Hey guys, been a while 
So I wrote up a little blog post here:
http://impraxical.net/2011/03/the-nintendo-contradiction-and-sitcom-gaming/
But to summarize;
Nintendo started out going after the casual market. The mom and pop. "Blue Ocean" strategy and all of that. And they did great.
They got a system in people's hands and started selling casual-oriented games at relatively lower prices. Games like Brain Age. Wii Music. And they got hooked on it. But those relatively lower prices are still high (Brain Age, the lowest of the bunch, being $19). Nintendo's partners dove on the bandwagon. Ubisoft, EA, etc. The DS got shovelware galore, because Nintendo was bringing in a non-quality-oriented userbase in the casual market.
What happened? The App Store.
The App Store suddenly drops consumer expectations of casual games down the gutter.
Diner Dash? $19.99 on the Nintendo DS. $2.99 on the App Store. Same crappy game either way.
A game like Angry Birds would have been $19.99 on the DS or more. Now the customer perception is a couple dollars- maybe even free with ads.
The App Store devalued casual gaming (IMO- fantastic). And there is nothing on it that is a deep, lengthy gaming experience; even the best games for it (IMO, Infinity Blade) are rather repetitive or short. Why? The audience isn't looking for that experience and is less likely to pay for it. They want $10 and under.
Traditional gamers will pay for that experience. But Apple hurt the profitability of casual (without killing it- app store sales make a fortune).
Now we have Satoru Iwata at the recent GDC preaching "preserving the value" of quality gaming, and rumors that the Project Cafe is hardcore-oriented. I'm hoping its true; I don't think Nintendo wants to compete with Apple on price, and I'd like to see them back to their strong suit- back to making good games. Not to say that they'd drop the casual gamer, but regain focus on the market that will pay.
So I wrote up a little blog post here:
http://impraxical.net/2011/03/the-nintendo-contradiction-and-sitcom-gaming/
But to summarize;
Nintendo started out going after the casual market. The mom and pop. "Blue Ocean" strategy and all of that. And they did great.

They got a system in people's hands and started selling casual-oriented games at relatively lower prices. Games like Brain Age. Wii Music. And they got hooked on it. But those relatively lower prices are still high (Brain Age, the lowest of the bunch, being $19). Nintendo's partners dove on the bandwagon. Ubisoft, EA, etc. The DS got shovelware galore, because Nintendo was bringing in a non-quality-oriented userbase in the casual market.
What happened? The App Store.
The App Store suddenly drops consumer expectations of casual games down the gutter.
Diner Dash? $19.99 on the Nintendo DS. $2.99 on the App Store. Same crappy game either way.
A game like Angry Birds would have been $19.99 on the DS or more. Now the customer perception is a couple dollars- maybe even free with ads.
The App Store devalued casual gaming (IMO- fantastic). And there is nothing on it that is a deep, lengthy gaming experience; even the best games for it (IMO, Infinity Blade) are rather repetitive or short. Why? The audience isn't looking for that experience and is less likely to pay for it. They want $10 and under.
Traditional gamers will pay for that experience. But Apple hurt the profitability of casual (without killing it- app store sales make a fortune).
Now we have Satoru Iwata at the recent GDC preaching "preserving the value" of quality gaming, and rumors that the Project Cafe is hardcore-oriented. I'm hoping its true; I don't think Nintendo wants to compete with Apple on price, and I'd like to see them back to their strong suit- back to making good games. Not to say that they'd drop the casual gamer, but regain focus on the market that will pay.