They're late but (I think) not too late. In 2009 the market for such games generated about 1.5 billion euros in revenue, which at that point was projected to grow to 11 billion euros by 2015 by the French consultancy group iDATE. I only know about the current state of the industry in The Netherlands which consists of about 50% entertainment and 50% applied game development in terms of FTE of which health(care) is the second largest sector (education is the largest), but Health is projected to see the highest growth. Still, usually the business mode for such games is business2business or government-funded innovation projects, so we'll see how this works out for Nintendo.
Nintendo wants to expand into health, learning, and other quality of life products
- Thread starter EmCeeGramr
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cookie-monster
Member
The other platforms were loss leaders designed to push media platforms into homes and get credit cards attached to those accounts. When you understand this you realise why Nintendo can't play the same game and win; it's like WOPR playing tic-tac-toe.
The standard gaf solution for Nintendo seems to be:
1. Create a console at least as powerful as the other two. In reality it would probably have to be significantly more powerful; they need to generate inertia and the status quo does them no good. But it still has to be price competitive.
2. Create an account system and online infrastructure that at least rivals the other two. Despite their only products being video games they still need to build something equivalent to the networks that the other two use to sell far more things than just video games. I guess they could partner with someone here? Unfortunately all their potential suitors have nothing to gain here, so it would cost Nintendo top dollar.
3. Create more mature titles and fewer Mario titles. Sales of their aforementioned have never been in the same ballpark but ok.
4. Once all the simple things above are sorted, the users and third parties will come flooding back!
Some basic thoughts after having read the English presentation.
3rd pillar outside of gaming but inside of entertainment. Hmm, I kind of like the basic idea. It's totally leftfield, not what anyone expected (and generates just as much hate as the Wii and DS when first shown) but shows once again that Nintendo is able to think in broader terms.
They must have a lot of prototypes of devices/idea's etc made in the last 10 years, tons of R&D in both hardware and software. They can use the part of EAD that did wiifit / Wii Sports and use them to deliver software experiences for a new hardware platform.
If successful, this could have several advantages:
- It prints money
- shared hardware (for example: if the devices uses the WiiU CPU, they can get lower prices on chips and/or reuse components originally intended for WiiU and currently sitting in warehouses)
- Platform compatibility (software made for these new devices could also work on WiiU/3DS/Nextgen)
- Selected software made for WiiU/3DS might be playable on this device in a simpler form
- A new sort of 3rd parties. Not 3rd parties for games but for these new experiences - where Nintendo is once again the platform holder.
- A lot of the software for this already exists within nintendo. They could reuse parts of the weather/news channel, touch series, wii fit and even wii sports to give this device a slightly lifestyle edge. Also turn around from prototype > full software for these kind of projects is a lot faster.
Combined with the account system there is an incentive at least for the current Nintendo userbase who enjoyed the new experiences to try out this new platform. It's also new and exciting, and might be easier to become the "hype of the season" in the media because there's nothing quite like it out there.
They will have 2 pillars again: "nintendo games" and "nintendo lifestyle/health/education"
3rd pillar outside of gaming but inside of entertainment. Hmm, I kind of like the basic idea. It's totally leftfield, not what anyone expected (and generates just as much hate as the Wii and DS when first shown) but shows once again that Nintendo is able to think in broader terms.
They must have a lot of prototypes of devices/idea's etc made in the last 10 years, tons of R&D in both hardware and software. They can use the part of EAD that did wiifit / Wii Sports and use them to deliver software experiences for a new hardware platform.
If successful, this could have several advantages:
- It prints money
- shared hardware (for example: if the devices uses the WiiU CPU, they can get lower prices on chips and/or reuse components originally intended for WiiU and currently sitting in warehouses)
- Platform compatibility (software made for these new devices could also work on WiiU/3DS/Nextgen)
- Selected software made for WiiU/3DS might be playable on this device in a simpler form
- A new sort of 3rd parties. Not 3rd parties for games but for these new experiences - where Nintendo is once again the platform holder.
- A lot of the software for this already exists within nintendo. They could reuse parts of the weather/news channel, touch series, wii fit and even wii sports to give this device a slightly lifestyle edge. Also turn around from prototype > full software for these kind of projects is a lot faster.
Combined with the account system there is an incentive at least for the current Nintendo userbase who enjoyed the new experiences to try out this new platform. It's also new and exciting, and might be easier to become the "hype of the season" in the media because there's nothing quite like it out there.
That's why I think their next-gen strategy might be to combine portable & home console (I would assume through an Ipad-like "low power portable" and "high power home" platform that can share code/assets/software).
They will have 2 pillars again: "nintendo games" and "nintendo lifestyle/health/education"
Otakumegane
Member
It also had the best library of any handheld ever. It replaced the GBA because they saw the audience that they were targeting with the GBA just moved to the DS. This QOL platform isn't looking to achieve that.
Dark Octave
Banned
They say they learned their lesson but the cycle of dumb Nintendo moves continues.
They just need to go third party and be done with it so they can invest in their defibrillators or whatever.
They just need to go third party and be done with it so they can invest in their defibrillators or whatever.
tehrik-e-insaaf
Member
I share your concern - let's see what they do. FYI the problem is not specific to Nintendo - Apple struggled for two decades with this same issue - it took multiple failures and copycats to step in before they figured out how to scale correctly.
Nintendo's main issue is that they are scared of expanding and destroying their internal culture particularly since they rarely fire people and never lay off people. So they prefer to form partnerships with companies instead of incorporating those core abilities internally with a larger cost structure.
But you are right, they need to change or manage that better if they want to hold onto the users when competition intensifies - otherwise it's not a service - just a one-time product offering.
...So Nintendo isn't focusing on games again? I used to think (maybe a part of me still does), Nintendo should keep on making consoles cause they're different and can be awesome at times, moves like these... They just make me think they should go 3rd party, I have no idea what they're thinking.
Gee, I sure hope their defibrillators won't be underpowered too.
Dark Octave
Banned
Annoying Old Party Man
Member
Last time GAF was so hateful about a Nintendo announcement was when the Wii controller was shown. Let's sit back and watch how this unfolds.
tehrik-e-insaaf
Member
QFT
And_Gignac
Member
This post, and all the info within it that I ignored, makes me a little more hopeful that Nintendo isn't running straight into the void.
I'm not sure if I understand your logic here. The Wii/DS/3DS/Wii U have had plenty of "core-focused" titles from Nintendo. Rarely did they try and mix the more "casual" titles with the "core" titles together.
You're acting like QOL doesn't affect what Nintendo does on Wii U and 3DS when in reality it does. Nintendo has limited resources as a company. All resources they expend towards QOL are resources they could have put towards software on 3DS or Wii U or their next-gen piece of hardware.
Additionally I'm disappointed with QOL because I think it's a bad business decision and I don't like to see my favorite company (Nintendo) make bad business decisions because it hurts them in the long run. I don't think it'll be successful, though who knows, maybe Nintendo will do something with their QOL platform that really captures the hearts of the mainstream consumers. But I doubt it. This is a really hard market to compete in.
I also see a big conflict in what some Gaming-Communities (like Neogaf) want Nintendo to do and what is actually healthy for the company. Let's not forget, that Nintendos attempt to go after the hardcore-, core- and casual at the same time, brought us the Wii U and Nintendo a lot of problems. It looks like, they recognized , that they can't go after all of them and see there chances in another aspect of the market.
People here will not like it, but Nintendo decide that we should see other people.
BocoDragon
or, How I Learned to Stop Worrying and Realize This Assgrab is Delicious
The iWatch is gonna come out, and then Apple will eat Nintendo's lunch all over again.
I'm not saying that I have absolute faith in that they're going to do it right, I'm just saying that it's by far the best thing for them to do. Two different things
.Imperfected
Member
Stone Ocean
Member
I don't see much cause for alarm, focusing the whole Fit aspect of current Nintendo offerings into a single thing while keeping core gaming separate could work really well if done properly.
People are focusing too much on the health. They are also going into education, which is the real trump card here. It's a booming business; all schools in the world are going to integrate games into their curriculum in the future, and there's not a single big player. Nintendo has the exact right brand for this.
I'm not sure what you mean when you say that there isn't a single big player. Isn't Apple involved in this already?
I know many schools across the nation have iPads in the classroom already.
iPads are there because there is nothing else like it out there imo and it's the only thing people know. They are expensive, not made for this, can't be locked down properly etc. If Nintendo makes this their focus they have at least a chance to be part of this in a big way.
Yes but they also talked about still making machines from readily available hardware (I took that as the old withered technology idiom) and gave no indication that they would make a powerhouse machine next time. However I am very pleased to hear they might be taking the casual shit away from their main home console,
Imperfected
Member
They have nothing to show for their health initiative as of yet, and even then have basically said the education initiative is some far-flung effort that hasn't even begun meaningful conceptual work. It's a decent enough idea, but it appears they haven't even done the preliminary work of hiring up experts on education through play. It's not something they can do completely internally with current staff; it requires educational experts, psychologists, etc. in addition to game designers, hardware engineers, and software programmers.
I'm fairly certain at this juncture their education initiative is "Professor Farnsworth on a napkin" material. This is a major area of study at several universities and there's been no real talk about Nintendo pursuing talent or pushing patent filings.
Duxxy3
Member
I can tell you that RIGHT NOW, PC's are where games are being played in classrooms. There may be no need (or room) for another player.
Glass Rebel
Member
You won't be pleased when the casual shit outsells their next home console.
Nintendo will possibly never make a "powerhouse machine" anymore to compete in this space with Sony/MS. Long term there is even speculation that this generation might be one of the last traditional hardware generations (with a future in cloud based terminals instead of powerful home consoles).
I also doubt they will take the "casual shit" away. They will make a seperate device for their "casual shit" at a low entry price - but also bring this software to their home/portable consoles if possible. Otherwise their unified account system they talked about doesn't make a lot of sense.
Nintendo should have bought the Oculus Rift who are doing the same kind of quality of life and training stuff with their VR tools. But then again I doubt they were for sale.
It'll be interesting to see what happens to Nintendo but like most Japanese video game companies I think it's going to be tough times ahead if they want to become worldwide industry leaders.
Nintendo's been lagging behind when it comes to online services and accounts which hurts not only their video games but also throws roadblocks to the idea of branching out into new services.
It'll be interesting to see what happens to Nintendo but like most Japanese video game companies I think it's going to be tough times ahead if they want to become worldwide industry leaders.
Nintendo's been lagging behind when it comes to online services and accounts which hurts not only their video games but also throws roadblocks to the idea of branching out into new services.
geek_box12
Banned
Go troll somewhere else if your not gonna add anything meaningful to the conversation.
Anyway does anyone else have an idea about what these non-wearables will look like?
Old Nintendo was a producer of playing cards and toys.
geek_box12
Banned
Why? Japan has one of the oldest populations on the planet right now. Not everything they do has to be about hardcore gaming.
Origami Superman
Member
tehrik-e-insaaf
Member
You understand that the Wii U has a Game Pad primarily because Nintendo wanted to attract iPad users right? The gimmicks they use are all about roping in casual gamers - core gamers are more than content with a traditional experience.
What Nintendo is saying here is that rather than building a frankenstein console and a frankenstein portable that tries to satisfy all audiences - they are building a QOL platform with all those casual games. The amount of developers required for these games is small and they can hire and scale that business as revenues grow. The reverse is true - they want to focus their games devices more for gaming audiences. Rather than making everything appeal to everyone - they want to let the natural course of their platforms interact with one another to encourage cross-device adoption.
So, instead of trying to sell Wii U to Grandma so they can sell her Wii Fit U - they get her to buy the QOL device with some sensors and balance boards so she can enjoy playing Wii Fit or Brain Training and communicating with her grand kids on Miiverse. Her grandkids can send her their high scores in New Super Mario Brothers U and push her to play the game and compete with them for the highest score the next time she comes over. Miiverse will finally fulfill its potential as a platform for Nintendo users to share and communicate with each other.
You should be jumping for joy. This is exactly what I predicted Nintendo would do - because of the F2P issues that were destroying their handheld business and the loss of that casual audience on 3DS. This saves a bunch of IPs that sold tens of millions from going extinct, potentially generates subscription revenue going forward, and gives Nintendo a giant position in smartphones. They are effectively reclaiming territory that was stolen from them by sub par iPad apps.
For once Nintendo is actually following a predictable market strategy and their games business is actually going to thrive without the albatross of shoehorning casual games into them. I love Nintendo's efforts at getting my parents to play games - but a one-size console doesn't fit everyone - my parents now play on their iPad and I'm really looking forward to them playing Nintendo brain training games rather than knockoff games produced by the Silicon Valley firms that look to exploit little kids and the elderly one dollar at a time.
Some of their family-friendly tent pole titles can function across Nintendo's own QOL device, handheld, and console and everyone can join in on the fun.
The only thing disappointing about this whole announcement is that Iwata had to do it NOW, over a year before it comes out. It's unfortunate the financial results were so poor Nintendo had to reveal their plans this early. I imagine they would have preferred to have waited until later this Fall before drumming up hype.
I dunno, Apple's product line seems pretty conservative of late.
Glass Rebel
Member
now wouldn't it be great if they fixed the gaming side of their business first?
Nikodemos
Member
You say it's too early, I think it's a bit on the late side. They should've done this in 2010-2011, before several years of negative operating income.
If they aren't capable of doing both at the same time it's an effort in vain anyway.
tehrik-e-insaaf
Member
I agree they should have done it earlier but you are missing the whole point. This isn't about when they should have released by the time to announcement to release.
Announcing something 16 months in advance is Steve Jobs of the Macintosh-era level stupid. Good design companies always wait <6 months before a product is announced otherwise they get copied to death and the market gets played out.
I'm sure Iwata would have preferred not to announce this until late this year - but his hand was forced.
That said, Nintendo hasn't really told us too much for clear reasons - they don't want to reveal their full hand but offer a glimpse of the future to appease investors.
Nikodemos
Member
That is true as well. Bad financials forced a suboptimal play.
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