Nintendo is in crisis the Wii U and the 2DS .pdf
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Nintendo is in crisis the Wii U and the 2DS
Nintendo is in crisis. We have heard the phrase many times, but had rarely been so
real. Let's start with hard data, not only announced recently ( for the first time in its
history ) operating losses, but two consecutive releases of hardware should be reduced
in price in less than 12 months after its original FIFA13 Coins release. This means
many things. The most important is that Nintendo does not know how to calculate the
value of their devices, often fatal error.
Consider, for example, that today Nintendo announced 2 very different things: a new
model of 3DS and Wii price cut U. And it is no accident that we know all that same
day. It seems as if one gourd to another: a new SKU of its most successful console has
certainly worked well to distract the attention of the Wii price cut U. Why? If this had
been a positive thing, Nintendo would have given their own space and have
announced with fanfare. But that did not happen.
What happened was that he made two announcements on the same day. Apparently,
both were positive. The price cut Wii U, however, is a defeat for Nintendo. Why do I
say this ? Not only Iwata and Reggie, directors of the company, denied time and again
that the system needed a price reduction, but seemed confident that their value was
right (only have to do the interview he did with Reggie at E3 ). They were wrong.
And I put aside any personal FIFA 14 Coins consideration, as companies are not
governed by intuition, but by market research and hard data. Regardless of its
manufacturing cost, miscalculated Nintendo Wii U value and the market reacted
brutally sales have been disappointing.
How to know that Nintendo is in crisis? For actions taken: they are in damage control
mode because they reduced the price of a console for the second time ( a move that
will generate significant losses ). If the news had not given directly to the company,
would not believe. Rarely do we see someone is wrong on two consecutive occasions
the price of a device. If it were Nintendo, I would say that the system is doomed, but
with the 3DS proved that they are able to recover from a near-fatal collapse.
It remains turn our gaze to other launch failures. One of the most recent is Surface,
from Microsoft, who also received a price reduction. This simply means that the
consumers for whom the product is not considered that the price properly reflects its
value. A good friend often tell me: if you go to the mall and everything seems
expensive, not everything costs a lot, but you earn very little. Why buy a Rolex are
more concerned about other things to watch for its price and therefore pay the
company the value attached to it. For the Wii U, the market reacted negatively to the
console for its software and its price mainly. Gamepad Nintendo thought that would
be enough to justify the value of the console and the Wiimote allowed the Wii will
cost $ 249.99 USD. They were wrong.
The result will be painful. Nintendo confirmed before reduction of $ 50 which was
announced today that the Wii U sold with monetary losses. This means, basically, that
sell the console at a price less than the gw2 cheap gold cost of manufacture. The
movement is not only rare for Nintendo, it is also dangerous, because it is a company
that has other departments to support their operation.
But here comes the Trojan Horse of Nintendo and despised segment has never
suffered a setback: their laptops. In addition to creating the only sustainable business
model, also managed to keep up to date. If we ignore the Virtual Boy, the 3DS was on
his way to be his first failure, but the company quickly put it in the proper way, but in
the process lost a lot of money. It seems that the same will happen with the Wii U
(although, in my opinion, the ideal price is $ 249.99 USD ). The new model of 3DS,
the Nintendo 2DS, is much more than a mere play of words and solves a fundamental
problem of the notebook : 3D.
From late SNES era and the beginning of the Nintendo 64, the company has been
obsessed with 3D. Despite their many efforts, has never worked: 2D outsells Mario in
3D, the Virtual Boy, the 3DS, and so on. The market simply prefer a Nintendo 2D
( and it shows, for example, buying 30 million New Super Mario Bros. ). The
message is clear: do not always need to reinvent the paradigm of game ( as happened
with the DS ), it is sometimes sufficient to carry out an incremental improvement. The
3DS is a fantastic machine, but has plenty of its most encarecedoras: 3D. Here I set
aside my personal preference (use 3D ) and flip the surveys look at the company, as
surely revealed that few players use this fifa 13 ultimate team coins for sale feature
almost always superficial. How so? Enough so that Nintendo has decided to launch a
model that does not.
Let us remember. The Game Boy Advance SP was released in 2003 to answer
frequent complaints with the system: non-rechargeable battery and low backlight.
Designed more as a replacement, the system did not eliminate features. Witness the
2DS: a screen assembled to amount to the 3DS, same ability to play exactly the same
software and services. The only difference is the design, slightly more durable battery,
the absence of a stereo 3D and if you do not use hearing aids. Everything else is the
same: access to the eShop, internal sensors, touch screen and button configuration.
More than a redesign, the console is designed to coexist with the rest of the range.
Nintendo 's previous strategy was to replace with a new one each model: the Game
Boy to the Game Boy Advance SP and finally, with the Game Boy Micro, the
Nintendo DS with the Nintendo DS Lite, then the DSi, etc.
The new movement is bright and seems copied from other technology sectors, such as
phones or tablets: different models of the same product to target various markets. It
may not make much sense in the context of the Latin American market, however, is
clearly aimed at children in the U.S. and other world regions. The reduced price is
much friendlier to the pocket of a parent and the lack of 3D avoids having to
configure the device to prevent its use in children under 7 years. The extra features
may not make sense for an adult who has a smartphone, but for many children with a
Nintendo 3DS is its single electronic device. For example, on my recent visit to
Germany, because of gamescom, I saw a child in a Buy FIFA 14 Coins museum
taking photos with your 3DS XL while the family used their smartphones. That's the
2DS market: much cheaper than any tablet or smartphone with a library of games
varied price range. The 2DS is the trump card of Nintendo. It's a redesign that nobody
expected, but that the company desperately needed. Its design and size is not
important. If it's horrible and unnecessary, congratulations, the product is not meant