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  Analysis: Should Nintendo Launch The Next Generation Now?
by Chris Morris [Console/PC, Business]
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April 15, 2011
 
Analysis: Should Nintendo Launch The Next Generation Now?

The rumors have been gaining steam for a couple of weeks now. Nintendo, they say, is planning to announce its next generation console at E3 this year.

While the company, not surprisingly, isn't commenting on the chatter, it's hardly going out of its way to downplay it either. And the second quarter lineup for the system (along with growing whispers about a looming $50 price cut in May) didn't do anything to quiet speculation.

So, for argument's sake, let's assume it's true. Has the time come to start bracing ourselves for the next generation of console systems? Is this simply an effort by the company to update the Wii just enough to keep it competitive for a few more years? Or is it something else entirely?

If it's just an effort to patch the Wii, it will be a surprising and disappointing move by Nintendo. For the past seven years, the company has had a pretty clear "go big or go home" philosophy when it came to new products – taking risks and putting its weight behind those. While the DS line has had iterative design changes, too much time has elapsed since the Wii hit shelves for that to be a viable option.

To simply tack a high-definition component onto the system would reek of desperation and put Nintendo into a role it has desperately tried to avoid for years: That of a follower. More importantly, it probably wouldn't be enough to convince the millions of people who own a Wii to buy the new system.

Now, certainly the next system will support HD. The time has come – and even Nintendo will begrudgingly accept that (though not, of course, on the record). And while it's easy to point fingers at the Wii's SD standard, keep in mind that when this generation first hit shelves, HD sets were nowhere near as prevalent (or cheap) as they are today. By jettisoning the costs associated with having a high def output, Nintendo was able to keep costs down and offer a system with immediate mass market pricing appeal.

The bigger questions are: Will this new system, whatever it is, have a new control scheme? Will the graphics be on par with the Xbox 360 and PS3 (or even greater, as Kotaku claims)? And will the company, finally, get multiplayer right?

There are no answers at present, of course. Even Game Informer, which says it has verified the whispers with several of its sources, is light on details. But the magazine reports that whatever this new system may be, "Nintendo is trying to embrace the western gamer and will likely launch a new brand with this console."

That reeks of a big move. And if, in fact, Nintendo actually is introducing a fully-fledged next generation device at this point in time, it could be one of the savviest – and boldest - moves the company has made to date.

The gaming world has gotten used to new systems from all three of the major players within a year or so of each other. But Microsoft and Sony are in no hurry to jump into the next generation. (Just check their retail prices for proof.) So, to put it plainly: No, we're not about to launch the next round of the console wars – at least not in the traditional sense.

Instead, by launching a new system/brand at this point in the current cycle, Nintendo would once again be creating its own space – and would, in some ways, further remove itself from the so-called "console wars".

In TV terms, it would be akin to Fox's decision all those many years ago to begin aggressively programming during the summer months – building an audience when other networks were looking in the other direction.

From an investor standpoint, it would boost excitement in the industry – as always happens when a new generation starts. And that's something third-party publishers are eager to see happen.

Similarly, it's entirely possible the company could plan to keep the Wii on shelves, as a sales alternative alongside this new system. It's employing a comparable strategy with the DSi and 3DS. And Reggie Fils-Aime certainly implied the company has no plans to do away with it during a recent conversation.

"The Wii has a long life in front of it," he says. "We're still sitting at $199. There are a variety of marketing tools at our disposal."

Hyperbole and rumors about whatever Nintendo has planned are going to run rampant until the company makes an announcement – or issues a firm denial. That's normal as new systems draw near. But what a lot of people might overlook is that in this case, the timing could be just as interesting to watch as the system itself.
 
   
 
Comments

Joe McGinn
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Good analysis Chris. I agree a simple HD rev would reek of failure in short order. So as you say, either some new innovation, or a bold leap into the hardcore directly past MS/Sony specs.

Jeremy Reaban
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I think console only gamers have a false picture that the PS3 and 360 are somehow really powerful. They aren't even close to what PCs can do, it's almost embarrassing.

The 360 had a pretty good video card when it came out. (So bad it caused a lot of heating problems). But that was 6 years ago. Heck, were it a PC, Windows 7 wouldn't even support it (it's like an ATI x1000). ATI is like 6 different generations beyond.

And the PS3 had a bad video card when it came out. Sure, having 8 CPUs helped, but it's still weak.

Sure, they don't have to deal with Windows and can write to the hardware, so you get a bigger bang for your buck. But they are just really dated.

The catch though is that Nintendo launchs now with something a lot more powerful, but still behind what Sony/MS launch. That could cause multi-platform games to suffer (like PS2 games hurt Xbox/GC ones), or it could be a case of DC, not succeeding at all. The PS2 case is more likely, though.

David Serrano
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I think console players know the consoles have limited capabilities. But the barriers for PC systems are accessibility and price. The reality is the average core player doesn't have the technical skills needed or the desire to build their own rigs. Plus, the price of an entry level PC system is twice as much as the average consumer has shown they will spend for any gaming hardware, which is around $300. I'm sure there are plenty of manufacturers who'd love to market a console with the power and speed of a PC rig but it doesn't seem like anyone could do it for $300 or less (retail).

I think it's very unlikely Nintendo will attempt to compete head to head with Sony and Microsoft with a new high end, high priced console. It's just not the way they think or operate. My guess is they'll announce a new console with much more power and speed than the Wii, but not as much as the 360 or PS 3. Basically, a next generation N64 targeted, at core players who are not "hardcore" players (a majority of the audience) and advanced casual players.

Dorica Prostel
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@David Serrano

I for one doubt they could even find the hardware to make a weaker console then the 360/PS3 nowadays without major efforts. Even at 300$ (Tom's Hardware had a nice system for 400-450$ a few months back, and that was retail price).

Eric Geer
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The problem with PCs is that it is not a pick up and play kind of affair

Tim Hesse
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It would be interesting to see the 'core' gamer head back to Nintendo and even more interesting if Nintendo could support them.

A W
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so HD is till considered next generation...

EDIT: come on... "Nintendo actually is introducing a fully-fledged next generation device at this point in time, it could be one of the savviest – and boldest - moves the company has made to date." the DS announcement wasn't he savviest and boldest move?

"In TV terms, it would be akin to Fox's decision all those many years ago to begin aggressively programming during the summer months – building an audience when other networks were looking in the other direction." Seriously?

I think this kind of hype is why so many people are let down when hardware finally is announced and becomes real.

Joe Cooper
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"I think this kind of hype is why so many people are let down when hardware finally is announced and becomes real."

Indeed.

HD is standard now, it would be bizarre if the next system, whatever it is, doesn't have HD. It would also be pretty bizarre if that was the point of it.

As for boldness, when does Nintendo release systems?

1985, '91, '96, '01, '06... '12?

I'm sensing a pattern here.

Christian Keichel
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"1985, '91, '96, '01, '06... '12?

I'm sensing a pattern here. "

Let's see 6 years, 5 years, 5 years, 5 years, 6 years. Is the pattern, that every fifth generation is launched after six years and all other generations in between are launched every 5 years? Complicatwed pattern ;)

DanielThomas MacInnes
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So-called "core" gamers are not going to flock back to Nintendo. They've been the sole focus of Nintendo's energies for the past two years - look at the Wii games released in 2010 - and what good did it do? This shift has been evident for some time, and it's baffling. If Nintendo wants to abandon the Expanded Audience that made the Wii and DS a success, and pursue the PS3 market, then they'll end up with PS3 numbers instead of Wii numbers.

We'll see what Nintendo has in play when E3 arrives. It's obvious that a new console is in the works, since they're obviously not making any games for anything else. They're definitely working on something.

Mark Harris
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This was my initial thought. A monster new console from Nintendo would be nice, I'm sure, but it's antithetical to their current strategy.

If they just update to 360/PS3 level (or slightly above) graphics, improve the online, and update the Wiimote then they could keep costs down... but there is little incentive to buy such a machine. If you already have a 360/PS3 there's little reason to shell out the money for a comparable N system, and if you have a Wii then you probably don't care to run out and buy a slightly updated console that does what your Wii does.

If they release a new mega console they abandon the mass market price point (unless you take a huge loss) that helped the Wii (along with their new control scheme) to penetrate an expanded market. You also probably won't take a huge portion of the 360/PS3 base since those guys are looking for specific software franchises and most likely will wait to see what the next gen of MS/Sony mega consoles look like compare to this updated Wii.

However, Nintendo is always full of surprises. Hopefully they have something interesting enough for Wii owners to upgrade and powerful enough for the HD fans to covet.

Zac Zidik
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How about making some games for the systems that you have Nintendo.

E Zachary Knight
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Posted this in the other Nintendo article and decided I needed to post it here too.

Here is what I was looking for:

http://www.computerandvideogames.com/231759/news/wii-2-not-just-a-hd-upgrade-say
s-reggie/

Reggie says and I quote, "In terms of what the future holds, we've gone on record to say that the next step for Nintendo in home console will not be to simply make it HD, but to add more and more capability"

So a new console will not be a simple HD upgrade. It will obviously be part of it, but not the defining feature.

Things I expect:

1. A Controller redesign. They will keep motion capability but may change the ergonomics.
2. A New input method. Whether this is built into the standard controller or a second accessory, I am not sure.
3. Improved online. I doubt they will go completely XBox Live, but it will be a vast improvement over what they have now.

Those are the big things. I hope for more and look forward to being surprised.

warren blyth
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what do you think of the possibility of biometrics?
Of changing their game design concept to be more about detecting how the user is feeling, and using this feedback to adjust the game? (tying into their experiments with in-game tutorial figure. adjusting intensity ala Left4Dead's director. using rumored front-facing camera's to gauge the player's facial response)

... I'm still clinging to the thought that vitality sensor will end up released as simple stylish metal plates - in the controller. quietly detecting your pulse and sweat PH changes.

(to be clear- I see "biometrics" as a scary sounding word that really means : quietly taking advantage of everything we learned from lie detector technology over the years. the ultimate goal being : to determine the player's true intent. something games aren't very good at, so far.).

... since no one else is talking about this, I'm very curious if I'm just crazy.

Ian Uniacke
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I tend to agree warren. Nintendo seemed very excited about the vitality sensor as though they had some really ingenious things going on in their labs with it. I'd be surprised if we don't see this come to fruition, although Nintendo seem to be taking a bit more time lately to make sure they get sure fire hits as opposed to lack luster projects such as Metroid:OM.

Kamruz Moslemi
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Nintendo is fresh off of a new hardware launch, so anyone wanting food for thought as to what shape their hardware strategy will take should look at the 3DS, and think about how it relates to the original DS. Nintendo is likely to design any home console successor with the same philosophy.

A W
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Posted something like this in the other article on the same subject.

Kamruz Moslemi
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Yes, it is rather obvious I think.

Besides, Nintendo's biggest problem with the Wii was their inability to provide good first party titles aimed at the core to help offset the lackluster third party support, and help pick up the slack of people who bought the Wii for whom the packed in games, and the occasional casual breakout hit was enough.

Upgrading the hardware is not going to help with Nintendo's lacking internal capacity for developing AAA content at a steady pace. Even on the Wii a lot of third party or outside studios picked up Nintendo's slack.

Donkey Kong Country Returns was Retro Studios and Metroid: Other M was Team Ninja, and even the Ocarina of time remake is handled by an outside studio.

Right now the known big projects being handled by Nintendo internally are the next home console Zelda, and the 3DS Mario. I have a feeling 2 big titles is the limit of their capacity, and any requisite increase in fidelity will only worsen that fact.

Sean Currie
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Unless of course they've been working on a next gen Metroid, Zelda and Mario to come packed in with the new console on LAUNCH DAY. Shh, give me my five minutes of fervent fanboyishness.

Honestly I think this is a good move for Nintendo, if not the only one. Sony, Microsoft and Valve (really, Steam might as well be considered a console at this point) have firmly entrenched themselves as the go to players in this industry. If Nintendo wants a piece of that, it needs to get in to the next gen early. It'd be nigh impossible for the company to gather third party support after the PS4 and 720 drop. Offense is the best defense after all.

For a while there, the big question seemed to be whether or not Nintendo was interested in the core gaming base. Comments referencing Apple seemed to indicate that that was where they were going. But I think Apple's too big a fish to fry for Reggie and Co. and their only real hope going forward is to re-establish themselves as a contender in the games industry. If not, markets like Facebook and products like the iPhone and iPad are going to eat away at Nintendo's casual market share.

I'm excited. I want to see what an aggressive, core game focused Nintendo looks like.

Sean Kiley
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What it should be:
redo the online multiplayer, at least as powerful as ps3, stronger more accurate and faster responding motion control

I'll be in the midnight line for that.

Michael Sell
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Come on now folks, we can't be all blind enough to not think Nintendo has something up their sleeves. Nintendo has never released a console without something new in terms of input, so why would this console be any different? With a more powerful system, better online and a new input, they have my money, it's time for nintendo to go aback to the western hard core fan base. I couldn't be more excited about this announcement.

Russell Carroll
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"And will the company, finally, get multiplayer right?"

I think that statement needs to be qualified. No machine has ever had more multiplayer focus than the Wii. From the launch title Wii Sports to NSMB and then putting co-op in EVERYthing (Sin & Punishment even!?), the Wii IS multiplayer to the extreme.

The point I think you're trying to make is that you don't like how they've done online multiplayer.
I won't argue with that, but I'd also note that I personally don't care.
If I wanted online multiplayer I'd play on a PC or another system.

However, I really like the social aspect of same-room multiplayer and that rarely carries over into online. I prefer offline, and that is what has made the Wii so cherished at our house. I have kids, so I never game alone. Mostly we play together, playing lots of co-op and party games like Kirby, NBA Jam, Mario Kart, Wii Party, Tiger Woods, or the LEGO games, but when I am playing 'alone' I appreciate that so many of the games, like SM Galaxy, The Crystal Bearers or Sky Crawlers, have made it easy for another player to be involved. I wouldn't play nearly as much otherwise.
The Wii has been the perfect gaming system for my situation.

That said, I'm looking forward to whatever Nintendo does next as I expect they will continue to lead the gaming industry into new directions. (I'm just hoping with all this Wii 2 talk that they don't cancel the Rhythm Heaven sequel on the Wii!)

Joe Cooper
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"I really like the social aspect of same-room multiplayer and that rarely carries over into online. I prefer offline, and that is what has made the Wii so cherished at our house."

Me too. All my fondest memories of enjoying games with other people involved home consoles, with people in the same room, sometimes even with single player games, watching the story unfold, taking turns, showing off, figuring things out, etc. Resident Evil 4, Myst, Civilization, Zelda Zelda Zelda.

Online is playing with obnoxious teenagers, Facebook spam... etc.

Mark Harris
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I can appreciate where you guys are coming from, and I'm happy you've enjoyed the local multiplayer on the Wii.

But as a counterpoint, online is playing with my brother in Iowa, my cousin in Germany, my family and friends all over the world.

While I enjoy a nice co-op session myself, a robust online multiplayer experience has been essential to my enjoyment of gaming over the last decade.

I'm hoping N gives it some more attention while maintaining your ability to play together locally.

Lyon Medina
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My thoughts exactly, I play online with my friends. I don't go online to play with strangers, they just happen to be there too. Reminds me of a party in alot of senses, some people are cool and you get along alot of the time, others get out of control and should be thrown out, but hey its not your party. Just have to deal.

I think the new Nintendo console should be based on online play.

Russell Carroll
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Online with friends is certainly better than strangers, but I'll take same room over that any day, and I do :).

warren blyth
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the trick with playing online "across great distance" is that the lag becomes notable. So we end up having to design our games to effectively lie to the players about what they're seeing. it's gotten very tricky to create seemless illusions that everyone is intereacting in perfect-real-time.

Local multiplayer games don't have to worry about this problem.

(and I don't see how Nintendo could possibly keep up with the server farms Microsoft has/is setting up to help their network's performance - so online doesn't seem like a smart arena to compete in)

Lyon Medina
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It's not about competing but offering a better expierience.

Ujn Hunter
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Personally I think Nintendo jumped the gun on releasing the 3DS as it is... let alone another Home Console. I don't understand why they'd want to effectively kill off their DS prematurely. I hope they don't have another Virtual Boy on their hands... because that is exactly what the 3DS is to me.

Sean Currie
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Really? I thought the DS overstayed its welcome to be honest. After playing games on my iPhone I found it really difficult to go back to the chunky, low-res capabilities of my DS.

Arnaud Clermonté
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3DS isn't as innovative as I expected.
It turns out many people dislike or can't see the 3D effect,
so games will have to be playable with the 3D turned off..
meaning it won't bring any gameplay improvements, only an optional graphics improvement.

So I agree that they should have waited longer and come up with something more innovative (and maybe more powerful)

Joe Cooper
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"Similarly, it's entirely possible the company could plan to keep the Wii on shelves, as a sales alternative alongside this new system."

Well they've always done that. I bought my Gamecube in 2008.

Curtis Turner
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I think it's mainly going to be a controller/input device that is an add-on to the Wii.

Arnaud Clermonté
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High performance probably won't be a selling point of their next console.
The main feature probably will be something new and unique, but we don't even know what it is yet..
So I would just wait until they announce it.

warren blyth
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well, yeah. voice of reason is no fun. :)

However, Nintendo usually doesn't go for cutting edge risk. they usually repurpose existing tech into something solid that people hadn't thought of. (optical tracking and accelerometer tracking had been around for at least ten years, but it took Nintendo to smartly put them together in a controller. and i'd bet they waiting until the component prices had dropped to a certain point).

(didn't they famously see that calculator screens had dropped in price, then figured out how to make the gameboy around the cheap screens they could get?)

this strategy keeps their costs low, and avoids embarrassing hardware failures (like red ring of death, or the difficulties many devs had unlocking the PS3's "innovative" processor).

so it's unlikely they'll have some cutting edge tech no one could have predicted. more likely they'll have found a new use for existing tech - that changes how we think about games.

(and maybe it's useful to brainstorm, because we might end up uncovering what's missing from the modern gaming experience?)

Matt Cratty
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If the Wii was considered a major step forward, then I clearly have no place in gaming discussions anymore.

Mark Harris
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It was a major lateral step, I suppose. A major departure from the norm in control scheme but nothing new in the rest of the tech department.

Arnaud Clermonté
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You can have a place in gaming discussion once you realize that your definition of "forward" might be different from other people's.
For Nintendo's finances, and for all those who got introduced to gaming by the Wii,
the Wii was clearly a step forward.
They can't please everybody all the time.

Aaron Truehitt
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Sega did, what Nintendon't.

Ardney Carter
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Drop out of the console business? ;)

Michael Wenk
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NoA has very little to lose in releasing a new console now. Its been nearly 5 years since the Wii came out, and while the Wii has kicked ass and taken names, they're approaching the point where the Wii's margins will take a hit. People forget that they make profit on their gaming units, and not just software.

Also just because MSFT and Sony wants to keep this generation going so they can catch up to NoA doesn't mean NoA has to play ball. In fact they'd be kinda silly to do so. Also, while games will be HD, I'd be shocked if NoA abandons what made the Wii so powerful with casuals. As for network, I don't think they care much in terms of multi-player games, but I do think they'll make deals with non game content providers for their device.

The real question would be price. HD quality touch screen controllers aren't going to be cheap. I hope that NoA learned from Sony's mistakes in pricing the PS3.

Brian Tsukerman
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The thing about this is that Nintendo needs to choose between ensuring that the console will be cheap enough to encourage people with Wii's to upgrade to this while still being of high enough quality to compete with current high-definition systems. For me though, Nintendo would have to seriously change it's approach in order to get me interested in buying this.

First, it'd need to have online play capabilities, so people can play their casual games both at home with friends and with other people across the globe.

Second, a new controller, maybe something akin to Kinect, maybe just an improved Wiimote with rechargeable batteries, anything as long as it doesn't involve feeding batteries into it.

Third, it would need some degree of backwards compatibility (helps encourage people to upgrade since they don't lose the ability to play their other games)

Despite my pessimism on this though, I look forward to seeing what Nintendo churns out this time around.

Dorica Prostel
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And the prize for best future seers goes to...


none
 
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