My argument is that Nintendo has done a wonderful job as a game company, although most of you will call me a Nintendo Fanboy and disregard this immediately, I will make my argument as objective as possible.
There are 2 sides to any game company that needs to be looked at. First, the business side.. are they turning in a profit? Are investors happy? Does the company hold firm ground in the field they are in? etc. Secondly, there is the gaming/ product side.. Are the games fun? Is the hardware reliable? Are consumers happy with the product?
As a business, Nintendo has done a spectacular job. They never sell anything without making a profit off of it. This is VERY important for Nintendo as they do not have any other means of income. Sony has Consumer Electronics and Entertainment while Microsoft has Computer Hardware and Software. Investors are almost always happy with Nintendo's results and Nintendo continues to be a leader in the gaming market as a developer and console.
The Gaming side, however, is not as spectacular... but I still argue that they have been really strong in leading the market. Nintendo constantly innovates, thanks to the fact that they focus purely on the gaming industry and knows it has fanboys that will follow them wherever they go. Why does Nintendo have crazy "fanboys" you ask? Its because Nintendo caters to children.. If gaming was a drug, then Nintendo is that seemingly nice dealer that waits outside elementary schools and local arcades. The young, influential clients then become loyal "users" and constantly come back for more. Its that simple. Nintendo is also known for their excellent products (high quality games and sturdy hardware) and customer support. In the end, Nintendo has always made sound decisions in business which nets them huge profits, so they can experiment with innovation in the market. Brilliant.
2. My prediction: Wii-Shuffle
Believing that Nintendo makes sound decisions in the gaming market, I predict that the Wii is a design meant to last for 5 years, but stall for only 2. Like a child trying to walk in step with an adult, Nintendo has inevitably fallen "a step behind". So what does that kid do to catch up? Simple.. takes 2 steps in the same amount of time the adult takes for one. Nintendo doesn't have other areas to gather income, and does not have the means to throw money around to keep up with industry standards set up with giant companies like Sony and Microsoft.
I predict that this shuffle will happen in about 2 years. Nintendo would release another system around the year 2009, more akin to PS3 and Xbox360. This will do several things to give Nintendo an advantage. Any "non-gamers" who jumped on the Wii bandwagon will probably use this new system as a stepping stone, which will raise the gaming audiences for 3rd party developers. Nintendo will also be 2-3 years ahead of Microsoft and Sony because they can't afford to lose more money on new systems. Nintendo will also have access to cheaper and more reliable hardware... So they'd still make a profit off the systems.
3. Conclusion
Nintendo always has and always will make "different" choices.. some will fail and will be seen as huge mistakes in the industry, but the others will be accepted and successful, and most likely completely change the industry. Not a lot of gamers like Nintendo games or the looks of their controllers, but a lot of people do believe in Nintendo as a company. They have always kept the consumers in mind and try to bring the most amount of fun at the lowest prices. You just can't beat that.
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