Roundtable: Is Nintendo sounding a retreat?

August 30th, 2013, 00:10 Posted By: wraggster

With a Wii U price cut and a DS which drops 3D, is Iwata backing down?
Nintendo dropped two pieces of news this week with the unveiling of the 2DS and a $50 price cut for the Wii U Deluxe Edition bundle, bringing it down to $300. The new handheld abandons the glasses-free 3D feature and clamshell case design of the 3DS, but brings the price down to $130 in the process. Meanwhile, the Wii U's price cut will be accompanied by a new bundle featuring a Legend of Zelda-themed GamePad and a digital version of the WindWaker HD remake included right out of the box.
Both made for big headlines, but will they lead to big sales? Will the price cut work considering the Wii U Basic Edition was already available for $300? Is customer confusion going to be an issue with the 2DS? Do you believe Nintendo's insistence that they aren't backpedalling on 3D? Which announcement will wind up being more significant for the company? The GamesIndustry International team weighed in on the news for this week's staff roundtable.

[h=2]James Brightman[/h]It would be redundant for me to say that the Wii U desperately needed a price cut. Now that it's finally got one, I do like its chances slightly better this holiday, especially when combined with Super Mario 3D World, Donkey Kong Tropical Freeze and Wii Fit U. It's too bad Mario Kart 8 isn't coming this holiday season, because to me, it's poised to move more Wii U hardware than any other game. Even in the demo I played at E3, it looked incredibly polished and fun with new gameplay mechanics. Unfortunately, Nintendo is not selling Wii U in a vacuum and consumers are going to be looking at Xbox One, PS4, tablets and other game-playing devices this Christmas. If the hype and purchase intent around next-gen consoles is as highas GameStop claims it is, Wii U is going to have a tough time, regardless of its slightly lower $299 price point.
The 2DS' hingeless, child-friendly design has met with a mixed response.

Besides, price conscious parents are more likely to skip right past Wii U in favor of one of Nintendo's own handhelds. The new 2DS is likely to do gangbusters alongside Pokemon X and Y this holiday season. For $129, consumers can get a system that already has a wealth of great content - albeit now played without the 3D function. I have to agree with Brendan on that point, however; customer confusion is something that Nintendo is going to have to put considerable time into avoiding. Marketing will be key for solving this problem, but Nintendo's track record of late with marketing is pretty darn poor. The Wii U was terribly marketed, and even now with better software on the horizon I've yet to see Nintendo truly convey the value and appeal of the Wii U. Maybe they can do better with promoting 2DS.
At the end of the day, we all have to remember that Nintendo is Nintendo. The company isn't in any console or handheld race. It's racing against itself, and as long as it can boost its bottom line and post a healthy profit at the end of the year, shareholders will be happy, Iwata's job will be safe, and it ultimately won't matter one bit that Wii U sales are quickly lapped by the competition.

[h=2]Steve Peterson[/h]The Wii U will certainly do better at $299 than at $349, especially against a $399 PlayStation 4. Still, the main driver will be software, and Nintendo's got some strong offerings late this year and early next year. I don't expect a dramatic sales increase for the Wii U, though; the price cut still leaves it more expensive than an Xbox 360 or PS3. Looking ahead there's no reason to expect new must-have software every month or two. Nintendo alone can't produce Wii U titles at that pace, and third-party support is not strong and likely never will be.
"Looking ahead there's no reason to expect new must-have software every month or two"

The Wii U will sell better with this price cut and the more compelling software coming out, but it will never lead the monthly sales reports for consoles. The Wii U will probably establish a position as a strong alternative console for those gamers looking for family fun who aren't interested in shooters, RPGs, sims and sports.
The 2DS is an interesting strategy. The $129 price point will certainly be attractive and keep the overall 3DS momentum going. Marketing-wise, the naming is confusing and difficult to figure out, but that follows right in the footsteps of the Wii U. I don't think Nintendo will be able to turn the 2DS/3DS/3DS XL line into a juggernaut like previous handhelds. Continued pressure from smartphones and tablets will keep this line from becoming a superstar, but it should do quite well. If Nintendo can hit $99 with the 2DS for Christmas 2014, that would keep the line going strongly into the future.

http://www.gamesindustry.biz/article...ding-a-retreat

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