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

Nintendo: a sleeping dragon?

missAran

Member
IGNCube posted this recently:

This week's question: Some analysts view Nintendo as a "sleeping dragon," a company whose financial resources and internal talents are enormous, but also one that has chosen to remain conservative amongst a market of aggressive competitors. Do you agree with that view of the company? Why or why not? And how do you see Nintendo evolving as an industry player through the life cycle of Revolution?

George Harrison, senior vice President of marketing, Nintendo of America: Since the early 1980s, Nintendo was one of only a few dragons in the field. And as you know, our company quickly matured and led the industry into the 1990s and beyond, ensuring it became a permanent form of entertainment. Of course the success and immense market we built began to be eyed by competitors. And as the industry has grown, so has the competition. Who wouldn't want a piece of this market? But you can bet Nintendo will continue to be a very active innovator and we'll keep producing and positioning our products so consumers know what we have they can be excited about.

Is there more we can be doing to be assertive? That would likely be the case for any company that is part of a competitive landscape. We've worked hard this last year to make sure we are strong with our grassroots efforts - giving consumers a chance to touch and feel the products; sponsoring our own music tours; and teaming up with other relevant companies to showcase our products. We'll keep doing this and always want to hear from our consumers and your readers about what they'd like to see Nintendo involved in. Remember that Nintendo is founded with a passion for quality and fun, and we will never settle on being considered second-best at what we do.

Looking to the future and Revolution, it's still too early to discuss specific strategies, but I can tell you that we have learned much from the launch of the Nintendo GameCube. We realize that things such as having a strong software line-up at launch is critical to the success of Revolution. We understand what kinds of technologies and experiences the market is asking for. You are certainly correct that our financial and creative resources are vast, and we intend to fully flex this muscle more than ever in the coming years.

That's what a Nintendo guy thinks, but he doesn't really matter -- neither do the "analysts" that IGN cited. What does matter is how the GAF analysts feel about this? Is Nintendo a sleeping dragon? Will it ever wake up? Or will it always be that company with those two killer titles each year?
 
Musashi Wins! said:
Why are you doing this?
Just to see reactions -- just try and contribute something positive, you just drag down the thread for no reason. If people dont' want to talk about it, it'll just get buried.
 
Frankly, i don't care what Nintendo's PR bots say. Nintendo could be going software-only, and Harrison or somebody would say "We're not done yet. We've got a great surprise that our loyal Nintendo fans won't expect. Don't sell your Gamecubes, it's just beginning!"
 
aoi tsuki said:
Frankly, i don't care what Nintendo's PR bots say. Nintendo could be going software-only, and Harrison or somebody would say "We're not done yet. We've got a great surprise that our loyal Nintendo fans won't expect. Don't sell your Gamecubes, it's just beginning!"
I don't care either, I just want to see if people think that Nintendo is a sleeping dragon or if it's just full of it.
 
Yeah, can we drop this faux "I feel sorry for Nintendo" sentiment? Its like feeling sorry for Paris Hilton because she got dumped by a Backstreet Boy.

In the next five years, even if their profits decrease to say an average of $350 million/year, their cash horde will baloon to over $10 BILLION DOLLARS.

I mean really, they're bigger than Square-Enix-Namco-Konami-Capcom-Sega-Bandai combined and will probably make a fortune off the anime business too.

Nintendo is not a sleeping dragon. They're doing their own thing, which is basically making lots of money. If that means some day they drop hardware production, who cares? Its the games people love from Nintendo, not the hardware. It's never been about the hardware really.

They're no Sega or Atari either, Nintendo is basically set for the next 50 years. Don't worry about them. The Marios, Zeldas, Pokemons, Donkey Kongs, etc. that you love to play will always be there and Nintendo will always make money. What's the problem?
 
With the talk of revolution, the Nintendo DS and Nintendo getting into the anime business I really have no idea what Nintendo's 5 or 10 year plan is. And no idea what they plan to do with all they money they're sitting on.
 
soundwave05 said:
Yeah, can we drop this faux "I feel sorry for Nintendo" sentiment? Its like feeling sorry for Paris Hilton because she got dumped by a Backstreet Boy.

In the next five years, even if their profits decrease to say an average of $350 million/year, their cash horde will baloon to over $10 BILLION DOLLARS.

I mean really, they're bigger than Square-Enix-Namco-Konami-Capcom-Sega-Bandai combined and will probably make a fortune off the anime business too.

Nintendo is not a sleeping dragon. They're doing their own thing, which is basically making lots of money. If that means some day they drop hardware production, who cares? Its the games people love from Nintendo, not the hardware.

They're no Sega or Atari either, Nintendo is basically set for the next 50 years. Don't worry about them.
Of course, anyone who disputes actual fact like this is an idiot. But the sleeping dragon doesn't really do much for the gamers. Do you think Nintendo will ever start producing quality titles, take financial risks, etc. in an effort to produce the best games most consistently?
 
Azih said:
With the talk of revolution, the Nintendo DS and Nintendo getting into the anime business I really have no idea what Nintendo's 5 or 10 year plan is. And no idea what they plan to do with all they money they're sitting on.

I would assume the plan is to make even more money.

In 5 years Nintendo can become the largest anime company in the world, which is a booming business and one in which they can bully around smaller companies. And on top of that they are by far the largest game company in Japan and the largest game publisher along with EA in the world.

The only thing that might change is Nintendo may eventually forgo hardware, but even that probably won't happen before 2010 or 2015 and by then who knows what the game industry will be.

We could be headed down the road of a "faceless" platform, sort of like how DVD is unified platform for movies.
 
missAran said:
Of course, anyone who disputes actual fact like this is an idiot. But the sleeping dragon doesn't really do much for the gamers. Do you think Nintendo will ever start producing quality titles, take financial risks, etc. in an effort to produce the best games most consistently?

Uh, so what are the titles that Nintendo is producing now? Chop suey? How many publishers put out 5-6 good games every year?
 
missAran said:
Of course, anyone who disputes actual fact like this is an idiot. But the sleeping dragon doesn't really do much for the gamers. Do you think Nintendo will ever start producing quality titles, take financial risks, etc. in an effort to produce the best games most consistently?
Nintendo's consistently produced "quality" titles. i think the question i'd be asking myself is "will they make titles that appeal to me?" For the most part, the answer is "no". They're content making family titles, or kiddy games, however you want to put it. i can't say i blame them -- kids have the most disposable time, lesser discerning tastes (GBA Video anyone?), and once you market to them, they'll grow up following your product.
 
aoi tsuki said:
and once you market to them, they'll grow up following your product.
Um two things

1. Kids want what their older brothers and sister have. Marketing to kids has become less and less effective.

2. Bunches of Nintendo fans have fallen by the wayside this gen. Fans who grew up with Nintendo. Sunshine sold less than 64, Wind Waker sold less than Ocarina, as will Zelda Machoor.
 
soundwave05 said:
Yeah, can we drop this faux "I feel sorry for Nintendo" sentiment? Its like feeling sorry for Paris Hilton because she got dumped by a Backstreet Boy.

In the next five years, even if their profits decrease to say an average of $350 million/year, their cash horde will baloon to over $10 BILLION DOLLARS.

I mean really, they're bigger than Square-Enix-Namco-Konami-Capcom-Sega-Bandai combined and will probably make a fortune off the anime business too.

Nintendo is not a sleeping dragon. They're doing their own thing, which is basically making lots of money. If that means some day they drop hardware production, who cares? Its the games people love from Nintendo, not the hardware. It's never been about the hardware really.

They're no Sega or Atari either, Nintendo is basically set for the next 50 years. Don't worry about them. The Marios, Zeldas, Pokemons, Donkey Kongs, etc. that you love to play will always be there and Nintendo will always make money. What's the problem?

Exactly. I tried to make this point awhile back when I posted about them moving into other areas. The company is over hundred years old and has already went experince a complete change in their business model. They will make another shift (liked they did when they jumped into videogames) long before they fold. The company is ran too well to be swept away by a finicky entertainment market.
 
soundwave05 said:
Uh, so what are the titles that Nintendo is producing now? Chop suey? How many publishers put out 5-6 good games every year?
So if the burden isn't on Nintendo as a publisher, where is it? As a hardware manufacturer? As a developer? What?
 
Azih said:
Um two things

1. Kids want what their older brothers and sister have. Marketing to kids has become less and less effective.

2. Bunches of Nintendo fans have fallen by the wayside this gen. Fans who grew up with Nintendo. Sunshine sold less than 64, Wind Waker sold less than Ocarina, as will Zelda Machoor.

Really though who cares in the end?

Wind Waker, Mario Kart, and Sunshine still outsold many "machoor" titles this generation and probably made a hefty profit for Nintendo.

Do Nintendo fans even want Nintendo to be no.1 again? Think about that, I love Nintendo, but they get crazy when they get too much power.

This company is getting richer and richer and that's not going to stop any time soon, even with the PSP. They can do whatever they want.
 
To sum post-64 Nintendo up in one picture:

traitepres.jpg
 
missAran said:
So if the burden isn't on Nintendo as a publisher, where is it? As a hardware manufacturer? As a developer? What?

There is no burden on anyone. When you have $7.42 billion in the bank and that will rise to $10 billion by 2010 ... you have no real burden on your shoulders at all.

The worst case scenario is they end up dropping hardware. So what? You still will get the Nintendo games you love, those games will still make money for Nintendo, and they'll probably just make another huge fortune off the anime market to boot.

You have to understand one thing -- even the Seattle Mariners *always* make a profit, and that's in the MLB, where a ton of teams post huge losses year in, year out.

Nintendo will be making Mario/Zelda stuff probably when guys like us are in their 60s/70s/and 80s with grandchildren (much like Walt Disney still makes cartoons today).

Think about that next time you're really stressed about the so-called "problems" this company has.

This is an incredibly successful company that has a knack for making money in a variety of different conditions.
 
90% of this industry is about "milking" a successful franchise.

Hell 90% of the entertainment industry is about "milking" successful franchises. And if you don't think so, you're in massive denial (uh, how many reality TV shows do we have? How many superhero movies can be made?).

And don't be self-righteous about it, look at the Mario Kart Arcade GP thread, most people are raving about how that game looks and its gotten a positive thumbs up from this board ... that game is basically just a beefed up Mario Kart 64.

Honestly people don't want innovation IMO. Sure its cool here and there, but not all the time. Most people really just want the same thing, but refined/expanded. Nintendo just uses that as a PR-schlock, and if you're stupid enough to take it *that* seriously, you deserve to be let down. If anything, Nintendo's gotten into trouble this gen by changing things too much.

If they just made Mario 64-2 and Zelda: OoT-2 for the GameCube straight up, they probably would've sold more games and more systems.
 
Azih said:
Um two things

1. Kids want what their older brothers and sister have. Marketing to kids has become less and less effective.

2. Bunches of Nintendo fans have fallen by the wayside this gen. Fans who grew up with Nintendo. Sunshine sold less than 64, Wind Waker sold less than Ocarina, as will Zelda Machoor.
1. People don't know what the fuck they want until someone convinces them they've got to have something. i don't have graphs or statistics handy so i'm just gonna have to use some good ol' anecdotal evidence to say that this fact is generally true the younger you are, and lesser so as you get older.

2. Those fans got older and moved out of Nintendo's intended target. Plus, it's not like PS2 doesn't have a libary of great games. The same could be said for the Xbox, though i'm not the one to say it.
 
This has got to be a record or maybe close to being a record. How many Nintendo threads have we had in the past 3 days?
 
AssMan said:
This has got to be a record or maybe close to being a record. How many Nintendo threads have we had in the past 3 days?

:lol, no kidding. I think many actually care more about Nintendo then they want to let on sometimes. How many people say they have outgrown the company but continue to particpate in these threads about Nintendo's direction?
 
ge-man said:
:lol, no kidding. I think many actually care more about Nintendo then they want to let on sometimes. How many people say they have outgrown the company but continue to particpate in these threads about Nintendo's direction?

I used to be in that boat I have to admit, but really I just realized ... these guys will have $10 billion worth of $$$ reserves (that doesn't even account for the value of their work force or other assets) in a few years.

I mean being concerned for them is like being concerned for a friend who's young, good-looking, insanely rich, has a great job but might be breaking up with a girlfriend. It just doesn't make sense.

Really, boo fricking hoo. Nintendo will be making games when we'll be in senior citizen homes talking about how we used to play NES in our younger days.

The people who some how try to equate Nintendo as being in the same situation as Sega or Atari are actually more clueless than the ones that think Nintendo can be the no.1 hardware maker in this business again.
 
Perhaps they are a sleeping dragon, perhaps, but I think if they dont wake up soon and make their might felt, they're gonna be typecast as how they are now, no matter what they do.
 
soundwave05 said:
.

The people who some how try to equate Nintendo as being in the same situation as Sega or Atari are actually more clueless than the ones that think Nintendo can be the no.1 hardware maker in this business again.



The problem is that Nintendo is probably the most reactionary, defensive company in history.

I could actually see Nintendo selling off companies like HAL to turn a profit. Heck, they'll probably sell Pokemon when that's dried up.
 
Fatghost28 said:
Nintendo will never be willing to do what it takes to become the console market leader.

Why should they though really?

Look at where Sega ended up by trying to bleed money on hardware and fruitless attempts to go toe-to-toe with Sony.

Nintendo may get out of hardware in 5 or 10 years, the big difference is they'll get out of the game up $10+ billion instead of being $2 billion in debt.

You're talking about a company that would far and away be the largest game publisher from Japan and maybe in time also the largest anime company in the world. The future is very, very bright for Nintendo as long as they continue to emphasize cost efficency.
 
Fatghost28 said:
Nintendo will never be willing to do what it takes to become the console market leader.

The thing is, does is even fucking matter anymore? They are a business, the number one goal is profits. This is something that they accomplish now and no doubt will continue to accomplish in the future while Sony and MS blow through fortunes to be number "1." I'm with soundwave05 on this--if Nintendo is doomed, I sure wish I could be as doomed as they are.
 
"A sleeping dragon"? That was their question of the week?

Even questioning about how RE4 going to PS2 impacted the GC version's sales would have been more hitting, but then the PR response of how well it sold in the US during January is all they would have regurgitated.

I'm not going to search previous threads but it seems all of these questions-of-the-week could be summarized as "We think people might be forgetting about you guys. Care to blow your own horn?".
 
Nintendo is a profit monster thanks to their huuuggee GBA.

That said, they might have some very big console games, and have the potential to be on EA's level, but they will not as so long as they keep to a console that chains them down. I honestly want to see the Revolution being a codename for their alliance with Sony or Microsoft for the next generation.
 
ge-man said:
The thing is, does is even fucking matter anymore? They are a business, the number one goal is profits. This is something that they accomplish now and no doubt will continue to accomplish in the future while Sony and MS blow through fortunes to be number "1." I'm with soundwave05 on this--if Nintendo is doomed, I sure wish I could be as doomed as they are.



I never said they were "doomed". But they will never be market leader without a significant shift in Nintendo's upper management.

This is only bad if you mind having to buy more than one console.
 
soundwave05 said:
There is no burden on anyone. When you have $7.42 billion in the bank and that will rise to $10 billion by 2010 ... you have no real burden on your shoulders at all.

The worst case scenario is they end up dropping hardware. So what? You still will get the Nintendo games you love, those games will still make money for Nintendo, and they'll probably just make another huge fortune off the anime market to boot.

You have to understand one thing -- even the Seattle Mariners *always* make a profit, and that's in the MLB, where a ton of teams post huge losses year in, year out.

Nintendo will be making Mario/Zelda stuff probably when guys like us are in their 60s/70s/and 80s with grandchildren (much like Walt Disney still makes cartoons today).

Think about that next time you're really stressed about the so-called "problems" this company has.

This is an incredibly successful company that has a knack for making money in a variety of different conditions.
I agree with you largely -- but obvious GCN is selling poorly and isn't attractice. Does Nintendo have the creative capacity to fix the problem? Is it "down" with the industry enough? This is where the argument is.
 
The biggest change i have seen, as far as Nintendo is concerned, has to do with their fans more than anything else. You now see more and more fans resign themselves to the possiblility that Ninty may end up leaving the hardware business. Just the mere thought of that possibility was inconceivable, to Nintendo fans, just a year or two ago.

I still remember all the people that actually beleived that Nintendo, as a company, would rather close its doors than get out of the hardware business. Now i have no idea if Nintendo will ever leave leave the hardware business or not. But it seems like alot of fans have realized that even if they do leave, it's not the end of the world, and it's certainly not the end of Nintendo. Because the most commonly used adjective i continue to hear used, in regard to Ninty, is that their still profitable. And as we have seen in the past, Nintendo has no problem whatsoever in severing away anything that they view is not holding its own weight anymore, regardless of how much it or they may have helped them in the past. And they will continue to run their business in a profitable manner especially if that means severing themselves from the hardware business.
 
missAran said:
I agree with you largely -- but obvious GCN is selling poorly and isn't attractice. Does Nintendo have the creative capacity to fix the problem? Is it "down" with the industry enough? This is where the argument is.

The truth is they've always kind of a weird company hardware wise. The SNES was supposed to use a much more powerful CPU until Nintendo decided to scale it back at the last minute.

Nintendo's never really been a "great" hardware company. Its always been the games which have been the star of the show and defined the company.

The recent success of the Game Boy is nothing without Pokemon, the Game Boy was a dying system around 1995 for instance.

So if they eventually end up stop making hardware or work with someone else on hardware, I really could care less.

As a Nintendo fan I want the company to be healthy and successful, but they are extremely healthy and successful. They're consistently ranked in Nikkei's top five of the best run Japanese corporations. They always make money.
 
Nintendo should leave the hardware business because the Revolution is going to be a joke. I have a pretty good idea what the hardware is going to be, the same hardware the GC uses. That is a joke.
 
Ulairi said:
Nintendo should leave the hardware business because the Revolution is going to be a joke. I have a pretty good idea what the hardware is going to be, the same hardware the GC uses. That is a joke.

You mean you have a pretty good guess.
 
Ulairi said:
Nintendo should leave the hardware business because the Revolution is going to be a joke. I have a pretty good idea what the hardware is going to be, the same hardware the GC uses. That is a joke.

Yeah that's really funny considering Nintendo's budget/deal with ATi is of the same amount that Microsoft has with ATi for XBox 2.

They sure must be wasting a lot of money recycling that GameCube chipset I tells ya :lol

It helps to know what you're talking about.
 
Ulairi said:
Nintendo should leave the hardware business because the Revolution is going to be a joke. I have a pretty good idea what the hardware is going to be, the same hardware the GC uses. That is a joke.

And how would you know this? Nintendo does some weird shit but come one, they deserve more credit than that.
 
If nintendo were smart they would use a couple billion of the pot they have to get exclusive rights from 3rd parties. Im talking huge numbers to secure capcom, konami and even square exclusivity. Its insane that people at gaf seem to know how to fix nintendo more than nintendo does. I mean jesus where the fuck is pokemon DS?!?!
 
But you can bet Nintendo will continue to be a very active innovator and we'll keep producing and positioning our products so consumers know what we have they can be excited about.

If you ask me,Nintendo is no longer a innovator and that title went to Sony and they're proving it every step of the way;even when came down to the portable.

Right now,Iwata is making a HUGE mistake thinking that Sony and PS3 is going to be all graphics and being a multimedia machine. As of late Sony been forward-thinking,and I expect them to be forward thinking about the PS3.
 
Doc Holliday said:
If nintendo were smart they would use a couple billion of the pot they have to get exclusive rights from 3rd parties. Im talking huge numbers to secure capcom, konami and even square exclusivity. Its insane that people at gaf seem to know how to fix nintendo more than nintendo does. I mean jesus where the fuck is pokemon DS?!?!

Problem with your theory is Sony or Microsoft would just give the same 3rd parties the exact same deal, but with a little more cash on top of it.
 
Top Bottom