In Business Model, Distribution, News, Nintendo

Nintendo Network for Console Platforms

Nintendo finally has a game network.

Nintendo finally has a game network.

JAN. 30, 2012 • During a financial conference call, Nintendo Co. Ltd. announced it would launch its own console network platform.  The new Nintendo Network will support the Nintendo 3DS and the Wii U. Unlike the Nintendo Wi-Fi Connection, which has been focused upon specific functions and concepts, the Nintendo Network will provide a fuller selection of services  to consumers including competitions and communication between users, as well as the sales of digital content. The gamemaker is also considering the future possibility of digital distribution of its packaged software. The capability is already built into the 3DS, and the same infrastructure will be added to the Wii U. A decision on when such sales of complete titles will happen is yet to be made. Square Enix’s Theatrhythm Final Fantasy will be the first packaged title on the 3DS to have digital add-on sales available starting Feb. 16.

Impact: DFC has been watching Nintendo and its online activities over many years.  Nintendo has focused on a slow and steady pace to build an online presence, and for them, that strategy probably makes sense.  Ten years ago, when Microsoft was building Xbox Live, DFC predicted that other manufacturers would eventually follow suit and build their own network that they controlled as opposed to having an open network.  The thing is that is easier said than done and problems that we have seen pop-up on both PSN and Xbox Live show the challenges.  The Nintendo Wii and DS allowed for online game play and downloadable content, it just wasn’t under a full-fledged “Nintendo Network.”  The Wii and DS lifecycle would probably not have been greatly impacted by Nintendo having more robust online offerings.  But launching a new system in 2012 consumers expect  a solid online experience and really it is Apple to blame, not Xbox Live or PSN.

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