Nintendo's dilemma: Fighting for the long tail

Source: Internet
Author: User
Keywords Dilemma Nintendo
Xu Jieyun Nintendo seems to be in big trouble. The game giant suffered the most embarrassing report: Net loss of about $332 million trillion in the first quarter of this year, and a 50% decline in revenue.  The main reason is that the 3DS Palm machine sales downturn and the yen continued to appreciate. was entrusted with the task of a new generation of handheld gaming machine products 3DS, three months to sell only 710,000 units. Compared to the previous generation of NDS series and the Wii Market first week sales, miserable.  To that end, they had to cut prices from 25000 yen to 15000 yen per unit.  To that end, Nintendo has cut net profit forecasts for the entire fiscal year by 82%, which it intends to earn 900 billion yen. Nintendo has lived unusually well over the past few years.  With the heterogeneous competition route of home computer Wii and Palm machine NDS series, it puts more users who play less games or even don't play games into the game field. Compared to the hardcore core players, casual gamers, as the long tail part of the game market, contribute a larger amount of value and explore potential.  Also because of this, even though the performance of both the home and the handheld is far less than that of Sony, Nintendo has won a large number of long tail markets by playing innovations such as body sense and touch screen. The long tail, the defeat also long tail.  One of the most important aspects of Nintendo's current predicament is that the market share has been "intercepted". In the new generation of competition, Nintendo hopes to rely on the previous approach to continue to lead, they are in the 3DS handheld first added 3D features. But this time they met another group of powerful predators-mobile games on the smart handheld terminals and social games on the Internet and the various terminals and operators that carry them-and Nintendo has been moving from first-party software to proprietary hardware platforms,  This also makes it face the industry chain each link opponent's siege. The Apple platform is one of the toughest rivals. Take "Angry Birds" for example, the game currently has a global cumulative download has reached 300 million times.  This is an issue that any Nintendo game can hardly have a candle to. More importantly, "Angry Birds" download fees for only 0.99 dollars, and a large number of online social games even free.  While these games are not much comparable to Nintendo's many games, the likelihood of a dozens of-dollar purchase of Nintendo's platform games is clearly reduced for large "long tail" consumers, who only have time or leisure to spend on debris.  In the meantime, the new competitors chose to "intercept the long tail in the long tail". Nintendo's once-light entertainment, alienation experience is now encountering rivals "to the way, but also to the body." Smart terminals such as Apple, touch screens, gyroscopes, gravity sensors and many other innovative applications to join the gaming experience, which is similar to Nintendo's approach. The vast number of terminal holdings, convenient game software distribution and download channels is far from the Nintendo.  In all kinds of electronic leisure applications more and more, users enter the threshold low, debris time to adapt to become a "long tail kill" priority. OptionalHeaven is stubborn, refusing to admit to being moved by mobile games or social games, and emphasizing that the strategy of developing games for its own hardware has not changed and will not change. But it's a little bit of a self-deception. The data on the market are relentless. The Flurry Analytics report shows that Nintendo's share of the market for US portable gaming software in 2009 was 19% 70%,ios.  Last year, Nintendo's market share fell to 34% per cent of the 57%,ios and Android joint market share. If you compare the terminal shipments, the two sides are also far from the same, and do not say that the iphone, also in this year's newly released IPad2 is now a single quarter shipments have exceeded 10 million units.  Compared with this, 3DS shipments of the situation. Nintendo bears the brunt of the birds, but the "long tail scramble" effect is much more than that. Close to the core player side of the online games industry is also very vigilant.  In fact, many of the domestic companies by virtue of MMORPG to start large online games such as Tencent, Shanda, giants have begun to embrace mobile games, web games and other light entertainment links. Nine City vice president, Korean Park has been operating MMORPG class client large-scale online games business, but even so, last week with the author of the exchange he also admitted that social games, mobile games will be the future development of the game industry's main direction.
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