The Wii Played an Impressive Opening
Filed under: Wii
I thought I would start a new series that is a checkpoint evaluation of the current non-handheld console strategies behind Nintendo, Microsoft and Sony. Today I take an early look at the Nintendo Wii.
A Well Managed Launch
Prior to the release of the Nintendo Wii you would be hard pressed to have picked the success Nintendo is currently seeing. The GameCube was in a close but disappointing third place in the recent generation but the downward slide started with Nintendo 64, where it was overshadowed by Sony's introduction of the first PlayStation.
So what has Nintendo done right so far? They changed the game and opened up the market.
The Controller
This is perhaps the obvious one. In a great move to differentiate themselves from the competition Nintendo built a new controller that does not scare away the non-gamer.
- It looks like a remote, which everyone is familiar with.
- It reacts to your movement, which everyone understands.
- It teases your imagination by bringing you into the game.
- Hardcore gamers get something new to experience
- And to parents wishing their children would be more active, the Wii controller's gameplay at least looks more strenuous.
The Name
I have to admit I was taken back by the name but today I think it was a great decision. 'Wii' sounds friendly, even jovial and has removed all notions of being technical. And in a brilliant PR move, the announcement of the name 'Wii' garnered a huge amount of attention for Nintendo.
Wii Sports
While the game received okay, though not stellar reviews by gaming sites, this social game was a huge key to Nintendo's success and Nintendo's marketing ensured it. All mainstream demos of the Wii used Wii Sports because it is immediately engaging even to those watching. Add the viral aspects of a very social game being played around the holidays when families are together and then, the best part, include the game with the Wii (in North America and Europe) ... just plain brilliant.
Marketing and Public Relations
Nintendo did an impressive job getting the media outlets to bring the story out for them. Take an interesting name and new controller and you will definitely garner some attention. Then send Wiis with Wii Sports to major publications to try. The result, every major publication from the likes of Forbes and Washington Post to gaming magazines and sites are turned into fans. Perhaps even better was the sheer number of major talk shows that had someone demoing the Wii, like Conan O'Brien playing Wii Sports Tennis with Serena Williams. A demo of someone playing Wii Sports will sell way more consoles than someone holding a standard controller trying to explain the on-screen action.
The Price
Certainly the high cost of the other current consoles made this easy on Nintendo, but Nintendo's pricing strategy started by continuing their investment with the GameCube. It allowed them to keep hardware development and manufacturing costs down making them the only current generation console who profited off the hardware at launch. Of course, the price looks even better when a game is included.
Managing the Future
Even with all I've stated above it is way too early to declare the Wii this generation's winner. While it has an impressive looking trajectory, I get the impression that Nintendo successfully fought for a great launch without having a strong post-launch battle plan. Here are some things that Nintendo needs to watch. Not surprisingly, they are all game related.
Size/Quality of their Library
A view over at Metacritic is a bit sobering. While it doesn't include the Virtual Console titles, the Wii hasn't had a significant number of reviews rated at 80 and above particularly when compared to the PS3. Even more interesting is that the 360 has more games with an average score of 80 and above than the Wii has games. Yes it was a launched a year earlier, but in general size and quality of their library is going to be an important long term factor.
Attach Rate and Third-Party Developers
While attach rates aren't currently a concern for Nintendo, given the broader audience and the previous size/quality point, the question is whether or not we will see the attach rate change. For Nintendo this may not be much of an immediate concern since they make money on each console, but it may be an important factor for third party developers
Deciding to develop for a platform is a matter of weighing development costs and the potential to recoup those costs based on the install base and willingness for that install base to purchase games. Given the graphical and input differences between the Wii and PS3/360, it may also be harder to recoup Wii development costs through multi-platform development.
Importance of Online Multi-player and High Definition
While the combination of Sony and Microsoft could put a lot of heat on these two items, Nintendo made a conscious effort to not compete directly with the PS3 and 360.
The question is will the graphical limitations become a limiting factor over the lifetime of the console and therefore have an impact on sales. Bottom-line, it doesn't have to if you have a set of great games. And good looking and enjoyable games do not have to be hyper-realistic.
As for multi-player, Nintendo is working on that now. Regardless, the Wii is perceived as a great social in-person console. Traditional gamers are the ones more likely to be annoyed at a weak online multi-player system.
Keeping the Buzz Alive
The Wii's success has a lot to do with the buzz generated by being an enjoyable brand new product that no one had really seen before. A lot of this buzz was generated by one game, Wii Sports.
If Nintendo wishes to continue to attract the attention of a wider audience then undoubtedly more engaging titles that can attract the mainstream media and be easily demonstrated on talk shows will be important. If the Wii does not remain in the mainstream consciousness then it will end up competing more directly with the 360 and PS3 ... which may not be a battle Nintendo wants to have.
Articles in the series:
- The Nintendo Wii
- The Microsoft Xbox 360
- The Sony PlayStation 3
- A Look at What Winning Means (coming)
I'll be documenting my XNA investigation with periodic updates as a Developer Diary. Today's Developer Diary is simple, I documented what I did to get a base understanding of XNA.
When rumours of Sony's PlayStation 3 Home