With the Wii U look set to sell less units that the GameCube and the 3DS falling short of the commercial performance of its immediate predecessor the DS, many industry analysts have characterised Nintendo as a company in decline. However, former Xbox boss Robbie Bach - who spent 22 years at Microsoft and a decade leading its games hardware division - feels that anyone writing off the Japanese firm is doing so prematurely, and without considering the incredible appeal of its catalogue of properties.
Bach cites the incredible impact of the Wii as one of the major reasons why Nintendo should never, ever be considered done and dusted. With the Xbox 360, Bach explains that Microsoft was almost entirely focused on beating Sony as Nintendo was seen as a spent force after the lackluster performance of the GameCube, but he and his team got a nasty shock:
I'm one of the people that won't ever count Nintendo out. During our development of Xbox 360 we focused pretty heavily on Sony and PlayStation 3 and the Wii was a complete surprise, so the first 18 months of our launch was a real challenge.
Although it boasted weaker specifications and lacked HD output, the console introduced motion control to gamers and managed to beat Sony and Microsoft's consoles in that particular hardware cycle, selling over 100 million units worldwide.
However, its successor, the Wii U, has struggled to emulate the same success. The 3DS - while dominating this handheld console cycle - is a long way off matching the sales of the original DS, too.
Bach feels that Nintendo needs to either look at pushing its games to more platforms - which, you could argue, it is doing via its smartphone deal with DeNA - or find that magical Wii-like system which can bring back the good times:
That market has become a lot more challenging because of smartphones, and their Wii U console frankly hasn't caught on as well as they would like. So you have a fabulous and amazing creative company that had incredible franchises, but doesn't have a strong platform right now to develop for. That's a tricky thing for them to navigate. They're going to have to figure out either how to expand the number of platforms that they develop for, which would be a major change and would be risky, or they have to get into a cycle where their own Nintendo platforms evolve in a way that enables their games to get better coverage.
However, Bach makes the important point that unlike its rivals, Nintendo can explore other avenues in order to generate revenue and remain relevant - the impressive success of amiibo being one such example:
This does speak to something about Nintendo that's different than Sony or Microsoft. Sony is a consumer electronics company and Microsoft is a digital PC electronics company. Nintendo—with great respect and pride—is a toy company, and always has been. That's why their franchises on the game side are so powerful. There may be an opportunity there for them to invest in what is essentially a core attribute of what they do (toys), and it may create an opportunity for the company that's unique and separates them from Microsoft and Sony.
What do you make of Bach's comments? Let us know by posting a comment below.
Thanks to Ryan Millar for the tip!
[source fortune.com]
Comments 84
Nicely said
"Nintendo—with great respect and pride—is a toy company, and always has been."
Do love hotels count as toys? Well, I guess you could bring toys to them. If you know what I mean.
He's quite right, Nintendo has been, and still is, a toy company and to an extent, thats what makes them a real deal in the video game industry. For Sony and Microsoft, they can stop their consoles and pull out if the market goes sour. Nintendo can't, because if they stop, they have nothing to go back on.
I'm not saying its a bad thing, in-fact, its a great thing. This means that every game Nintendo makes is a literal representation of their company and if they make a bad game, or have a bad year they can't just borrow money from a sister division. Nintendo is currently all about games, they can't just stop. I think thats part of what Bach is going for with his comments, he's saying that they can't just butt out and leave, they're in for the long haul and with the most experience in the industry, they know what they have to do (to some extent anyway). Another great read NL, definitely beats the doom and gloom about the star fox delay a couple days ago.
"Nintendo can explore other avenues in order to generate revenue and remain relevant"
Pachinko machines.
@BlueCosmos42 Nintendo is not all about games. It's all about ripping people off with those ridiculous amiibos
Difficult to argue with any of that. This generation has been a struggle for Nintendo (though Sony would love to be looking at 60m+ sales of a handheld as a disappointment) but you can never rule then out. They just need to make better decisions regarding their next console-diversifying is a good move also.
@Nerevar Amiibos aren't a ripoff. They cost only £6 in Japan - they are £10.99 in the UK because of Import duty and taxes. . . GAME sell them at £14.99. .
make your choice!
Whatever they are cooking up I'm pretty sure amiibo will be around.
@Nerevar
$17 for a reasonable quality statue with the added bonus of unlocking in game content doesn't seem like a ripoff to me
Says the man responsible for overprived paperweights
But hes not wrong. Nintendo never aimed to produce multi media boxes, they never strived to make more than a gaming console.
And truth be told, i dont see anything wrong with calling them toys.
Toys are a thing to entertain you with, not enrich your life or something.
And thats pretty much what Nintendo systems do. They are "just" fun video game consoles. Nothing more and certainly nothing less.
I'd like to point out that Nintendo can just shut down their gaming division and subsist on just hanafuda, karuta, and other card game sales.
They made at least a billion yen off that last year, and they're on track to do so this year.
@Einherjar Right, and the only time they actually did put their weight behind it, it flopped. That time was the Wii U.
I'd imagine they'd put some of their efforts behind the multimedia aspect this time, but not as much as Wii U.
Lately, Nintendo has been making better software than hardware. If Nintendo would just develop games instead of games and hardware, the games would be better because they'd have all resources focused on that, and they'll sell much more because the games would be available on more successful platforms. I don't mean mobile touch phones but dedicated gaming systems like PS4, Xbox One, etc. However, it's a tricky decision because their mobile devices are still very popular and they have a hardware division developing hardware ideas. Plus, Nintendo is very proud of their consoles.
Most of this article is stating the obvious, but it does emphasise how Nintendo hadn't made the most of their IPs in other products.
Why isn't there a Mario Monopoly (maybe there is but I've never seen one)?
Why isn't there a Mario/Lego crossover?
Mario Kart slotcars?
A Mario Disney-Pixar type film?
I'd like to see Nintendo invest in some quality writers and flesh out their iconic characters in some quality pieces of entertainment outside of Nintendo consoles.
Nintendo should invest in some
@TheWPCTraveler Wii was as multimedia as Wii U: Photo Channel, Internet Browser, News Channel, Weather Channel, Netflix... The list is comprehensive. The multimedia side of the Wii U is not to blame at all, but it lacklustre catalogue and underused and not all that suitable Gamepad. Also, it is underpowered like the Wii, but Wii U doesn't have something amazing to make up for as Wii did with the Wii Remote and Wii Sports.
@gcunit there is...a mario monopoly..
@TheWPCTraveler I wouldnt call the WiiU a multi media device per se.
Yes, it had a few streaming services, but the console OS itself is strictly catered towards games.
If you look at, say, the PS3, it supports music and video files, pictures, also has several streaming services and even an in-house movie store and it doubles as a DVD / Blu Ray player. So gaming wasnt its only major focus.
Im pretty sure that these features are slowly creeping into Nintendo systems too, but will never be a major selling point.
And the WiiU basically flopped, because people got their nerd-boners from hearing what kind of hardware its competitor came with.
That it hasnt been put to good news was irrelevant.
The 2 biggest mistakes Nintendo made with the Wii U was The name and the look of the Wii U system.
The mass market just don't know the difference between the Wii and the Wii U they think that the Wii U controller is an expensive add-on for the Wii.
If they had used a different name and made the console look different things would have gone a lot better for Nintendo.
Really bad mistake in my opinion.
You really cannot count them out. Take amiibo and an NFC reader to mobile platforms and marry it to a series of Pokemon games and they'd have a steady revenue stream for years to come.
@Einherjar Ironically my nerd boner went flacid after hearing what the competitors had to offer, I seemed to fall into the "well I have a PC for that kind of thing" category and the day we found out what Microsoft and Sony were pulling out for this gen, I went out and picked up a wiiU and a load of games... However, that being said, I do know quite a few people who even with a decent gaming PC rig were still dazzled by all the specs on those two systems and didn't even give the wiiU a second thought. The name didn't help as people just thought of it as a Wii with a couple of extra features rather than a whole new system. You could say it was a victim of its last generations success. Its a shame, because just like Sega had the Dreamcast, I do think the wiiU is Nintendo's best console to date and I would hate to think it becomes one of those consoles pick up after its death and think "this is a really great console, I wish I had gotten one of those" which happened to the Dreamcast.
I would argue the Playstation and Xbox are also toys- just toys aimed at adults with less emphasis on fun. A console is a distraction to the world that you play with- they're all toys.
@gcunit There is mario monopoly, also zelda monopoly, and worse of all Zelda Yahtzee, which is just some colored dice and a box which looks like a chest.... also lots of nintendo clothes, plush toys, figures, remote control cars.
@Raptor78
The Wii U flopping was nothing to do with 'nerd boners'. That's a poor excuse. It flopped because the very concept was questionable and the name, marketing, first few months software line up amd third party support were poor. By the time good games came along in meaningful quantity it was too late. No mystery about it.
@MrGawain
Totally agree. All consoles are toys some just disguise it more enthusiastically than others
@electrolite77 I never said it was anything to do with nerd boners, in fact quite the opposite. I said that I was actually put off buying an Xbone and a PS4 because I didn't really see what they had to offer me in comparison to a decent PC gaming rig. I am an advocate of the wiiU and try to convert as many people as I can. I actually said the wiiU was a victim of its previous success because many people just see it as a Wii+ rather than a whole new system with a completely different experience to it. If it had a different name etc, it could have been so much more but millions of people have a Wii and wonder why they need to upgrade.
Those are some super solid comments
@electrolite77 You must have meant to comment on Einherjar who put it down to nerd boners, to whom I had replied to. Either that or you only skimmed my comment looking for something to pick at.
@Bliquid
I would say the Wii U is a commercial failure, but not a failure for most of those own a Wii Ulike myself :+). I am not going to say that the Wii U is flawless or mind blowing ;^^, but the games on the Wii U sure keep me busy while playing in Off-TV mode on the Gamepad .
It is true that when the Wii U was presented the Nintendo titles wasn't there to support the Wii U ;^^, but now there are many amazing games on the Wii U in my view .
@Nomad Growing up while video gaming was in it infancy, the only place to buy consoles and games where at your local Toymaster, Toys R Us, etc. There wasn't any videogame stores then, so yeah it was seen as a Toy and video games part of the Toy industry and Nintendo really lead the way back then (although I was team Sega back then). Now has time has moved on and Videogames has become it own thing with its own stores and so on I could argue its just a generation thing. When Sony and Microsoft had entered the market, Sega and Nintendo had already paved the way for them to be so much more than Toys. Consoles were standing shoulder to shoulder with PCs and just like PCs had their own place to buy the games instead of Toy shops. My kids would never consider Nintendo a toy company, but me with my rose tinted specs and fond memories of when console wars were just playschool banter "Alex kid is better than Mario " , I do see them as a Toy company. One that I respect and one which has been a pioneer for others to follow. In other words, its just a generational train of thought, not an insult.
If Nintendo are just a toy company then MS is just an OS and beginner and intermediate business software company.
Doomed!
@MadAdam81 isn't that still true, they try to force their OS down our throats everywhere. Mobile phones, consoles, computers... Even multimedia players and free view boxes are expected to run on some kind of Microsoft OS, well if it was up to them at least. To Micro$oft it has always seemed like business first and fun is secondary.
@Raptor78
You're absolutely right. I shouldn't have quoted you. I meant to reply to @einherjar. Very sorry
@Raptor78 Exactly. Seeing the pretty much nonexistant exclusive first party content and having a gaming PC, a PS4 / XOne is pretty much irrelevant.
@Bliquid Buddy, im a PS4 owner myself, and that thing is catching a lot of dust, trust me. I got mine cheap and for a very narrow reason (Koei Titles). Other then that, this brick has nothing to offer.
Im also a PC gamer, with around 400 Titles on my Steam account. They didnt get there out of Nintendo fanboyism my friend
An XOne is pretty much the only system i dont own counting from the NES / Master System days onward.
@electrolite77 The concept was questionable ? Its a frikin DS for the TV, nothing else. Whats so cryptic about a Controller with a built in screen ?
Always has been? What about the sex and taxi component?
@Nomad It is because Microsoft and Sony are not toy companies. There is nothing wrong with calling Nintendo a toy company and the other two not because the toy component only make up a fraction of what the company is where as Nintendo, it is all toys/video games.
@Nomad I think you misunderstood him. He's not saying that Nintendo is a toy company in that their products are not to be taken seriously. He saying that Sony is an electronics company that happens to make video games and Microsoft is a computer company that happens to make video games, as well. Nintendo started as a toy and card manufacturer, and that has always been their primary function. All video games are toys, really. And that's really all Nintendo does. Sony also makes televisions and other electronics, while Microsoft makes computer products. Games, which really are toys, is all Nintendo does.
Now we know what NX stands for!! Nintendo Xbox 😂
Games are all toys, simple as that.
Take a Playstation + Gameboy, what do you get? Playboy. All playboys like toys.
I hope the NX will shock everyone.
@thesilverbrick Don't forget Sony's huge insurance sector, that is actually their biggest one
@BlueCosmos42 Since having to sell off its laptop division, close all its UK Sony Centres and selling off a tbird of it music industry, Sony really cannot afford to bow out of the Games Console Market.
The only division they have left that is making them any money, is their TV's, and even they have not been selling as well as expected.
I'm feeling optimistic about the NX at this point and I have to say I pretty much agree with all of this. We'll just have to see what happens.
@akaDv8R Insurance is their most profitable division
@Einherjar
Exactly. A very questionable concept. It added to the machines cost without being a selling point to punters and had no software to justify it (beyond the massively niche 'assymetric local multiplayer'). That's the thing with gambling on 'innovation', some you win some you lose. Onto the next one leaving behind great memories for those who did buy into the Wii U.
I don't see why calling Nintendo a toy company should be regarded as an insult. Video games are toys, to me it makes them sound like a specialist.
I do agree that Nintendo has never been in the media center race (and their attempts fill shoe horned at at best) however that is one of the draws for me. As the 360 became more and more of a media center with ads I started turning it on less and less (don't get me started on the playstation gui) however that just shows how the market is changing. Dedicated gamers and dedicated game machines are just not popular and this started in the ps1 era but took root with the dvd player ps2 and just kept growing. The mobile market isn't helping with this. I think that means that the DENA deal could really work out for Nintendo though because they have a big untapped market to hit.
Either way Nintendo will adapt...they are an entertainment company first and foremost and they have changed their hats numerous times in the search for that entertainment niche. Should be an interesting ride.
The man speaks sense even if he is just stating what we already know. It would be great if Nintendo purchased the bomberman licence from Konami and bring some of that fun multiplayer magic that exists on the super bomberman games to Nintendo's future platforms, sure it won't be a 'saving grace' for them but at least bomberman would be in safe hands
Well, video games are toys too.
Microsoft should start creating Video games instead of interactive movies. It really is refreshing.
Nothing was going to match the sales of the DS. It was the stepping stone into mobile gaming for many, and was simply a monster in the marketplace. There was no comparable reason to get a 3DS—and I say that as someone who owns multiple of them. Almost everyone I know who had a DS is now playing Candy Crush on their phones.
@DBPirate unless the NX is overall stronger than the ps4, I'm not feeling the optimism you are feeling. And, I doubt it will be as strong.
I've kinda given up on Nintendo past few months and I've been with them since the NES, like a good few people on here. WiiU has been a massive disappointment to me. SMM, boring. Starfox delayed (rightly so), Zelda delayed (in sure it'll be great on the NX), just the magic that was on all the systems from NES to GCN, it's gone, they surely are a toy company, their games are nothing like they used to be (except for Galaxy 1&2 ), just seem watered down, kinda meh, SM3DW was, one of the most boring Mario games ever, to me, my opinion.
But yeah, I'll be giving whatever the NX is a two year window before I decide if I want one or not, this time round. They really do need 3rd party support. Cause without, I'll stick with Sony for the foreseeable future, they have 3rd party, HD remakes, and some of the best 1st games. Microsoft can take a run and jump lol. Never use my xbone.
"Nintendo - with great respect - is a toy company, and always has been"
You can say it with all the "respect" you want, but that won't make it true.
I don't agree on the ''toy company'' part. I'd call them an entertainment company. I don't consider video games, love hotels, or hanafuda cards ''toys''.
@Extreeeme
Interesting point
@readyletsgo
Yeah.....if you found a way to get bored with smm then you are pretty much done with nintendo.
Guys, nintendo is a toy company. We all saw the E3 conference. If you didn't get toy company from that then you need glasses.
And its not an insult.
@Vineleaf Yup
In fact, the 3DS has sold pretty well.
@Extreeeme I don't think Nintendo will go that far to do that. They will just use Capcom or SEGA to get their games to arcades.
And I agree with him. If Nintendo goes just to PC and Mobile, the identity is gone. Whenever I play a Nintendo system, I feel like I'm playing an interesting toy that's worth a lot.
@electrolite77 There's a difference between toys and games. Both are products for amusement, or entertainment if you will. The difference is in how the player interacts with them. With toys you are free to do whatever you want. In games, whether those are physical board games or digital video games, rules are preset and need to be followed. There's usually a goal or outcome involved, something the player needs to work towards. Nintendo has made some toys, but their current focus is on games; video games, playing cards and board games. But you could avoid this all together and call them an entertainment company, which I think suits them even better.
@Artwark @Aneira I was kidding. It was a reference to Konami: when they saw all the money they were making with the pachinko machines in Japan, they stopped making AAA games : )
@Octane Odd because if a grown up were to play toys, that would give him a bad image to others and nothing else. I feel that video games are adult version of toys because you play them like toys.
@Newb yeah pretty much. Am done with Mario for sure, since U, I just buy Nintendo games cause they are Nintendo games at this stage of the game. I'm quitting them I think. Spend my money elsewhere. Nothing wrong with that in my eyes, I might be back, but, Ninty aren't the only great developers out there now on one system.
I would jump ship too if i thought other consoles actually had games for me to play. Im trying to find enough reason for me to get a ps4 for kingdom hearts 3 but im having a hard time with that. Waiting to see what the NX is and possibly wanting that too doesnt help.
@Octane
Hmmm. Interesting way of framing the comparison. I think you can see their history as a toy company in their games a lot of the time. There's a playful aspect to Nintendo's best software, you can see it in the way they look and in that they don't take themselves too seriously. They also often inspire that child-like desire to explore things and areas for the sake of it just to see what happens. Agree that entertainment company suits them better and solves the problem.
While I agree that the Wii U has not reached a level anywhere close to being called a success, there is no way that the 3DS cannot be considered one. Sales of 50,000,000+ and counting? It is not reasonable to expect any system to sell anywhere near what the DS and even the Wii did. The Xbox 360 and PS3 are still selling decently after 10 years and they both have a LONG way to go before surpassing the Wii, much less the DS.
@OneBagTravel Interactive movies? You mean like MGS?Heavy rain? The order 1886? I think MS has more software variety than just interactive movies and those types of games can be fun if it's done right.
"Toy company", eh? So what are consoles, exactly?
How NX perform will be interesting. Anyway, a world without Nintendo will be boring, I hope they could find success in their next console. Of course, a next Wii or DS might not be possible, but if they could have moderate success like N64 or GBA or 3DS, that'll ensure Nintendo existence in market.
@gcunit There is a Mario Monopoly. And Mario Kart slot car sets. Theres no Mario Lego sets because they licensed to K'nex instead... but if you want a Mario building set, they're readily available. The movie is about the only thing missing. it's been long enough since the Mario live action film fiasco that they need to get over it and do an animated film...
@andrea987 They are toys. expensive toys, but toys none the less. That was kinda his point... they're the only game company producing these toys that actually has a background in toys. Its what sets them apart from Sony and M$, and why they shouldn't be counted out.
Deja Vu. Microsoft or Sony person comes out and says DON'T COUNT NINTENDO OUT YET! Everyone pours forth saying "duh, look nintendo use to make old stuff that wasn't video games", everyone says it doesn't matter then goes onto sales numbers and compares NES to WiiU (way to go by the way obviously it's the same market today as it was back then) and then there's a handful of Nintendo is doomed like Sega. Wrap it up people we've seen this before.
@Nerevar Yes, because people MUST buy them right? No, that's what Skylanders, Disney Infinity, and LEGO Dimensions do.
@Dankykong
Pro tip - don't like comments? Don't read comments. Have nothing to add to comments? Don't post comment.
You're welcome.
Nintendo's a toy company, eh?
...Yeah. I can see that. It's the only reason their games are worth playing: Because they're fun.
I don't know what the PS4 and XBO think they are, but they're not toys and they're not PCs. The games aren't fun, they're just rage-inducing and habit-forming with the achievement systems. The games don't even look as good as most do on PCs with the exception of those made specifically for the platform, of course.
Nintendo's been in the video gaming scene for over 30 years - the toy industry over a century. To count them out is a fool's errand. I'd argue this point again like I usually do, but I have to revise my Mario Maker levels. Apparently no one can clear them.
"With the Wii U looking set to sell less than half of the units that the GameCube sold"
Fixed, because the sales performance of the Wii U really is that abysmal.
Nintendo is a toy company? I've just now seen Nintendo toys be released within the last 2 years, while Halo toys have been available for sale for far longer.
@PlywoodStick You didn't really fix anything; you basically just specified more.
@kensredemption You're biased opinion is really getting old.
We get it! Nintendo is good and any other console manufacturing company is garbage. MS&Sony will never reach the level of God like perfection that is Nintendo. I can't think of one enjoyable title on any PS or MS platform. Nothing but FPS games that are brown&grey with no creativity or soul.
I would agree that the way Nintendo designs their games is very different from many big companies today. It reminds me of a poignant editorial written by GamePro back when the first Metal Gear Solid came out. The editor in chief at the time almost prophetically predicted how the video game industry would act and shift their focus towards more expensive movie-like productions, and move away from focusing on gameplay. Nintendo, on the other hand, has always designed their games around the design and mechanics first, focusing on the "play" (or shall we say, "toy") side of the game, rather than on conveying a gripping narrative.
Ironically, some of Nintendo's games, such as Super Metroid and Majora's Mask, actually tell their stories better than do many wordy games with long spans of exposition. The "toy" side of the game ends up becoming the story, through the players actions. In my mind, that is the greatest triumph of gaming as an artform- no other form of media can boast that their audience experienced the story through their own actions.
@Aromaiden Sorry, I was half-joking and half-lamenting! Having no voice tone on the internet causes confusion, etc.
@Superryanworld Well, Ken is right, the Xbox and PS offerings this gen don't live up to their predecessors. PC last gen wasn't for everyone, due to hardware costs and few digital sale avenues. Today, there is literally almost no reason to take a PS4 or XBO over a PC, because the libraries are so much more similar compared to previous generations, and pricing for gaming quality PC hardware is a fraction of what it used to cost. (Not to mention the unbelievably cheap PC only software sales that consoles could never support.)
The only real reason to have a PS4 or XBO this gen is for the social features. Even a lot of the so-called "exclusives" are really just timed exclusives with no physical or coding barriers holding them back from being released on PC. It's all just business barriers now. Only the Wii U has offered games like Rayman Legends and Wonderful 101, which could not be replicated by the competition.
I originally got into XB because that's what all my friends game on. I enjoyed seven years of xbl with people I grew up with. we spent most of our time playing older games like SF3, mvc2, quake 3 and castle crashers. AAA games always seemed to take a back seat to classic's with added online play.
Just because you don't think said systems are worth your time and money doesn't mean others think the same way.
How many people dismissed the Wii u as a waste of time because it's a Nintendo product?
@Superryanworld If you and your friends found enjoyment in your experiences, then it doesn't matter what some random person on the internet says.
@PlywoodStick True. It shouldn't matter. I don't know anyone here. After a few years of reading the NL comment section I gained new perspectives. I've learned a lot about my favorite hobby and even come to respect many users on this site. Always felt the Nintendo fan base was more open minded than the others.
Then I see post's like Ken's saying games on ps4&x1 are rage inducing and not fun. It's as if he never gave either console a chance and states his opinion as fact.
I guess I take it a bit personal sometimes. Probably need to work on that.
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