Feedback for my class project

[Flam]

I am currently finishing my MBA and my last class is this Summer. For our course study my group has decided to examine the industry battle between the Xbox1, PS4, and the Nintendo WiiU. Specifically we are focusing on the issue of why Nintendo is seemingly losing this battle (keep in mind we are just looking at consoles, not handhelds).

I’m putting this out there to get feedback from those on this board as to the reasons why you feel Nintendo is behind (pretty much we are doing a SWAT analysis). What mistakes is Nintendo making, what can Nintendo do to resolve those mistakes and compete, etc. Is the fact Nintendo is known mainly as a family oriented product hurting them?
I know this discussion can get pretty in depth, but I’m looking for ideas. Thanks!

[Flojomojo]

You should do your own SWOT, but here's my take on the Nintendo Wii U situation.

Strengths: first hardware out, "halo" effect from 3DS and prior handhelds, lots of well known characters, good reviews and commitment to quality. Beloved series like Mario Kart.

Weaknesses: perceived as expensive for "last-gen"-style underpowered hardware, gamepad is not well integrated into many games, gamepad uses inferior touchpad technology to keep costs down, third party software development is drying up because of poor hardware sales, digital downloads are tied to hardware rather than to accounts.

Opportunity: family first focus, multiplayer/social focus, touchpad and camera included with every purchase, extensive back catalog, potential for lower price, potential integration with mobile and handheld devices. Reputation for going to weird/innovative places.

Threats: mobile games are family friendly too, but much more cheaply priced. Competition has significantly more computing and graphical power, and more third party developer support.

[CastlevaniaDude]

Not to play fanboy devil's advocate, but Nintendo is gaining tons of ground on XBox, with the Wii U having outsold Microsoft's system last month (http://wallstcheatsheet.com/technology/xbox-one-vs-ps4-microsoft-loses-bad-in-may-even-to-the-wii-u.html/?a=viewall) as well as last Christmas (http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCEQFjAA&url=http%3A%2F%2Fwww.forbes.com%2Fsites%2Ferikkain %2F2013%2F12%2F31%2Fwii-u-outsells-xbox-one-the-week-before-christmas-according-to-vgchartz%2F&ei=hGyYU-H0B4uksQTppYGIBg&usg=AFQjCNFLRbO4f0er4SbInIJ9ATuGbnFQqg&sig2=n8qXY79ifeERCuU4OJ7uIw&bvm=bv.68693194,d.cWc). With the success of MK8 and the hype for the upcoming (amazing looking) open-world Zelda game, as well as the recent shift (http://www.engadget.com/2014/03/31/phil-spencer-interview/) in business strategy by Microsoft towards moving games and not consoles, Nintendo will be a solid #2 by this time next year.

Also have to factor in the fact that the 3DS has been enormously successful while the Vita has sort of been met with an underwhelming reception.

Nintendo is doing everything right to close the gap. The "killer apps" are starting to roll out. Mario Kart 8, Smash Bros., Zelda, and I'm gonna guess that Metroid is coming at some point. Their E3 presentation was perfect. They've been able to laugh at their own mistakes and that kind of humor and ability to recognize shortfalls builds major goodwill within the fan community.

[classyshepard]

A good comparison would be the smartphone industry. It feels like Nintendo's innovation is similar to that of Blackberry.