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Wednesday, October 10, 2007

Opinion: Poor Wii, DS Game Clones Only Benefit... Nintendo?

- [In this GameSetWatch editorial, Game Developer/Gamasutra publisher Simon Carless discusses Nintendo's 'laissez faire' attitude to third-party game publishing, and whether its lackadaisical posture could actually be benefiting the company's first-party titles.]

So there's something interesting going on in the house of Nintendo - and it involves the swelling market for DS and Wii games, and Nintendo's lack of concern over assuring quality on said games. This conversation spools off the most recent issue of Ziff Davis' EGM Magazine, which has an excellent article on Nintendo's quality control for approving third-party titles, and what it means.

GoNintendo has a brief summary of the ideas behind the article. Now, I won't rehash EGM's piece too much, but it very correctly points out that Nintendo is the only major hardware manufacturer right now which has no stringent concept approval for games - both for the DS and Wii. And this is leading to a whole heap of average or poor quality games for Nintendo's consoles. But I want to springboard off this concept and go... further!

So, it's true that 'classic' games like Billy The Wizard (formerly Barry Hatter: The Sorceror's Broomstick) - which Conspiracy is putting out in North America - could and would never have been published in North America on Sony or Microsoft consoles (though the ever-relaxed SCEE did let it through!) And, oh my, there are plenty of other 'shovelware' titles coming soon. But... does it matter?

Now, setting aside the whole Nintendo 'Seal' vs. 'Seal Of Quality' discussion - which is a bit of a red herring, in some ways, it all comes down to an interesting question. Is Nintendo actually doing itself a favor by allowing all these titles to flood the market? No, seriously - here's how it goes:

- Wii and DS owner picks up a deeply average third-party game by Company X.
- Said owner plays it for a while, and gets frustrated at the poor use of the Wiimote and the relative shallow gameplay.
- Owner crosses Company X off his list of publishers he will play games from.
- Returning to the game store, Wii/DS owner goes back to what he knows - family games featuring Mario, Donkey Kong, Pokemon, and other long-time Nintendo mascots. In other words, first-party games.

- So - is this whole 'open' publishing tactic by Nintendo just a ploy to dilute the market and drive consumers back to their only guarantee of quality - a 'published by Nintendo' label? Oh, the conspiracy theorists would love you to believe that!

But... nope - I just don't think that's always the case. For one thing, many of the clones that don't include mascot characters - particularly of Nintendogs and Brain Age - are so relatively close to Nintendo's own products that I'm sure that some gamers must be picking them up instead. For example, to joust for shelf space with Nintendogs, here's Pets: Dogz 2 from Ubisoft (and yes, there's a franchise precedent for this, but..), Paws & Claws: Dogs & Cats Best Friends, and a host of others. They all have cute pets on the cover - why would you care whether it's made by Nintendo or not?

Conversely, after (or even before) you've played through Brain Age, why not try Brain Buster Puzzle Pak from Sega, or Brain Booster Beta Wave from Majesco - which even comes in two flavors, much like the Pokemon games do. (I don't remember seeing such calculated clones for the DS in Japan? Or am I just being over-hopeful?)

To conclude - this is an incredibly nuanced question. In some ways, more choice is great. It's something we're used to on the Internet, with DVDs, with music CDs, and with PC casual games - which also suffer from cloning issues, for better or worse. And Nintendo is opening up the market to publishers of every size and games of every type - there's no accusations that 2D Japanese titles are getting unfairly blocked when there is a market for them, as SCEA has been accused of in the past.

In addition, let's face it - concept approval for Microsoft and Sony's consoles hasn't always led to top quality titles, and in fact, may have dissuaded the kind of simpler, more 'mainstream' games that are thriving on the DS and Wii right now.

But there's a bottom line here - if the relatively poor uses of the Wiimote and the sometimes derivative set or over-simplistic (rather than 'casual') games on Nintendo's consoles continue - then first-party will again rule the waves, as consumers stick with what they know. And that's a-him, Maaario!

Comments

_Brain Buster Puzzle Pak_ may be clonily named and packaged, but it's actually a collection of puzzles by the Japanese publisher Nikoli (http://www.nikoli.co.jp/en/). Though the puzzles in _Brain Buster_ are generally on the easy side, Nikoli is respected as one of the most careful publishers of abstract logic puzzles, even in an the market glut where computer-generated sudoku are puzhed out in the thousands. Nikoli, who refined the modern sudoku, is also responsible for the sudoku puzzles in Nintendo's orginal _Brain Age_.

Why, yes, I am planning to write about Nikoli soon. Why do you ask?

I have to disagree. The kind of people who pick up "Billy the Wizard" in the first place aren't the kind of people who pay attention to who's publishing what. To them it's "Wii games". They won't know the difference between EA, Nintendo, Nikoli, etc., and are more likely to think "Wii games suck" IMHO.

I, as an avid gamer, certainly pay attention to publishers and have some blacklists, but I also would never pick up a blatant mascot ripoff game in the first place.

I don't see how shovelware would be benefiting Nintendo at all.

Heh - that's really interesting, Tablesaw - I didn't know that!

"In addition, let's face it - concept approval for Microsoft and Sony's consoles hasn't always led to top quality titles, and in fact, may have dissuaded the kind of simpler, more 'mainstream' games that are thriving on the DS and Wii right now."

What non-Nintendo games are thriving on the DS and Wii? Unless by "thriving" you mean, "taking up shelf space." There's a lot of games out there, but most aren't selling squat, particularly when compared to the sales of Nintendo's games. Whether that's because of their lack of quality, the strength of the Nintendo brand, or something else, I dunno.

It seems to me that the only platform where third-parties regularly sell big numbers is on the 360. And it's the hardcore audience that's driving those sales.

Well, there are SOME titles that are selling well, Steve - High School Musical for DS was in the Top 20 all-formats for NPD last month, for example.

Ah, right. A handful of licensed games do sell for the DS. The Disney/Pixar games do well too. (Basically, we're talking about kids games, or the odd Puzzle Quest.)

But it's just amazing that for all of the talk of the size of the install base for the DS and how the Wii is "taking over the world," neither moves that much software for anyone other than Nintendo. DS and Wii games should be dominating the Top 10 lists every single month. Instead, it's mostly 360 (and PS2) games.

So yeah, good for Nintendo, not so useful for anyone else.

Well... maybe. I don't think it's as simple as that.

For one thing, I'm pretty sure breakeven point on development/distribution costs for DS and Wii titles is significantly smaller than PS3/Xbox 360 games. So domination of NPD charts may not matter to profitability.

50-100k could be breakeven on a DS title, compared to 250-500k for a PS3 game.

Secondly, there's been some claim - at least by Nintendo - that their products have much longer shelflifes, and don't sell massively in the first month and then tail off majorly in subsequent months.

If a lot of the consumers are more 'casual' and don't pay attention to when a game comes out, this may be true - and the games will factor less into the very top of the charts as a result, but sell more steadily.

Having said all that, I am to a certain extent playing devil's advocate - I do think the Wii/DS market is dominated by first-party games a lot more than third-party publishers are realizing when they rush to put their games on those platforms.

"For one thing, I'm pretty sure breakeven point on development/distribution costs for DS and Wii titles is significantly smaller than PS3/Xbox 360 games. So domination of NPD charts may not matter to profitability."

It is and it isn't on the DS, at least from the (minimal) research I've done. The actual game costs a lot less to make, but the COGs---and risks involved when predicting sales numbers---is off-the-charts compared to other games. From what I gather, a $30 game is eaten up by like half in upfront COGs for the damn cartridges and licensing fees.

So, when people say the DS prints money, it does for those games that go way beyond 50K or 100K. And while those low sellers may make modest money for someone, Nintendo is still the only one making guaranteed money.

You could definitely make more money on the Wii with fewer sales, though.

(I don't doubt the longer shelf life claim, though that may only work for non-licensed stuff; I wonder how many kids want a Cars game a year after the DVD releases?)

I don't see why Nintendo is getting the stick for this... the PS2 certainly had a huge share of crap shovelware titles. So if Sony has a review board, they had lax standards over the past five years. Getting a flood of below-average titles just means the userbase is large enough that any POS has a chance of selling.

Every game printed by Nintendo is subject to a licensing fee paid by the publisher during the manufacturing process. This means that every 3rd party game manufactured, regardless of the number sold, profits Nintendo.

Why, then, would Nintendo want to limit the release of 3rd party titles? More titles means more profit, and there is very little monetary risk on Nintendo's part because they are paid before a single game is sold.

A general lack of quality games could potentially lead to fewer console sales and a diminishing active install base. Console sales attract developers to the platform. They develop games, which profits Nintendo. Good games, in turn, drive console sales. It is, therefore, important to have a steady supply of titles that people want to buy. Otherwise, console sales will lapse, developers will more elsewhere, and your revenue stream will disappear.

This is where Nintendo's first party titles come into play. Their titles, which are subjected to stricter quality control, provide stability for the platform and lead to a steady stream of console sales. People buy the console because they want to play "Game X." In turn, this brings more 3rd party developers to the platform and the cycle of console and game sales continues.

As long as Nintendo can continue to supply users with enough quality titles to maintain interest in their platforms, 3rd party games, despite their quality, will be important to Nintendo's business.

I can imagine that part of it is that Nintendo had a reputation for being uncooperative with third parties, and so they are deliberately being more forgiving in order to combat that reputation.

What about the fact that all these 3rd party games fill the shelves with...well, DS & Wii games. When someone goes into a store, and looks at the number of games each console has, they might be more willing to pick a DS or Wii on the fact that it has TONS of games for it. I think it's part of the buying decision for many.

"When someone goes into a store, and looks at the number of games each console has, they might be more willing to pick a DS or Wii on the fact that it has TONS of games for it. I think it's part of the buying decision for many."

That's true for the hardcore, but for the person who's heard about this "Wii thing" or seen it on TV---which Nintendo (and the press) keeps saying is happening all the time---the big library is probably less important than the one game (or two) that actually got them to the store in the first place.

And if you believe some of the consumer studies, more choice isn't always a good thing. Games aren't cheap, so a person might wonder what's actually worth buying. When faced with a wall-o-software, yikes. What criteria do they use? Reviews? Hah, right.

This may lead them back to Nintendo only, who they already trust.

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