perform). Are you saying they should've made PN 03 for the PS2? Would that of made a difference?


jarrod said:
in 2003 and 2004, Capcom only met their overall platform sales projections on GameCube and GBA. PS2 and Xbox both failed to hit their targets by significant margins and GameCube just barely made it's targets at that. Capcom's big problems this generation haven't been GameCube centric, they've been spread among all consoles really.



i was going to say both of these things. its funny, people are acting as if the gamecube should never have received any exclusives. some odd point of views here.
 
SolidSnakex said:
How's the PS2 any different from the PSone in terms of fanbase that ate up RE? The last time I saw a chart for the RE (back in June), RECVX and REOutbreak were the 2 best selling RE's this gen. Both of which are PS2 games. To top it off RECVX is a port and Outbreak isn't even a real RE, yet they still sold well on the system.
RE4 GC has outsold Outbreak by now. It's also on track to outsell CVX PS2 at full price... that's game's big sales came from bargin bins. Which is really PS2's main advantage over other platforms strategically, it's gigantic budget aftermarket fueled by casuals.

As for RE's PS2 sales potential, Outbreak 2 is the worst selling RE this gen (not counting ancient DC/GC ports) barely limping to 500k worldwide. RE's sales decline actually started on PS1 though (with RE3), the series "stabilized" on GameCube (every RE now sells around 1.2-1.4 million, expcept Outbreak 2).
 
quadriplegicjon said:
i was going to say both of these things. its funny, people are acting as if the gamecube should never have received any exclusives. some odd point of views here.

Some of their GC exclusives have been right, RE just wasn't one of those right decisions.
 
Ninja Scooter said:
because the Gamecube would be in much better shape with Grabbed by the Ghoulies and a Conker remake?


And Perfect Dark 0, Donkey Kong Racing, Banjo Three-ie...plus DS support.
 
SolidSnakex said:
Some of their GC exclusives have been right, RE just wasn't one of those right decisions.
Exclusives are fine for smaller games (like Steel Batallion for instance) but all large brand IPs really should've been on all 3 consoles (Resident Evil, DMC, Dino Crisis, Onimusha). Some smaller brands likely would've been helped by ports too (Dragon Quarter, MegaMan X, Maximo, Ookami etc).... it did help Viewtiful Joe a little.


Speevy said:
And Perfect Dark 0, Donkey Kong Racing, Banjo Three-ie...plus DS support.
DS support is happening anyway evidently.
 
While not exclusively gaming related, Sony must be cursing the day they one of their commities thought that using memory stick as PS2 memory cards was bad idea and that a custom form factor was better.

They could have been owning the flash mem market by now.
 
SolidSnakex said:
How's the PS2 any different from the PSone in terms of fanbase that ate up RE? The last time I saw a chart for the RE (back in June), RECVX and REOutbreak were the 2 best selling RE's this gen. Both of which are PS2 games. To top it off RECVX is a port and Outbreak isn't even a real RE, yet they still sold well on the system.

Resident Evil Zero: 465,054 (LTD)
biohazard 0: 400,750 (as of Jan 1, 2004) - doesn't include Pure Evil 2-Pack or BioHazard Collector's Box
Total: 865,804

Resident Evil: 541,341 (LTD)
biohazard: 267,470 (as of Jan 1, 2003)
Total: 808,811

Biohazard Outbreak: 437,779 (as of Jan 1, 2005)
Resident Evil Outbreak: 406,213 (LTD)
Total: 843,992

BioHazard Code Veronica Kanzenban 337,755 (as of Jan 1, 2002)
Resident Evil CODE: Veronica X: 888,439 (LTD)
Total: 1,226,194
 
Really, ever since RE2's release, the series' sales have dropped enormously. Sales of the outbreak games and Code Veronica also reflect this, not just RE0 and REmake. In fact, RE4 is the first game where sales have INCREASED over the previous Resident Evil game since RE2. You can't confidently say that the series being on the cube is the reason for the sales decline, especially when the sell-through rate is higher on the Cube.

See? It's not so hard to twist statistics around. :)
 
With the exception of RE4 and maybe the N64 version of RE2, the entire series is unplayable. Any self-respecting casual sees this, and if the entire series were given updated graphics and rereleased on Sony systems, it would disappoint terribly. The fact is that no one wants to move tank man around the prerendered hallway anymore. No one. And if you do, you have incredible tolerance for pain.
 
Speevy said:
With the exception of RE4 and maybe the N64 version of RE2, the entire series is unplayable. Any self-respecting casual sees this, and if the entire series were given updated graphics and rereleased on Sony systems, it would disappoint terribly. The fact is that no one wants to move tank man around the prerendered hallway anymore. No one. And if you do, you have incredible tolerance for pain.

If by RE2 N64 you mean its 2D controls, then the Outbreak games have this too. But most people will argue that they play worse than the other REs.
 
GaimeGuy said:
Really, ever since RE2's release, the series' sales have dropped enormously. Sales of the outbreak games and Code Veronica also reflect this, not just RE0 and REmake. In fact, RE4 is the first game where sales have INCREASED over the previous Resident Evil game since RE2. You can't confidently say that the series being on the cube is the reason for the sales decline, especially when the sell-through rate is higher on the Cube.

See? It's not so hard to twist statistics around. :)

Too be fair, Resident Evil 3 was released in a downturn year for the PSX in the US and Code Veronica was initially released as a DC exclusive.
 
GaimeGuy said:
Really, ever since RE2's release, the series' sales have dropped enormously. Sales of the outbreak games and Code Veronica also reflect this, not just RE0 and REmake.

Look at RE3's sales and then look at the current RE sales. People are bragging now about how RE has sold 1m units world wide, while RE3 sold a million units in its first week in Japan. You and others can spin it however you want, but when RE4 is announced for the PS2 before the GC version is released and RE5 is announced for the PS3 early on (even if its not exclusive) it seems pretty obvious that Capcom understands where the series needs to be.
 
SolidSnakex said:
Look at RE3's sales and then look at the current RE sales. The real dropoff happened after they removed it from the RE fanbase. You and others can spin it however you want, but when RE4 is announced for the PS2 before the GC version is released and RE5 is announced for the PS3 early on (even if its not exclusive) it seems pretty obvious that Capcom understands where the series needs to be.

So I guess this means RE needs to be on the DS, too.

Cool.
 
SolidSnakex said:
I don't think a survival horror game makes sense on a handheld at all. Glad Team Silent seems to be completely against the idea.

I don't think Capcom's trying to scare anyone here. They're providing an actiony-game for a handheld.
 
1. Capcom's decision to make RE GC exclusive
2. Final Fantasy Spirits Within
3. Sony just dropping the ball with PS2 (lack of HDD, crappy online services and the hardware)
4. Microsoft buying Rare
5. Square Enix merger, since then Square hasn't produced enough games. They kicked ass last gen
6. Letting Matsuno and crew develop Final Fantasy XII.
7. Bringing FFX2 to NA
 
Speevy said:
And Perfect Dark 0, Donkey Kong Racing, Banjo Three-ie...plus DS support.

PDZero is BARELY going to be ready for this gen, what makes you think they could have made it for GC (and worth a shit) while the gamecube needed it?
 
Ninja Scooter said:
PDZero is BARELY going to be ready for this gen, what makes you think they could have made it for GC (and worth a shit) while the gamecube needed it?

yeah, but it went from gamecube to xbox to xbox360... besides, nintendo really needed a quality, exclusive fps this gen and i think rare could have delivered. they really messed up there. and when they did go looking, it was too late. and they found geist... lol
 
Ninja Scooter said:
PDZero is BARELY going to be ready for this gen, what makes you think they could have made it for GC (and worth a shit) while the gamecube needed it?


People were talking about an imminent release as early as 2002, then the big "Perfect Dark 0 slips to 2004" fiasco happened. Everyone considered this to be some insanely distant vaporware date, when in fact the MS buyout turned out to be the reason.
 
={<SMOKE>}= said:
yeah, but it went from gamecube to xbox to xbox360... besides, nintendo really needed a quality, exclusive fps this gen and i think rare could have delivered. they really messed up there. and when they did go looking, it was too late. and they found geist... lol


from everything ive read, i really dont think pd0 would have been ready. hell, one of the reason why nintendo supposedly sold rare was because they were a mess internally . i think the roller-coaster impressions of pd0 kinda show this. MS seems to be trying to whip them back into shape though. kameo looks good.
 
There's no way it takes 3 years to port a game over to another console. Even if you're rare. :lol

Face it, PDZ wasn't ready.
 
ManaByte said:
Too be fair, Resident Evil 3 was released in a downturn year for the PSX in the US and Code Veronica was initially released as a DC exclusive.
But Code Vernoica's combined sales still were lower than 1, 2, and 3, weren't they?
 
GaimeGuy said:
There's no way it takes 3 years to port a game over to another console. Even if you're rare. :lol

Face it, PDZ wasn't ready.

I dunno, it took them almost three years to remake a game they'd just finished.
 
Top Bottom