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Nintendo "most susceptible" to recession, Their casual-focused strategy may backfire

December 06, 2008 in News comments 26

Analysts have predicted that Nintendo will be the worst-hit gaming company during the recession. With many of it's "hardcore" fans turning their back on Nintendo and casual gamers more likely to spend their money on needed items rather than "luxuries" such as games, it's possible Nintendo's casual-focused strategy will backfire ...

Nick Gibson of Games Investor Consulting, told The Guardian that he thinks Nintendo's most likely to take a hit from the recession.
"As the market has become more casual-gamer focused, then it will be more susceptible to the economic rhythm," he said. "I would say that Nintendo therefore would be the most susceptible."

Screen Digest analyst Piers Harding-Rolls agreed with the view that "these new, more casual mainstream consumers... are more likely to view gaming as a discretionary luxury", but he told the paper that he thinks the pricier PS3 could be the one to suffer.
Miss Razz via computerandvideogames.com »
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  • 0
    Dark Arcanine Dec 6, 08
    Funny how I've been reading they're more likely to do well than the other two consoles in several different articles and then this one pops up. Of course hardcore has little to do with it. Also think about what people do at Christmas time, spend time together. Oh wait, casual stuff.
    • 3
      Jeterocks Dec 6, 08
      I don't see how Christmas time has anything to do with what this article is saying. It is talking about the current economic problem and how it will effect buyers, not what people are going to buy this Christmas.

      Also, when families spend time together over christmas time, I'm pretty sure that 99% of them aren't running out and playing on a Wii for their family get togethers.

      What this article is trying to say is that the target audience the Wii is marketed for are the exact people that are being hit the hardest right now. Meaning that all of the people that are on the fence to whether they get a Wii or not will now opt to pass on it until they have more money to spend. The Ps3 and 360 though have a different overall target audience for the most part. That's not to say that all systems won't be effected by the economic situation, but the Wii has the most susceptible.
      • 0
        Dark Arcanine Dec 6, 08
        What do you think will affect this current time of the year? Christmas, it'll be influencing the vast majority of spending for weeks. I don't need you to tell me what the article is saying, I was giving an opinion.
        • 1
          Final Blade Dec 7, 08
          Dark, you're missing the articles point and Jeter's. Christmas has nothing to do with this, its talking about the recession in general, the Wii will be hit the hardest out of the current 3 systems. And the Casual market will not buy the Wii. And Nintendo's plan will ultimately backfire on them.
          It's also not talking about this year, more likely as I said in general or next year where Christmas has no impact what's so ever until December 09.
  • 0
    Pyrazor Dec 6, 08
    Christmas giving a boost is questionable though now that the XBOX360 Arcade is cheaper than it. It had the plus of uninformed buyers getting the cheapest gaming console but now it's lost that advantage.

    Christmas will boost everything. I have to say that that analysis does seem pretty logical though.
  • 1
    bbb7002004* Dec 6, 08
    I disagree completely with this article's reasoning. For one thing, most data shows that video games and such generally do very well during poor economic times, since it provides cheaper entertainment than many other things people do. $50 or $60 for a new game is often very cheap compared to many entertainment venues, and people looking for a fun splurge this year will most likely look to a video game console than other typical big goods, like TV's, cars, etc.

    I also think they are miss representing information about Wii software sales to make a point. The main reason Nintendo software in particular is selling poorly compared to last year and the begin of this year is a distinct lack of quality games to buy. There is no Mario Galaxy for the core and no Wii Fit for the casuals, just the bridge animal crossing and the underperforming Wii Music. Of course sales will be down when you have nothing that people are buying, that's business 101.

    I also find the notion that sales of consoles will affect Nintendo more than the others to be pretty stupid. The Hardcore gamer has already bought the system they choose to support, and probably one or both of the others as well. The consoles getting sold now are mostly to casual players for all three companies.
    • 2
      Big A2 Dec 6, 08
      quote
      The consoles getting sold now are mostly to casual players for all three companies.
      They always have been. Everyone thinks the hardcore crowd has always been a majority. They don't realise how many people play games casualy, even if they play "hardcore games".
    • 1
      Fatal Error Dec 8, 08
      It's not only the consoles, you know. First party games, accessories, and the like are huge sellers for Nintendo (lord knows there's hundreds of pointless accessories out there).
  • 2
    Slumpy monkey Dec 7, 08
    I think it has a point. Its not saying that Nintendo are going to go bankrupt or stop making Wiis or anything, Its just saying that Nintendo is going to be hurt the worst, doesn't mean that there going to close down, they will still make a hefty profit.

    I sort of see what its saying too, If you imagine how many kids own the Wii. There in a game store and are asking their mum or whoever to buy this wii game for them, but the parents just cant afford it and wont buy it. Now I'm not saying this wont happen for 360 and PS3 too, but its pretty much guaranteed this situation is going to be more profound with wii games.
  • 0
    Lucssj Dec 7, 08
    Well, one of the reasons Nintendo is still alive and kickin' is because there more focused on casual gamers in the present, with its Wii. Most gamers know this, because we all know the "succes" of the Gamecube, and the downfall of SEGA in the console bussiness. Well, like Fanboy replyed in the article, and i agree with him, "people need to realise they(Nintendo) are a business now. They are there to make as much money as possible". Its a cold fact though, times change, and so do people.
  • 0
    Galacticdramon Dec 7, 08
    Does this mean spending cuts could mean we're going to be waiting even longer for games America and Japan have already got?
    • 1
      Slumpy monkey Dec 7, 08
      No, It doesn't mean that at all.

      This article is just saying that Nintendo will be the worst off out of 3 due to the financial crisis.(THIS DOES NOT MEAN NINTENDO WILL GO BANKRUPT OR START CANCELLING GAMES).
  • 0
    Linkerd101 Dec 7, 08
    This article is mo0t. Hardcore gamers dont really spend much time on the PS3 anyway. All this needs to be focused is about Will 360 do well during the recesiion. Leave Nintendo to thier buisness, Casual Gamers buy more Items over hardcore.
    With everything Nintendo is coming back with, just wait and see.
    • 1
      Big A2 Dec 7, 08
      quote
      Hardcore gamers dont really spend much time on the PS3 anyway.
      *Shieds himself as the PS3 fanboys fly in on WWII style planes.*
    • 0
      Final Blade Dec 8, 08
      I just love how you turn every single thing into a fanboyish flame war. Good going.

      This has nothing to do with hardcore gamers playing on the PS3 or 360. If you actually read its talking about the recession and how the Wii will take the biggest hit compared to PS3 and 360.

      @Akira_EX - Unfortunately that's irrelevant to the articles point. Recession as a whole, in general, not just some day sales. God you're missing the point like Dark.
      • 0
        Big A2 Dec 8, 08
        "Some day sales" will still show how well the Wii is selling despite the recession.
        • 3
          Fatal Error Dec 8, 08
          The holiday season always gives off the appearance that nothing's wrong. Thanksgiving through Christmas is probably the least accurate sample you could use as a gauge of economic stability during a recession.
        • 1
          Akira_EX* Dec 8, 08
          It would be one thing if there was no change or a decrease. However, last year, 350k units were sold at this point. Despite the recession, the system is selling much stronger than it should.
        • 2
          Fatal Error Dec 8, 08
          Production was also significantly lower this time last year. It's unlikely there were even 500k total consoles for sale in the US at this time last year.
      • 0
        Linkerd101 Dec 10, 08
        You wish the wii Will take the biggest hit. The PS3 will take the biggest hit and you know it.
        Dont lie to yourself. Thats how jealousy sprouts, same with Serial killerz ;P
        • 0
          Big A2 Dec 12, 08
          I think Akira established that the Wii is selling fine even die to recession.
  • 1
    Akira_EX* Dec 8, 08
    800k Wiis sold Thanksgiving week in the US.

    They're fine.
  • 0
    Lucssj Dec 8, 08
    One of my personal lists:
    SNES=NES=GENESIS=DREAMCAST=PSone=PS2>N64>>PS3(thx to UT3)>>> 360(Halo)>>>>>>Wii.

    Well, the gaming consoles i played at least.
  • 0
    McClubbin Dec 8, 08
    While the article does have a point by assuming Nintendo's customers to be casual gamers, I honestly don't think Nintendo will be affected that greatly. Both, the Wii and the DS, have established themselves in the market and have a decent catalog of games.

    Even if Nintendo does get hit by the recession wave, I'm sure that the amount of money they've made on the Wii and DS could help them ride it out for a while.
  • 0
    kokushishin Dec 8, 08
    First it was because the SYSTEM MOVAHS~ hadn't come out. Now it's the economy. What's going to be the excuse at the end of 2009?
  • 0
    Linkerd101 Dec 13, 08
    Nothing, Like others said, Consoles have never been a big part of being a 'hardcore' gamer. Parents and relatives go to thier local walmart to buy a PS3, Wii, and 360 at the end of 2009.

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