Is Nintendo's Success Bad News For Publishers?

Todd Mitchell on behalf of Kaufman Bros. Equity Research informed investors that the success of the Wii and DS is actually a bad thing.

In their view Nintendo has "not only increased the size of the market, but it has also re-segmented it in its own favor." He's goes on to claim that publishers will suffer as a result:

"Nintendo is dominating software sales on its popular hardware platforms, leaving the publishers with a smaller slice of an only somewhat incrementally larger pie."

"Moreover, we feel that the likely shorter product cycles of Nintendo's platforms puts the publishers in a permanent catch-up mode."

Mitchell goes on to point towards upcoming titles such as Metroid Prime 3: Corruption and Super Mario Galaxy as perfect highlights of this "phenomena."

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BlackCountryBob4243d ago

I understand the point he is making but he fails to notice that it has always been the case that Nintendo games are the best selling on Nintendo formats.

Fact is, Nintendo hold back games and make them perfect because they know people will wait to play a great game where as some 3rd party publishers release poor quality games on the Wii and DS, just look at Ubisoft where Red Steel was highly anticipated but it was rushed out for the launch of Wii and is terrible to play, if it were a Nintendo game it would have been kept back for a few months to polish and been released a much better game. The reason Ubisoft did this? They promised 6 Wii games by the end of the financial year so rushed out 6 bad games.

Good games will sell well, its just publishers and developers wanna try to rush out games instead.

bamdad4243d ago

i dont quite agree with the guy. nintendo has always been this way & the publishers dont have to get all the pies in the world,

sajj3164243d ago

This is Nintendo's problem. Nintendo has not always been like this. One of the main reasons why the NES and SNES succeeded was the quantity and variety of games available for the system and massive amounts of developer support. Since the N64 days, I have seen a change in the philosophy for Nintendo. They are at the point where they really believe that first party support can carry a system. As much as they try to play nice with third parties they always seem to have the better games. Why is that? Is it because Nintendo is the 'king' of game design? They make good games, no argument. They also have a chokehold on third parties. You'll see third party support dwindle in the coming year because the more Nintendo succeeds as a first party developer the more third parties fail. Its been that way since Mario 64 came out.

PS360WII4243d ago

Wow okay so one can't help that the games they make sell like mad. You guys will always bring up the fact that 'oh yea Mario 234567890 is coming out!' well once again Nintendo can't help the fact that it sells and sells well. It'd be one thing if Mario 234567890 sold 10k for it's life time but for the most part Mario 234567890 would sell 3-4 million and upwards to 10 million if it really caught off. Same with all there other series. Yes 3rd parties have games but when squaring off with titles that people know, love and want they just can't compete with the likes of the names.
So 3rd parties can degress all they want but they just need to add some spice and flavor to some of the dustyness incorporated to games these days. You know instead of blaming poor sales on the "same old" Mario that while yes you still need to rescue Peach but you need to do it in a new way.

BIadestarX4243d ago

Nintendo is making money from day one in their console. They know that. They designed the wii to their benefit. Apealing as a console (wiimote) and cheap to manufaturer... They didn't ask the developers. Since the N64 Nintendo is always trying to possition themselves in a place where they can make more money than 3rd party developers. Take online multiplayer. 3rd party have no access to those features only 1st party. Nintendo has being trying to do what they just did today; to develop a console where people buy it even without thinking about the games. The wii is selling well and what games do they have? Still selling like hot cakes. Do they need 3rd party developers? So, far the wii has sell like crazy, how many good games do they have?

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