In the past Nintendo has targeted the casual gamer. The Wii platform does not pack the horsepower of Sony's PS3 or the XBOX 360, but Nintendo created a following with their relatively low cost system and games centered around the casual gamer. This strategy was also used with the Nintendo DS. The problem with targeting the casual gamer audience, is that they are less likely to continually buy games. Nintendo is now attempting to reach out to the hardcore players by redesigning their hardware and releasing the 3DS in early 2011. The 3DS is a more powerful handheld device and will be able to handle the typical hardcore games, but will also have a 3D capability.
While this added capability is a differentiator, I am skeptical of whether it is going to pull the hardcore gamers toward the Nintendo platform. Especially when considering competitors such as the Sony PSP, and the increasing capabilities of the various smartphones such as the iPhone.
Although it is yet to be seen whether the Nintendo 3DS will cater more towards the hardcore gamers, it looks like overall sales will remain high for three reasons: 1) Nintendo's reputation (read: dominance) in the handheld gaming industry, 2) Nintendo's abundance of popular "Nintendo only" titles, and 3)its alignment with the times.
ReplyDeleteThe first point is self-explanatory. Ever since the Game Boy came out in 1989, Nintendo has dominated the market with every new iteration of its handheld device. Its reputation as the leader in handheld gaming is a major reason developers and customers flock towards Nintendo. Also, although the number of players in the handheld gaming market is growing exponentially, as long as Nintendo still retains exclusive rights over its popular stalwarts (Super Mario, Zelda, Kirby, Donkey Kong, etc.) it will retain a strong hold on the market. Finally, the 3DS is not only a differentiator, it is one that is exactly in the market space created by the current trend towards 3D (movies, TVs, etc.) Given these three points, Nintendo looks like it will once again reach a critical mass of users.