(upbeat music)
- Four years ago, if you told someone,
"Hey, pretty soon Nintendo's gonna
release a brand new system,
they're gonna reclaim the top spot,
and they're gonna be the big company
everyone pays attention to."
They'd probably think
you were a little crazy.
And the reason for that is because
when it comes to mainline systems,
Nintendo's had a bit of a
history of rough patches,
either because things
just didn't sell well
or even if they sold well,
there was an image problem
happening at the same time.
The history of problems
really started with the N64.
I mean, the NES and SNES,
big successes for Nintendo.
Sure, SEGA scared them a
little bit with the Genesis,
but at the end of the
day, the SNES won out.
But, the Genesis opened up a lot of doors
that other companies started to realize
ways they could take Nintendo down.
(fast-paced 8-bit music)
- [Announcer] Knockout!
- And it started with the PlayStation.
To begin with, the N64 lost
out to the original PlayStation
by 70 million units.
To put that in perspective,
the original NES sold 60 million units,
so they lost by more systems
than their first huge successful
console sold originally.
That's crazy,
and there's a couple different
reasons why this happened.
First off, the PlayStation
came out to market first.
They were the first system
to also start adopting
using CD-ROMs over more
specialized cartridge designs.
And following the footsteps
of the Sega Genesis,
they accepted releasing a lot more games
that were aimed at adult audiences,
instead of keeping the vast
majority of games kid-friendly.
(commercial song)
- And just to highlight how
much sticking with cartridges
hurt the N64, despite what a
lot of people might remember,
looking back on the games
that were released on those two systems,
the N64 was the more powerful
system by quite a bit.
It's just that cartridges
couldn't really hold
very much data compared to CD-ROMs,
not to mention games on CD-ROMs
could have multiple disks,
and the system was designed in such a way
that it was very awkward to develop for,
so a lot of third-party companies
just didn't really want to deal with it
and instead moved over to Sony.
So, N64 lost out to PlayStation, but, hey,
they have another chance
with the GameCube.
Awesome thing, right?
Super Smash Melee, Legend
of Zelda Wind Waker,
Mario Sunshine, great first-party titles.
Metroid even came back.
It sold even worse, by a lot.
It not only failed to meet the same sales
as the N64, but this also
happened to be the same generation
where the PlayStation 2 was one
of the historically biggest
successes in gaming ever,
with a comparison
of the PlayStation 2
selling 150 million units,
and the GameCube at about 22.
- [Announcer] Continue?
- And the reasons for this
are basically the same
as what was happening on the N64.
Any kind third-party support Nintendo had
was basically all leaving
for PlayStation on the PS2
and even for Microsoft on the Xbox,
which also outsold the GameCube
though not nearly by as much.
There's also the issue again
of the format they used.
They finally moved away
from carts over disks,
but it was their own proprietary disks
which couldn't carry nearly
the same amount of info
as the DVD that their
opponents were using.
So, again, games were super limited,
and it was even that same situation
where the GameCube is
actually the most powerful
(mumbles) generation.
No one cared,
because no games were
really actually making use
of that power compared
to what we were seeing
on the PS2 or Xbox.
It's at this point that Nintendo
take a step back and think,
"Okay, what are we doing wrong here?
Because we're not really
interested in making
the kinds of more adult games
that our opponents are
getting popular for."
They didn't want to do
something like Grand Theft Auto
or Call of Duty.
What can we do that still
stays true to our brand?
And that's where they took a
very big risk with the Wii.
(fast-paced electronic music)
On paper, the Wii was
a bit of a weird pitch,
especially for when it was coming out.
First off, the name was
a little ridiculous,
so much so members (mumbles)
couldn't really take it seriously.
It relied on motion controls,
with controllers that were still a remote.
Very few button compared
to traditional controllers.
And to top all that off
while it was more powerful
than its predecessor the Gamecube,
it paled in comparison to
what the PS3 and Xbox 360
were capable of.
In fact it's the only
system from its generation
that did not support HDMI
and tapped out at 480P.
Despite all this though the
system actually sold pretty well
in fact it was actually
the top selling system
of its generation by quite a bit.
And there's a few reasons
why this happened.
First off, while it
wasn't nearly as powerful
as its competitors it was
also a lot cheaper to produce
and as a result sold for
a lot cheaper as well.
At launch the Wii sold for $250
whereas a 360, an entry one was $300,
and the PS4 was all the way up there
with the 5 and $600 bundles
which that was their own
other problem to deal with.
So it was a much more affordable option
for people to be able to go for.
On top of that while the motion controls
might have seemed like a
bit of a gimmick to people
that were used to traditional games
it ended up being a massive
door to open to people
that traditionally
didn't really play games.
'Cause it's a lot easier to
sell someone on the idea of
hey, grab this remote and
swing it like a tennis racket
than to be like, hey, hold this controller
hold R, then press A, then
you have to press this.
It was just a much easier
concept to get people into gaming
so they were able to have all
their longterm Nintendo fans
that bought the system right away
and bring in a whole other audience
that just wasn't buying systems yet.
(classical music)
Now while it sold great for Nintendo
this did come at a price and I would argue
that there were some detrimental effects
to what the Wii was as a system.
And a large part of
that is the image it had
amongst the more
traditional gaming audience
and what kind of support
they were seeing from third parties.
Now Nintendo already had
a rift with third parties
like we were saying before,
but it got even worse with the Wii
because even though the
system was selling well
and companies were interested
in bringing games to it,
it didn't really matter
because they couldn't make
truly multi platform games for it.
If they tried they would have a game
that would look great
on 360, great on PS3,
and then a Wii version that cut out
a lot of content and looked awkward
and just simply would not sell.
And as for their image well
because there wasn't a lot
of third party support
there was still a lot
of random terrible shovel ware
that just ended up being
placed on the system.
And Nintendo's own first party games
while great kept very
focused on this concept
of being family friendly stuff
with only a couple
exceptions here and there.
This alongside the rise of
smartphones and mobile games
started this whole debate
that people started having
of what true gamers actually play.
Which is a hornet's nest on fire
I'm not gonna actually
deconstruct right now.
But the point is there
were a lot of people
that just didn't take people
who played on the Wii very seriously.
- [Announcer] Tool selection.
- Still clearly for
audiences at large the Wii
was a huge success.
So much so that you could see
their competition at the time
trying to get in on the same kind of deal.
Where Microsoft used the
Kinect that did okay at first
and then there was the forced bundling
and the Xbox One which we
all saw how that ended.
And PlaySation did the PlayStation Move
which got dropped pretty quickly
but then came back to
life kind of in the form
of being controllers for PS VR.
The fallout from all of this though
could be heavily felt
when the Wii U happened.
Where the Wii was one of
Nintendo's biggest successes
the Wii U was one of its biggest failures.
A large reason for that is
because people didn't
really get what it was.
Thanks to maintaining the same branding
of calling it the Wii
U and focusing heavily
on the tablet aspect of the system
a lot of people just simply didn't realize
that this is actually a new system.
To this day you can still find people
who will think the Wii U
was just the tablet aspect
and that it was an add on to the Wii
and not an entirely new,
more powerful system.
So with all this awkward
momentum coming into the Wii U
how is it that the switch ended up
being the big success that it now is?
I think it's important to know
that while Nintendo was having some issues
with their main line systems,
whether that's because of sales
or an image problem or anything like that,
at the same time their
portables were doing great.
And I think this is one of the factors
that played into Nintendo's decision
of how to approach their
next system after the Wii U.
Especially because it was kind
of a very immediate follow up
after seeing what was
happening with that system.
And the entire reason why the
Switch ended up taking off
as well as it did is 'cause
I think it did a great job
of balancing all of
the different strengths
that Nintendo had had in the past.
It incorporated the convenience
of the portability their
handheld systems had
into a mainline system
which also acted as a way
to kind of counter balance
the argument of power.
Previously when someone would
look at the Wii or Wii U
they would think well yeah,
that's a lot less powerful
than what the competition has.
And while that is still
true about the Switch,
people are much more forgiving about it
because it's giving you
something that looks good on a TV
but also looks great on the go.
And like with the Wii
in incorporates an idea
that is unique, innovative
and interesting,
and very easily translates
by just showing someone.
With the Wii you just show them, hey,
look you take the Wii, you do this.
With the Switch you show this concept of
hey, joy cons take them
off, it's now a controller.
Hey, put it on the stock,
now it's on your TV.
It's a very visual element
that translates easily
to people that don't
need a full explanation
of what it does that's so special.
And I think one of the
most important things
to have happened both by
intent on Nintendo's part
and from other people just saying hey,
the Switch is doing great
we should get on that
is the return of true third party support.
There is so much more third party games
coming to the Switch.
Traditionally there's always
been a very strong stance of,
well this is the kind of stuff
we want associated with our brand,
this is what we want to allow
and now allow in our system.
With the Switch they do not care anymore.
It's something we've
been seeing consistently
with a lot of games getting
poured into the system
where Nintendo is even taking
a very strong stance now
of not allowing censoring
of games on their system.
There are games coming out that
have censored content on PS4
and not on Switch.
That is insane to think about,
but it shows a very large
dedication on Nintendo's part
now to just allow people
to make what they want
on the Switch, and it shows.
I think it goes without saying
that a very large part
of their success too
is thanks to the fact that they made sure
they had strong launch titles
from big name Nintendo
franchises right away.
We had Legend of Zelda
Breath of the Wild at launch,
and the year after we
got Super Mario Odyssey.
So they're making sure
that all those big games
that people associate with Nintendo
actually have a strong
presence right away,
and it helps that both
those games ended up
being really good.
This all led to the Switch
having amazing sales,
and while it's kind of hard to compare it
to the Xbox One and PS4
because it came out so many years later,
the trajectory of the sales they've had
over the first couple
years is extremely fast.
Much faster than the Xbox
One and competes with the PS4
when you have to also
balance with the fact
that because it came out
so much later in the year
it doesn't have as many
holidays at the same time.
The Switch ended up being
this breath of fresh air
that I think Nintendo really needed.
And as someone who grew
up in a Nintendo household
and stuck by them with
each and every system
I gotta say I'm super happy to see it.
I'm not sure where they're gonna go next
but I'm curious to see where.
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