Nintendo’s Not Talking To You, But Your Grandmother

Miyamoto said Nintendo used E3 as a platform for spreading the word to a broad audience based on the media present at the event, they’re not speaking to the core audience. So, if you’re a core audience gamer and you were confused on why Nintendo didn’t build their presentation to be all glitz and glamor, it’s because they weren’t talking to you.

Based on the fact that E3 is a “press event” and their looking to get out the word to the general audience, press is needed as a staging point. The audience sitting in the seat was a bit more intense in nature and have high expectations for each presentation.

With sites like gamespot streaming the event live on the Internet it’s not too hard to imagine some casual gamers and non-core-gamers may have been listening. Or, perhaps their hoping to get old school media in the form of magazines and journalists to write about their upcoming product launches.

Or, perhaps they just showed up because they’re expected to?

(Thanks, Joystiq)

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Although PlayStation 3 is still third in worldwide sales, behind the Xbox 360 by about 5-million units, the PS3 community services now have as many online gamers as Xbox 360 says Sony. Sony posted on their blog saying, “with 14 million active accounts and 273 million pieces of content downloaded, we know that you’re thirsting for this digital entertainment.”

Although US sales of the 360 are killing the PS3, the community membership does give gamers a reason to get online with the PS3. Nobody wants to buy into a console that has very few active online games or an easy way to find friends (*cough* Wii). Having 14-million users helps them bridge the sales gap by building gamer confidence. Social networking is the new term; gamers want to socialize with each other online and with their consoles.

Microsoft recently announced their 14-million subscriber base and continue to update folks when they hit big milestones. The main difference, LIVE is a subscription system — those 14-million gamers are also paying for the service (we’re not sure if silver memberships count in that figure) and this means income for Microsoft while Sony does their service for free.

Although Microsoft is making money on their service, no doubt Sony will bypass their total membership because it has no cost barriers to play. The biggest cost barrier to get on Sony’s network is the PS3 itself and many gamers hold out for price drops which aren’t coming anytime soon (so says Sony). However, building a larger community on a free network allows Sony to siphon gamers to buy downloadable content, games, music, movies and all the goodies that go with these services.

It seems a better idea to triple your audience with a free service knowing a large amount of “hardcore gamers” attach themselves to the easy to buy content on said service. So, is it better to make US $50.00 a year on half the population or give triple that population an opportunity to spend more money on content?

“Thanks to all of you, PS3’s momentum is stronger than ever. There are nearly 17 million PS3 systems around the world, and in the United States, PS3 hardware sales are up nearly 100 percent from where we were at this time last year. Software sales have tripled from a year ago. Yes, we’re proud about everything we’ve accomplished, and we’re even more psyched about where we’re going with our holiday software lineup” (playstation.com)

Eventually gamers may have access to Sony’s Home project, which could raise the community figures and give Xbox 360 something less to brag about. Although, we’re sure Sony would rather be boasting “number one” console again, at least they’ve finally got a win on their side because 14-million users is only the beginning for them.

Plus, it’s hard to argue free.

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Nintendo plans to capitalize on the monumental success of Wii Sports by doing what they do best, building a hot game with an accessory backing its success. The new Wii Sports Resort will be a mini-game set like Wii Sports and Wii Play but with a beach setting and games like frisbee.

Frisbee? How can the Wii motion controller handle a Frisbee toss? Wii Motion Plus of course! We believe they’ll be packing the game in with the Wii Motion Plus to add more value to the purchase. Honestly, this adds more value to the accessory as a driving force to make sales and increase margins. Game accessories are a great way for Nintendo to profit, consider the pack in game marketing material.

As Wii Play has shown us, historically, gamers want the accessory and the bundled game is just icing on the proverbial cake. Wii Play, as a game, was lacking in many ways and would be, as a stand alone product, a definite must-not-have title. But, considering the amount of Wii controllers sold, this allows Wii Play to show up high on best games sold month over month.

Wii Sports Resort takes this to a new level by using the term “Wii Sports” in the game, allowing the masses to flock to the store to get anything that can reproduce the fun of the original title. Nobody knows, yet, if it will reproduce the same fun factor but the accessory is neat.

(Thanks, joystiq)