Blips: RIP Hiroshi Yamauchi, 1927-2013

Source: Hiroshi Yamauchi, the executive who turned Nintendo into a video game giant, dies at 85
Author: John Teti
Site: The Gameological Society

I don't have a whole bunch to add to what's been said already, but I wanted to link to an obituary for former Nintendo executive Hiroshi Yamauchi, who passed away this week at the age of 85. It's astounding to consider how long Yamauchi was running things at Nintendo –over 50 years before stepping down in 2002. Though Shigeru Miyamoto was the man behind the design of iconic characters like Mario and Link, Yamauchi was running things back when Nintendo's primary business was playing cards. While many Japanese companies have their hands in a diverse array of industries, that Nintendo was still a games company at its inception is pretty cool.

Of course, Yamauchi's Nintendo would go on to be a video game powerhouse, reigniting the industry after the collapse of Atari and mounting skepticism around the medium as a reliable investment at retail. Yamauchi's Nintendo is the one I have a personal affinity for as well. The NES was my first home console, and even though I diverted to Sega in the 16-bit era, I came back for the Nintendo 64 years later. Those systems are a part of my identity now, and though I know massive commercial efforts like video game console production are a team effort, Yamauchi was in the driver's seat. So, I feel like I owe him a debt of gratitude. Who knows where video games would be without him?

Blips: Downward Trend

Source: Game Over
Author: Horace Dediu, Dirk Schmidt
Site: Asymco

You may have run across this story on Kotaku yesterday, which links to some charts and analysis of Sony and Nintendo's video game console business by Horace Dediu and Dirk Schmidt for Asymco. The outlook for dedicated gaming devices looks bleak, but as Dediu notes, the numbers for the upcoming PS4 and Xbox One consoles haven't been added in, since they've yet to launch. Those two major console lanches could turn things around, but Dediu seems skeptical that either machine will achieve sales anywhere close to the Nintendo Wii, which saw an incredible mainstream crossover. Dediu attributes part of the downward market trend to increased prevalence and quality of smartphone games, which use devices that are multipurpose and most potential game console buyers already own.

I was struck by the conviction of so many commenters below the Asymco piece that fervently argue against this data. People who love games do not want to accept that their hobby is being co-opted by a bunch of touchscreen apps, but the statistics seem to say otherwise. Some commenters even brought up the just-announced PS Vita TV as a sign of hope for consoles, but it's much to early to project the impact of that currently-Japan-only device. For the record, I hope the new consoles do well and dedicated gaming machines continue to make sense. My only concern with touchscreen devices taking over is that currenty they're not ready to handle the demands met by gaming consoles, though they're not far off. If tablet PCs can easily hook up to televisions, support physical controllers, and also run graphically intensive games, then I'm all for it. While controllers and TV hookup are simple enough, computing power and storage will remain an issue for the time being.

Only time will tell, but, anecdotally speaking, I don't see game consoles lasting a generation beyond PS4 and Xbox One, but I do think the kinds of games that appear on those machines will continue to be made for popular devices. In the end, it's the games that matter, not the black box that runs them.

Blips: Let's Play - Ad Sales

Source: Let's Plays, Nintendo and the Audacity of Monetization
Author: Jenn Frank
Site: Gameranx

When I first heard about Nintendo using YouTube's Content ID system to tag videos featuring their games, I figured it was within the company's rights. So, Nintendo wants to make their own ad revenue from people sharing videos of Nintendo games. I get it. That's what Content ID was built for. It all makes sense on a corporate finance and intellectual property safekeeping perspective.

It even seemed that indie developers who voiced pro-Let's Play opinions only held that stance because they're from smaller companies, looking for promotion and word of mouth wherever they can get it. Nintendo isn't that desperate for attention, right? They have an ad budget. They don't need this kind of grassroots publicity to move units. At least that's what their actions are communicating.

Jenn Frank's piece for Gameranx sums up the situation nicely. While Nintendo is within their legal, if judicially untested, rights, using YouTube Content ID to take ad sales away from Let's Play commentators and direct them their way is bad for the company's image, which could be bad for their bottom line in the long run. Nintendo's actions are especially surprising given the warm reception Fire Emblem: Awakening received earlier this year, praise largely spread by word of mouth. This kind of bottom-up campaign is one of the things Let's Play videos do best and make more convincing arguments for certain products than TV or web ads.

With a struggling Wii U on their hands, Nintendo shouldn't overlook the goodwill that can be earned with popular YouTubers. While only well-informed enthusiasts will really follow this news, plenty of casual gamers like to peruse YouTube for videos of games before making purchase decisions. If fewer Let's Play videos of Nintendo games are on YouTube as a result of this Content ID move, Nintendo only has themselves to blame.