How will Nintendo Re-engage its Wii base in 2011? - Nick Williams - MediaBizBloggers

As we approach the end of another fascinating year in the videogame biz it seems appropriate to reflect on the current state of the console wars and look ahead to what39s in store for 2011 While it is true that 2010 was the year of Zynga Angry Birds and the emergence of Cloud Gaming just to name a few trends this post is all about the ongoing chess match and arms race between Nintendo Microsoft and SonyMost of you have probably heard about this holiday39s must have gaming gifts Microsoft39s Kinect for Xbox 360 and Sony39s PlayStation Move In case you haven39t been paying attention these new peripherals essentially level the playing field when it comes to motion control gaming a side of the business that Nintendo has dominated for several years thanks to the Wii During this time Nintendo attracted a new breed of gamers no longer alienated by complex controls or the antisocial stigma that pervaded the gaming business For newbies of all ages the Wii was easy to pickupandplay and made people feel like they were part of the game Taking a page out of Apple39s marketing playbook Nintendo positioned the Wii as fresh yet familiar and successfully capitalized on the mainstream potential of the technology But as new gamers around the world embraced the Wii what did the Mario and Zelda loving Nintendo loyalists think Nintendo faced the ultimate challenge in rapid brand growth how to appeal to a new audience without upsetting its coreFour years later and the signs of this inner brand turmoil are starting to show In October Wii software sales were down 26 percent and hardware sales were down 54 percent Many will point to market saturation but the more likely explanation is the lack of engagement from both the mainstream and the core According to recent data from Ipsos OTX39s GamePlan Insights the mean hours spent playing the Wii is half of the PS3 and Xbox 360 On the weekend Wii owners spend an average of 18 hours playing the Wii compared to 38 hours for the PS3 and 36 hours for the Xbox 360 The wordofmouth that propelled the Wii to the top has slowly dissipated and now the console is gathering dust on many household shelves Some mainstream gamers have moved on to social and mobile gaming while core gamers are spending their time on the PS3 andor Xbox 360With PlayStation Network and Xbox Live the lifecycle of any first or thirdparty title can be extended considerably Just last month Microsoft announced that there were one million concurrent players of Call of Duty Black Ops on Xbox Live While this is an extreme case online strategy is now a substantial part of any publisher39s marketing plan as evidenced by the sheer number of demos trailers and expansion packs available in the respective online stores It is a valuable way for publishers to continue the conversation with the customer past the point of sale and build communities of evangelists Of course Nintendo has an online network via Nintendo39s WiFi Connection but it has not been adopted with the same fervor as PSN or XBL Data from GamePlan Insights shows that Wii owners play online only 29 of the time compared to 50 for the PS3 and 54 for the Xbox 360Looking ahead to 2011 Nintendo is already looking for ways to differentiate from its competitors The previously announced 3DS will be critical as Nintendo looks to grab the handheldmobile momentum back from Apple But on the console front it is Nintendo39s turn to make a big splash Software for Kinect and Move will continue to improve thereby diminishing the unique value proposition of the Wii Some have speculated that a Wii HD is on the cards while others believe they may continue to invest in 3D gaming Maybe a Wii 3DHD Whatever the case may be there is one fact that shouldn39t go unnoticed the Wii still has the largest installed base of any of the currentgen consoles The key is to activate these users and bring the Wii to the forefront of the living room again In my view a successful 2011 for Nintendo won39t necessarily be measured in new hardware sales but in the time spent engaged with hardware that has already been soldNick Williams is Director Gaming Insights for Ipsos OTX MediaCT He joined OTX in 2008 to lead the development and launch of GamePlan Insights an innovative tracking product that combines behavioral and attitudinal metrics with a comprehensive suite of integrated data sources to forecast the lifecycle of a videogame He can be reached at nickwilliamsipsoscom Read all Nick39s MediaBizBloggers commentaries at Ipsos OTX MediaCTCheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerMediaBizBloggers is an openthought leadership blog platform for media marketing and advertising professionals companies and organizations To contribute contact Jackmediadvisorygroupcom The opinions expressed in MediaBizBloggerscom are not those of Media Advisory Group its employees or other MediaBizBloggerscom contributors Media Advisory Group accepts no responsibility for the views of 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How will Nintendo Re-engage its Wii base in 2011? - Nick Williams - MediaBizBloggers

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