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Namco Bandai: Nintendo Markets Have Collapsed

- By - Source : Tom's Guide US

A Namco Bandai VP reveals why the Nintendo Wii and DS have taken a nose-dive on the market.

Has the fad surrounding Nintendo's Wii and DS consoles finally faded out? Namco Bandai's VP of sales, marketing and publishing Olivier Compte threw a one-two punch at the gaming company, tossing up a few surprising comments about the quality of both platforms and the state of both markets.

"It’s a tough market," Compte admitted in an interview. "DS is the most successful platform ever, but all my kids’ friends at school have a DS with an R4. They have 100 games for no money. So yes, the market has collapsed for the DS and Wii." 

Naturally, that means less money in his pocket. Earlier in the interview, he refused to comment on Namco Bandai's performance in Europe, saying that the company is suffering from the market even though its reasonably close to earlier forecasts. It took a big hit in the wallet thanks to a sudden halt of Nintendo Wii and DS sales, costing the company money as it struggled to manage inventory at retail. Was this decline due to piracy, or the actual quality of games? 

“We had  a lot of product, and the average quality of a game on DS and Wii is  very, very bad," he said. "So in the mind of the consumer today, to buy a DS or Wii game is to buy a game that isn’t very good."

Ouch.

Strangely enough, he also praised the Nintendo DS, saying that it was a "fantastic machine" and very easy to develop for. "It was possible for three kids in a garage to make a game  for it," he added. But he also admitted his remorse for the platform, noting that piracy was indeed one of the forces behind the overall collapse of the DS market. 

While that may be true, Apple may have some hand in its demise. The iPhone and iPod touch provide better graphics and touchscreen technology. Both Apple devices also provide more than just games, offering tools, video and audio media, and more. They're more diverse even when compared to the DSi. In the mobile market, Nintendo will seriously need to follow Apple's footsteps if it wants to keep its share of the market. Will the 3DS be able to take on Apple?

[Edited by Eric Wang]

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Transmaniacon 06/10/2010 6:45 PM
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The problem with games for Wii or the handhelds, is they have a younger marketbase, and the games themselves are not long-lasting. You play them, you beat them, and thats about it, theres a reason there are SO many games for them. Its just the nature of the system, to have games with less content and features. Many people can't afford to always be buying new games to keep their interest.

halls 06/10/2010 6:46 PM
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I have to agree with the statement that most Wii/DS games aren't very good. I sold my DS a year or two ago, and the only game I've played on the Wii consistently is Smash Brothers: Brawl. Super Mario Galaxy 2 is the first Wii game I remember being excited about in years.

bollwerk 06/10/2010 6:51 PM
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But he also admitted his remorse for the platform, noting that piracy was indeed one of the forces behind the overall collapse of the DS market.

Most people have no idea how to pirate a game for a console or handheld, so I find this hard to believe. Many people pirate movies and music, but not console or handheld games.

theroguex 06/10/2010 6:48 PM
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Quote :While that may be true, Apple may have some hand in its demise. The iPhone and iPod touch provide better graphics and touchscreen technology. Both Apple devices also provide more than just games, offering tools, video and audio media, and more. They're more diverse even when compared to the DSi. In the mobile market, Nintendo will seriously need to follow Apple's footsteps if it wants to keep its share of the market. Will the 3DS be able to take on Apple?


For real? Who in their right mind plays real games on an iPhone, iPod Touch, or iPad? It's just stupid. These things won't take over the game market, except for maybe the casual market. Let the cheapy-crappy games go to Apple; I'll keep playing my real games on my real game platforms.

ChrisCornell 06/10/2010 6:57 PM
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Please keep pirating console games, so developers can loose their love for the old hardware boxes and start developing for the pc-platform again. please please please

restatement3dofted 06/10/2010 7:01 PM
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theroguex :
For real? Who in their right mind plays real games on an iPhone, iPod Touch, or iPad? It's just stupid. These things won't take over the game market, except for maybe the casual market. Let the cheapy-crappy games go to Apple; I'll keep playing my real games on my real game platforms.



You're fooling yourself if you don't think that Apple is gradually becoming more and more of a threat to Nintendo and Sony in the handheld gaming market. People have started putting real time, money, and energy into developing for the iPhone/iPad/iPod Touch, and as it becomes more familiar and people figure out how best to develop games for a pure touchscreen format, it's going to become even more of a competitor.

I don't like it - I'd prefer to keep playing on a system with actual tactile controls - but trying to deny that Apple is establishing its systems as viable platforms for gaming, and trying to deny that it poses a threat to Nintendo and Sony's systems, just shows that you are actively ignoring what's actually going on.

oncall 06/10/2010 7:08 PM
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"For real?"

Recent trips to Disney and my local mall tell me yes it's "for real". I am noticing a lot more kids playing games on iPod touch's, some even using iPhones which I assume are hand-me-downs from mom and dad. It makes sense to me, the games for Apple's products are usually dirt cheap or free, without resorting to piracy, plus music/video/web surfing. Less trips to the mall to have to run the Gamestop guantlet and their endless "Would you like to sign up for our money saving membership and trade-in program".

afciscoguy 06/10/2010 7:07 PM
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Chriscornell :
Please keep pirating console games, so developers can loose their love for the old hardware boxes and start developing for the pc-platform again. please please please




Been saying this for years now, pirating on ANY console usually involves one chip for 50 bucks and a source of games... THAT'S IT!! AND, once you've hacked into your console/handheld, it's as easy as download and burn the game to get it running!! No cracking, no hacking, just easy to play!!

HalJordan 06/10/2010 7:13 PM
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theroguex :
For real? Who in their right mind plays real games on an iPhone, iPod Touch, or iPad? It's just stupid. These things won't take over the game market, except for maybe the casual market. Let the cheapy-crappy games go to Apple; I'll keep playing my real games on my real game platforms.



Do not underestimate the power of the FarmVille zealots...

CoryInJapan 06/10/2010 7:12 PM
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I knew this milk train would come to a halt sooner or later.Although, I give it to nintendo for making it last a few years longer than I thought it would.

Nexus52085 06/10/2010 7:22 PM
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I think this guy is misinformed, and his statement is a big fat example of Namco's bitterness towards Nintendo for destroying their arcade market in Japan.

Anonymous 06/10/2010 7:28 PM
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I consider myself an avid and experienced gamer (PC, multiple consoles, and portables over 20+ years). Ever since I got my iPhone I've barely touched my DS and PSP. My iPhone's apps are mostly games. I like the bite-sized nature of the games, especially when commuting or traveling. So I think Apple is onto something. There's a bit of a compromise with the touchscreen controls but it's not that bad. It's been a good enough of a gaming experience that I don't have to carry another gadget around just for games.

hixbot 06/10/2010 7:29 PM
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It's all about market penetration. DS might be the better gaming platform, but apple has surpassed them in units sold. get the units in people's hands and software (game) sales will rise.

maigo 06/10/2010 7:45 PM
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Market Saturation; everyone who wants one/can get one already HAS one.
If Ninten-doh was smart enough to sell a Wii-HD everyone would be out rebuying their Wii's, and the 1 million Wii's a week trend could continue. But no, it's been 4 years, they've sold 2 billion of them and there is no one left to BUY it.
Stupid Nintendo, make something NEW this decade and be quick about it.

squiggs77 06/10/2010 8:05 PM
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I don't think piracy is killing sales. That seems like the excuse software companies use explain why they aren't making as much money as they planned. When I believe it's either, A) The quality of the games. Or B) Poor marketing so no one is interested in it.

hoof_hearted 06/10/2010 8:02 PM
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Apples games are ok, but I believe it is their content delivery system. Very easy and spontaneous to just hit buy now on Sims 3, Final Fantasy, Zenomia, Chaos Rings, and a slew of other games that my daughters love. I get to install to multiple devices at the cost of one game (no fighting over the pokemon savegame or having to buy a duplicate because they only let you have one save). No more kids losing the DS cartridges. I am no Apple fanboy, but they are alot more giving in terms of what you get when you buy the game.

flachet 06/10/2010 8:38 PM
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Am I the only person here that doesn't know what the heck an R4 is, or does and how that impacts Mario Bros.?

I try to stay on top of gaming news for everything but I'm blindsided here.

Ondoval 06/10/2010 8:45 PM
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"While that may be true, Apple may have some hand in its demise. The iPhone and iPod touch provide better graphics and touchscreen technology. Both Apple devices also provide more than just games, offering tools, video and audio media, and more. They're more diverse even when compared to the DSi. In the mobile market, Nintendo will seriously need to follow Apple's footsteps if it wants to keep its share of the market. Will the 3DS be able to take on Apple?"

I was reading lately that both (iPad and iPhone 4) are currently cracked -yes, even the still not released iPhone 4-.

bustapr 06/10/2010 8:50 PM
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flachet :
Am I the only person here that doesn't know what the heck an R4 is, or does and how that impacts Mario Bros.?I try to stay on top of gaming news for everything but I'm blindsided here.


R4 is a DS cartridge with a micro sd card slot. People download pirated copies of DS games and put them on the card, and they have instant access to anny game ever made on the ds. They sell one in radioshack, i believe, they were originally intended for cheats.. It affects games because people prefer pirating over spending 40 bucks on a new mario game.

gnookergi 06/10/2010 8:50 PM
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flachet :
Am I the only person here that doesn't know what the heck an R4 is, or does and how that impacts Mario Bros.?I try to stay on top of gaming news for everything but I'm blindsided here.



R4 is a flash cart (that you can connect to your computer) that you can use to play homebrew or downloaded DS files. In other words, it allows you to download DS games from the internet and play them on your DS without paying for the game at a store - like an honest person would.

utengineer 06/10/2010 9:04 PM
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blurr91 06/10/2010 9:08 PM
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DS suffers from the old content delivery model and high price.

You can download a game for free or next to nothing on your iPhone and play it. It's great for a time-waster. Something small and interesting to give me something to do for 5 minutes so I don't have to look like a creep staring at other people walking by at an airport.

Nintendo needs to change the DS game model from cartridge based to download based. Have an online store that sells little games for $5 or less. Download and store on a SD card. Nintendo can still have the serious games on a cartridge for $20. But I think even that is too much. Maybe $15 to really spur the sales.

tokenz 06/10/2010 9:16 PM
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Its not piracy that is killing sales. It's I want one device. I dont want to carry an tablet, smartphone, gaming handheld, car keys, chew, wallet, and cash. I only have so many damn pockets. Since my phone is always on me, and I can just download a game, (android phone by the way no crapple stuff here). Thats what gets used.

Kelavarus 06/10/2010 9:19 PM
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squiggs77 :
I don't think piracy is killing sales. That seems like the excuse software companies use explain why they aren't making as much money as they planned. When I believe it's either, A) The quality of the games. Or B) Poor marketing so no one is interested in it.



Quality is somewhat not part of the piracy issues. People are still pirating non-quality games up the wazoo. If there was no piracy, people would have to try them to see if they really wanted them. Most people I know don't rely on reviews anymore, since most out there don't always seem to be helpful.

Does Piracy guarantee lost sales? No, but to say it doesn't rule them out either isn't correct either.

flachet 06/10/2010 9:45 PM
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Thanks for the info guys!

fracture 06/10/2010 10:20 PM
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The reason why the Wii and DS isn't selling as much anymore is because everyone has one by now!

tbq 06/10/2010 10:46 PM
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Almost everyone I know that plays games has both a DS and Wii already, so the market is saturated. I don't see the reason to trade my original DS in for a new DSi, so sa long as my DS works I'm out of the hardware market for a while.

I take my DS everywhere, and always play when I have a few minutes to spare. I see them everywhere so I don't know what they mean when they say that the market has collapesed.

gamerk316 06/10/2010 10:58 PM
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Actually, for the DS, piracy is a problem, as DS emulators have gotten quite good [DeSmuMe, No$GBA, even Ideas isn't that bad...]. And ROMS aren't hard to find either...

That being said, the majority of titles is shovelware for the DS.

fulle 06/10/2010 11:06 PM
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You have to find a way to put something about the iPhone in every article, don't you Kevin. Children don't have cash for smartphones, genius.

milkman172 06/10/2010 11:26 PM
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Regurgitated nostalgia eventually wears off. I could care less about mario these days as I did in the past, and parents just don't want to shell out $40-$50 anymore on the same game over and over.

Anonymous 06/10/2010 11:36 PM
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The iphone has the power for decent games but the controls are still an issue, ive yet to play an iphone pacman that isnt a total abomination thanks to touch controls. Apple should have made iphone 4 slighty thicker and added a slide out pad.