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Cheat Payday 2

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Silently Drowning: Nintendo’s Quest to Save the Wii U

Author’s note: this article was originally published on May 9th, 2014. It has been republished here as a sample of my work.

Introduction: The Golden Days

In November 2006, Nintendo released their successor to the Gamecube: a small, white console named Wii. Previously codenamed “Revolution”, the Wii was an oddity in the video games market: both Microsoft and Sony had focused on the hardcore market with their seventh-generation consoles, the Xbox 360 (released in 2005) and Playstation 3, respectively. High-definition graphics, strong online components, and all the first-person shooters you could want were promised for those consoles, but Nintendo decided to go a different route. The graphics were only slightly improved from the Gamecube, still running at a low 480p, complete with muddy textures and jagged polygons. The bundled game, Wii Sports, promised an experience not for the average gamer, but for the average family, and the console featured a strong reliance on motion controls, a feature which some saw as nothing more than a gimmick. Regardless, the Wii sold like gangbusters, finding success among the casual audiences that had been ignored by Microsoft and Sony for years, becoming a must-have item for several years before demand finally began to quiet down. Overall, that little white box became sold over 100 million units, more than both Microsoft and Sony’s consoles. So, in 2012, when Nintendo released the successor to the Wii, named the Wii U, many expected similar results; however, a year and a half after its release, the Wii U is struggling to reach ten million units sold, putting Nintendo’s future in questionable territory, with many gamers and journalists asking where the company’s fate lies.

Part One: Cloudy Skies: The Announcement and Release of the Wii U

We open on a warm June morning in Los Angeles. Nearly every gaming journalist has gathered here for the Electronic Entertainment Expo 2011, commonly known as E3. Here, the major gaming companies will gather on stages, with celebrity endorsements and game trailers in hand, ready to show the world what they are working on for the next year in gaming. This year in particular is exciting; just two months prior, Nintendo confirmed they would be announcing the successor to the Wii at E3, to go on sale in 2012. The industry had gone years without a new console being announced; the current generation of consoles, the seventh, had begun in 2005 with the Xbox 360 (or 2004 with the Nintendo DS, if you include handhelds) and was still continuing in 2011. The crowd gathered into the Nokia Theater and watched as Reggie Fils-Aime, president of Nintendo of America, announced the Wii U for a 2012 release. The console displayed high definition graphics, an upgrade from the first Wii, but nothing comparatively better than the aging Xbox 360 and Playstation 3. It fully supported the full backlog of Wii games, as well as continued the use of Wiimotes as controllers, along with the new Gamepad, the major selling point of the Wii U. The Gamepad essentially acted as a controller combined with a tablet, allowing you to use the built-in touchscreen for items and menus or switch off the television and stream the game straight to the tablet. Game journalists were cautiously optimistic: the Wii had aged poorly, with only a handful of solid games released during the last year or two of its lifecycle and awful third-party support, with most game companies choosing to focus exclusively on the Xbox 360 and PS3 for their major titles. However, Nintendo promised strong third-party support for the Wii U, showing off footage of recently announced games from companies such as Ubisoft and Gearbox that would be released on the Wii U. The following year, at E3 2012, Nintendo cemented the release date and price for the Wii U: November 2012, $300-350 depending on model. The launch games were also announced, including games like ZombiU from Ubisoft and Nintendo’s own NintendoLand and New Super Mario Bros U. The price was a bit higher than what Microsoft and Sony were asking for their older consoles, and the launch library was rather small and unimpressive, but the launch itself went rather smooth: about $300 million was made during the launch window, up from the Wii’s launch in 2006 by $30 million (though the Wii was comparatively cheaper, which meant more units were sold). Worldwide numbers in January were estimated to be an approximate 2.5 million units, a decent-to-good number; Nintendo later confirmed 3 million consoles sold during their Q3 2012. This number fell drastically over the course of 2013, however, with only 2.8 million units sold during the entire year. During 2013, Nintendo stopped the sale of the cheaper $300 model and lowered the more expensive $350 model to $300, packaged with an included game and a bigger hard drive. Despite a late 2013 sales bump during the holiday season, Nintendo’s Q4 2013 (consisting of sales from January-April 2014) sales of the Wii U were about 310,000 units. The console’s sales have been mostly surpassed by new consoles from Microsoft and Sony, both launched in late 2013, despite the Wii U’s year-long head start. Nintendo has taken large financial losses for three years in a row due to the Wii U, unheard of in the company’s gaming history, with one games journalist reporting that Nintendo is “silently drowning.”

Part Two: The Heart of the Storm: Why The Wii U is Failing in Sales

If the Wii U was what more hardcore audiences had been asking from the Wii for years, then why was it not a greater success? Truth be told, there is no single problem that plagues the Wii U; instead, a multitude of complications have scared consumers away from the device. First and foremost, the Wii U suffers from poor advertising: frankly, most of the casual players that bought and used the Wii simply do not understand what a ‘Wii U’ is. A combination of the name (Wii U does not imply a successor to the Wii so much as an accessory) and the failure to properly display the actual console in advertisements, many of which only displayed the Gamepad, has left the average consumer to believe that the Wii U is nothing more than an expensive tablet controller for their Wii. In fact, the casual players that made the Wii such a success are another reason for the Wii U’s failure. The Wii and the Wii U were released in significantly different climates; it is difficult to believe, but the first Wii was released just two months before Apple announced the first iPhone. The pre-smartphone revolution was quite different for those who were interested in simple party games that could be picked up in a matter of minutes. The Wii addressed a large demographic that no gaming company had touched since the late 80s: the casual players. Unfortunately for Nintendo and for the Wii U, those players now owned smartphones that could reproduce the same gaming experience right in their pocket, with many free-to-play games waiting for them as soon as the device was in their hands. The casual market abandoned consoles for the iPhone, and without them, the Wii U was doomed from the start. To Nintendo’s credit, they did attempt to achieve better third-party support for the Wii U, but poor sales and the difficulty to develop for such an odd controller quickly scared consumers away. Electronic Arts, possibly the biggest third-party developer in the gaming world currently, released only three games for the system: Madden 13, Mass Effect 3, and Need for Speed: Most Wanted U. Following the release of these games, two of which were ports from older releases, EA announced they would no longer support the console, canceling planned ports of both Battlefield 3 and Crysis 3. Activision, another major third-party, provided some support for the console, particularly in the more casual-based games. Activision also released both Call of Duty: Black Ops II and Call of Duty: Ghosts for the console, two games from, sales-wise, one of the most important game series; however, the recently-announced Call of Duty: Advanced Warfare, the 2014 installment in the popular multi-million dollar series, has made no mention of support for the Wii U. Ubisoft, an early and strong supporter in the console, has also pulled back on games for the console. Originally, Rayman Legends was to be a launch-title Wii U exclusive; the game was delayed and ported to both the Xbox 360 and PS3. The Wii U version of Watch Dogs, another Ubisoft-developed game and one of the most-hyped games of 2014, has been delayed until September 2014, with the other versions of the games releasing during May. These developers should not be faulted for their support of the Wii U: the Wii U versions of Splinter Cell: Blacklist and Call of Duty: Ghosts both sold poorly, with the former accounting for two percent of overall sales of the game and the latter accounting for under one percent. There were also several cancelled versions of Wii U games, including the Gearbox title Aliens: Colonial Marines, Battlefield 3 and 4, and Metro: Last Light. This leads into the final problem for the Wii U: there simply are not enough games on the console. Without third-party support, the console has to lean exclusively on Nintendo’s first-party titles. Indeed, Nintendo has some of the strongest games series of any company: most Mario and Zelda titles alone are praised in each iteration. But Nintendo has not released enough games to keep the Wii U kicking; often, months go by without the release of a new Wii U title. The last major title released for the console this year was February’s Donkey Kong Country: Tropical Freeze; the next upcoming title comes at the end of May with Mario Kart 8. No console can perform strong numbers without games, and Nintendo’s console is going three months without major releases. Meanwhile, other consoles are seeing releases such as Dark Souls II, Titanfall, and Watch Dogs. This is not to say that the games Nintendo is releasing for the console are not good; Super Mario 3D World was widely praised as one of the best Mario games in years following its release in late 2013, but with all of the previously-mentioned problems, the Wii U seems destined to sink further.

Part Three: Relief Fund: Where does Nintendo Go From Here?

Many journalists and internet commenters alike have suggested solutions to the problems Nintendo is facing involving the Wii U. First, the Wii U has drawn comparisons to an old rival of Nintendo’s: Sega. During the 1990s, before the introduction of the Playstation, the two gaming giants were Nintendo and Sega. Sega’s final console, the poorly selling Dreamcast, has been mentioned multiple times in editorials discussing the fate of Nintendo’s future, and there is some validity in these claims. In fact, as Kotaku reported in April 2014, the Dreamcast sold nearly 2-to-1 compared to the Wii U in the same amount of months. These sales comparisons have compelled many to suggest that Nintendo should follow in Sega’s footsteps, removing themselves from the hardware market completely and focusing on developing games for Microsoft and Sony consoles. However, due to Nintendo’s success over the past three decades, they are not nearly in the same position Sega was at the turn of the century; they have a large amount of cash reserves to not only survive through the Wii U, but to continue onto creating more consoles in the future. This thought is also ignoring the major successes of Nintendo’s handheld console, the 3DS, which, despite a similar rough beginning, has seen rising sales due to one of the best game lineups on any console currently available. It is also worth noting that this is not the first time gamers have demanded Nintendo go third-party: it has occurred as far back as the Gamecube days, with gamers and journalists both declaring that staying first-party will see the end of Nintendo. This leads into the second suggestion many have made: to develop titles or release older titles onto Apple’s iOS and Google’s Android platform. The smartphone revolution has seen the success of casual gaming move from the Wii to mobile phones, and many have suggested that Nintendo games released for iOS or Android would be huge monetary successes. However, many have argued against free-to-play games, and have created extensive parodies of how these games would work on mobile platforms. While many declare that mobile will be the only salvation for Nintendo, others declare releasing mobile games would drive consumers further away from buying both the Wii U and the 3DS. That said, Nintendo is releasing companion apps for their devices, including most recently a Mario Kart 8 app that keep track of your standings. So, with these ideas out of the way, it is worth discussing positive ideas Nintendo should embrace in both trying to save the Wii U, and for consoles moving forward. First, acknowledge that Nintendo has several different IPs with large fan bases that are sitting unused. StarFox, Metroid, and F-Zero have not seen releases in several years. with Nintendo focusing much of their power on the continuation of Mario and, to a lesser degree, Zelda games. This is all well and good, but many fans of the series mentioned above have abandoned the company because their favorite games are not receiving new installments. Building off this, Nintendo needs to create new IP, and market it effectively. The newest major series developed (not published, but developed) by Nintendo was Pikmin, created during the Gamecube era a decade ago. This idea is well known by the gaming community, who comment that Nintendo has ceased innovating and creating new ideas, coasting off previous successes. Nintendo can easily combat this idea by creating a new series. The company also needs to improve their marketing efforts. The Wii had a successful advertising campaign which showed a family using the Wii together; with the Wii U meant to be a more single-player experience, Nintendo needs to embrace this. They also need to advertise to a larger market than children, as they did with the Wii. Both Microsoft and Sony advertise on large scales to mainstream audiences, and Nintendo should do the same. One key area Nintendo still lacks in is online play, which has become one of the most important features for most multiplayer games. Microsoft’s Xbox Live and Sony’s Playstation Network both give players strong online features, but Nintendo cannot seem to master online play. Finally, though Nintendo has no reason to cease the production of their hardware, Nintendo absolutely needs to improve their consoles’ specifications, if only for third-party developers. This is absolutely crucial; developers have complained about the difficulty in porting games over from the Playstation 4 and Xbox One due to the large differences in internals. Without better hardware in future consoles, Nintendo is sure to continue losing developers to more popular consoles. Truly, all of these ideas should be taken into consideration at Nintendo.

Conclusion: A Gaming Monolith

Nintendo has been creating both games and consoles since the 1980s, making it one of the oldest companies in the business. It is not an overstatement to say that nearly every gamer today has played at least one Nintendo game in their lifetime. Nintendo has a dedicated fan base who look forward yearly to the new Mario, Zelda, or Pokemon game, and despite their recent troubles with the Wii U, Nintendo is here to stay for a long time. The company has taken a misstep; however, the Wii U will not be the end of this company. Yes, Nintendo needs to reevaluate several of their strategies, including the hardware used for their consoles and their marketing plans, when looking to the future, but all sources indicate that Nintendo is doing just that. They are aware of the faults of the Wii U and are prepared to make changes in the future. 2014 is going to be an important year for the Wii U, and as the industry approaches the third anniversary of the announcement of Nintendo’s current console, all eyes are on the company for their next move. The games announced at next month’s E3 will either reaffirm Nintendo’s dedication to the console, or it will show that Nintendo is prepared to move on over the next few years. For those gamers who have bought and supported the Wii U, one can only hope that some truly great games are on the horizon. Nintendo turned the the 3DS sales around by developing some great must-have games; the true test comes this year. Journalists and gamers alike are focused on Nintendo for their next move; hopefully, they can pull it off.

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