Along the lines of what Smash has said, I'm just going to re-post what I said when the price was announced, and someone said that Nintendo should have released a $350 console which had all the features of the other two.
I have become 100% convinced that if Nintendo did such a thing, they would fail miserably, as much as people like Ian or Billy would like to think otherwise. I think I came to this realisation during the HD debate. Think about it; maybe we on this forum would buy it, and a few others, but who else would give a damn about the console if it was similarly priced the the 360 and PS3? I've heard Ian say over and over that they need to have a "traditional" console without the "screwups" of the N64 and the GameCube. His main reasons of why the GameCube failed are, I believe, things like a smaller disc, expensive memory cards, no demo discs and marketing. Really, the only thing that I believe really contributed was the bad marketing. Those other things are trivial, and even if they were fixed, I I doubt it would have saved the GameCube. So, what else did they do wrong with the Cube? Not much, I'd say.. Third party support was a vicious cycle (thid parties give half-assed ports, they don't sell, they stop supporting the GameCube, the marketshare goes down, third party games don't sell, etc) but I really believe Nintendo tried hard to secure more support for their console. See Crystal Chronicles (even the fact that they collaborated with Square was big), Capcom 5, when Nintendo leased their franchises to SEGA and Namco to improve relations, etc. Looking at the GameCube's game lineup, it had some brilliant games that deserved to be the best-selling games in the generation. Yet many of them went ignored, because the Xbox/PlayStation crowd just didn't care about Nintendo.
Taking this into consideration, if Nintendo made a console for "old school" (ugh) gamers, they would be buried. Let's say they went all out with a powerful (yet expensive) console, HD support, traditional controller, costly disc media, a full blown online service, and only hardcore games with sky-high production values. This would be, to put it lightly, a disaster. I have accepted that Nintendo just can't compete with the deep pockets and aggressive marketing of Sony and MS. They can't regain the traditional market. They're just a small videogame company with no other interests, trying to survive among corporate giants. Another traditional console, especially one with a price tag like that, wouldn't have a chance. They just wouldn't have much return in terms of marketshare, third party support, software sales and, in general, profit.. There would be nothing to differentiate between them and the other consoles, and if this happened, it would be a pipe dream to believe that Nintendo could come out on top. Casual gamers would go with the 360 or PS3 every time because of the mindshare that Nintendo doesn't have. Billy or Ian would probably say, at this point, that all they need to differentiate themselves are their usual amazing games. I would beg to differ, though.. Again, look at the GameCube. Nintendo's games, however much better they were than the competition, didn't make much difference in the end.
And that is why Nintendo needed something different. They needed to separate themselves, to innovate, to build momentum by being unique, and to capture the attention of those who wouldn't otherwise care. A $350 console would stop all of this in its tracks. It would be a complete turn-off to many people, especially the ones who don't care about the CPU's power. These are the people whom Nintendo is trying to capture.. They sure as hell won't pay that much for a game console, when they aren't interested in playing videogames anyway. You could argue that $250 is even too much, but Nintendo has this covered. They pack in Wii Sports, so that the hardcore early adopters get it with the system. The launch and the next few shipments will sell out to the early birds, so a lower price is not needed. To top this off, they can use viral marketing through Wii Sports, and get casuals and nongamers interested in the system. Then, after a few months, they cut the price, inviting people to try the console out. It's a great strategy..
Even the dreaded nongamer strategy has paid its dividends, looking at the DS. Not only have they sold millions upon millions of systems and games that are designed to attract nongamers, by opening up a new demographic, it has helped their other games as well. Ian is the first to tell us that Nintendo franchises don't sell Nintendo consoles as much as they used to. With the DS, games like Nintendogs and Brain Training expanded the market, so the new audience has a chance to try out classic Nintendo franchises. New Super Mario Bros is the best selling Mario game in Japan since Super Mario World.. that's not a coincidence.
Topic: Steven Kent: "Nintendo is like a wonderful old friend who has a drinking problem." (Read 40805 times)
