Nintendo's Wii Console: A New Era in Gaming

Strategic Insights -

The Nintendo Wii console is set to launch on Sunday, targeting a broader audience beyond hardcore gamers. The innovative motion-sensing controller, priced at $250, is positioned as an alternative to Microsoft's Xbox 360 and Sony's PlayStation 3. Nintendo's focus on simple, intuitive gameplay aims to bring nongamers and lapsed gamers back into the fold.

Key Takeaways:

  • The Wii remote can detect motion and rotation in three dimensions, and can be used as a pointing device for shooting games.
  • Nintendo expects to have 30 games for the Wii by the end of December, with a steady flow of titles after that.
  • The company secured the support of major third-party publishers for the Wii, unlike its previous launch of the GameCube console.
  • Games for the Wii can be developed for as little as a half to a third of the cost of games for the Xbox 360 and PS3.
  • Nintendo expects to ship 4 million Wii consoles worldwide by the end of the year, with a simultaneous launch in North America, Japan, and Europe.
  • The Wii is the cheapest of the new consoles, priced at $250, while the Xbox 360 costs $299 or $399, and the PlayStation 3 has models costing $499 and $599.
  • Nintendo's business model is centered on making money on its hardware, unlike its rivals who sell their machines at a loss and hope to make up for it through game software sales.
  • The Wii's innovative controller and focus on simple gameplay make it well-positioned for the family market and potentially, a broader audience beyond hardcore gamers.

Statistics:

  • Cost of developing games for the Wii: $1-5 million (compared to $10-20 million for the Xbox 360 and PS3).
  • Number of games for the Wii expected by the end of December: 30.
  • Number of Wii consoles expected to be shipped worldwide by the end of the year: 4 million.
  • Price of the Wii console: $250.
  • Price of the Xbox 360: $299 or $399.
  • Price of the PlayStation 3: $499 or $599.

Sources:

  • NBC News: "Nintendo's Wii Console"
  • George Harrison, senior vice president of marketing and communications for Nintendo of America.
  • Brian Farrell, chief executive of game publisher THQ.
  • Billy Pidgeon, analyst with research firm IDC.
  • David Cole, analyst with DFC Intelligence.