Some more discussion on the "true" business position of Nintendo...

[pumbaa]

http://www.buzzcut.com/article.php?story=2005053122342247

Interesting stuff indeed.

[MadChedar0]

I stopped reading at
" But facing a significant loss in market share, they will need to see a massive growth in the market to keep their net profits anywhere near where they have been.

So, a plausible scenario emerges that this generation of console wars exhausts Sony and Microsoft. Any financial weakness this round diminishes their ability to compete next round. ...
By 2010 Nintendo could find a moment of opportunity, spend a lot and lead the next, next generation of videogaming technology.
"

I hate to say it, but Sony and Microsoft aren't going away. Especially Microsoft. M$ will continue spending dinero until they control everything. Probably not with Xbox360 or Xbox3, or Xbox4, but they will prevail eventually.

I don't know where that leaves Nintendo or Sony.

[CoffeeEdge]

God damn I hate videogame business articles. So stuffy.

[jlarlee]

I stopped reading at
" But facing a significant loss in market share, they will need to see a massive growth in the market to keep their net profits anywhere near where they have been.

So, a plausible scenario emerges that this generation of console wars exhausts Sony and Microsoft. Any financial weakness this round diminishes their ability to compete next round. ...
By 2010 Nintendo could find a moment of opportunity, spend a lot and lead the next, next generation of videogaming technology.
"

I hate to say it, but Sony and Microsoft aren't going away. Especially Microsoft. M$ will continue spending dinero until they control everything. Probably not with Xbox360 or Xbox3, or Xbox4, but they will prevail eventually.

I don't know where that leaves Nintendo or Sony.

While Sony isn't quite as big as Microsoft it is still a huge company that can sink a lot of money into staying on top as well

[CheapyD]

I think the article makes some interesting points, but, when it comes down to it, the most significant factor in Nintendo's success is their valuble IP (intellectual property).

They will always be a major player as long as they have Mario, Zelda and company as exclusives.

[jkam]

I stopped reading at
" But facing a significant loss in market share, they will need to see a massive growth in the market to keep their net profits anywhere near where they have been.

So, a plausible scenario emerges that this generation of console wars exhausts Sony and Microsoft. Any financial weakness this round diminishes their ability to compete next round. ...
By 2010 Nintendo could find a moment of opportunity, spend a lot and lead the next, next generation of videogaming technology.
"

I hate to say it, but Sony and Microsoft aren't going away. Especially Microsoft. M$ will continue spending dinero until they control everything. Probably not with Xbox360 or Xbox3, or Xbox4, but they will prevail eventually.

I don't know where that leaves Nintendo or Sony.

You really should have kept on reading. The whole point was that Nintendo doesn't need to be the top dog in order to keep doing well. They can survive on 10% of the whole because the industry will continue to grow. As it stands right now they make just about as much money as Sony and that's with their 10% of the market. They won't go under if their profits and cash flow remain that outstanding.

It would really stink if any of these companies folded because competition is good for the industry.

It is pretty obvious that people go where the games are. Sony tried to match the success of Mario with Crash Bandicoot on the PS1. Although those games did well they didn't really have the staying power on the PS2. I think Sony has done better with Jak, Ratchet, and Sly. If people like those games they will come back for more. GTA was also big for the PS2 a game that Nintendo didn't offer on its console. Microsoft has Halo but not too much else although I'm sure they are looking to improve upon that. Nintendo does well because they have multiple games that do well and people wait for....Zelda, Mario, Starfox, so on and so forth.

It seems to me that is why a lot of systems don't make it. Systems like the N-Gage and the 3D0 don't offer any franchises that stick with people. I'm not saying everyone buys a console for any one paticular game or even any of the ones I mentioned in the last paragraph but it helps to give each console a unique image.

[MadChedar0]

... The whole point was that Nintendo doesn't need to be the top dog in order to keep doing well. They can survive on 10% of the whole because the industry will continue to grow. As it stands right now they make just about as much money as Sony and that's with their 10% of the market. They won't go under if their profits and cash flow remain that outstanding.
...


I agree with you. However, I think it's feasible that Microsoft will eventually take over the industry. I hate sounding like a broken record, but that's what will probably happen. Nor am I saying I want that to happen. Microsoft tends to do it though, so that's why I said it.

In internet browser terms, Nintendo seems what Netscape was like before it got purchased by AOL. AOL could be Microsoft here. I'm just throwing it out there.

I'm not a Nintendo hater. I'm more of a fanboy probably. To grab more market share, I'd like to see Nintendo create a quality FPS franchise. Maybe Geist can get it done, but I dunno.