Analysts Strike Again: Nintendo Bad For Gaming

Nintendo's spoiling it for everyone else

Posted by Staff
Analysts Strike Again: Nintendo Bad For Gaming
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.

Comments

RiseFromYourGrave 30 Apr 2007 11:51
1/20
theyre doing quite the opposite! why is this person's opinion being reported
SPInGSPOnG 30 Apr 2007 11:53
2/20
RiseFromYourGrave wrote:
theyre doing quite the opposite! why is this person's opinion being reported

Never, ever ever trust someone who is illiterate enough to publish "highlight this phenomena".

Analist scum.

This is like when you read an article in the mainstream press about a hobby or interest of yours... and you realise that they don't have a f**king clue. Then, realisations dawns... all that other stuff you read, about stuff you are not an expert on - they were talking b******s about that too.

This guy, he's not ashamed to make proclamations about an industry he clearly does not understand. So why would anyone take his investment advice about other markets? He doesn't even know that "phenomena" a plural FFS!

more comments below our sponsor's message
RiseFromYourGrave 30 Apr 2007 12:08
3/20
Rod Todd wrote:

This is like when you read an article in the mainstream press about a hobby or interest of yours... and you realise that they don't have a f**king clue. Then, realisations dawns... all that other stuff you read, about stuff you are not an expert on - they were talking b******s about that too


haha, thats the one!

everyone in the industry, that knows games, thinks nintendo is doing a good thing. then harvard lad here looks pondering out of his high rise manhattan apartment one day at all the little ants and decides he'll write an analysis of the games industry. thank god he did, so we can all see whats really happening! i just wish hed researched it some, so it was that much more accurate
tyrion 30 Apr 2007 12:12
4/20
Some Anal-ist wrote:
shorter product cycles of Nintendo's platforms

Has he ever sat and waited for a Nintendo game to come out?
Da_ALC 30 Apr 2007 12:36
5/20
Analysts are idiots.
Joji 30 Apr 2007 13:51
6/20
Yeah is true, this analyst chap is not really backing up his point.

The lack of vision from most developers and publishers to the Wii, in favour of the more cutting edge PS3, just shows how placing all your eggs in one basket can be to your loss. Not suprising really but this some kind of foresight many tagged the DS with too.

Ubisoft are one of the few who took a chance with Wii, highly commendable when so many just want to board the next graphics train to money land. Despite Red Steel getting slated by many, it still better than the sweet FA from the likes of countless other softcos that haven't bothered with Wii.

CrazyBlue 30 Apr 2007 15:02
7/20
What is wrong with these people? Nintendo are doing great things for the industry, and specifically their own image! I can now now safely say I own a Wii, whereas before if I said I had a Cube I would be "slated" instantly!
Dannonhill 30 Apr 2007 16:14
8/20
Yeah, it's bad for third party publishers that make games that suck. All Nintendo does is make some good games, everyone buys em, and everyone else complains. The natural business questions, "How do we take Nintendos pie?" is answered not by saying, "Hey, that's not fair" but rather by making BETTER games than Nintendo! Give me a break all ye whiners. Get out from under your rock and figure out that consumers buy what is fun and good. Look at Square Enix. Everything they make turns to gold also. Is that unfair to other more crappy developers? Come on people.
Absinthe-Review.net 30 Apr 2007 17:47
9/20
Couldn't have said it better myself. You heard it yourself, crappy developers. Adapt and improve, or get put out of business by Nintendo, bwahaha!
NewGamer 30 Apr 2007 17:47
10/20
This analyst said what came to his mind. He should have been more thorough. Nintendo has to make good games because it's their system and they have to keep it alive. If 3rd party publishers make good games, no gamer will not stop himself/herself to buy that game. They are not supporting nintendo as they wanted to support others, so nintendo has to make good games, and that's how bigger slice of the pie goes to nintendo. Hopefully 3rd party publishers will realize that.
wiigamer 30 Apr 2007 19:00
11/20
these analyst dont know crap 1st they said the ds wasnt gonna hit then they said the wii is just a fad now there saying nintendo is bad for gaming is it nintendos fault for help bringing more gamers into the world of gaming "NO"! nintendo has to create games to keep there console appealing because other 3rd party developers dont even try n focus on the there console instead they focus on the things they think will hit *ps3* 3rd party publishers cant get more of that pie if they focused more truly on the wii after all look at ubisoft there sales increased thanks in part to the wii so it goes to show if they 3rd party developers put in more attention to the games they releases on the wii then it will sale like rain fallin from the sky. so analyst get it right nintendo is a big help for 3rd party publishers its just they have to expand and contrast at the right moments to exceed expections meaning focus on the big and little things of development. then they will see great revenue
BlackSpy 1 May 2007 07:55
12/20
Honestly, you lot are as bad as the Mail for seeing only what suits your existing view.

All the chap is saying is that Nintendo's unexpected next-gen popularity has caught publishers flat footed which means that despite growth in the market only Nintendo is in a position to profit. If you're a shareholder in a big publisher you may think that any market growth means opportunity, this note is saying not so.
Heff 1 May 2007 12:00
13/20
How could anyone accuss Nintendo of damaging the industry? i would think that expanding the customer base would be a good thing for publishers. Sony has had the market cornered for so long and i would say thats had a positive effect on the industry.... then again, I'm not a market anylst.
RiseFromYourGrave 1 May 2007 17:37
14/20
BlackSpy wrote:
Honestly, you lot are as bad as the Mail for seeing only what suits your existing view.

All the chap is saying is that Nintendo's unexpected next-gen popularity has caught publishers flat footed which means that despite growth in the market only Nintendo is in a position to profit. If you're a shareholder in a big publisher you may think that any market growth means opportunity, this note is saying not so.


nah, he says nintendo are bad for video game publishers, when it is some publisher's own lack of foresight that is the cause of any losses of market share when pertaining to the wii.
soanso 2 May 2007 01:36
15/20
Were Nintendo ever good for videogame publishers? ;)
PreciousRoi 2 May 2007 09:47
16/20
RiseFromYourGrave wrote:
BlackSpy wrote:
Honestly, you lot are as bad as the Mail for seeing only what suits your existing view.

All the chap is saying is that Nintendo's unexpected next-gen popularity has caught publishers flat footed which means that despite growth in the market only Nintendo is in a position to profit. If you're a shareholder in a big publisher you may think that any market growth means opportunity, this note is saying not so.


nah, he says nintendo are bad for video game publishers, when it is some publisher's own lack of foresight that is the cause of any losses of market share when pertaining to the wii.


Uhm, I think you're reading a skosh too much into what the dude said. Black Spy is quite correct.

As presented the article is disturbingly misleading, probably with an eye to creating exactly the sort of comments that have followed it.

The analyst in question is not presuming to cast judgement over Nintendo for anything as asinine as 'ruining the gaming industry' or any other such nonsense...indeed his comments are directed not at gamers, the gaming industry, or even Nintendo. He presumably addresses investors, attempting to educate them about the sector in question, a sector you and I presumably are familiar with. The denziens of the spong forum know (and care about) the ins and the outs and the whys and the wheretofores...He and his presumed audience care not about the state of the industry except insofar as it affects their account balances and dividends, he is concerned with the money, not whose fault it is or why.

An old adage is a rising tide lifts all ships, and in the world of stocks and securities this old adage sometimes has its own intertia, as a self-fulfilling prophecy. Therefore, within a sector, many times the stocks of other companies within the sector are affected in a positive manner by the success of other stocks within the same sector. Many times this is a perfectly reasonably and correct phenomena, other times, a kind of placebo effect. What this analyst is actually saying, and once again hes saying this to investor and money types, is just becasue Nintendo is kicking ass and taking names (once again your shrewd investor type could care less about why the Wiis are all sold out in the shops, but he can see SOMETHING is going on, 'praps hes even played a bit of Wii Bowling with Gran), don't count on the same success from major game publishers, becasue they're keeping most of the money themselves. What he IS practicaly screaming as loud as he can without actually saying it is: If you want to invest in the sector, BUY NINTENDO or nothing. Because the 'major game publishers aren't going to benefit from Nintendo's success.

This guy would probably see a raft of impending liscenced movie tie-in games as a GOOD THING for chrissake...don't get too worked up by what comes out of his mouth, it wasn't for your consumption in any case.
Ditto 2 May 2007 10:19
17/20
Previous generations have shown that generally only Nintendo really profits from its own systems, thus I think it would be reasonable to deduce that other publishers will find it harder to have a hit on the Wii and DS thus as Nintendo takes more market share there will be a knock-on effect for other games companies.

I think these are reasonable comments.

Of course, all this depends if publishers and developers actually manage to innovate and release good, solid titles as opposed to half-baked games that sell on other systems. At the moment even Nintendo isn't producing much quality, innovative, software for Wii especially thus there is, perhaps, a potentially bigger third party market at the present time than on previous systems.
OptimusP 2 May 2007 12:37
18/20
In previous generations, you mean the industry-reviving NES or the third party bonanza that was the SNES? Because you can't really mean the N64 or GC where third parties just left Nintendo so that Nintendo was the only one making worthwhile games on those consoles and also, exclusive good third party games on those two consoles did sell well.

Oh look, we ran out of previous generations to make your point with! How odd.

it is true that Nintendo consoles have the problem that you have to compete with Nintendo's games. But good quality third party games do sell on Nintendo-consoles nonetheless. Not Nintendo's fault that third parties chicken out or only release useless cookiecutter on their consoles that sell bad (because the games are crap) and then use that as a good reason to stop making games for a N-console. Now is it...
Sam P. 2 May 2007 12:43
19/20
"Likely shorter product cycles" is the phrase that really exposes this man's ignorance. He's obviously swallowed Sony's "ten year product life" boast whole (as if it wasn't entirely due to backwards compatibility), or maybe he thinks that the DS and DS Lite are two completely different videogame systems.

Nintendo's domination of its own systems' sales charts is, I'm sure, due largely to the poor market share those systems had. Did Nintendo also hog the NES and SNES game sales? Or Game Boy and GBA? Does it hog DS sales? I don't know the answers to these questions -- but I suspect that despite the insane popularity of Nintendo's Pokemon, other publishers did quite well on the handhelds, where Nintendo had the dominant system. And the Wii is clearly poised to dominate this generation of consoles.
Ditto 2 May 2007 16:02
20/20
OptimusP wrote:
In previous generations, you mean the industry-reviving NES or the third party bonanza that was the SNES?


I'm sure others will be able to point you in the direction of Nintendo's various anti-competitive practices with these consoles, notably with regards to cart chips.
Posting of new comments is now locked for this page.