At the turn of the millennium, Sega had already released what would be it's final console, Sony was prepping the console that would send them over the top, Nintendo was about to release the first console in their history that would finish in last place, and Microsoft was readying itself to enter the console game. The gaming industry was changing drastically, and it was leaving the veteran game designers behind. Nintendo needed to do something crazy if it was going to rekindle that loyalty that so many many of us were beginning to doubt.
In 2004, Nintendo took the first step towards left field by releasing the Nintendo DS. The dual screened, touch sensitive hand held confused many of us. It was not a successor to the Game Boy, at least not initially, and many developers didn't know what to do with it. Consequently, it took a while for the system to really take off. After a rough launch, the Nintendo DS has sold just shy of 145 million units worldwide to date. The only game system in history to sell that many units is PS2. Nintendo retired the Game Boy name and moved their handheld production 100% to the Nintendo DS.
For months, developers and consumers alike had no idea what to do with this.
145 million units have since solved that problem.
But Nintendo wasn't finished surprising people. In 2006, Nintendo launched the successor to the Nintendo GameCube, Wii. Under the hood, this console wasn't much more than a beefed up GameCube. It's max resolution was 480p (one standardized step below high definition), supports the aging analog stereo audio, and lacks any online support worth talking about. But that didn't keep the system from being sold out consistently until just the last 12 months selling just north of 86 million units world wide. Nintendo has the revolutionary Wii Remote to thank for that.
Chances are you have one of these in your living room.
The Wii Remote introduced a way to play that offered a level of control matched only by a computer mouse, and even that's debatable. Where the Wii lacked in horsepower it made up for in innovation and good games. However, Wii suffered from the same thing Nintendo's last two consoles suffered from, lots of shovel ware and a focus on casual gaming. The hardcore, though Wii had a place in their hearts, turned mostly to the Xbox 360 and it's superior graphics and Xbox LIVE. But that didn't stop Microsoft and Sony from wanting a piece of the casual pie. In 2010, Sony launched the mostly ignored PlayStation Move (a less accurate take on Nintendo's then 4 year old technology) and Microsoft launched Kinect (a controller free camera that has sold over 10 million plus units in it's short time on store shelves and has yet to find a practical application).
Penny-Arcade sums up the situation quite nicely.
If you can't read that, click here for the source.
For more laughs at Sony's expense, click here.
If you can't read that, click here for the source.
For more laughs at Sony's expense, click here.
Then, at an investor's meeting earlier this year, Nintendo announced that they would be revealing the successor to Wii at this year's E3. And to the pleasure of core gamers everywhere, it has a standardized controller (with a rumored 6" touch screen) and will put the Xbox 360 and PS3 to shame in terms of horsepower.
This puts Microsoft and Sony in very precarious position. You see, both of Nintendo's competitors are behind a weaker Nintendo console in terms of install base, have vowed to increase the 5 year shelf life that video consoles usually see (meaning that we're likely 3 or more years out from a PlayStation 4 or Xbox Whatever), and have turned their focus increasingly to the casual market, leaving some core gamers worried and possibly looking elsewhere. Not to mention Sony's PSN woes haven't exactly created a reason to have faith in Sony's third place console or any future consoles power by PSN. Believe me, Microsoft and Sony, even though they won't show it, are a little worried that Nintendo off setting the console launch from their own schedule will hurt. And it will.
Nintendo is setting themselves up to swoop in and pick up the hardcore market that they cleverly have gotten Microsoft and Sony to chase after AND be the only "new thing" on store shelves. When Microsoft and Sony are ready to upgrade, they'll be competing against each other. If Nintendo adopts the 7 years plus cycle that Microsoft and Sony are trying to set in place, each subsequent Nintendo console release will enjoy sharing the store shelf with the 4 year old hardware of their competitors. Yes, Project Cafe/Stream will be competing against the new fancy PlayStation 4 and Xbox Whatever, but Nintendo will never have a NEW console competing with someone else's NEW console. No matter what, when Sony and Microsoft are beaten and tattered from the war between themselves, Nintendo will be fresh and well rested.
Could Nintendo be returning to their core audience while still innovating.
I sure hope so.
The best news is that gamers are still used to the current 5 year upgrade cycle. That means when Project Cafe is launched next spring, those that wish upgrade only have one choice, making it an easy decision and easy on the wallet. It also means that when Microsoft and Sony upgrade, your wallet has had time to heal and you'll have some cash lying around to spend on one of two new consoles, not three. So, even the competition benefits slightly from this. This generation, most people just went with one console, and that one console was Wii. Next time around, more people will be able to afford two (or all three if you just have trouble making decisions) of consoles, which is good for all three console developers.
Overall, this is an excellent position for Nintendo, a pretty good one (depending on how you spin it) for Microsoft and Sony, and an awesome one for consumers who wont be trampled by a stampede of new hardware, software, and plastic doodads to hook up to them.
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