Topic: Why Nintendo's Reluctance to Make a "WiiHD" Makes Sence

This is in response to @NintendoLife's article on a new console: http://wii.nintendolife.com/news/2010/06/nintendo_doesnt_see_...

Long winded post, but I would love to get thoughts and feedback on this.

Think about the position Nintendo is in with the Wii:

They release the Wii, but focus it as a "niche" product. Focus on a new experience (or "gimick", depending on your point of view) in order to compete with Sony and Microsoft without DIRECTLY competing with them. So, they release the Wii with barely next-gen graphics, and a very cheap and accessible price point with the hope to sell it based on it's innovation and it's 1st party software appeal. Most quality 3rd party creator initially stay away from the console due to fear it would fail and due to it being so different (graphically wise) to the other consoles, creating longer developing times for multi-console releases. Shovel-ware 3rd party, being easier to create, jumps in as soon as they realize the golden goose was laying golden eggs.

The PS3 and 360, meanwhile, were released with high graphics. Designed to be ferocious and powerful. 3rd Party producers jumped in from day one. Both consoles released with a net loss to each sale, and a high price point. Particularly with the PS3, with it's $600 launch price.

So now, 4-ish years into their lifetime, the price point for both consoles have reached an acceptable level. Most likely, the profit margins on each consoles, as well.

Generally speaking, they would be looking to release a new console by year 5-6. This would, in normal console lifetime, now put them right about the time they would have to announce a new console. However, now is the first time they are enjoying parity in the price point of their consoles, so there is a desire to extend the lifetime of their current consoles. Both are still powerful enough to develop high-graphically designed games to satisfy their fan base.

So, here comes Sony and Microsoft announcing new “motion control” additions to their consoles in order to “refresh” the cycle and buy another 5 years of console life.

So what does Nintendo do?
The number one complaint about their system is firepower against the other machines, and it is the only reason that at least one of the other two (maybe the PS3 with it's VERY limited exclusive content, or the 360 with it's horrible hardware issues) haven't met a profound demise. Yet they have soundly beaten both system into a pulp BECAUSE they refused to engage in the “Graphics War” that the PS3 and 360 engage in.

If, hypothetically, Nintendo released a system today, it would only be to catch-up graphically and engage in said “war”. They would then have to release something again in order to graphically compete with Sony and Microsoft again in 5 years, or else they would then just be back to this position again. Meanwhile, they would lose their higher profit margin (per console sold) for the next 5 years.

High quality 3rd party producers (Number two complaint about the Wii) would still be reluctant to produce for this “WiiHD” as its life would be short, and those that DID produce something wouldn’t have games out in the next 2 years it would take to produce them.

So, if I’m Nintendo, I’m staying put and I’m happy as HELL that Sony and Microsoft are staying put with their current tech. I’ll enjoy my higher profit margins and console domination. The complaints about the graphics haven’t held me from dominating so far, and the more time that goes by, the better tech I can use for my next system with a lower price. For a system to REALLY get the high quality 3rd party producers, they need them on-board from day one.

This is what is happening with DS line. The DS was graphically inferior to the PSP, but won the handheld console war due to innovation and missteps in the competition. Now, they are releasing a powerful 3DS with the unwavering support of high quality 3rd party producers.

Really, it’s pure genius. The Wii fans are happy with the blitz of great games to be released, so they aren’t going anywhere.

Cool.

Well said, Cryptonic.

Only on a platform-specific fan site will you find people saying the PS3 has "VERY limited exclusive content."

I'm not going to lie I didn't read all of that but with that said it doesn't really bother me, would HD or more HD be better sure but it's not a must. When I watch TV I want HD but when it comes to games it's a cool bonus but not a must have.

Yeah, Nintendo fans are just too nice to say SEVERELY. I keed.

To the main point: I agree that Nintendo is in a pretty good position now, and shouldn't rush to compete in the incremental-specs war. I don't want them to play that game at all; only bring out a new console when it's a new idea, rather than just additional power.

Another reason: This year, the Wii is finally getting a bunch of quality 3rd party support, plus plenty of 1st party goodness with it. They need to milk that support for a while and also keep building up the Wii library with more of the kinds of gems we're seeing this year.

releasing an HD version of the current wii does make very little sense, but in some way or another we should have an HD (not to mention 3D) system from nintendo within the next few years; it just won't be a wii in the same way that the PS3 and 360 slim models are updates of the same system. sony and microsoft have no choice but to stick with their systems for years to come because that's the only way they'll make a profit, but nintendo was never in that position because they didn't break the bank developing a cutting edge HD system. the humble and simple wii was making money the moment the first unit sold.

because of that nintendo has no long term commitment to the wii in the way that sony and microsoft are committed to their consoles. it puts them in a very good position to follow up on the wii with an entirely new system while the competitors are still stuck trying to convince people to buy move and kinect; nintendo can practically lap them at this point while their hands are still tied.

so even though all the first rate releases we're seeing will keep the wii running for another year, i think that's the end of the line for the system and that's when we'll see something new. iwata and miyamoto hints suggest that the next system is bound to be HD and if it's not capable of 3D from the start, i'm sure it will become compatible with an update later on; it just won't be a revision of the current wii, but something entirely new. so no, we probably won't ever see the wii HD people mention, but we will get something 10 times more awesome anyway.

It made sense for Nintendo that Wii is not HD. So Nintendo makes more money! That may be a reason for a fanboy to celebrate. But I don't see an advantage for me as a customer? Should I be happy Nintendo let me pay too much money for a Gamecube 1.5 with motion controls only to make more profits? Or couldn't Nintendo just deliver a better console if they invest a part of their profits in up-to-date technology?

I bought all Nintendo consoles since SNES and would have loved to see the Wii using modern standard technologies (HD visuals, Dolby Digital sound and a great online service) since Nintendo's profits have no influence on my gaming experience. The interest of third party developers in making games for the Wii would have increased, too. Many former loyal Nintendo customers have ultimately gone multiplatform this generation.

@romulux but, wouldn't you say it would be very risky for Nintendo to release another console too early to the other two? I would love to see an HD Wii, like most of you, but if they can wait wouldn't it be better for them to wait? For example, if they released a Wii 3D in the next 2 years, wouldn't it be a waste to most people since most people don't have 3D TV sets. So really most people would be paying for tech they can't use. That's really risky, is it worth the trouble when Sony and Microsoft aren't going to do anything right now? Can they can come up with a new experience that can be easily experienced without relying on other tech to become standard?.

@guybrush I, for one, don't celebrate Nintendo making more money. But I do celebrate them having a business plans that allow them to survive, hopefully as a market leader, so that I can continue to get the quality 1st party product that I care about. (See, Sega, RIP, Sonic went down the drain after the Dreamcast failed). At the time the Wii came out, they couldn't just slap "HD Stuff" in there and keep it at the same price point. The price point was a VITAL part of their strategy. At that time, it was a risk. I mean, now it seems like a no brainer but in 2004-05 (when they were developing) I can tell you most of my friends didn't have HD sets. HD wise, Nintendo got caught in no-man's land. Had they came out a little later the HD cost would probably had been more justified in their eyes.

Romulux suggested a new console in a couple years, and perhaps not even 3D-capable immediately. By that time, Nintendo (and everyone) should know if 3D is here to stay or not.

Guybrush, you're really looking at that the wrong way. Of course Nintendo wants to make money, and it's only by making money that they can make games. You seem to celebrate Sony and Microsoft losing money. I don't see how that's better. Nintendo made their console so that it'd be affordable. That was the central idea. We save money getting a cheaper console; they make money; they make more games; we play more games; everyone wins.

The next console will of course be HD. Nintendo has said this already. But when it comes, and what else it will do... those are more open questions. I think the longer they put it off, the better. Few believe Microsoft or Sony will completely push the Wii into the gutter with their new, expensive, marginally supported tech, so Nintendo has as much time as they need until these guys put out a brand new console. As long as good games keep coming, I'm happy with Wii, they are in the game, and they can use all this time and money to make sure their next console is amazing instead of pointlessly rushing out a console no one needs. A console is a delivery system for games, and the games are still coming. I'm not overeager to waste money on another gadget when there are still franchises like Pikmin and F-Zero that haven't seen the Wii once, much less twice like Mario, Zelda, and Metroid will have soon.

Revolution -> Evolution

It's how Nintendo has gone about it with pretty much every piece of hardware they've released since the Game & Watch up to 3DS. I wouldn't expect Wii Hi-Fi to be as much of a zag as the Wii was, but whatever's next after that should be pretty interesting.

Nintendo mainly wanted this system to be for everyone; that's why the price and graphics are low. If they've created enough brand loyalty then they can go all graphics this next gen and easily win the console war.

Wii won the battle just because its prize was way lower, period. Then they targeted the "granpas" and "granmas", and they found there were many of them willing to aproach these called "family games". But now Sony and MS are targeting also the granpas and granmas, with consoles much less limited that the Wii.
IMO the big problem of the Wii is not its lack of HD at all, HD alone means nothing. Levels/scenaries on Wii are always quite small and detailed, or big and without almost any detail, and you will see the load screen over and over except for minigames (including the mini planets of SMG2). Wii is just lacking CPU power and memory. There are many many many games that cannot be ported or developped for Wii just because of these problems, not because any low resolution.

why? as i said, the ps3 and 360 were designed to last a decade since sony and microsoft knew it would take that long to recoup the expenses of developing them and, eventually, make the amount of money they wanted. it took them several years of selling systems just to break even on their costs and they're just now finally making a profit; it's a very slow and steady road for them, and if they want their systems to be financially successfl they have no choice but to stay on that road for years to come.

given that the wii is in an entirely different animal, why should nintendo keep it on sale as long as the other systems? it wasn't designed to last a decade; the PS3 and 360 were made powerful enough to last well into the future and made capable of being updated to 1080p and 3D to keep up with technology. the wii is still offering just what it did when it went on sale, and some people were saying it was already obsolete then; nothing about it suggests that it's meant for more than the same 5-year life cycle of every other nintendo system.

there's been a lot of debate over whether it's time for a new system before, but the thing that changes it now is that the 3DS, a handheld, already has substantially better graphics than the wii. if that's what they can do with a handheld, it demonstrates that nintendo is more than capable of making a system that could outperform the HD systems. so, for the first time even by nintendo's standards, the wii is obsolete.

nintendo say that technology doesn't make a game good and they're right, but at some point they'll have done everything they can with a system and need to move on. i think that after the unbelievable lineup of games this year the wii will finally have been exhausted; there won't be a single mario, metroid or zelda left in her after this. i'm satisfied with the system's run already, so even without this great rush of games i'd feel comfortable moving on to the next thing. give them a year or more to milk the remaining sales from the wii and then it's time for the new system.