Posted by: seanmalstrom | March 26, 2010

Gameindustry.biz gets the context wrong

Check out this story from gameindustry.biz. For some reason, the reporter decides to put in his interpretation and gets it all wrong.

Despite the dissatisfaction voiced by both of Nintendo’s most prominent executives the volume of new titles has not obviously increased in 2010, with the first major first party AAA title – in the form of Super Mario Galaxy 2 – not due until May in North America and June in Europe.

Here are the Iwata and Miyamoto quotes:

Speaking to financial website The Economist, apparently before the announcements of the 3DS, Miyamoto was asked how he interpreted the general slowdown in sales for videogames in 2009.

He suggested that “any entertainment products are less susceptible to changes in the economy”, but admitted that Nintendo had not produced enough fun products during 2009.

This admission echoes comments made by Nintendo CEO Satoru Iwata last October, when he stated that “we were unable to continually release strong software” during 2009.

Iwata and Miyamoto were not referring to volume of software. Volume of software doesn’t matter if the quality isn’t good, if people do not find it fun. Games like Wii Music were not fun which is why Nintendo discontinued the title.

Nintendo had adopted a strategy shift toward ‘User Generated Content’ in 2008 which led to not-fun software released in 2008 that led to 2009′s decline. If strong software was released, there would not have been a 2009 decline. This is what Miyamoto was saying.

When Mario 5 came out, Wii sales rocketed up. So clearly the decline was due to some bad software, not due to other events.

It amazes me that business websites and analysts are all not mentioning the User Generated Content direction Nintendo took. How could they have missed it? It was spoken as a holy grail by the executives and at the investor question and answer sessions.

What has amazed me concerning the business of video games is that no one seems interested in reporting what Nintendo does. What happens instead is that they report what they think Nintendo does. So when the Wii launched, instead of getting stories about disruption or Blue Ocean Strategy (well, we only got a few there), we got a bunch of garbage about ‘casual gamez LOL’ and discussion that Wii sold only because it was cheaper than the HD Twins. Instead of reported that Nintendo was, indeed, going on their User Generated Content adventure which led to software that consumers didn’t like which lead to hardware decline in sales, we get garbage about ‘casual bubble bursting’.

There is no business reporting concerning Nintendo. All we get is cliches and nonsense on stilts.

I suppose with 3DS, instead of getting the story of Nintendo disrupting Sony’s attempts of going 3d, we will get stories instead of Nintendo copying Sony and Nintendo jumping on the bandwagon of 3d.

Nintendo’s business should not have to be a secret known to everyone!

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