Third party developers aren’t really scarce in Japanese video games market yet for some reason Nintendo is unable to secure contracts with these third party game developers.
The reason, according to a new report, can be attributed to the huge investments made by the Sony which has negatively impacted Nintendo’s ability to secure third party game developers.
This was revealed through a document written up by ACE Securities who did a report on Nintendo’s below par performance. Included in the document were three basic issues that are to be discussed at the Corporate Management Policy Briefing by Nintendo:
- Dealing with content development risks due to the consecutive failure to launch with high performance the 3DS and the Wii U.
- Response to the problem of the inability to secure third party titles caused by SCE (Sony Computer Entertainment) investing heavily in the marketing cost of multiplatform software.
- Due to the soaring development costs of home consoles making difficult to ensure profitability, we hope to hear an answer on the building of a new business model.
Second point tells us how deeply impacted Nintendo is by the investments being made by Sony, it also outlines how competitors might just have set their minds on the fact that Sony is a commercial giant.
There still is one thing though, the report has been written up by someone who is just an analyst, and he could be talking about a specific aspect of the market. Focusing entirely on Wii U for example since Nintendo 3DS has been marginally successful.