Nintendo's New Year's ResolutionsYesterday we kicked off a New Year's Resolutions series looking at what each of the three platform holders needs to do to improve their respective businesses in 2012. After picking analysts' brains on what Sony must resolve to do, we're now turning our focus to Nintendo. Here's the feedback on the house that Mario built.
Michael Pachter, Wedbush Securities
Nintendo has to simply stop living in the past in 2012. They had a great deal of success since 1985 by making proprietary hardware and supporting it with proprietary software. They attracted third party support based upon the large installed base they generated for their hardware. They appear to me to be confident that “if they build it, third parties will support it”, but I don’t think that is the case for Wii U. By trying to be “different” with the tablet controller, they have complicated game design for developers, who can’t figure out if the Wii U will ultimately support only one or multiple controllers. Nintendo made the device sufficiently different that they are all but assured of limited third party launch support, which ultimately will lead to modest hardware sales.
They should stop relying upon the strategy that got them here, as it appears to no longer be working. I think their resolution should be to look outside of Nintendo for leadership in the areas of digital downloads, a user-friendly online interface and multiplayer gaming.
Jesse Divnich, EEDAR
Nintendo doesn’t hide behind the fact they’ve lagged in online functionality compared to their competitors. With the Wii-U launching in 2012, it presents a premier opportunity to impress consumers with a robust online network. I know many doubt Nintendo’s ability to jump into the online space, but to date I don’t believe it has ever truly been a focus for them, until now. If Nintendo can create a robust, applicable, and enjoyable online experience, I’m certain that Nintendo can change our minds.
David Cole, DFC Intelligence
Nintendo's announcement of the Wii U at the 2011 E3, a year before launch, was a somewhat baffling move. It tipped the competition off and raised more questions than it provided answers to. It also probably slowed current Wii sales by 25% or so. This was on top of the early launch of the 3DS that would have been better served by waiting a few months for a stronger content library. In 2012 one goal of Nintendo is to continue to build the 3DS as the natural successor to the DS, something it finally started to do at the end of 2012. However, the most important goal is to have a smooth launch of the Wii U. Nintendo has a golden opportunity if it can play its cards right.
Colin Sebastian, RW Baird
Nintendo should resolve to embrace other platforms for its games, allowing for Nintendo game apps on smartphones and tablets that could act as lead generators for the console versions. Kids have already moved to smartphones, and at some point, Nintendo should tap into that market with their excellent software.
