Nintendo has been stapled in memories of my childhood and I am sure the same is true for you as well if you have played on the old Nintendo 64 back in the 90s. It was the time when the gaming revolution had just begun and Nintendo was one of the first to realize and capitalize on it with its amazing games and new offerings. It was games like Super Mario and Zelda that forced other contemporaries like Sega to kneel before Nintendo and finally abandon the hardware business. Simply put, they were the best of their time and nothing could budge them.
Self sabotaging by Nintendo
They made so much money in those years that even if they perpetrate everything as inefficiently as they are doing right now, it would take them more than 20 years to go bankrupt. That's one hell of a cash tank if you ask me. Considering how popular they were once, it's an irony to see them scrambling for the top spot again as they were once. It's their own fault for letting it slide from their hands though. They tarred being complacent about it and took everything for granted, and companies like Sony and Microsoft leveraged this opportunity. That's what happens in business most of the time. If you don't do your strategic planning properly and won't adapt to the changing interest and environment, people will root for other similar alternatives.
And that's what has happened in case of Nintendo. After the failure of Wii to capture the heart of gamers, they would have hoped for tides to turn in their favor as they prepped for Wii U, a successor to Wii, for the launch. But conversely, things went awry. I bet, everyone could see that coming except for Nintendo who had turned a blind eye on everything. The hardware was not as powerful as they were proclaiming. Heck, it was less powerful than PS3. Can you believe it? Why would someone want to spend a penny on it? Yeah, I love Zelda and Metroid, but that's it.
Perhaps I am exhilarated for Bayonetta 2 as well, but I am not going to buy Wii U just because for my penchant for these 3 games. If you take a look at the scheduled game launches, there is not much to see in case of Wii U. So as far as their hardware business is concerned, they are doomed. Yes, they can keep trying as they have virtually unlimited cash reserves, thanks to their 90's regime. But sooner rather than later, they will have to realize the fact that they are not good at it. So, perhaps they should stick to what they know best and abandon hardware business for those who are really nailing it.
Trying a bit too much
I am not accusing them of being lazy. What I am stating is merely the fact that they are trying a lot of things a bit too early. So perhaps they should take a step back to gather themselves and dwell over their strategy from inception. Why not put your effort in something you are really good at? The advantage of core competency in the software market will certainly help them as they know how to make great games. Their rich history in games like Super Mario, Bayonetta, Zelda and Metroid is a testimonial to the fact that these guys know how to make an intriguing game that is going to leave a long lasting impression.
Sega did something similar when they were put down by Nintendo. They retrenched and embraced game developing solely instead of fighting for some hardware share in the market. It would have been pointless for a company on the brink of extinction to even entertain the thoughts of competing with Nintendo at that time. So they embraced gaming instead and started honing in on game developing.
It's time for Nintendo
Now it's time for Nintendo to say goodbye to hardware business and take on software business more seriously. They might not be on the brink of bankruptcy as Sega was once, but they sure will be if they keep going at this pace. It's pointless now as Microsoft and Sony has placed their foot firmly in his industry now and they ain't buzzing anytime soon. The only one I see capable of making them dance on their heels is Valve who is a new entrant to this business with their Steam Machines.
Which platforms they should be porting to
Now the question is, if they are not going to be making games for their own Nintendo console, what would they do? It's really simple; they should be looking to explore other route of business they have ignored for all these years up until now. Have you noticed that they are yet to publish any game to any other platform except their own? Yes, they are yet to publish anything on other consoles. It's really saddening to see someone as talented as Nintendo not letting other gamers enjoy their own masterpieces.
Now that they will be forced to align with the likes of Sony and Microsoft, they will be compelled to port their own games to other platforms, even when they don't want to do so. They will not be on control of where the games are going to be sold? The only thing they have some form of control over is what and how they are developing. As far as resources are concerned, there is no dearth of that for Nintendo.
As I already stated, if they go on spending millions like this, it will take 20 years for them to empty their huge cash reserve. Moreover, I haven't even considered their investments! So yeah, they should not face any issues with software development – something they are really good at doing. So it's time that they bow their head down and get back to work instead of trying to fight an already lost war. Both Microsoft and Sony have already plundered the Nintendo's ship and there is nothing that can be done about it. So why not befriend them if you can't fight with them. It would be a win-win situation for everyone involved.
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