Nintendo’s Wii Storage Issues

Nintendo’s WiiWare channel is reported to be doing well (says Nintendo) and their Virtual Console games continue to invoke nostalgic downloads. Now, as Networked based gaming slowly starts to crawl on the console Nintendo has begun to realize they’re going to hit some storage issues.

The 512MB of internal flash memory is a bit lacking, especially considering you can purchase a 2GB flash drive for under USD $50.00 in todays market. While Sony and Microsoft work to increment their disk capacities in 20GB intervals Nintendo’s still trying to figure out how to solve their internal storage issues.

Although we initially heard that geeks would be the ones to hit the storage limitations Nintendo’s North American President and COO is readily admitting the pending issue, “we have a consumer base who loves virtual console. We have a userbase who really is enjoying WiiWare content. So for us really our challenge really is how do we satisfy all these consumers who are loving all of the product we make available on a download basis?”

The challenge in being a Japanese based company is understanding how American users consume your product. We’re much more likely to download content and spend money on products we’ve purchased 20 years ago. This is why we’ve got an American based Nintendo HQ to understand the ways of American thinking and trending.

While Nintendo Europe’s Europe’s Laurent Fischer sees only “geeks and otaku” utilizing the minimal disk capcity we here in the States can consume this space overnight. Imagine if we had downloadable content for Rock Band or Guitar Hero to pull down and play!?

As this becomes, as Reggie put it, a “mainstream problem” Nintendo is going to find their harder core demographic moving to other consoles that do it right and allow for expandability. There is a reason, after all, the other consoles cost a bit more to buy.

(Thanks, IGN)

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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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Microsoft has come out and validated some earlier rumors about Xbox 360 Avatar’s and their 3D dashboard design. Apparently, this is to build more of a community and bring a bit of the Mii-like influence from the Nintendo Wii to the 360 hardware.

It seems Microsoft is taking some of the concepts from the Nintendo Wii which were poorly implemented due to the lack of any real network community and bring them to live with a more integrated useful system. This proves Nintendo was on the right track but shows off their lack of integration and fear of bringing people together.

“Create, share, and have fun with all of your friends… but avatars are just the beginning. The new Xbox is tailored for the living room. Here we are at the community channel — instead of a list of friends, you actually see them.” (joystiq)

Nintendo’s cute little idea of Mii’s and sharing them with friends was fantastic, a great bullet list feature, but rather useless. Typing in friends codes gets old way too fast and there really isn’t anyway to vocally chat with people on your friends list anyway, so who cares?

Microsoft has proven to know a bit about the community space, has parental controls and a fairly reliable LIVE system for making it all happen. Although Nintendo should look at this with a bit of pride, given duplication is the best form of flattery, they could learn a few things about how to work a community into your console too!