Strike Out? Nintendo and WiiWare

Oh man. I wake up this morning, and for a moment I think to myself that I'm going to have to revise this paper I've just submitted, because Nintendo has managed to step up to the plate...

I was excited about the opportunity to proven wrong, that they might be able to lower their barriers to entry. Then Level Up had to go and dash my hopes against the rocks with the actual interview with Fils-Aime. "'First, the development tools and SDKs [software development kits] that enable developers to participate are already available,' he replied, referring to the standard tools that Nintendo sells to its licensees." Strike One.

DAMN IT. So the amusing thing is that to get in a position to buy these SDK's and development kits (later mentioned as "darn near free" - Strike Two) you are actually unlikely to get without a publishing company backing you. While it might be interesting and possible to hear that Nintendo will remove some of these restrictions, it doesn't sound like it. Basically it's an opportunity for established developers to bring games to Nintendo's electronic distribution stream. What the hell about that is "indy"? What they should have said is, "Established developers can create small teams with small budgets and big ideas to bring original games to the marketplace." That's not what they said though. They actually sounded magnanimous, much like Microsoft did with the release of XNA Express. Only Microsoft actually released it to the general public. Nintendo has not. Strike Three.

I honestly don't see how this is any different from what Sony has done already. This isn't big news, this is catch up. If Nintendo had opened up a little, that would be something. That would be big news. Now I get to hear about "user generated content" on the Wii for the next month. I just have to decide now if I argue or not.

*SIGH* That's what I get for having hopes this early in the morning.

Nintendo Press Room - NINTENDO'S WIIWARE PAVES THE WAY FOR FRESH GAMES, COOL CONSUMER EXPERIENCES

"Independent developers armed with small budgets and big ideas will be able to get their original games into the marketplace to see if we can find the next smash hit," says Nintendo of America President Reggie Fils-Aime. "WiiWare brings new levels of creativity and value to the ever-growing population of Wii owners."

The possibilities for WiiWare are limited only by the imaginations of developers. WiiWare provides game creators a simple method by which they can get their games to the public. This approach, combined with the remarkable motion controls of the Wii Remote and Nunchuk, will give birth to fresh takes on established genres, as well as original ideas that currently exist only in developers' minds. The reduced barriers to development provide developers the freedom to create and an inexpensive, clearly defined path to reach consumers who will ultimately determine which game will become the Next Big Thing.

Level Up: EXCLUSIVE: What is WiiWare? Level Up Gets the Scoop On Nintendo's Brand New Bag

A month or so before the March Game Developers Conference, Nintendo's PR agency approached us about a hush-hush new content initiative that the company had been cooking up, and wanted to know whether or not we'd be interested in being the first to get the lowdown. We were. But GDC came and went without any more information. From then on, we'd check in with Nintendo from time to time, but no new information was forthcoming, not even about when new information might be forthcoming. So we began to despair. But on Monday, the folks at Golin Harris PR reached out to us again to inform us that the time was now, that the offer was still on the table, and that Nintendo of America president Reginald Fils-Aime would be available to speak with us Tuesday afternoon. We spoke with him, and here's what we learned.

What's more interesting is that Nintendo isn't only seeking WiiWare from established publishers and developers like Ubisoft and Sega. At a Nintendo developer's conference earlier this week, the company informed attendees that it was seeking from indie developers as well. Shorter, original, more creative games from small teams with big ideas; these are the buzzwords that you'll be hearing from Nintendo when its Wednesday announcement goes wide. Fils-Aime told us that while Nintendo, as the retailer, would itself determine the appropriate pricing for each game on a per-title bases, the games themselves would not be vetted by Nintendo. Instead, Nintendo would only check the games for bugs and compatibility, with developers and publishers responsible for securing an E for Everyone, E10+ for Everyone 10 or older, T for Teen or M for Mature rating from the Entertainment Software Rating Board--Adults Only titles like Manhunt 2 aren't welcome. Look for the first WiiWare titles from Nintendo and third-parties to become available next year.

Level Up: EXCLUSIVE: Nintendo of America President Reggie Fils-Aime Tells Level Up About His Big Plans For a Little WiiWare

"A couple of GDCs [Game Developers Conferences] ago, Mr. Iwata hinted at downloadable content; that we wanted to help young, promising developers overcome the limitations of small budgets and team sizes to bring their games to the Wii."

Would this mean a price cut for development kits, we inquired? Or would there be a new set of tools and libraries--easier to use, but less fully-featured--aimed at the indie and hobbyist game developer? No. "First, the development tools and SDKs [software development kits] that enable developers to participate are already available," he replied, referring to the standard tools that Nintendo sells to its licensees. "We enable the marketplace where consumers can buy these games using Wii Points. Developers and publishers bring their ideas for games and marketing to entertain and entice consumers." As for a price cut, Fils-Aime insisted that Wii dev kits are already plenty cheap. "All our SDKs and dev tools are already--I don't want to call them inexpensive--they're darn near free to developers. This is unlike our competitors, where you have to spend a lot of money building high-res assets to be competitive. So in that sense, there's almost no cost to developers; the tools are already available at rock-bottom prices. We're providing the venue and light of day for games that might not have gotten attention otherwise."

Fils-Aime also stressed that all WiiWare content, unlike that on the Virtual Console, would be brand new games. "WiiWare content is new content. It can come from Reggie's Videogame Garage or from EA." (Don't get your hopes up, fanboys; Fils-Aime has no plans to personally make any WiiWare games.) As for pricing, he reiterated that while Nintendo would make the final decision on the pricing of individual games, it would do so in consultation with the developer and/or publisher, with no predetermined limit on the high-end of pricing. In short, having conquered the kids, the Alpha Moms and the non-gamers, the Wii is now going after the brand new downloadable game market currently occupied by Xbox Live Arcade and Playstation Network. The resulting fireworks should be interesting to watch.

Gamesindustry.biz - Nintendo Set to Unveil new WiiWare Initiative

Nintendo is set to reveal details of its WiiWare downloadable games initiative later today, according to Newsweek games blog Level Up.

WiiWare titles will be available from the Wii Shop Channel in exchange for Wii Points, as Virtual Console games currently are. However, the WiiWare games will be original titles designed specifically for Wii

According to Newsweek Nintendo held a developers' conference earlier this week, where attendees were informed that games are sought from independent studios as well as established companies such as Ubisoft and SEGA.

Nintendo will decide how much each game should cost, but will not vet the games beyond checking for bugs and compatibility. It will be the responsibility of publishers to obtain age ratings for the games, and no Adults Only-rated titles will be allowed.

Joystiq - Nintendo takes wraps off of WiiWare

Nintendo is the latest on the indie console-development bandwagon with WiiWare, a "game-creation service that will allow developers large and small to create new downloadable video game content" that the company announced this morning.

The company is making it clear that they're looking for little guys to make games for the console, though it's currently unclear exactly how that will be done. Interestingly, Reggie Fils-Amie told N'Gai Croal of Newsweek that the games would be checked for bugs but not vetted by Nintendo.

User Comment #2 - I'm not quite sure how you can call this jumping on the User Generated Content bandwagon. There's no mention of hobbyists or home development, or anything akin to XNA (which many would argue isn't a pure example of UGC either). They may be courting the casual games market or encouraging development from small indie developers, but this is still very much focussed on professional development not end-users from my reading.

Emulators, the Virtual Console, and Opening up the Wii

It is always to see how the pile of news I didn't read over the weekend piles up and then ends up overlapping in odd/interesting ways.

One in particular was an article in the NY Times about Nintendo courting developers more-so than they previously had in the past, and this other bit about a Wii/Gamecube homebrew competition.

First of all, I really hope that the developers that put their time and effort into making games for the Wii and Gamecube spend more time on actual games than on emulators. Sure you can perhaps have a game up and running faster (?) if you're porting an emulator to the Wii or Gamecube, but I'm beginning to believe more and more that emulators on consoles tends to hurt homebrew efforts rather than help them.

Of course when I saw the Wii News article linked from Slashdot (/.), the emulation aspect was for-fronted. If you think about it, emulators are the very thing that most companies fear when it comes to homebrew. Why? Because it dilutes their brand, and prevents them from being able to re-sell you old content.

Now, that isn't to say that old content is all bad (because sometimes they make it look better), but as far as Microsoft is concerned, running your old NES games on the Xbox 360 isn't going to help them. Nintendo doesn't want you running Sony PS1 titles on the Wii or Gamecube because it dilutes their brand.

What I see as the interesting overlap here is that Nintendo really is pushing developers to think about these new platforms in new and interesting ways. What they haven't done is engage with home brew-ers, hobbyists or open sourcers. The other thing is that they haven't provided a way to get around the uber-conservative publishing companies, especially here in the US.

It is also interesting that Nintendo, of all the current console manufacturers, has yet to release an original title for their Virtual Console. What a great new medium which would circumvent timid publishers. Heck, it might even push them in such a way that they would HAVE TO publish some new interesting titles. In the mean time Nintendo would likely reap higher margins on those titles.

But, you know, it's easier to keep things closed and snuggle up with your existing developers, than to take a chance on all those people just itching to get a chance to develop for your system. If only the number of people playing with their Wii-motes on their PC's gives you an idea of the number, it's a lot. Not to mention even at RPI's game symposium this spring, several games used the Wii-mote as a control mechanism.

NY Times - Technology - Putting the We Back in Wii

"The relationship is warmer and more active than before," said Jeff Brown, the spokesman for Electronic Arts, the giant game developer based in Redwood City, Calif. The push appears to be bringing results. Analysts say one reason for Wii’s popularity has been its larger number of available game titles. At present, there are 58 games on sale in the United States for Wii, versus 46 for PlayStation 3, according to the Sony and Nintendo Web sites. That is a huge contrast with the previous generation of game consoles: to date, PlayStation 2 has 1,467 titles, overwhelming GameCube’s 271 titles.
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The Wii’s simplicity is also the selling point for software makers. Mr. Wada said developers had been slower to write games for PlayStation 3 because of the greater complexity of the console’s main processor, the high-speed multi-core Cell Chip. He said PlayStation 3’s production delays had also made Sony slow to provide developers with the basic codes and software needed to write games for the new console.

At Namco Bandai, Mr. Unozawa said PlayStation 3 was so complex, with its faster speeds and more advanced graphics, that it might take 100 programmers a year to create a single game, at a cost of about $10 million. Creating a game for Wii costs only a third as much and requires only a third as many writers, he said.

Wii News - Coding Contest

DCEmu via its Wii-News and Gamecube Emulation Sites are proud to present the first Dual Nintendo Wii and Nintendo Gamecube Coding Competition. This Coding Competition will hopefully ignite a mass of interest for creating homebrew and emulators on the Nintendo Wii and Nintendo Gamecube.
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Entries for the competition must work on either Nintendo Wii or Nintendo Gamecube or both via SD Load.

All entrys must work with SD Load or with an as yet Unreleased Exploit for Nintendo Wii. Modchip Versions of any releases must have a corresponding SD Load Version.

Entries can be Emulators, Homebrew Games, Demos or Applications that work directly on the Gamecube/Nintendo Wii.

Is this BAD or GOOD for the Industry?

It's interesting that Todd Mitchell's analysis of Nintendo's success is labeled broadly as "bad or good" for the industry. I think the answer is probably more likely that it's good for the industry and bad for publishers. But really that "bad" for the publishers is good in the long run, because it's going to force them to think differently than they've been thinking for quite a while.

Of course the current generation of DS and Wii games coming out of Nintendo is going to sell well. It's some of the more innovative stuff showing up out there. Just like Little Big Planet is going to sell like hot-cakes or why Katamari or Shadow of the Colossus sold well. New and interesting.

Selling a derivative title on a system like the DS or Wii with all of it's available resources isn't going to entice consumers.

While this might "bode poorly for the publishers" right now, perhaps it will force them out of the current rut that they've fallen into lately. And of course Nintendo is going to have some lead time on everyone else. Isn't that why they keep it internal? It gives them some time to milk their product while everyone else catches up.

I'm not necessarily a fan of that model, but I understand why they're doing it. And long term, hopefully publishers internalize this new idea that thinking outside the box is good.

In the mean time Nintendo needs to do a better job of courting independents, getting them to bring new and innovative titles directly to them, because right now the big publishers just don't know how to handle this newfangled stuff.

Analyst: Are Wii And DS Good For The Market?

As reported, Nintendo's fiscal 2007 report showed 23.56 million DS units and 5.84 million Wiis sold, with 123.55 million units of DS software, and 23.84 million units of Wii software -- all far above original expectations from the company and analysts alike.

Much of that software success, however, came from Nintendo itself, with New Super Mario Bros. moving 9.5 million copies, Brain Age selling 8.1 million copies and Nintendogs pushing 7.0 million, with newcomers Pokemon Diamond and Pearl already selling 5.2 million in Japan alone. Wii software, too, was similarly first party dominated by The Legend of Zelda: Twilight Princess and unbundled versions of Wii Sports.

All of this, says Mitchell, leads him to believe that "Nintendo's success with the DS and Wii bodes poorly for the publishers."

"Both [the Wii and DS] appear to be bringing new gamers into the market. However, this may not be a positive dynamic for the major video game publishers. Nintendo has not only increased the size of the market, but it has also re-segmented it in its own favor, in our view," he said.

"Nintendo is dominating software sales on its popular hardware platforms, leaving the publishers with a smaller slice of an only somewhat incrementally larger pie," added Mitchell, "Moreover, we feel that the likely shorter product cycles of Nintendo's platforms puts the publishers in a permanent catch-up mode."

Despite the ramp up of various third party publishers turning more development efforts to both the DS and Wii platforms, Mitchell concludes that Nintendo's domination of the software landscape isn't a trend due to end anytime soon, adding, "the upcoming releases of Super Mario Galaxy and Metroid Prime 3: Corruption will highlight this phenomena this holiday season."

Publishers "Scrambling" to Understand the Wii

This is an interesting article about publishers now figuring out that the Wii is a pretty good idea. Well, that's true, but I think they're going to have a lot harder time figuring out how to market and make games for the Wii. Much like US Publishers have had one hell of a time figuring out how to make games and market them for the DS, the Wii is going to prove just as difficult.

Sure all the basic games ought to make it out for the Wii (I'm holding out for hockey on the Wii), they're going to have to try some new stuff. Much like US publishers "don't get" the DS, they're going to take some time to figure out the Wii as well.

Hell, I consider Guitar Hero a prime example of how backward looking most publishers are. It took a new fringe publishing company to make GH happen. Of course they then get bought up by a company looking to extract maximum profit from the franchise, but it's sad that it takes these small forward looking companies to get gamers (and game developers) a chance to try new things.

Try new things. The Wii and DS are the cheapest platforms you can develop for. The risk has never been lower.

Bloomberg: Publishers 'Scrambling' to Get More Titles on Wii

With Nintendo's Wii having sold 3.56 million units in Japan and the U.S., the unique motion-sensing enabled system is already a bona fide success at this early stage in the console wars. While many anticipated the Wii to do well thanks to its positive E3 showing last year and all the hype generated up to its launch, Nintendo's new console has done probably even better than many expected.

According to Bloomberg.com, publishers were simply taken by surprise, with the exception of a few (like Ubisoft). "Those companies are backtracking," remarked Piper Jaffray analyst Anthony Gikas. "They're going to need to get their best-branded product on that platform. That will take a good nine to 12 months."
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While supporting any new console is generally a risky proposition, Ubisoft has believed in the Wii from the very beginning. The French publisher released 7 titles for the Nintendo platform in December and has another 6 games in the pipeline to be released by this June. "It's not really a bet anymore," said Ubisoft's Tony Key, head of marketing in the U.S. "It's a viable system that's going to make us money."

Indeed, games on the Wii cost (on average) far less to develop than on Xbox 360 or PS3, potentially saving publishers millions. Furthermore, according to research firm IDC, publishers will continue to be pressured into supporting the Wii as its install base grows. IDC is predicting that Nintendo will ship 16.1 million Wiis this year, outpacing 9.87 Xbox 360s and 9.1 million PlayStation 3s.

Ouch... GBA Outsells PS3

Numbers like these are always highly interpretable, but things definitely look good for Nintendo at the moment. My only hesitation really is that the only software titles in the top 10 for Nintendo systems are First Party titles, meaning that they're made by Nintendo.

If you look at the other platforms (360 for example, or the PS2) they're third party titles. Nintendo is going to have to not only work with developers to get more software onto their systems, but they're really going to have to encourage publishers to take some chances with new material.

Breaking: Nintendo Dominates February; Total Industry Sales Up 53%

Taking a closer look at the data, it's clear that Nintendo is dominating. On the hardware front the DS sold more than any other platform with 485K units, followed by the Wii with 335K units. The PS2 once again outsold the Xbox 360, 295K vs. 228K. Meanwhile, the PS3 sold a disappointing 127K, far below analysts' estimate of 200K. In fact, the old GBA even outsold the PS3, with 136K. Sony's PSP managed to sell 176K. Finally, trailing the pack (essentially on life support) was the GameCube with 24K.
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1. Crackdown (Xbox 360) – Microsoft – 427K
2. Wii Play w/ remote (Wii) – Nintendo – 371K
3. Diddy Kong Racing (DS) – Nintendo – 262K
4. Legend of Zelda: Twilight Princess (Wii) – Nintendo – 130K
5. Guitar Hero 2 w/ guitar (PS2) – Activision – 130K
6. Gears of War (Xbox 360) – Microsoft – 119K
7. Major League Baseball 2K7 (Xbox 360) – Take-Two – 113K
8. Lost Planet: Extreme Condition (Xbox 360) – Capcom – 111K
9. WarioWare: Smooth Moves (Wii) – Nintendo – 109K
10. NBA Street Homecourt (Xbox 360) – Electronic Arts – 102K

Analyst: Next-Gen Underperforming; PS3 Price Cut 'Critical'

With PS3 sales not meeting expectations, at this point Patel said that a price cut on the hardware is "critical," but the analyst does not foresee that happening until at least the start of Sony's next fiscal year (April), and even that is a "long-shot," Patel stated.

To put the PS3's situation in context, Patel said, "PS3 consoles are available at retail but sales are lackluster. Its 130K units sold in February was less than Xbox 360 sales last year (160K) and even less than the original Xbox sales of 140K in Feb-2002."

Deutsche Bank was equally unimpressed with the Xbox 360, however. "Particularly disappointing is Xbox 360 HW sales of 230K in February, which puts its installed base at 5mn or in-line to the original Xbox which was an unproven console and faced substantial competition from the PS2," Patel noted.

Flow Special Video Games Issue Goes Live

The new issue of the Flow Journal has gone live, and my article, "The Wii-volution will not be Televised: The XNA-cution of a Business Model" is included there. They made a snazzy little summary line for it in some of their promotional material:

"While Nintendo's Wii has been causing a stir among gamers and the general public alike, Microsoft is fundamentally changing the way video games are created."

Iwata Cautious About Early Wii Success

It's amusing that Iwata despite the Wii selling like hotcakes, is aware that software sells hardware more than anything else. It's at the same moment you hear from Sony top people, "We've Got a Better Machine & We're Going to Win" but they sure don't have much software to go with it. Not to mention that Sony isn't doing much to make developers lives easier... And anyway, isn't the PSP's biggest problem not enough games?

"Any system will sell well following launch," Iwata remarked, "but there will definitely come a time where it will stop selling. Even the DS hit a rough spell after selling 1.5 million units a month after launch. The flame was really lit a year after launch, after Nintendogs and Brain Age became big hits. With the Wii, we have to make good software just as we did with the DS."

Q&A: Impatient Shoppers On 'Why Wii Want A Wii'

Several things about the Wii continue to amaze me.

1. It continues to be hard to obtain. Given that every single component of the Wii is easier and cheaper to manufacture, and by all accounts yields should also be higher on all of it's components yet it cannot meet demand.
2. Either stores are actively lying to consumers about their knowledge about stock, or they're keeping the information in the hands of a select few, leaving other workers to deal with frustrated consumers. In this age with real time ordering and inventory systems, it is simply false that stores do not know when a shipment is coming in. Employees may not be made aware, but someone somewhere knows. Why not provide some info? Just because Target has a back door into their system is the only reason consumers have turned to them more than any other retailer. It's good for business for consumers to know that they can get what they want.
   
3. Wii Parties!
   

Frustration Factor... Rising?

One notable factor for those queuing was frustration, since Wii demand has way, way outpaced supply, leaving many shoppers steaming. “For about a month and a half now I've been trying to get one, and it's just impossible to find,” commented one shopper. “You have to come right when the UPS driver delivers it, and Best Buy refuses to tell you whenever they are getting in shipments. They lie and tell you that they have no idea when they are coming in, when they obviously do know when they are coming in.”

Another couple noted similar experiences: “We've been to at least fifty stores checking for at least three weeks, and we haven't found one yet.” The relative ease of finding games for the Wii is additionally frustrating many consumers, while the console itself and further Wii-motes have been more or less unattainable.

GH on the Wii Too I Suspect!

Activision has long been a supporter of multiple platforms. I suspect that you'll see GH in a revised incarnation on the Wii, Xbox 360, and possibly later on the PS3. The difficult component of this is that you have to have different connectors for each of your distributed guitars. I also presume that there will be demand for wireless controllers on systems that support it. All three platforms will support network connectivity, so perhaps you'll be able to purchase new songs, a long coveted feature. The trouble is, where will you put them all?

GameDaily BIZ: Guitar Hero Goes Multi-Platform

According to numerous Internet reports, Activision's CEO and Chairman Robert Kotick revealed that Guitar Hero will release on every format deemed "significant." This was revealed during a keynote address at the Goldman Sachs Communacopia XV Conference. It was not announced which platforms Guitar Hero will be coming to specifically, but the release will apparently come in 2007.

This announcement comes on the heels of rumors that state that Guitar Hero will be coming to the Xbox 360 in early 2007. RedOctane, the game's publisher, has yet to release an official statement on the matter. Guitar Hero II will release on PS2 in November 2006.

Mii Avatar on the Wii eh?

This will be interesting. I wonder if Wii owners/players will start carrying around their Wii-motes with their avatars on board so that when they wind up at a friends house they can play Wii-games with their personalized Wii-vatar.

Fils-aime details Wii Channels // GamesIndustry.biz

Users are able to create their own avatar using the 'Mii' channel, which can then be stored in the Wii remote control and imported into games.