Fred Huet of Greenwich Consulting comments:
Upon launching the Wii in 2006, Nintendo confirmed that it understood the changing dynamics of the console market better than its closest rivals. It successfully revolutionised the very definition of “gaming”, transforming it from a passive activity into one that includes family and friends.
But what has changed over the last 7 years and why are Nintendo failing to innovate in the way it once did? Not only is the console market continuing to evolve at an unprecedented rate but so are the very dynamics of the 21st Century living room, something that the Nintendo Wii Mini fails to embrace.
Today’s release of the Nintendo Wii Mini has an air of panic about it, with closest rivals PlayStation and Xbox set to release updated consoles later this year. However unlike its rivals, the Nintendo has scaled back on features from a six year old console that is already suffering from severely restricted functionality at best. This leaves Sony and Microsoft in a far more comfortable position to compete in the connected TV space. The computer console of today has grown to become a critical application to support the fully connected 21st century living space of tomorrow.
Video and catch-up TV viewing
It is no myth that the future of video is streaming, with online video and catch-up TV viewing increasing at a record pace. It is for this reason that computer consoles are no longer just about providing entertainment to users through games, whether passive or active, rather they have become a wider portal to access multimedia content. A testament to this was the recent announcement from Netflix which confirmed that the PS3 has grown to become the largest TV-connected platform in terms of Netflix viewing, at times even surpassing the PC in terms of viewing hours.
Unfortunately for Nintendo, this is where its latest device falls short. It will be interesting to watch the response from consumers but I suspect that they will wait with anticipation for a superior device, either the PS4 of Xbox 740, both of which will have kept pace with the evolving nature of connected content.
Fred Huet has worked in the media industry for the past decade, with some of the biggest players in digital and connected TV. As a managing partner at Greenwich, Fred specialises in understanding the media internet and communications industry, and his views are both balanced and insightful.
Frederic Huet
Tel. +44 203 61 791 00
frederic.huet@greenwich-consulting.com