Nintendo and Microsoft share the same plight: lack of applications and improper promotion.

by anonymous on 2013-08-13 12:11:11

Nintendo Wii U Gaming Console

Introduction: On Wednesday, the American tech blog Business Insider published a commentary article titled "Nintendo And Microsoft Are Failing For The Same Reason," which argued that Nintendo's Wii U has performed poorly in sales due to encountering the same issue as Microsoft: an inability to attract the support of developers and consumers.

The following is the full text of the article:

Lack of Applications

Nintendo’s failure to sell the Wii U mirrors Microsoft's struggle with Windows Phone handsets and Windows 8 tablets for the same reason: they lack compelling reasons for both consumers and developers to support their platforms.

Although products like the Wii U, Surface, and many smartphones running on the Windows Phone 8 operating system are individually excellent, potential buyers find that these platforms suffer from a lack of software options.

When consumers don’t purchase these devices, developers have even less incentive to create applications for them, thus creating a vicious cycle.

Microsoft’s main problem stems from entering the market too late — Windows Phone was only released at the end of 2010, and Windows 8 tablets have been on the market for less than a year. In contrast, Nintendo faces more complex reasons for not attracting developers.

The company’s GamePad tablet controller has hindered many games from being developed for the Wii U platform because developers do not know how to uniquely utilize this device.

In the last quarter, Wii U sales plummeted by 50%, reaching just 160,000 units. Developers aim for millions in game sales, so if a system lacks a user base of that size, it naturally fails to attract them.

A senior software developer at EA Sports once referred to the Wii U as "garbage" and even suggested that Nintendo is "a walking dead company." This explains why EA Sports' major releases this year, FIFA 14 and Madden NFL 25, did not support the Wii U platform.

Why does he feel so strongly against the Wii U? Primarily because its performance lags behind the upcoming PlayStation 4 and Xbox One. While the Wii U hardware is about 1.5 times faster than the existing PlayStation and Xbox models, Sony and Microsoft's next-generation systems will far outstrip the Wii U.

If a system lacks sufficient performance, it requires additional measures to run games designed for powerful devices.

For this reason, Bethesda, the developer of The Elder Scrolls, and DICE, the developer of Battlefield, have not supported this system. When asked if their upcoming large-scale games would be compatible with the Wii U, Bethesda's vice president of PR stated, "These games will definitely not be released on the Wii U." Similarly, Patrick Bach, executive producer at DICE, expressed the same sentiment in an interview with EuroGamer.

Poor Marketing

For consumers, Nintendo and Microsoft face similar marketing challenges.

When the Wii U was first launched, Nintendo’s promotional efforts were so poor that CNN's tech reporter thought it was merely an accessory for the original Wii. If even journalists immersed in the tech industry cannot understand what the Wii U is, how can we expect ordinary consumers to grasp it?

According to Sebastian Joseph of the financial website MarketingWeek, this is why Nintendo produced an advertisement in the UK featuring comedian Rufus Hound showcasing the benefits of the Wii U tablet controller.

This approach is similar to Microsoft’s promotion of Windows 8 tablets. The first batch of Surface advertisements featured people dancing throughout, leaving potential users unaware of the product's purpose. Recently, Microsoft has begun focusing on contrasting Windows 8 tablets with the iPad.

Both Nintendo and Microsoft are striving to repair their relationships with developers. Nintendo has been actively pursuing top independent developers and persuading them to release Wii U games. Recently, the company has directly funded game development in hopes of securing exclusive titles for the Wii U.

Similarly, Microsoft offers up to $100,000 in funding to developers to encourage them to create Windows Phone 8 apps.

It remains uncertain whether these strategies will revitalize these two platforms. Just a few years ago, Nintendo successfully reversed the fate of the 3DS handheld gaming console through price cuts and a lineup of high-quality games. Perhaps timely price reductions before the holiday shopping season, along with the launch of a new Zelda game in October, could save the Wii U.

As for the future prospects of Microsoft’s phone and tablet platforms, it remains a subject of speculation. A few weeks ago, Brad Reed of tech blog BGR pointed out that the latest data from market research firm comScore indicates that, in terms of market share, Microsoft’s mobile platform is heading in the wrong direction. According to Mary Jo Foley of IT website ZDNet, Microsoft has introduced a new tool to simplify app development for the platform.

Opening the doors to developers with less technical expertise might help narrow the gap between Windows Phone and iOS or Android, thereby enhancing its appeal to consumers.