Nintendo Faces Investor Pressure to Bring Games to iPhone

[NAG]

We can comprehend what's just around the corner (and what's already happening.) And it doesn't look good for Nintendo.

Nintendo is afraid of risk and change. The real danger is, is that when they *do* finally wake up and take action, it might very well be in the wrong direction (as we're seeing now with the 3DS.)

There is still time for them to turn around. After the Gamecube people thought similar things and this isn't nearly as bad as during the Gamecube generation (and look at Apple, they turned it around in a much worse situation).

Making iOS ports would kill Nintendo. The company may continue to exist but it wouldn't be the same company anymore. Hopefully they realize that pulse monitors for the Wii and tacking 3D on to the DS isn't the right direction and come up with something new (they need another Gameboy to DS evolution).

 

[darbus69]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_5 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8L1 Safari/6533.18.5)

I would so spend $$$ on nintendo gaming for iOS, otherwise they would probably never see another penny from me. phones and tablets will win over consoles and handhelds-besides, capitalism (us economy) is failing and multifunctional devices will be all anyone can afford

 

[Hallivand]

Perhaps it's time to throw in another competitor to the iOS/Android/Windows Phone heap.

Nintendo could design an OS and a very powerful platform and just go head first against the major players. Their the only company I can see that might be able to compete with Apple on an aesthetic level, so if they fire on all cylinders and gun for it, I reckon they might pull through. They either face becoming irrelevant in the modern world, or go all for nothing and shock the world.

Sure, theres incredible costs upfront. But, in the long run the platform would be transportable and ultimately a solid base to build upon for a number of years, much like the iOS strategy. Enough with the outsourcing to Android, time for something bold and kick ass.

Bring the concept of the iPod touch to a whole level.

(edited for extra content)

 

[Cameront9]

Nintendo will close their doors before they become Sega and publish their titles on competitor's platforms. Yes, they are that stubborn. It's just the culture and philosophy of the company.

Anyone that thinks Nintendo would port games to iOS soon doesn't understand the company.

 

[NAG]

Perhaps it's time to throw in another competitor to the iOS/Android/Windows Phone heap.

Nintendo could design an OS and a very powerful platform and just go head first against the major players. Their the only company I can see that might be able to compete with Apple on an aesthetic level, so if they fire on all cylinders and gun for it, I reckon they might pull through.

Bring the concept of the iPod touch to a whole level.

They'd need to up their build quality (it's fine, but not Apple level). And frankly, I think making a general use OS is a tad bit harder than you're making it out.

 

[Padraig]

NOPE. Console makers usually sell hardware at a loss to make money on the expensive games.

Unlike MS and Sony, Nintendo always sell their hardware for a profit.

The appalling battery life on the 3DS killed any interest I had in the machine - my launch day DS lite still gets around 7-8 hours on a single charge; plus the lack of decent titles is a major problem as well.

 

[Dr Kevorkian94]

Nintendo has to do a major re design of there products. Not only are they not visually speaking but the UI on them (mabey except the will) is not very good either. If they looked visually appealing instead of bulky looking they would sell. If they did what apple does (make it thinner and better looking but add functionality) for every new successor to a product it would help them alot. The games aren't that expensive either $30 is a fine price compared to other games. I dont think going into the AppStore will be long time revenue for them, I think they need to try and not create new ways of gaming but try and refine what they have and then move on from there. I would rant more but I'm eating now.

 

[neonmd]

What should matter to the leadership at Nintendo is that my children, who are right at the ages they care about, have put their DS games down and starting asking for my iPhone and iPad to play games. My kids routinely ask me to buy a game for them through the App store. They haven't asked for a new game for their DS since last Christmas.

 

[tinman0]

Nintendo is hardware company. They use their games solely to drive hardware sales. Going multiplat would be the end of Nintendo, at least the end of them being a huge corporation. In the worst case scenario they will always have time to transform into petite development house making mobile games, no reason to just jump into this category yet without putting up a fight.

Why does everyone keep saying that?

Nintendo doesn't care about the hardware, they make money from selling software. That's why they (and MS and Sony) sell their kit at a loss - because game revenue more than makes up for the loss.

 

[pmz]

I've been saying for more than 2 years that if Nintendo doesn't make a big move, a big change, they are literally over.

Apple didn't just reinvent the phone, they reinvented the portable device. They've also cut into a lot of the spare time that people use for gaming. Consoles are being used less. Other portable gaming devices aren't being used at all. There will always be the whiner on a forum who comes into the argument saying consoles will always be the best and blah blah blah, but it doesn't matter because it isn't representative of reality.

A paradigm shift has occurred, and the iPhone, iPod touch, and iPad are the new portable gaming devices. They offer far higher value per dollar than any other system/platform in the world, they fit people's current lifestyles (ie: ability to check email/web/anything from the same device, and jump right back to the game.)

Nintendo's entire business model is flawed going forward, and Iwata has proven he has no interest in changing it. Thus, Nintendo is absolutely over without a major change.

Those of you saying Nintendo shouldn't give up their game IP, or they'll lose what they have left....LMFAO AT YOU. Thats assuming Nintendo has some compelling way of using what they still have...guess what, they don't. In fact, things are so bad for Nintendo that the only money making possibility that's left for them is to very quickly start developing high quality Nintendo titles for iOS devices...if they had played their cards right they probably could have had some exclusive agreement with Apple...and this fall they could have been the first game titles to come to AppleTV.

Imagine, Super Mario in HD, on the AppleTV big screen, controlled from the iPhone.

We shouldn't be imagining it, we should be getting ready to experience it...but we're not because Nintendo would rather fail shamefully go out of business.

 

[MVallee]

I think the best thing for Nintendo would be to just release old games for iOS. Don't scrap the 3DS or the Wii. Hardcore gamers will still buy the hardware and the new release games for it. They should try releasing stuff like the old Zelda, and old Mario titles and instead of having their library just on the "Wii Virtual console", bring them all to iOS with support for using a Wii controller via bluetooth.

That way they arn't abandoning their hardware they are just opening up a new revenue stream. They would be making money off of games they arn't selling anymore anyways. I would pay $5-$10 for Super Mario All-Stars on my iPhone if I could play with with my Wii remote, and I'm sure millions of others would too.

 

[Hallivand]

They'd need to up their build quality (it's fine, but not Apple level). And frankly, I think making a general use OS is a tad bit harder than you're making it out.

Considering their state at the moment, they can only really go up and I reckon if they pour enough resources into it, a general purpose OS could be plausible. However, in this world satisfying investors are first and foremost, so anything that doesn't bring instant/rapid repayment wouldn't be taken seriously and confined to the depths of nothingness. (taking the recent price cut into consideration)

We need more companies to take gambles, as its the daring that make an impact in our daily lives . Nintendo is best poised to do that. As a few posters above have said, using the iOS platform to distribute their games would be a death warrant. So they have no choice but to do a major overhaul of their ailing hardware line.

It could be a great come back story .

emphasis on could

 

[jweinraub]

I really think they have to scrap the 3DS and think bigger this time... the iPod Touch has thousands of games... many of them are of great quality... and for: $1.

Excellent point! This is where the big guys don't get it. They still see iPhone/Android apps as a joke or something that will go away. The portable market is changing, nobody wants to walk around with a 3DS and a phone, at least an adult that commutes. Only people I see with portable systems are children who obviously don't have mobile phones. On my daily commute, soon as I get on the train, after reading emails, I'll play a few games on my iPhone.

Now, yes, I would love to play Zelda on the train, but I certainly don't want to carry an extra device with me into the City everyday. Only time I can see doing that, if I were on an aeroplane on business travel.

It is the financial impact, people today see great value in a game for $5 or less they can play and delete when done, rather than $50, play it a little bit longer, or not finish it at all and sell it for $10 on eBay. If Nintendo can't see this, then they're going to lose and I hate for that to happen. They refused to use discs when everyone else did, and they eventually changed, and now finally they're going HD in their nextgen system, something my PS3 can do already, today?

 

[Gasu E.]

I caught your comment before you edited it.

You said "They create their own software to sell more of their own hardware, in a similar way than Apple created OSX to sell their own hardware."

But Nintendo just cut the price of their latest hardware device 40% because no one was buying it.

People are having all sorts of fun on their cell phones these days... the device that's in their pocket all the time.

Is anyone really excited for the next Nintendo DS?

That sounds logical on the surface, but changing their business model to be software-centric would meaning closing down many factories and laying off most of their workforce. It's very hard to cut that deeply, refocus, and do it successfully. Not impossible, but more likely than not it would kill the company.

 

[840quadra]

At least as far as the Wii is concerned they always made money off it. The thing was essentially an underpowered PowerMac G4.

Except that the Broadway processor is made exclusively for Nintendo by IBM, not freescale who makes the G4. I would imagine they have some kind of deal, but having your own processor line dedicated to you can't be that cheap.

 

[mat25]

Well this sucks. I love nintendo, and hope that they are not forced to do this. Hopefully the 3DS price cut will help them out...

 

[swarmster]

While it's true that Nintendo has lost some of its 'untouchable' perception in the portable gaming space, could we not forget that the Xbox 'flopped' its way into cutting prices by 33% within 6 months, also (Nintendo's cut is actually a little less than that in the US)? Or that the PlayStation 'flopped' into an 8-month 33% cut?

It's really not that unusual, and I don't think either company (Sony, Microsoft) regrets not abandoning hardware altogether. Early reports say Japan is responding fairly well to the price drop.

 

[divinox]

Why does everyone keep saying that?

Nintendo doesn't care about the hardware, they make money from selling software. That's why they (and MS and Sony) sell their kit at a loss - because game revenue more than makes up for the loss.

Read three posts up; Nintendo doesnt really have a record of selling subsidized hardware. It is, however, the "common" business model in console gaming (i.e., profit from game sales, not console sales).

 

[pmz]

There is still time for them to turn around. After the Gamecube people thought similar things and this isn't nearly as bad as during the Gamecube generation (and look at Apple, they turned it around in a much worse situation).

Making iOS ports would kill Nintendo. The company may continue to exist but it wouldn't be the same company anymore. Hopefully they realize that pulse monitors for the Wii and tacking 3D on to the DS isn't the right direction and come up with something new (they need another Gameboy to DS evolution).

I'm sorry but you have no idea what you're talking about. You're just making things up.

There is nothing left for Nintendo. NOTHING. They are done, and have no where to go, and nothing to hold on to.

Their portable has tanked, and they will never sell another Successful one.

Their console is boring. Their plan to replace it is so unimaginably dumb, you could call it a failure a year before it even launches (how exciting, they show a preview of a product a year away..that's a successful company..)

The only thing they have to offer the world is games....on the platforms actually being played. You, and them, need to wake up to reality.

 

[webpoet73]

I couldn't imaging playing a real game on the iPad or iPod touch... iOS gaming is good for simple casual games, but something like Madden on iPad, I hate it. I only got it because it was on sale for .99. It is almost impossible to control.

People have been dreaming about Nintendo going multi-platform since at least the GameCube came out. It's not going to happen.

Should Microsoft put their games on PS3 or iPad? Or Sony... all of the console game companies have to differentiate themselves are their first-party games.

Sony has their franchises.
Microsoft has their franchises.
Nintendo has their franchises.

None of these franchise really translate well to platforms without control pads and buttons...

 

[chemenski]

Owning an iPhone has made me not want to pay much for apps on the device. If i see an app for $5+, i cringe since I know there are cheaper apps out there.

Bought the 3DS when it first came out. Albeit there isn't that great of a catalogue of games, I love it. There's nothing like a gaming console with buttons. I reckon if Nintendo games were ported to iOS, it wouldn't be the same, it would lose its nostalgia, and people would complain they're too expensive.

Also, maybe the market is saturated with DS's?

 

[tasty-the-dog]

However inevitable it might be, the possibility of Nintendo moving to software only saddens me. The list of hardware innovations they're responsible for contributing to the world is pretty long: d-pad, shoulder buttons, analog control, force feedback, 4-player, touchscreen (the DS came out years before the iphone, remember), motion control just to name some. Every single one of these was copied and refined by other game companies. Maybe motion control isn't for everybody, but you can't deny Nintendo pushed the envelope and evolved hardware in ways that enriched the experiences of all gamers. I admire their fearless desire to innovate, however misguided it occasionally is in practice. It would be awesome to have their software on all my other consoles and devices, but I don't know if the trade-off is actually worth it.

Then again maybe they've had their time and made their contributions and now it's time to focus on software (which they're no slouch at either). Sigh.

 

[MrWillie]

Flop is defined as a "total failure." Given the 3DS has already sold millions and only been out for about 4 months, it's hardly as such.

No forgetting here, it's Nintendo's console, so only they can determine its cost, and of course adjust for the market.

It was the myopic-analysts that expected the 3DS to move like the DS Lite, not Nintendo, which when compared to the original DS it's doing better

And exactly, they did what they needed, as they have in the past to always maintain a profit, even in light of a recent events which are effecting pretty much everyone.

Then why did they lose 380 something million in that same quarter ? If you have to sell something for less than it cost to build, and the sale of games for it doesn't make up the diffeence, then its a flop.

Touchscreen controls for platform games like Mario are terrible. Touchscreen buttons are just rubbish.

Agreed. But what about this ? http://www.thinkgeek.com/electronics/retro-gaming/e762/?pfm=homepage_Featured_3

On the other hand there was really nothing innovative about iPad, it's succeeded because it did what others did before, only infinitely better.

So infinitly better doesn't equal innovative ?

This is exactly the point that the likes of LTD seem to be spectacularly missing.
Android outsells the iPhone and all we hear is that is does not matter as Apple make more money. Yet Nintendo make more on games than pretty much every other portable device manufacturer do combined and yet they are doomed.

It doesn't matter because Android doesn't sell anything. The total sale of Android devices are split up between 412 devices manufactored by ?? (I don't really care) manufactures, some that actually lose money on Android.

I doesn't matter if you make a trillion dollars selling games. if at the end of the day your company has lost money, something needs to change.

I guess the Investors don't Know that apple is taking a huge cut out of every sold program on iOS. So developing on iOS may sound interesting, but the profit would be a lot less than selling it on their own platform.

Buy a $40 game at WalMart. Walmart pays $20 (sometimes less) for the game. Apple takes less of a cut.

What would be cool is if Apple used some of that $76 billion and purchased Nintindo. Allow purchasing and playing of the games on an Apple TV (with a wireless controller) and the iPad using the iCade.

 

[majortom1981]

I'm sorry but you have no idea what you're talking about. You're just making things up.

There is nothing left for Nintendo. NOTHING. They are done, and have no where to go, and nothing to hold on to.

Their portable has tanked, and they will never sell another Successful one.

Their console is boring. Their plan to replace it is so unimaginably dumb, you could call it a failure a year before it even launches (how exciting, they show a preview of a product a year away..that's a successful company..)

The only thing they have to offer the world is games....on the platforms actually being played. You, and them, need to wake up to reality.

I am guessing having sold millions of wiis is being through.ALso in the US just in JUNE alone the regular ds sold 386,000 units and the 3ds sold 143,000 units.

Combined thats over 500,000 units in one month ALONE. So stop with the trolling.I know this is an apple board BUT stop making things up . Nintendo is not doomed and is not through.

Compared to apple that might not be a lot but compare it to the other companies its a lot.

Keep in mind everybody was saying nintendo was out of business when they showed the ds and look how that went.

 

[pmz]

That sounds logical on the surface, but changing their business model to be software-centric would meaning closing down many factories and laying off most of their workforce. It's very hard to cut that deeply, refocus, and do it successfully. Not impossible, but more likely than not it would kill the company.

Does it not also kill the company when people stop buying the devices they make?

You can't keep factories open and operating when no one is buying the inventory on store shelves. No matter how much you my want to.

Nintendo's biggest problem is they keep putting off dealing with the situation, as it progressively gets worse and worse for them. Personally I think it's obvious that they've waited far too long already, and nothing can be done to restore them to their former success, or even a shadow of it.

As they shut down physical operations, they could at least offset their losses with iOS App Store sales. But the won't do that, as Iwata has stated they will not. So Iwata plans to ride the ship all the way to the bottom.