Nintendo teaches the digital media industry what it means to lead

With NPD’s latest game console sales figures the stunning reality of next-gen gaming finally sets in: Nintendo spanked the market with its own peculiar genius. We scoffed at its low-res hardware specs. We questioned the wisdom of forsaking a DVD player while other consoles aimed to be media servers. We speculated that after the weak GameCube showing this was the last generation of hardware Nintendo had in it. Maybe it should just be a software company from here out, many argued.
But in August, 403,600 Wii units sold through retail, NPD found, far ahead of the 276,700 a Halo 3-hyped Xbox 360 nabbed and the 103,600 a game-deprived Sony Playstation 3 sold. This has been the game console sales story all year. The behemoths of modern media, Microsoft and Sony, are playing catch-up month after month.
The Nintendo strategy of aiming toward the family and at the non-gamer has worked when everyone thought HD and prohibitively expensive new game design would rule the day. Kids and parents, and just about anyone else who ventures into my living room-cum-test lab can’t keep their hands off the Wii-mote.
The Wii is not the only place Nintendo dominates. It also sold 383,300 handheld DS units to the Sony PSP’s 130,600, even though both machines are fairly close in price now. Likewise, any argument that the Wii’s success is price driven become less convincing now that Xbox 360 price cuts bring it close to the Nintendo price point.
Point being? While Microsoft and Sony merely extended farther into the same old familiar territory with their next-gen strategy, Nintendo took us in a different direction that many observers resisted. We are in an age of focus groups, of supposedly empowered consumers, of a user-led market. It is significant that one Japanese company bucked all of these trends. It led us into a way of gaming, of interacting with technology, that was novel and unfamiliar. The key word here is that it led the market rather than followed it.
This is something to think about the next time your company brags about “following the user.”
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This post was written by Michael Stroud on September 18, 2007
