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New 'Quality of Life' Business Plan - Nintendo's New Blue Ocean


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#1 Ledo Jaeger

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Posted 30 January 2014 - 07:57 AM

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Nintendo has outlined a new business direction primarily focusing on Quality of Life (QOL), engaging users with entertainment by promoting a healthier lifestyle. CEO Satoru Iwata emphasised in thecorporate briefing that Nintendo’s core business is still focused on producing video games, however, the new business plan will develop “non-wearable” technology and create a blue ocean strategy.

 

The company hopes such a focus will provide consumers with enjoyable platforms that seek to promote a healthier lifestyle, and eventually expand “non-wearable” technology further in the future.

 

 

 


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#2 DéliopT

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Posted 30 January 2014 - 08:15 AM

That really came out of the blue!

Maybe this is Nintendo`s third pillar afterall.


 

 


#3 Chrop

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Posted 30 January 2014 - 08:30 AM

I have absolutely no idea what this means,

Non-wearable technology? Kinda sounds like kinect.

Healthier lifestyle?

Blue Ocean? After googling it's "Blue Ocean Strategy suggests that an organization should create new demand in an uncontested market space"

 

So they're making something completely new that has absolutely no competition, something that makes people have a Healthier Lifestyle with New technology... dang what the hell is Nintendo up to? It kinda sounds like they're expanding out of the gaming business into something completely different o.0.

It's very vague... Very confusing, I'm thinking a 3rd platform that focuses less on gaming, anyone else got any ideas?


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#4 SPG

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Posted 30 January 2014 - 08:38 AM

Eh...... next to no one cares about getting up and moving to Play games though, i just want to sit in my chair and play, not stand up and look like a moron with kinect

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#5 3Dude

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Posted 30 January 2014 - 09:35 AM

I have absolutely no idea what this means,
Non-wearable technology? Kinda sounds like kinect.
Healthier lifestyle?
Blue Ocean? After googling it's "Blue Ocean Strategy suggests that an organization should create new demand in an uncontested market space"
 
So they're making something completely new that has absolutely no competition, something that makes people have a Healthier Lifestyle with New technology... dang what the hell is Nintendo up to? It kinda sounds like they're expanding out of the gaming business into something completely different o.0.
It's very vague... Very confusing, I'm thinking a 3rd platform that focuses less on gaming, anyone else got any ideas?


Blue ocean was the strategy nintendo used with the wii and ds.

Now that touch screens are commonplace, the ds line is competing in a red ocean,

And nintendo entered the wii u into a double red ocean, the touch screen competes with tablets for casuals, whilst the more powerful hardware competes in the traditional console red ocean.... But underpowered compared to the competition.

While the fast tracking motion controls, (both kinect and move focused on more accurate spatial tracking instead, sacrificing the sheer speed wiimote tracking has) Nintendos only blue ocean tech, have been completely ignored.

This is a smart risk, the payoff could be wii huge. But its still a risk.

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#6 NintendoReport

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Posted 30 January 2014 - 09:44 AM

non wearable. Users will purchase a " do it yourself " surgery kit to embed a high tech nfc like chip in each hand and in their forehead. 


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#7 Hunter

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Posted 30 January 2014 - 12:02 PM

So this is going to be outside of their games console business? I would hope so, I don't really want another wii-style console to be honest (I liked the wii, I just don't want another console which is completely focused on moving around and aimed at the "casual" market).



#8 Keviin

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Posted 30 January 2014 - 12:16 PM

This  sounds so  vague. But  I hope they succeed anyway.


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#9 Lupaie

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Posted 30 January 2014 - 12:23 PM

Blue ocean was the strategy nintendo used with the wii and ds.

Now that touch screens are commonplace, the ds line is competing in a red ocean,

And nintendo entered the wii u into a double red ocean, the touch screen competes with tablets for casuals, whilst the more powerful hardware competes in the traditional console red ocean.... But underpowered compared to the competition.

While the fast tracking motion controls, (both kinect and move focused on more accurate spatial tracking instead, sacrificing the sheer speed wiimote tracking has) Nintendos only blue ocean tech, have been completely ignored.

This is a smart risk, the payoff could be wii huge. But its still a risk.


I don't think the ocean is too bleu for qol. Topengineers from Polar, Nike, and some other lifestyle and health leaders moved to Apple for another Quality of Life device. I hope Nintendo is first to market.

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#10 DéliopT

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Posted 30 January 2014 - 01:23 PM

I just can`t wrap my hear arounds this "non-wearable" concept. And somehow that will even result in software.

E3 can`t come soon enough!


 

 


#11 Ledo Jaeger

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Posted 30 January 2014 - 01:40 PM

This honestly really excites me because it sounds like a new and fresh way of looking at things.

 

There IS an air/feeling that Nintendo products started giving me around Wii/DS time, that I characterize as 'fresh'. I kind of equated them with activity and health, while still being fun and something only Nintendo could provide.

 

If they capitalize on that and do something truly unique they could be winners in their own field. Their leapfrog strategy thing seems to indicate they want to take advantage of the tech of the day and place themselves at the forefront of the consumer's mind.


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#12 grahamf

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Posted 30 January 2014 - 02:35 PM

So... nintendo branded treadmills?

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#13 DexterousGecko

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Posted 30 January 2014 - 08:00 PM

I just want good games. When I jog, I jog. I'm not looking for another gimmick.



#14 Richard Fightmaster

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Posted 30 January 2014 - 10:25 PM

Uh... Ninty, seriously, what the hell? I have not even the slightest idea of what they're talking about. The only thing I understood from today's announcements was the DS games on Wii U (awesome), and even reading over it multiple times, as well as every reply here, I'm still baffled...


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#15 Socalmuscle

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Posted 30 January 2014 - 10:30 PM

Samsungs galaxy gear line may have shown the world that wearable tech isn't the next thing, the dud that it is.

It appears that Nintendo is looking far ahead and shooting
sat the target, which is a good thing. But if it's a misread, it could be real bad.

The other downside is that Nintendo isn't looking to beat competitors. They just want their own sandbox and then get beat at their own game when the competition bullies take over. And Nintendo loses their territory.

The wii was first in its segment. But it wasn't greatness. It was underpowered.

Here's hoping Nintendo not only goes for a blue ocean, but that they actually defend their territory by making better, higher spec'd products with smarter strategies and bigger partners, so that that blue ocean only turns red with the destruction of their competition. But as long as the current leadership stays in place.. It's difficult to envision.

Edited by Socalmuscle, 30 January 2014 - 10:34 PM.


#16 SailtheSeas

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Posted 31 January 2014 - 05:01 AM

So this is going to be outside of their games console business? I would hope so, I don't really want another wii-style console to be honest (I liked the wii, I just don't want another console which is completely focused on moving around and aimed at the "casual" market).

 

I want another N64 console with competitive hardware and more third party support.



#17 Hunter

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Posted 31 January 2014 - 06:17 AM

I want another N64 console with competitive hardware and more third party support.

 

I think we would all like that (as long as it had Nintendo's signature "uniqueness" with it). But from the sound of things that wont be happening any time soon. Nintendo has realised that they can no longer sell consoles the way they thought they could and so their only option to replicate wii-style success is to do the same thing they did with Wii and take up a blue ocean strategy. 



#18 SailtheSeas

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Posted 31 January 2014 - 06:54 AM

I think we would all like that (as long as it had Nintendo's signature "uniqueness" with it). But from the sound of things that wont be happening any time soon. Nintendo has realised that they can no longer sell consoles the way they thought they could and so their only option to replicate wii-style success is to do the same thing they did with Wii and take up a blue ocean strategy. 

 

Or compete head on with Microsoft and Sony.



#19 Aplg8

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Posted 31 January 2014 - 07:36 AM

Could the marketing department be a little more vague?  They have no solution so let's be ambiguous as possible but include a chart.  I've not seen an episode of South Park in year but I'm reminded of the under pants gnomes.

 


Edited by Aplg8, 31 January 2014 - 07:49 AM.


#20 Azure-Edge

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Posted 31 January 2014 - 09:37 AM

To be fair in terms of vagueness, this was a meeting for investors to let them know what the company is planning in the future. They really don't give a crap about the details of 'how', they just want to hear things that should translate in to money for them.

 

I've been thinking over this QOL thing for the past few days and I think I may have at least some idea of what they're going for, and honestly if they're planning on using it in the way that I think they are then this could be a good thing. Everyone is thinking this QOL hardware is going to be a 'game console' but I don't think this is correct, at least no in the conventional sense.

 

If you look back on the past generation, Nintendo was able to make a LOT of money by tapping in to the interactive fitness and education market. Wii fit, Wii Sports, Brain Age, etc. There is a definite market for these types of things and frankly there always will be. What's more, Nintendo is essentially one of the only software developers who have been able to truly tap in to these markets. The only other that I can think of is DDR but even that wasn't market specifically for fitness. This worked with the Wii and DS. They were able to put out these kinds of software and people bought them, but now they're not. Why is that and what is the problem? I started to think about it and I realized that it's not the software that's the problem, nor is it that the market is gone. The problem was the platforms. 

 

At their core, all of the Nintendo's hardware have been designed for games first and foremost, they're also priced and marketed as game consoles. This is the problem. People looking for something in terms of fitness for example aren't going to buy a $300 dollar system for Wii Fit U, especially if they're not gamers. After all, for that kind of price they can purchase some pretty decent work out equipment. What I think Nintendo is working on is some sort of inexpensive device/service that will specialize in these QOL types of software and be marketed accordingly. What I could imagine is that these devices could come pre-installed with certain software and then people could purchase and download additional new software if they wanted more. 

 

This also ties in with Nintendo's talk about working with smart devices yet saying they're not going to be using them for games. They don't want to cannibalize their own gaming hardware, but integrating this QOL software/service would make perfect sense. I could easily see people using their smart devices for software such as brain age and language dictionaries, while also using app integrated in to the QOL software to track their physical, health, or educational progress. This is a market where I do think Nintendo could really dominate since they have brand recognition and there's really no one else out there trying to do something such as this.

 

So what does this mean for gamers? Well first off just realize that this isn't for gamers so don't start freaking out. If anything I think this could be good for Nintendo fans for a few different reasons. For starters, it would be another market for Nintendo to make money in. More money for Nintendo means more money they could invest in to gaming. This QOL software wouldn't take a large amount of man power nor capital to actually create, at least not compared to full fledged games. QOL software for the most part would be more akin to apps if anything.

 

More money also means that Nintendo will have less of these 'apocalypses' (because you know, anytime a company takes a loss always means they're one step away from dying off completely. Amirite Sony?). Sarcasm aside, the fact is launching gaming hardware is a long term investment and it doesn't necessarily guarantee profits every year. Hell Microsoft has never seen a net gain from their gaming division and the PS3 was a financial wreck for Sony. Right now the Wii U is costing Nintendo the most it ever will but it will decrease incrementally every year. Unfortunately ignorant investors don't give a crap about that or are too stupid to understand it, so this QOL part of the company would be something to tide them over. I see a lot of talk of how Nintendo needs to 'compete' with Sony and MS (gee, I wonder what the hell they've been doing), well if they're going to 'compete' with them then they're going to need more capital. The demographic the QOL stuff targets could be the source of that capital.

 

Finally, assuming Nintendo properly expands their business and hires the right amount of personnel, this could potentially free up resources for their gaming platforms and allow Nintendo's gaming division to focus completely on more core software for their gaming fans. No longer will they be trying to use their hardware and software line ups to leverage non-gaming demographics which is something people have been complaining about for a long time.

 

 

Anyways, that what I think this QOL thing could be. I could be right, I could be wrong.


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