The evolution of inexpensive tablet computers with gaming potential, and the continuing 'will they/won't they' question of whether Apple or Google will enter the home console market means that Nintendo, and its competitors, face big challenges. Those challenges may have been in the mind of experienced industry figure Bing Gordon when he recently spoke to gamesindustry.biz.
For background, Gordon worked at EA for 26 years, initially running the marketing department before becoming the company's Chief Creative Officer in 1998: he departed in 2008 and received the Academy of Interactive Arts & Sciences' Lifetime Achievement Award in 2011. This is a man who knows a bit about the video game industry.
When asked about Nintendo's chances with Wii U, in light of Google's recent Nexus 7 tablet being released for $199, Gordon had this to say.
I think Nintendo's already on track to become primarily a software company. We saw that with Sega back in the day; Sega made some missteps and became primarily a software company. Nintendo hasn't really made missteps, Nintendo probably has better creative talent and better leadership now than Sega did. It's got the most robust business model, the best creative talent; Miyamoto's still the best in the business. Apple's most directly competitive with Nintendo. So far, when Miyamoto makes a perfect game, in his career he makes games worth $200 - it's worth buying a system for. I think the handheld is going to be under a lot of pressure. I can imagine a day when Nintendo wonders - and maybe it's generational change - when Nintendo wonders if they ought to take some of their best games and make them apps.
As a follow-up to a comment that a Nintendo evolution away from hardware would be interesting to observe, Gordon agreed before once again citing the Miyamoto-factor.
That will be stunning. Neither Apple or Nintendo - both those companies like control - is likely to want a partnership, but a partnership would be stunningly cool. I think if you're Nintendo, as long as Miyamoto's coming to work, you can sustain a proprietary platform. He's that good.
Bing Gordon seems to feel that Miyamoto is the key to Nintendo staying in the hardware business, and that it's possible the generation after the famous developer (and Iwata, we'd add) may decide that the hardware industry isn't the best option. Only time will tell, but what do you think?
[source gamesindustry.biz]
Comments 61
Sooner or later, it's certainly possible that Nintendo could drop out of the console race...if they do, they're more likely to team up with Sony (which would be historically ironic), if only because they're the only Japanese competition and I don't see them working well with Microsoft or Apple. And I would honestly love to see that happen...after all, why should Smash Bros. and All-Stars Battle Royale be separate things?
I don't think I can see Nintendo dropping out, at least not yet. I think they still have a few more tricks up their sleeves somewhere. Miyamoto will eventually leave Nintendo, either through sickness or death, and someone is going to have to pick up where he left off, but I can't see anyone beating Miyamoto's creative mind or his video game creative talent.
Time will tell, but I think it'll be many years before Nintendo throws in the towel and goes software only.
the day Nintendo stops making consoles will be the day I stop buying consoles. Nothing is impossible, but it is highly unlikely. It is very interesting to think about, as is the thought of "what if Sega or Atari made a new console today?" interesting.
Never say never, but do say highly improbable.
What a load of crap. Why do I want a $200 tablet when it has no real buttons instead of a dedicated gaming system? The video game boom of 2008 is over, yes. $15 mil budget games are for the most part a thing of the past. But Nintendo is going to continue to sell consoles/handhelds because there is a market of people want their video games played on something that was designed to play video games.
The guy worked at EA people. Not like he worked at a reputable company.
I can never see them letting go of hardware. Never!
No Nintendo hardware = no Mario and Zelda and the likes.
I hope it never comes to Nintendo teaming up with apple or sony, that would be a dark day. Now partnering with Sega, I could handle that.
Times change, that's part of life. Nintendo has been in the console business for over 25 years now and that's the only business they run, alongside the software they publish for their consoles of course. Nintendo could simply wither and die of old age like that home made pizza joint that's been around forever that goes out of business because the owners just can't do it anymore. They could also find new talent (someone new and equally as talented) to run the business or even change directions like they did getting into video games from those hanafuda cards or whatever they're called. Nothing is forever, not even Nintendo.
The day Nintendo stops making hardware is the day I quit gaming. Like has already been said, tablets lack buttons, etc. and Sony/Microsoft aren't exactly taking many risks in trying to create as unique ways to play things(not knocking them completely, I love some franchises on those systems). I'm not saying Nintendo couldn't make fun apps and all of that, tablets, etc. just aren't meant for true gaming experiences. Nintendo wouldn't work well with Apple anyways.
Give me a tablet that has real gaming buttons as an option, the power to play 'real games' that consoles of the time can, while still keeping it's top of the line usual tablet performances...at an affordable price at that and I MIGHT consider staying. Doubt we'd see something like that for a really long time though, if at all.
@Alienfish It's obvious that nothing lasts forever. It seems moreso that nobody wants to see Nintendo playing servant/2nd to such companies. If anything, imo at least, they should be the last ones to leave the gaming hardware service, with a bang nonetheless.
I can see his point. I could see Nintendo dropping out of the console business after Miyamoto and Iwata leave. If they do team up with anyone, I think Stuffgamer1 is right, Nintendo would probably work better with Sony than Microsoft or Apple.
Don't forget that a Nintendo-Apple partnership in the next generation however unlikely would have to involve hardware controls of some sort. Having Nintendo as an exclusive is just the kind of excuse Apple needs to trick out an iPhone or iPod or iPad officially for gaming. In 4 years, much will change and it might feel far more likely than now. It's not outside the realm of possibility as Nintendo has respected Apple as a company in the past.
@Flowerlark It might still be a while yet, which is why consoles are starting to be utilized more as multimedia systems. Home consoles will probably be around as long as TVs have a use.
Handheld gaming devices I see fading away quicker though, due to what you've stated. I personally dislike phones/tablets very much, game-wise, however, because they just can't fill-in for true gaming devices.
@aaronsullivan If they could really work out their differences and Nintendo wouldn't just be playing the role of a maid, they might actually be able to pull off something like that(a dedicated gaming device-tablet). Doubt it but hey, only time will tell...
Hmmm I think it's a little premature to write nintendo out of hardware production at this point. I think there is still a very big group of people who don't want to just play games on a cell phone or ipad but sit in front of their tv with a group of friends and have fun. Yes maybe the trend towards stupid ipad games will mean that nintendo is forced to work with a tab manufacturer in the future as a handheld gaming alternative, but there will always be a place for home based consoles, and with the Wii U what I really like is that it's combining some features of a handheld as well and the kids could play on the tablet controller whilst the TV is being used, it shows they are trying to think of new ways to combine the new trends.
Besides has anyone actually played any seriously good ipad games lately? Ones that they would sacrifice their home consoles for? Didn't think so. All thats happening is the market is now expanding to include casual cell-phone/ ipad users, so the market for real games and consoles is still there and probably will always be.
If Nintendo were to drop out I'd stop buying there games because there games only really work on there systems, I mean of they work for any other company, that company would have to make a system that can emulate the 3DS and WiiU if they want to sell those or even past systems on it and as of yet apple doesn't even have buttons and Sonys only got one scree for there portable
I have been saying for years (in fact on this website a few times and NOBODY has replied or responded) that we will see some sort of device, be it a phone/tablet/something, that will have a tiny Mario holding a tiny Apple. iPad Gen N, or something like that, and we'll see it before the year 2020.
So basically the guy said Nintendo are en route to becoming like SEGA who ended up like that because they made missteps. And then he went on to say Nintendo haven't made missteps... Yep, he knows what he's talking about ¬¬
@GazPlant I think he means when iwata is out then nintendo will go with him, but I don't see that either because iwata will choose someone great to take his place someday
the writing is on the wall nintendo is doomed, DOOMED!!!
So, for those supporting a merger with Sony, I really don't understand why. In the face of the discussion here, which is about tablets and phones invading the dedicated gaming space, what play does Sony have? Vita? That's not even as successful as the 3DS. So... Sony phones and tablets? Sony's offerings aren't even a blip on the charts. Sony has no "game" in that space.
@Reala
I know you're being silly, but this article isn't about anything like that. Some people are taking it that way, though. This guy is talking about the future success of Nintendo and what shape it will take.
@TruenoGT Want to share the difference between Nintendo and Apple's business practices and why one makes it your favorite company and one your most hated. When it comes to business practices there is little different, both suing competitors who infringe on their IPs. Nintendo does lead by far in environmental apathy, super strict DRM limited to a single device, and persuing "jailbreakers" far more ruthlessly.
This makes no sense to me. As long as Nintendo has customers there's room in town for Apple products and Nintendo, which are far from the same thing. I am writting this on my iPhone sometimes I post frim my iPad and I do not wish Nin IPs to become apps on either device because as long as Mario still jumps I want A B buttons and control pad. If Nintendo made a phone I would not be an iPhone user.
@TheHermit I could see Nintendo updating the 3DS to be like a phone
I've been saying this for a long time, the wii u will be nintendo's last home machine. is it really a bad thing? If nintendo just made software which could be played on any machine..... more sales, more money to put into new games...... more games etc. A good game is still a good game no matter what its played on. so mario on xbox or playstation is still mario ..... only mario with a decent control pad, decent online and achievements/trophies. Everybody inc nintendo wins!
I don't necessarily feel like Nintendo will ever get out of the handheld race. The 3DS might not have been a major success right out of the gate for a number of reasons, but it's rebounded into a profitable system despite the fact that handheld gaming for most people in 2012 involves a phone or tablet. I do sort of feel like the Wii U will be a good indicator as to whether or not Nintendo will be producing home consoles in 10 years. There's a lot riding on this system.
Why is it always Nintendo? Sigh...
Anyway, if Nintendo did go all software, I don't think they'd partner up with Apple. Just because they both have touch based gaming doesn't mean they're a match made in heaven. I think they'd partner up with Sony since Nintendo basically helped create the Playstation. I'd go back to Sony hopefully to play Zelda again.
But that won't happen. After the gaming crash of '83, Nintendo and Sega rose. They weren't making home consoles during the Atari/ColecoVision/Intellevision days, so I think that when Nintendo falls, so will Microsoft and Sony (their gaming departments anyway...) and we'll be treated to completely new competitors.
Zelda and mario on a ps3 or 360? No thanks. They work much better on nintendo consoles. But if they did go all software i would be worried if i were sony or microsoft. Who else would they get innovative ideas from to copy and get praised for it? They're certainly not creative or risky enough to come up with something all by themselves. And they can't just keep making the same console over and over with no new innovation. Wait. Nevermind. Sorry i forgot i was talking about microsoft and sony. As long as they just have halo and cod on their consoles with better graphics then they don't need innovation! All the microsoft and sony fans will buy it anyway!
If Nintendo stop making consoles, they'll all stop making consoles. The only way I can see this happening is if everyone adopts some kind of PC based TV system using a popular operating system - such as how a lot of people hook their laptops up to HD TVs these days. If it's a case of teaming up with Sony or Microsoft, though - no way. Nintendo made way more than both of those combined this generation, so it makes little sense they'd do that when they make so much money on their own.
If there's no need for games consoles any more then, yes, it'll have to happen. However as long as people are still buying dedicated systems from specific manufacturers then there'll always be Nintendo.
Nintendo will NEVER agree to hand over at least 30% of their turnover to Apple or any other app seller. That may seem like an attractive business model to other companies but in the end only Apple wins.
And the Big N knows very well that their games are almost always superior to 3rd party efforts because their developers have such intimate knowledge of the platform. That advantage would be lost forever if they became just another 3rd party developer
If Nintendo stopped making home consoles, I would like them team up with Sony to form a new game company. Nintendo would be the innovation, and Sony could make it a power house, by adding in ideas to make the console better. Sony and Nintendo could make exclusive games for it, so that they keep their fanbases and 3rd party support. It would make the console perfect for families and hardcore gamers alike. Companies like google, apple, and Microsoft wouldn't stand a chance against them.
The day when Nintendo stops making consoles is the day that market completely dies off.
This guy is full of it. In one paragraph he says Nintendo's going third party while at the same time praising them for their genius. Another convoluted statement by a person who has no better idea where the industry is going then the next man. And this is old news too. People have been predicting Nintendo going third party since the N64 days. I honesty don't see much changing for Nintendo as long as they're still making AAA class titles.
And I don't think Ninty would want to partner with Sony. Back in the day Sony tried to grab most of the money that would be earned from an SNES CD expansion, causing Nintendo to stop working with them. Sony is the same company they were back then, I wouldn't be surprised if they tried presenting Nintendo with yet another one-sided partnership.
Japanese gaming will die off completely if Nintendo stops making hardware. Western juggernauts will develop the big budgeted stuff and stuff like Mario and Zelda will no longer stand out like Sega's franchises no longer do. Sony is doomed in and of itself. I think Nintendo will thrive. I have faith.
I don't see why a Nintendo exit from hardware manufacturing of consoles = a deal with either Sony or Apple, can't they just go independent like Sega? Or, Google keeps trying out new things, why not let them build the home console? And really, at some point aren't we all going to get tired of playing Mario and Pokemon anyway? And at some point - maybe starting with Apple - aren't all tv's going to have built in gaming consoles, or fast enough broadband to stream games, and come w/ a game controller? My cable box has a bunch of free games now. Nothing great - Sudoko and Bejeweled - but it's a start.
The only constant is change.
I wouldn't mind a Nintendo-Apple partnership. Shoot, I would actually be quite interested in it. The main problem, I feel, would be the pricing of the console.
Nintendo doesn't like selling things at a loss and they like giving consumers products they'd want at a pretty low price. Apple, because most of the things they use are in-house made, likes to focus more on higher prices to break-even. What would be interesting is seeing how pricing of the console would work out because I would guess that we would see a pretty happy medium between cheap and expensive.
As far as the specs of the product and quality of software that come to it, I think a Nintendo-Apple partnership would be a pretty cool idea.
@rjejr "[...] at some point aren't we all going to get tired of playing Mario and Pokemon anyway?" That's the beauty of Nintendo's franchises... they're fun for a 35 year old that's been playing it for 20 years, and they're attractive to a 7-year-old who's just starting to play. Even if WE get tired of playing these games, there's a new swell of customers younger than us who are discovering them for the first time. Bing may have a lifetime achievement award, but I think he's vastly underestimating Nintendo's ability to produce unique machines that people want.
Japan says otherwise Mr. Gordon. Look at the 3DS sales and THEN tell me Nintendo's gonna drop out
If they go software only, they wont be able to take the p**s and make us buy optional extras like chargers for there handhelds!!
Never, don't you lose to lame companies that make shoddy Kinect titles with wonky controls. Nintendo will never end up like Sega since they won the console wars of the 90's!
P.S.: Sega is making a comeback. Dreamcast 2 at full speed!!!!!
@BudrSbastig: There's one little flaw in your argument... neither Sony nor MS have made a decent controller so far. I don't need or even want acheivments/trophies. Nor do I want online for my Mario games. Lose/Lose.
Nintendo being a "software-only" company won't happen anytime soon, especially when their software for the most part is built with the hardware in mind. If they make add-ons upon add-ons like Sega did with Genesis, release a console that's severely expensive, 3 years later craft a whole new console- then yeah, they'd go the software route like Sega.
Problem is, there are no signs of that happening. At least they're dipping their toe in the smartphone field with Miiverse. They're manipulating that so consumers can go back to WiiU and stay connected to it at all times. That's pretty smart.
This will never happen. I still think Microsoft and Sony should combine with Nintendo and make the Nintendo PlayBox 360!! That or Sony and Microsoft leave the console market and Nintendo will buy apple but I guess neither will ever happen...
Nintendo may create software for iPads while continuing with their consoles, I dont know why that must be just one or the other. Marios dont require any special controls, and these games run with minimal hardware specs, even Galaxy ones would be running fine on an iPad. They could port "obsolete" tittles for other platforms while creating exclusives for 3DS and WiiU, and this might be also an interesting way to promote their newest hardware while selling millions in software.
I can't believe it's coming down to this. Nintendo, the leading innovators that made the most iconic videogame franchises of all time, becoming a software-only company? People are always saying that Nintendo makes great games and that's what's most important, but the games are only great if they run on the consoles that Nintendo made for them. I would never want to play Mario or Zelda on a Sony, Apple, or Microsoft platform; that would feel like a downgrade to me...
People say Nintendos sooooo great and then they say that they would be even better if they gave up what makes them so great... It makes no since what so ever
Cloud gaming is the future and will eliminate the need for new consoles. Nintendo would be foolish making a new system each gen when they could just sell a device for streaming games. The only hardware they should release is new controllers for different game experiences.
So without Miyamoto Nintendo is doom to becoming a 3rd party? I don't think so, Gunpei Yokoi the creator of the Game Boy left Nintendo for so long and the Game Boy lineup is still successful even after his death so even if Miyamoto is no longer working with Nintendo, the company will still find new creative talents to replace their alumni.
I think the only way Nintendo would make phone games is if they had a Nintendo phone (I would buy it). Personally, the idea of playing the newest Mario on a smartphone sounds horrendous. If Nintendo ever made a phone (probably through a partnership with Motorola or something like that) They'd either have buttons on it for "true" games, or they'd make games that are fun without buttons. Either way, I doubt it will happen next gen. Nintendo's already working on their next portable system after all.
And though Miyamoto is undoubtedly amazing and the greatest developer in gaming history, I don't think it's fair to say he's all that's keeping Nintendo systems worth buying. Don't forget about Aonuma, Sakurai, Iwata, Hayashida (he directed Galaxy 2 and 3D Land), Retro Studios, and Monolith Soft.
@XCWarrior
Those are my thoughts. Stuff like Kinect, Tablets and the like are absolute garbage gaming devices, but thanks to the brainless masses here in North America this crap is being bought in droves and it is going to eventually ruin the gaming industry. People here will spend $400-500 on an f'ing phone to play games on rather than $170-250 for a far superior 3DS or Vita, it makes no sense at all. Thankfully developers have started realizing more how good a platform the PC is, so if it becomes necessary at some point I'll just make the jump over there. I don't want to have to do that but given where the market seems to be headed it may be the only decent option 5 years from now.
@TrueWiiMaster I would definitely buy a Nintendo Phone/Tablet, haha.
Oh well time to buy a Playstation then
If conglomerates like Sony AND Microsoft still haven't knocked Nintendo out of the hardware business, I think that goes to show Nintendo's still got what it takes. Honestly I think people are over-estimating Apple and Google's products. It's as simple as this: There are shiny new compelling products being released into the interactive digital market such as Smartphones and Tablets, and people are just getting caught up in the rush of things and jumping to conclusions.
Step back and really look at it, these Tablets and Smartphones are not practical for being primary gaming devices, there are no buttons or no format for people to conveniently buy games (such as a physical cartridge). What leads everyone to believe that Tablets and Smartphones even have potential to be 'real' gaming devices anyway? Remember the Sony Xperia Play? Most likely you don't, even though THAT had buttons like a PlayStation it still failed because it's first function was a phone which needed a contract with monthly payments.
I believe some day Nintendo will become a software powerhouse, but that will not happen at the hands of Apple or Google, or MS or even Sony. I think it would only happen due to an internal decision caused by Miyamoto and Iwata leaving. Having said that however, I don't think Nintendo will hand the company down to someone willing to delegate to a software publisher, so it will be interesting to see what happens.
"Only time will tell, but what do you think?"
Let's say in 20 years: Nintendo still around with their consoles doing their thing and being profitable, while Apple is a relic of the past! Why? Because Apple didn't innovate! They just released a new version of the i-phone and i-pad every year! People got tired of that!!
I think that's how it will be!!
My favorite comment on here is that it's not convenient to buy games on iPad and iPhone. ARE YOU KIDDING ME. Press, password, play. What could be more convenient really. I currently own 232 apps and games that I can download at anytime, anywhere and I can play them on many family devices at the same time only having purchased them once. They never wear down, they don't get scratched, they get UPDATES often so that the value of the game I paid for ONCE increases over time. I can stream them to my TV, I can access them on my phone that I have with me at every moment --
I LOVE Nintendo games, I LOVE the method and approach that Nintendo uses to make games, but please don't tell me that discs and cartridges are more "convenient".
Trading and selling used is nice, but apps and games make profit on VOLUME of sales on the iOS App Store so the prices are low. It's a fascinating process that has happened that even leads to games going free every once in a while to MAKE money. It spreads awareness and then more people buy. It's a VERY different model from selling small amounts (1 million) of expensive discs/cartridges but it can work very well for people who make great games, and works even better when there's brand recognition: Nintendo has both.
I also don't think anything like this will happen unless the Wii U and 3DS are very disappointing in terms of sales over the next 5 years.
LOL, nothing's impossible, but I love how folks always have to predict the end of Nintendo. Why, because they don't market their systems and software libraries like Sony and Microsoft? Sure, Sony and Microsoft are the majority, but as long as Nintendo continues to produce that "difference" factor of videogames, they won't be leaving the hardware business anytime soon. The day Nintendo puts their app on a tablet is the day Nintendo MAKES that same tablet with "Nintendo" emblazoned across it.
The main thing I know about Nintendo is if they go away, it will be because they want to, not because someone beat them at their own game. Sorry to put SEGA on the spot like that, but there was chaos in that company that led to it's demise on many levels. Keep hoping haters, keep hoping. Nintendo == gaming.
I sure wish I had one of these crystal balls the industry insiders seem to be passing around. Does this guy know how many DS and Wii consoles were sold worldwide? They're insane numbers. I don't mind if they switch to software only, but I wouldn't really predict such a move until these numbers are disproved this next generation.
You heard it here first! "Zelda 64 Remastered for the New iPad 27!! Coming to iTunes' App Store in the year 2087!!!" That's right folks! In the year 2087, Nintendo has fallen on tough times and is now a 5th Party Developer, WhoaOh!! In this dystopian future, Apple has resurrected the merciless Steve Jobs as a head-in-a-jar, and Nintendo's only glimmer of hope is to release Mario on Apple devices, where Apple takes a 30% profit margin!
Because in Bing Gordon's crystal ball, Nintendo is in shambles, while Apple is still releasing iPhones and iPads as the #1 product manufacturer in the world! Because Apple's never going away! Just Nintendo!!! Muahahahaha!!!
This of course all happens two days before the zombie apocalypse which wipes out 2/3 of the planet's population. Thanks Bing!! Someone should really get you in touch with Nintendo stat!
NINTENDO WONT DIE =))
Nintendo will always sell hardware. The day they stop selling hardware is the day I stop being a Nintendo fan, and I've been a loyal fan for over 20 years now.
If Nintendo would ever become software only company, it would be in some UNFORESEEABLE future. They are just too successful and frankly simply too good to all of a sudden not be able to make hardware anymore. Nintendo won the console war this generation in terms of console sales by a long shot, does anyone remember that? Microsoft still can't get a hold on the Japanese market, has anyone forgot that? I really don't see how Nintendo is headed to get out of the hardware race. Nintendo if anything is more powerful than ever.
Every company goes through challenges, as seen with the problems with the Wii and the poorly planned 3DS launch. I don't see how Nintendo is going to die from occasional stumbles, remember Virtual Boy? They seem to be addressing the problems of the Wii with the WiiU pretty well. I am not going to sit here and make predictions but I really don't see Nintendo being beaten out anytime soon. They are a worldwide force that doesn't just get pushed around.
I think worse case situation: Nintendo stops selling in the west and just sells in Japan, but even that is very very unlikely
people wondering if Nintendo will drop out is about as old as news as the dreamcast dieing -_- Sega fell on some REALLY rough times cause they where release systems with NO sales, Nintendo on the other hand is doing perfectly fine, sure theres a really fine fanbase for Nintendo now, but even still there in good hands as long as they keep trying to give fans what they want. WE SHOULDN'T PUT NINTENDO IN THE SAME BOAT AS SEGA!!!
All honestly, I'm tired of buying a second console just to play Nintendo's games, I'ld kinda be happy (and ironic sad in the mean time) if Nintendo went third party. It would be easier to just have a PlayStation and buy Nintendo games for it...
@hydeks Or Sony goes 3rd party and we have a cheaper console because it's Nintendos, and we can play all the games Sony has on it
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