Nintendo's success with the Wii and DS is bad news for games publishers according to Kaufman Bros. analyst, Todd Mitchell.
In a recent report to investors, Mitchell stated that the DS and Wii “appear to be bringing new gamers into the market. However, this may not be a positive dynamic for the major video game publishers. Nintendo has not only increased the size of the market, but it has also re-segmented it in its own favour, in our view.”
Those monsters! SPOnG knew there must be something sinister going on when our Gran went out and bought a Wii. He goes on to justify his claim by stating, “Nintendo is dominating software sales on its popular hardware platforms, leaving the publishers with a smaller slice of an only somewhat incrementally larger pie.”
SPOnG can't help but think that if publishers had shown strong support for the Wii earlier, instead of focussing on the PS3 and 360, they might have more pie on their plates right now.
“Moreover,” Mitchell adds, “we feel that the likely shorter product cycles of Nintendo's platforms puts the publishers in a permanent catch-up mode. We think the upcoming releases of
Super Mario Galaxy and
Metroid Prime 3: Corruption will highlight this phenomena this holiday season.”
Again, if publishers hadn't suddenly started thinking the Wii was a good idea when it started selling (
EA, we're looking at you) they might not find themselves behind the curve.
Of course, Nintendo's president Satoru Iwata did just say that the company has some
124 titles currently in development, so it certainly can't be accused of leaving the market wide open for third party publishers.
Is Nintendo ruining the games industry by being too good? Answers in the Forum, please.