It seems like I can't look around for news about the Wii without someone talking about the Wii HD. Some even think Nintendo's going to add a Blu-ray drive. Analyst Michael Pachter has been beating the Wii HD drum for a while and now he thinks Nintendo has missed the boat. Regardless of timing, I'm here to tell you it's just not going to happen and why.
Nintendo Says There's No Wii HD
Probably the flimsiest reason why there won't be a Wii HD: Nintendo has said that they aren't going to do it. I say this is flimsy, because game executives say a lot of stuff all the time, and they can take it all back if they want to (it's not like they're under oath). Heck, Satoru Iwata denied and brushed off claims of a Wii price cut last summer... before cutting the price early in the Fall. I think, however, there's good business sense why they aren't going to do a Wii HD.
Sales Aren't So Bad That A Price Cut Couldn't Fix Things
During 2009, the seemingly impossible was happening: sales of the Wii were losing momentum. The system had seen an unprecedented level of demand for nearly three years since its launch, year round. Still, when the PS3 Slim launched at $299 and outsold the Wii, the time was clearly right for a cut, and the price was reduced to $199. That, coupled with the release of New Super Mario Bros. Wii, helped give the system the boost it needed and the Wii had a very successful holiday season.
This year round, sales are even less than they had been in 2009 before the cut. With the launch of the Move and impending launch of Kinect, Nintendo's competitors have a direct conduit to the mainstream audience that Nintendo's been tapping into like they've never had before. All of this is certainly a reason to be concerned... but at the same time, it's not something that couldn't be fixed by cutting the price again. It's amazing how much a price cut will fix when you have demand problems, and I don't think the Wii brand is so deflated that a cheaper price wouldn't spur a rash of purchases.
Of course, Nintendo doesn't seem likely to cut the price of the Wii this year, but point is that there's probably a couple of price cuts and demand spikes still left in the Wii just yet.
Why it Won't be an HD Upscaler with Blu-ray
One of the suggested ways for the Wii to enter the realm of HD is to simply add a device that would upscale the images to a higher resolution, similar to what some DVD players do. This would certainly improve the way the UI looks and make everything sharper – I'm sure some people would love it.
The problem is that an upscaler doesn't address the fundamental horsepower difference between the Wii and the PS3/Xbox 360 – it'll just look less blurry on a new television. Also worth questioning is whether this would be an internal or external upgrade – an internal upgrade would be limited to new Wii units and game systems tend to see parts removed as they get older, not the other way around; an external upgrade would make it possible for all Wii units to have it, but it still doesn't seem to mesh well with Nintendo's general philosophy these days (which I'll get into below).
Also, I just want to quash the Blu-ray upgrade theory right now because I am quite certain that would never happen for the Wii. Some people think Nintendo has to do this to keep up in the entertainment media sphere, and while Nintendo has made some accommodations to streaming video on their system, physical disc playback is clearly not a priority. For one, Nintendo hasn't even enabled the Wii for DVD movie playback, so it would be a complete about-face for Nintendo to add a Blu-ray drive to new Wiis simply for movie watching.
Having established my skepticism for some more basic upgrades of the Wii, I'll douse the idea of a hardware upgrade to the Wii as we know it.
Expensive New Hardware
Any new hardware launch would cost Nintendo a lot of money – not only would the hardware be more expensive to build, factories would have to be changed around to make the new console, there would be the R&D spent on designing the new hardware, marketing money spent on making it a success... any way you cut it, it's prohibitively a lot of money. The Wii itself is a testament to Nintendo not wanting to spend money on this sort of expensive hardware, at least until they feel they don't have any other choice. There's also the matter of the retail price – would they charge more than the Wii and lose the price advantage that system has, or would they price it cheaper and eat the cost (something Nintendo is always loathe to do)?
This new Wii hardware would be more expensive to build and the games themselves would also be more costly. When you add more hardware complexity, it takes more people to fully take advantage of it, and development overhead can quickly go through the roof. That's the reality Nintendo would face with its own games, and once they launched it, there'd be no going back to regular Wii. Nintendo would only make such a launch when they could make the most out of it, not to satisfy some short-term sales deficit.
Starting From Scratch With the Established Base
One of the biggest advantages that Nintendo can tout for the Wii right now is its established base. It hit 30 million in the U.S. in just 45 months and its worldwide total is north of 70 million. Confirmed sales for the Xbox 360 put that console at over 41 million while the PS3 has over 38 million units, so the Wii has a very healthy lead on both those consoles.
If a new Wii launches, Nintendo would have to start all the way back at square one with the base. Some may assert that they'd quickly catch up to their competition, but there's no guarantee of that, and now that there's the Move and Kinect, the Wii might be more difficult to sell if all it has is just some new horsepower under the hood. Having the Wii as it is with more power might appeal to some, but that doesn't seem like a likely strategy either...
(Not) Looking to Appease the Core
Some think that Nintendo might launch a Wii system with more powerful hardware to appease the core audience that has been asking for it for years. Hogwash, I say; the philosophy for Nintendo has been for a while now to reach out to a wider audience, to focus on non-gamers or lapsed gamers and bring them into the fold and it has worked out brilliantly with the Wii.
While the Wii wasn't a leap in hardware power that some core gamers wanted, the emphasis on intuitive motion sensing games and a cheaper price have been wildly successful for the most part. I'm sure the larger audience could appreciate the difference if things on the screen looked better, but unless its radically different from what the competition is doing, they might not care. And that brings me to the final reason there will be no Wii HD: Nintendo has bigger plans in mind.
The “Next Wii” Will Be So Much More
As I stated above, the launch of the Move and Kinect (along with smaller price differences between the PS3 and Xbox 360) have put some pressure on Nintendo. The “easy” thing to do would be to just launch a version of the Wii with more graphical kick and a Wii RemotePlus standard... but that really goes against the “blue ocean” philosophy that Satoru Iwata has espoused since ascending to the position of CEO.
While I do believe that Nintendo's next console will retain motion sensing capabilities, its selling point will be a whole new gimmick that makes peoples eye's light up. I don't know what that technology would be, otherwise I'd be rich, but I'll bet it'll be spectacular.
I think the 3DS is a model for what the next Wii will be like – sure, it's a step up in hardware power over the DS, but it also has an accelerometer, a gyroscope and the ability to capture and display 3D images. Sure, it comes with all the basic functionality of a DSi (a likelihood for the Wii successor as well) but it's more than just a high-def DS (or “HDS,” I coined the phrase right here!). The timing is also right, given the launch of the DS way back in 2004 and the system's software sales noticeably slowing.
At the end of the day, I think there will be a successor to the Wii console, and yes it will have HD capabilities, but it probably won't come for at least a couple more years, and it will add far more than a simple bump in processing power and resolution.


5 Comments
October 19, 2010
Interesting article, Mr. Radd.
I also do not believe that Nintendo will be resorting to releasing a Wii HD.
Unfortunately, I think Nintendo doesn't have any other big cards to play in attempt to get the Wii back on top and stop losing its steam like it has been this year. I have a bad feeling that Nintendo is just going to let things slide and watch the Wii ultimately fall without putting up much of a fight. As a big Nintendo fan and a fellow Wii owner, it deeply concerns me.
- Nintendo's marketing attempts are not having as big as an impact as they used to. From price cuts to Wii bundles. It's just not enough anymore. I also do no think that releasing more "Wii brand" titles like a potential Wii Fit 3, Wii Sports 3, or Wii Party 2 will be of much help.
- MotionPlus has not caused newly found interest in third-parties wanting to support the Wii.
Quite frankly, third-party MotionPlus games have actually sold poorly ranging from Tiger Woods PGA Tour to Red Steel 2. Naturally, Nintendo has been the only one to truly benefit from it with Wii Sports Resort.
- Third-parties continue to struggle to find success on the Wii. This is due to several reasons including taking too long to embrace the Wii, poor marketing efforts, niche titles, and too much shovelware. Then there's the problem that gamers buy Nintendo platforms just for Nintendo franchises. Of course, even good games with good marketing have generally not sold as well as hoped.
- Nintendo's lack of offering features in the Wii that third-parties value means less third-party interest. Weak online service? Check. No hard drive? check Less exclusives? Check. Less multiplatform ports? Check.
Now the problem is only going to get bigger with Sony having released PlayStation Move and Microsoft getting ready to release Kinect. Nintendo no longer has anything exclusively special about the Wii anymore. Why would third-parties want to support the Wii now that they can do the same thing on the PS3 but with better graphics and such or offer a more unique experience with Kinect? Heck, why would they want to support the Wii with its picky, mixed user base where there seems to be far more players in the expanded audience type than there are core gamers. The Wii's large user base really doesn't mean anything when third-parties generally struggle to get their games to sell close to 500k copies. It also doesn't mean much when games aren't commercially successful when trying to take advantage of lower development costs. What's the point ?
October 20, 2010
Saying "Nintendo won't release a Wii HD" seems a bit silly: sooner or later, they *will* release a successor to the Wii, whether it's called Wii HD, Wii 2, WiiPlus or something else altogether. The two main questions are: when will they do this and what will it do?
With sales down by 45% year-on-year (and a glut of used Wiis on the market), I'm not sure a price cut is going to fix things. Personally, I'd expect Nintendo to be readying something for Christmas 2011 - though the delays to the 3DS may impact their ability to do this. Equally, I'd expect them to be readying something that's backwards compatible with the Wii, offers HD resolutions and includes out-of-the-box support for 3D displays. Anything less is going to be unable to compete with the PS3 and Xbox 360, which are already offering similar functionality.
However... it's going to be difficult for Nintendo to do this at a competitive price point: the PS3 and Xbox 360 have well established production lines and by Christmas 2011, both Sony and Microsoft could be offering Kinect/Move console bundles for less than $299: can Nintendo compete with this?
Of course, Nintendo may not have to: they could price the Wii2 at $399 and launch it with a set of new games: Zelda, Mario, Metroid, Pokemon, Sports, etc. In some ways, the launch of the 3DS is going to act as a bellwether for this strategy: it's a more expensive replacement for the strongly entrenched DS...
October 20, 2010
If Jamie Mann had bothered to read the entire article, they would know that I do think that a Wii successor is coming (just not a simple Wii HD) and that I think the 3DS is very indicative of what the next console will be like, not unlike what he mentions.
October 20, 2010
If a 45% sales drop doesn't mean Nintendo is already planning new hardware for the home, I don't know what would get them started. Perhaps they should plan to pull a Sega and drop the hardware business entirely. Their attach rate for the Wii is a core problem that a price cut won't solve. Nintendo's got problems convincing publishers to make games for the Wii, and I don't see that getting better. Without third-party titles, the Wii and its successor just become an enabling device to sell Nintendo software. If Nintendo dropped the Wii and just made the software for a variety of platforms, would this not increase their sales substantially while reducing all of the costs associated with manufacturing and selling hardware (that doesn't have a huge margin)?
Blasphemy, perhaps, but something that may be considered unless a miracle occurs and Wii sales shoot upward.
October 20, 2010
Since an updated Wii would be too expensive to compete with Xbox 360 and PS3, I believe that next generation will start with a Wii successor (not redesign or add-on) before christmas 2012. Nintendo Wii did it well at catering for new gamers (blue ocean) but was unable to provide DEVELOPERS tools good enough for their new gaming experiences.
Nintendo's problem was not gamers. Was developers who decided to make shovelware for the Wii since its success was so unexpected. Don't you remind that on 2006 everybody expected Nintendo to be off the hardware market like Sega?