The Industry Versus Nintendo: Who Will Have the Last Laugh?

SuperPhillip Central writes, "The subject of this editorial comes from something that happened during the Game Developers' Conference. It featured Mark Rein of Epic Games talking about the all-new Unreal Engine 4, and addressing a question that a Kotaku reporter asked regarding whether or not Epic planned on running it on the Wii U.

From the Kotaku article:
I figured I'd ask straight-out, so during the Q&A with Rein, I did. "Will UE4 run on the Wii U?"
"Hahaha no." Rein said, with expert comedic timing. The room erupted with laughter. As the laughs died down, Rein continued: "I mean, sorry, it's not really a correct answer. We're not… we have Unreal Engine 3 for the Wii U. Right? And Unreal Engine 3 is powering all kinds of amazing games, still lots of games are being made with Unreal Engine 3. We announced today about a new Unreal Engine 3 license. Unreal Engine 3 doesn't disappear because of Unreal Engine 4. But our goal for Unreal Engine 4 console-wise is next-gen consoles....

[NYC_Gamer]

It's not developers fault that Nintendo went the cheap route building Wii-U hardware wise

[dboyc310]

Won't be Nintendo that's for sure. Wii was just a runaway success so I don't see why people are delusion that they will be successful again. I mean they won't do bad I predict that they will sell 40-50 million.

[fatstarr]

what were you saying from 2006-2010 when the ps3 didn't even have 70 million sales? you were one of those in delusion? hoping for the ps3 to touch the 150 million sales that the ps2 had?

are you still in that delusion?

Nintendo will always be successful.
but to define Nintendo success you have to come up with some subjective skewed hypocritical definition.

______ console sells 1.5 mill in 3 months successful
______ console sells 2 mill in 3 months. not successful

if 1.5 million is a success, what backwards assed universe would 2 million not be a success?

its only not successful when Nintendo does it, let another company do 1/2 of what Nintendo did / done it would be a mountain of praise.

No one comments that the ds sold more than the ps2 and in less time... what do you say to that?

[Nilemonitors13]

It is because they love it oldschool. I still love nintendo, no nintendo no pokemon

[Phil32]

I didn't understand your report, as this article deals with the industry (i.e. how broken the business model is and how Nintendo screwed up royally), and really nothing to do with culture.

[NYC_Gamer]

The industry tag is used for news dealing with the gaming industry not opinion pieces

[Phil32]

Ah. Thanks for teaching me that!

[MultiConsoleGamer]

Nintendo always wins in the end.

[Heisenburger]

Nintendo always wins... until it doesn't.

[LordHiggens]

Virtual Boy says hi.

[MultiConsoleGamer]

Created by the greatest electronics genius in gaming history.

And despite its embarrassing flop its still not a billion dollar failure like some other high profile products I could mention. It's also not the most defective piece of hardware in gaming history, like another product that will go unnamed.

We could also throw hints at various Atari and Sega products, but I'm sure you already get my point.

[LOL_WUT]

Nintendo always wins in the end.
Maybe to Nintendo fans because to the core gamers they tend to fall behind everyone else.

[lilbroRx]

Nintendo fans "are" core gamers.

They have higher standard than pretty much anyone I can think of. Go look at the average game that a Nintendo fan owns and you will rarely see one that looks both looks and plays exactly like the other.

They like variety in their gaming and they like high quality.

[Nilemonitors13]

Like pacquiao.

[jameson12345]

That is a valid point. With the Unreal Engine 4, the money it takes to make these games will be harder and harder to make back. There also seems to be a set ceiling to how much money these AAA games can make. Look at Call of Duty, it isn't really smashing the records anymore, just slightly moving past them. It's a cycle of diminishing returns.

[gpturbo81]

most people dont understand the money side of it. glad you do.

[zebramocha]

@ jameson That's because the development cycle for pc to console in not efficient,know with the ps4 and presumably the next box this shouldn't be a problem.

[Ck1x]

The cost and development teams needed to make games in general is going up, it has nothing to do with console specifics... To make these big budget titles and to get them out on time takes extremely large teams of people, even if the game is PC only these games still are expensive to make.

[RFornillos4]

i agree. and wasn't it epic games who mentioned that developing games for next gen will cost more than the present conditions? why do you think 3.4 million for the new Tomb Raider is still not enough to recoup sales?

although they say that next gen games will still be priced at $60 a piece, it wouldn't surprise me if they price it higher to $70-$80.

my belief is that the reason Nintendo is not announcing any price drop for the console now, is their taking their time to make that announcement once the PS4 and NextBox launches. they'll probably drop the deluxe version to $250 by then and new games would probably be reduced to $50, and if you're a parent comparing a $250 HD console with a $400-$500 console (supposed price points for PS4 and Xbox 720), chances are your wallet will be the one doing the talking.

[Minato-Namikaze]

I'll probably pick up a wii-u when it's sub $100 like I did with the wii. Price isn't the main factor when I buy a games console, games are and nintendo has been lacking the last couple gens (outside a couple mainstays and surprise hits).

[gpturbo81]

yawn!

[Dj7FairyTail]

more hate more hate that all there is nowadays toward Nintendo.
Wow so the company who saved Video Game in USA is not being bashed weekly by western third parties devs who didn't even thanks Nintendo for saving gaming in the west.

[Half-Mafia]

Looks like its Nintendo's turn for all the hate like Sony got with the PS3. Wonder if the 720 will get this treatment. Who am I kidding, of course they wont.

[LordHiggens]

Nintendo didn't save gaming in the west? What...I don't even........what?

[SerodD]

You should go read about the big video game crash and who created the video game industry from there, it's an interesting story.

[Dj7FairyTail]

sad just sad
GO do some research.
I wasn't even born in the 80s yet I was in 94.
Yet I know about classic gaming and history.

Go search the 80s USA Video Game Crash.

[_QQ_]

Nintendo will have the best exclusives. they don't need the industry, especially not Epic, Epic is just mad because their bro shooter Gears can't even come close to any of Nintendo's main IP's

[LordHiggens]

Nintendo doesn't have the best exclusives...Sony has that honor.

The Last of Us
Killzone
Ratchet and Clank
Little Big Planet
Heavy Rain
Beyond Two Souls
Disgaea
Way of the Samurai 4
Journey
Infamous
Resistance
MAG
Socom

I can keep going these are just the ones off the top of my head here.

[Brucis]

Best is an opinion. Same goes for who you're replying too.

[Dgander]

Funny cause some of those exclusives you listed are not even out yet.

[_QQ_]

it's opinion and i would argue thay sony and nintendo are almost even, with nintendo a little bit ahead, but you shouldn't use games like MAG,Ressistance,Socom,or killzone which are either laggy glitch fests,very average, or a couple cuts away from being great as examples of sony first party, i'm talking about Amazing games. For example galaxy took GOTY from bioshock on many sites in 2007 and both games are frequently in the popular debate for game of the gen, those are the kind of games i'm talking about.

[1nsaint]

ITS ON!

Mario bros.
Mario kart
Paper mario
3d mario games
All the mario spin of games (soccer, golf etc.)
(lol there are more mario games then ps and xbox has on exclusives combined)
All Legend of zelda games
Advance wars
Animal crossing
Donkey kong
All the pokemon games
Kirby
Starfox
Metroid
Super smash bros.
Yoshi
Fire emblem
Mother
And a few sonic games
Oh and all the wii fit/sports crap xD

These aren't just exclusive games, they are exclusive series that had ton of games

Oh and you forgot PS allstars, or were you ashamed to post that since its a rip off of SSB?

[Trago1337]

I bet that this is gonna breeze past people, or people will out right say it's wrong, but the author does bring up a valid point.

I was truly surprised that Tomb Raider selling 3.4 MILLION fell below expectations. We could very well see more studios close if their big AAA game doesn't meet "Expectations."

And what's even more Ironic is that a lot of Indie games like Minecraft, Super meat boy, Bastion, Etc, which have such critical acclaim and sold a ton DIDN'T have super huge budgets, and are creative.

I remember reading that these next gen games will have higher budgets than current gen games and that's a scary thought if you think about the studios that closed down after their AAA game didn't sell.

[ylwzx3]

Just another example of how production costs are on the rise for these types of games.

[Trago1337]

And look at all of the studios that Closed down.

-Pandemic
-Ensemble Studios
-Sony Liverpool
-Hudson Soft
-Zipper Interactive
-Bizarre Creations
-EA Visceral Melbourne
-Midway

And many more.

So can you imagine the kinds of games we'll be getting next gen if the costs are going way the hell up?

There will be SO MUCH stagnation that even casual gamers would tell the samey-ness of these games.

These companies will be taking almost NO risks with their big games, When you think next gen, you think New IP's. The only new confirmed IP for the next gen is Knack and there's like NO hype for it. we should be showing enthusiasm for new ip's and ideas, instead of prettier looking shooters and action games with the same gameplay.

[RFornillos4]

... and this is one of the reasons why Nintendo's pushing Unity, especially to attract indie devs.

coz indie devs nowadays tend to develop games that are more creative than the big publishers/devs.

[josephayal]

Sony

[ZeekQuattro]

Seeing as Nintendo is making money while others are selling properties to make some money due to their struggling divisions failing to do so and others still are getting new CEO's after posting record loses. I'd have to say Nintendo will have the last laugh like they have been for years.

[LastXeno]

Probably Nintendo because they're not as arrogant as these western devs and don't run their mouths.

[Gamer-40]

Probably Nintendo.
Ps4 new Xbox 90% same multiplatform game, 10% exklusive.

[moegooner88]

Can I borrow your time machine.

[jcnba28]

Nintendo have nothing to worry about. Get N or get OUT! :)

[DivineHand125]

I disagree that development cost will skyrocket next gen because the incoming consoles are easier to develop for so less is spent on R&D. Also unreal engine 4 was designed to cut development cost by eliminating the time taken to get specific functions working in a game where the engine has now made those functions built in and more accessible.

[delboy]

NO, you're wrong.
Next gen games will cost more, we don't know how much more, but definitely more than current gen games.

[DivineHand125]

I never said it won't cost more. I just said that that figure won't be as much as most people might think.

[Realplaya]

It's crazy to think Nintendo is just sitting back and not seeing what's happening. They know that they have to come hard at E3 or don't come at all. Just think about this Epic has been working on there tech demo for a while and Nintendo did there WII U demo's in what 10 minutes. Retro has a engine X looks great, Bayonetta no doubt will be great. One sign that Nintendo isn't worried is because they know that the system that wins is the system that has the most games. Just wait to E3 people there being smart by improving there first ever HD system and for a company who can afford to take chances there doing great in terms of what they want. If you think there worried about the next gen systems trust me there not there not in a panicked state also theres a drought on there system wait until the new ones come out there will be droughts.

[Ck1x]

The mentality of the western gamer is lead by the media in general it seems. People over here tend to react to everything that comes across the World Wide Web... I personally don't know why after all of these years people still choose to doubt Nintendo's staying power in this industry! At this stage of the game you have to put them in a similar boat to both Apple and Disney. Yeah sure you may not like some of the products they are selling, but just because an individual or even millions of people don't like something doesn't mean that there isn't a profitable market carved out for what they are selling. Nintendo has proven that they can be extremely successful with console sales of 20-25 million. So why are people quoting a lifetime sales of WiiU at 40-50 million as being a bad thing and dooming the company in the long run? As far as all of these graphics engines go, I personally hope that whatever custom engine that Retro Studios has built becomes the defacto standard on WiiU. We know that this engine is built from the ground up for the system and I think E3 will show this in spades!

[PopRocks359]

I assume the headline means industry trends? Nintendo simply follows their own rules. For their own business model it actually works in making them profits where, as a business, that's the most important thing.

It won't give them success all of the time of course. Certain need to be followed to stay relevant in new generations.

[SUKMELONGTIME]

Ok let's look the sales

Wii + 3DS = 130 million units sold

PS3 + VIta = 78 million units sold

Xbox 360 = 75 million units sold

Ok now let's take a look at the exclusives

Xbox has Forza, Halo, Fable, Gears, Kinect, and my favorite game of them all: R.R.O.D.

PS3 has Uncharted, Killzone, MGS, Gran Turismo, Little Big Planet, God of War, and best of all: folding@home

Nintendo has Super Mario, Pikmin, F-Zero, Pokemon, Zelda, Super Smash Bros, Metroid, Donkey Kong, Yoshi Epic Yarn, Fire Emblem, Star Fox, Kirby, Wario, Advance Wars, Mario Kart, Mario Party, LEGO City, Luigi's Mansion, Monster Hunter, Wonderful 101, Bayonetta 2, Nintendoland, Mario Golf, Tennis, Soccer, Wii U Fit, Dragon Quest, and Animal Crossing.

Now let's look at how the companies are doing financially:

" Xbox division has lost close to $3 billion in the last 10 fiscal years."

"Sony's gaming division lost even more money in the same time period, with a loss of almost $5 billion."

"Nintendo's most recent financial statements showed they had 797.5 Billion Yen worth of cash in the bank. Convert this to dollars and Nintendo has $10.3 billion on hand."

[lilbroRx]

You numbers comaprison are a bit far off.
It should be:

GC 21.74m/GBA 81.51m (official)
Wii 100m/DS 151m = 250m (still selling)
Wii U 3m so far/3DS 30m so far

PS3 74m/PSP (don't know)
PS4 0/Vita 4.5

Xbox1 (don't know)
Xbox 360 75m

[SAYGUH]

Wow, interesting stuff.. Anyway this commin GEN will be a disaster, I can feel it. We all know Micro$oft owns the media & Sony's in the red. You guys just don't get it, Nintendo's always been the underdog. Everyone wants to see Ninty die, they do this on purpose, trust me. I'm tellin ya, they refuse to let Nintendo win. Micro$oft will stop at nuthin for world domination, they FAILED with the ZUNE & here they go again. Xbox was invented to destroy the gaming market, I wonder if we can stop them..

[silkylove]

The Unreal 4 engine is made to be scalable. It has nothing to do with the power of the Wii U. Epic are just being assholes. They won't take the time to develop it for Wii U until the install base makes them reconsider. Same with EA and Frostbite 3. They make their engine run for systems that aren't out yet and ignore the one that is, because they have an antagonistic relationship with Nintendo. That's partly Nintendo's fault, but not all Nintendo's fault.

[delboy]

When the install base is big enough and Epic and others reconsider and decide to bring their (quick ported) games on N console.
I (Nintendo) would make them pay a double royal fee and have the last laugh.
And with that extra money taken from big publishers I would sponsor indie developers.

[mochachino]

It doesn't matter who's laughing when the gamers are crying for AAAs.

[LastXeno]

lolTripleA