What does the future hold for Nintendo? It's a question everyone seems to be asking at the moment (including us here at Everybody Plays). With the Wii U under-performing at retail, worrying financial forecasts and rumours of a high powered replacement that might be already in the works, should Nintendo decide to cut their losses and run, there's been plenty of speculation floating around the internet recently but little word from the company itself. Until now, that is. Nintendo's flashily named Corporate Policy Management Briefing took place last week, and company president Satoru Iwata (he of the amusingly self-aware Nintendo Directs) took the opportunity to acknowledge and address the Wii U's struggles, as well as provide some information as to what his plans are for the big N. There were no bananas in sight, as Mr Iwata spelled out his vision for the company's next moves in an attempt to appease shareholders and consumers alike... directly.
The Woes of Wii U
Beginning with the Wii U, it was saddening but also refreshing to hear Iwata accept that the console is in trouble in this, its second year, and take responsibility for its failure to perform well. Oddly enough though, Iwata has decided that the reason the console hasn't lived up to the company's expectations is the lack of key software that shows off the console's most headline-grabbing feature, the GamePad, along with the failure to clearly distinguish the Wii U from its similarly-named predecessor, the Wii. In all honesty, as much as we may see the logic, we're not sure we agree that this is the problem. Consumers can keep track of the endless iPhone revisions just fine, and they only have minor changes in names - they know an iPhone 5S is newer than an iPhone 5, so why the difference with the Wii U? What's perhaps more of an issue is that Nintendo simply haven't promoted the console properly. The very first TV advert was aimed entirely at a hardcore audience (you know - the ones that already know the console exists). There was no family or group of friends playing together (which is arguably the key selling point of the console, as the others place more and more emphasis on online). The two games they chose to show it off were New Super Mario U (a game which, to the casual observer, would likely have looked identical to the Wii game), and ZombiU (which would likely have held little appeal), and to top it all off, the only woman in the entire advert existed solely to moan at her boyfriend in a weird accent about "wanting to watch the tuhvuh now", rather than join in and play Mario together. This was a huge step away from the adverts that Nintendo have usually gone for, and arguably set the Wii U up for the coughing and spluttering start it's had so far. It likely doesn't help that ever since then, Nintendo's big budget, big name games have repeatedly been sent out to die. Wii Party U and Wii Fit U both launched in the twilight of last year. Both would make great Christmas presents, both could encourage Wii users to move across to the Wii U, and both had a chance to make a difference. But have you seen an advert for either? If you didn't read game sites in your spare time, would you even know it exists? It doesn't seem to make sense to put all the effort into making the game, and then release it without so much of a drip, yet alone a splash. Yet exactly the same thing happened with the Wii U itself.
Five players. No other next-gen console lets you do this.
Still, it can't be argued that making compelling Wii U-specific games that showcase and justify the GamePad would help. For the most part, the GamePad seems little more than an optional map screen, which, while it's certainly useful, hasn't exactly left any minds blown - if any, it can be a bit confusing at times switching between the two screens. But what else can be done to revitalise the console? Well, far from abandoning it, Nintendo have determined that the Wii U (and the GamePad in particular) will receive a big push in 2014, putting those who think Nintendo should drop the console and move on squarely in their place. A system update, currently scheduled for 'early Summer', will add a quick start option meaning that players can launch a recently played title almost immediately after powering on straight from the GamePad, eliminating the need to wait for the console to finish starting up. The idea is to make the GamePad, and its core role in the Wii U experience, more upfront and to make it something that the whole family uses. Of course, nice as it may be, it's hard to see the ability to load a game within ten seconds of booting the console having the system flying off the shelves.
Sticking with the GamePad, and Wii U's unique features, Mr Iwata also outlined a determined focus on the console's NFC (Near Field Communication) capabilities. While the tech is admittedly nothing new, having been amply demonstrated by the toy-scanning Skylanders series, Disney Infinity and, rather more modestly Nintendo's own Pokémon Rumble U, Iwata clearly feels there's more that can be done. The Wii U is currently the only games system available with NFC built in, which, if there's a sufficient market for titles that use it, gives Nintendo the chance to do something special. We're assured that the GamePad's NFC feature will be a large part of Nintendo's focus at this year's giant gaming convention E3, which means we'll see what the company has planned within a few months. With Mr Iwata's other announcement, that Nintendo will also explore new ways of licensing its characters in mind, we can't help but imagine a Nintendo take on a Skylanders-style game complete with collectable Nintendo figurines could well be in the future. After all, the functionality is already present in every Wii U, and only a fool would think that well-made NFC figures of Mario, Link and Kirby et al, not to mention Pokemon, wouldn't sell like cakes that are slightly beyond warm. Roll on E3…
Surprisingly, as there's still no sign of the already announced N64 games, it was also announced that DS games will be coming to the Wii U Virtual Console soon. Mr Iwata mentioned that DS games can be displayed 'on the GamePad', and showed a mock-up of Brain Training running on the GamePad held horizontally, with both screens on the GamePad. How DS games that utilise buttons will work wasn't detailed, although we suspect it'll be a case of the GamePad acting as the lower screen while the TV stands in for the DS' top screen. Hopefully there'll be some sort of up-scaling of the graphics, as DS games stretched out to fill a TV screen (or displayed in a tiny window) won't look too pretty. There're certainly a fair few DS games that bear revisiting, but the decision to put handheld games on a home console doesn't seem quite right somehow. Nintendo obviously feels there's value in doing so, and we'd hope that the games offered are released regularly and are fairly priced, unlike the Wii U offerings so far.
As this determination of Rick Astley proportions to not give up on the Wii U shows, Nintendo is by no means planning to take the same drastic move that former hardware giant SEGA did way back when and move to producing software only. We won't be seeing Star Fox on Xbox or Pokémon on PlayStation on Iwata's watch, and that's just fine with us. Instead, what Nintendo are looking to do is license their characters out more aggressively, which makes perfect business sense. With some of the most recognised characters in the world, it makes little sense that we haven't seen Mario, Kirby, and Zelda bedspreads, lights, t-shirts, socks, and everything else under the sun, especially as it'd likely print money for Nintendo, not to mention increase the visibility of their characters amongst children. Perhaps more excitingly (or terrifyingly, if you remember the Super Mario Bros live-action film) is that the licensing deal could include films, or even TV series based around Nintendo characters. We'll bet that the plucky plumber will make an appearance in the inevitable Wreck-It Ralph sequel at any rate. This change of heart with regard to licensing could also mean that some desirable collectible items could also make the jump from Club Nintendo rewards to being up for sale in Nintendo's online store. It's all speculation at this point, but expect to see far more of the moustachioed mascot in the future.
Moving away from immediate plans, Nintendo's medium to long term goals were also spelled out. For its next system(s), the company is seeking to "redefine the concept of a video game platform", which, from what we can tell, in non-corporate speak, seems to mean "bring our online offerings up to scratch with Sony and Microsoft". Apparently, the first step of this will be to move from a "platform-based relationship" with customers, where your games are tied to a console, to an account-based model much like PSN or Xbox Live, where your games are tied to your account, making it easier to get them back if your console dies, and also opening the doors for cross-buying games - the much wanted ability to buy a virtual console game on the Wii U, and play it on your 3DS for one price. The creation of Nintendo Network IDs (NNIDs) on Wii U (and subsequently 3DS too) was the first step towards this new account system, and Mr Iwata stated that Nintendo's 'future platform will connect with (our) consumers based on accounts, not devices'. Whatever that means, it should ensure that players who currently have a NNID will be able to migrate seamlessly to Nintendo's next generation machines, presumably bringing along personal data and hopefully past purchases too, ready to be re-downloaded. When compared to the current situation, whereby you have to pay an 'upgrade fee' to download Virtual Console purchases from Wii on to your Wii U, or else fire up the separate Wii menu on the newer system, an account-based system looks very attractive.
Perhaps more interestingly, Nintendo also spoke about the option of offering discounts to loyal consumers. Tying your purchases to an account (even if they technically already are, through the Stars Catalogue) would mean that Nintendo would be able to reward loyal players, reducing the price of new games for those who buy a certain amount of games per year, or offering similar rewards if you encourage a friend to buy. While this was promoted as a long term goal, it's said that Nintendo may start experimenting with this on the Wii U - so look out for any flash loyalty sales.
The Future
So, that's the plans for the Wii U - but what does the future hold, both for the console itself, and Nintendo?
The much wanted new Zelda would no doubt boost the console's fortunes.
One of the ideas that has been being touched on (well, we say touched on, more "repeatedly pushed by analysts and the gaming press") is the idea of releasing Nintendo games on smart phones, as though the way to mega profits is to rush headlong into a market that's so successful, creators are being forced to give their games away for free.
For resisting the race to the bottom (and the dodgy business models that accompany free to play), Nintendo have long been criticised, and it seems their patience is starting to crack. One of the things they touched on during the meeting was Nintendo's plans to integrate their games and characters with smart devices. While they may say "characters", it seems what they certainly don't mean is games, as Iwata was clear that they will not be releasing full Nintendo games on smart phones. Instead, Iwata has tasked a select team within the company to create mobile applications featuring Nintendo's famous characters as a way to show millions of smart device users just what they're missing on Wii U and 3DS, however that would work. Intriguingly, the development team has been given no restrictions by the company president, meaning that Nintendo's characters are all fair game, and we could even see mini-games appear on mobile. The distinction is made clear though: full, traditional Nintendo games will only be available on Nintendo's own hardware. Any software developed for smart devices will be purely designed to connect with a different consumer base, although quite possibly in an interactive way. This is set to begin this year.
Looking into the more distant future (and this is where things start to get exciting), it seems there might be more to the recently rumoured "Nintendo Fusion" idea than it was previously thought. Essentially pairing a hyper powerful console with an equally impressive handheld, both of which have the ability to run each other's games, we wrote a story recently taking a look at how likely the Nintendo Fusion is, but after having taken a closer look at what Iwata said during this investor briefing, it seems it could be much more likely than we'd ever thought. Several references were made to the next-generation of Nintendo hardware during this meeting, with confirmation that not only is the system (systems?) already in development, but that they will likely utilise a common operating system and architecture between both console and handheld, (similar to iOS or Android). Making developing games for both formats simpler, this does seem to tie in incredibly well with the Fusion rumour - and, when combined with the importance of tying users to an "account based system" (so they can play their games on both), makes you wonder if there could be a grain of truth in what we've heard...
As a final curve ball, Mr Iwata closed out the Briefing with an announcement that must have left investors scratching their heads almost as much as it has with us. Apparently, Nintendo will soon be putting a much greater focus on the "health field" with a new approach, taking what they've learned from the Touch Generations games (Brain Training, Wii Music, Art Academy) and titles like Wii Fit. This will be distinct, initially, from the company's video game business, and the mission is apparently to 'redefine' entertainment as a whole, much as they have redefined the definition of video games over the last decade. A lofty goal indeed, and perhaps a hard one to see how they'll manage, when Mr Iwata's attempts at detailing this new venture are vague at best. Essentially, the plan is to create a means of improving people's quality of life (QOL) 'in enjoyable ways.' To do this, Nintendo will create a new 'non-wearable' technology to help them seek out success in a new 'blue ocean'. Wait, what? Well, the Blue Ocean strategy is largely to thank for the success of the Wii. Basically, rather than compete in an overcrowded market with many companies offering similar products (Microsoft and Sony in this example), Nintendo took the approach of appealing to a completely different, and largely untapped, audience (a 'blue ocean') with the Wii. In appealing to wider age ranges and 'non-gamers' with a far simpler yet more immediate machine than their competitors, Nintendo was able to fundamentally change the games industry and introduce software like Wii Sports and Wii Fit, alongside DS hits Brain Training and Nintendogs. Of course, in doing this they arguably lost touch with more traditional Nintendo fans who didn't connect with the company's new 'lifestyle' approach. So, now Iwata and Co. are hoping that lightning will strike twice and are looking to replicate their Wii success in the health arena not by introducing wearable technology like Google Glass, but something entirely different, sticking with their commitment to individuality.
Exactly what 'non-wearable' technology is though, we're not sure. In fact it seems as though nobody outside Nintendo does. What we do know is that we're not dealing with consoles or handhelds, mobile technology like phones or tablets, or wearable tech, like the long-lost Vitality Sensor, which would count your pulse. It's something distinct from all of these (perhaps Nintendo Kinect? We certainly hope not...), but we'll have to wait for more announcements from Nintendo on this one. The plan is that, using their video games know-how to make the experience enjoyable, Nintendo's new venture will look to increase fitness and general well-being on a large scale and generally bring smiles to the world. One overall goal of all this is to increase the number of Nintendo users worldwide (either through games or the new QOL platform), and therefore have the two business models interact and positively influence each other. More details are set to be revealed this year, and the new QOL venture is to begin in 2015 so it won't be long until we're all a bit more clued in as to just what Nintendo's up to.
So, after having trawled through the Nintendo investor briefing, what have we learnt about Nintendo's future? Well, we heard some short term damage control, learnt that there'd be a redoubling of efforts for the Wii U, that the company plan an "account-led" approach for the next generation, and are going to try and create a whole new world of health-based entertainment to explore. It's a tough time for Nintendo right now, that much is undeniable. However, it's good to see that the company is taking steps to right some pretty serious wrongs and come back swinging with a focused, determined approach. It's going to be an interesting couple of years for the Mario makers, but with several heavy hitting games out this year (and perhaps there being more truth to the Fusion rumours than we'd suspected), it should be an interesting time for Nintendo fans, too.
