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This isn't a super objective article (calls out you fanboy's quite often), but to read how Nintendo has approached the market and has treated it's fans via lawsuits just makes you wonder where their head is at.

IMO, some of the more interesting parts:

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For example, let’s look at the Nintendo 64 game console. The Nintendo 64 game cartridge is one of the most flawed design decisions in Nintendo’s history. Why did Nintendo stick with outdated, cumbersome cartridges when CD-based games were on the immediate horizon?

Nintendo 64 exists because of the failed deal between Nintendo and Sony to create the SNES-CD System. Nintendo had a working relationship with Sony, who created the excellent audio subsystem components for the SNES. They developed a prototype SNES-CD hybrid system dubbed the “Play Station.” This CD hybrid system debuted at the 1991 Consumer Electronics Show. After that event, contract negotiations broke down. Nintendo sought to pursue system development with Sony’s competitor, Philips.

Following the back-door deal made with Philips after the 1991 CES, Nintendo announced the Phillips SNES-CD at the 1992 E3 show. This blunder led Sony to make some of the most successful consoles in gaming history — the original PlayStation.

Nintendo was paranoid over Sony retaining the rights to the CD hardware. They believed Sony would use the rights to develop their own home console (which it inevitably did). The purpose of the deal with Philips was to stop Sony from making a competing console. Sony entered the home console market in December 1994 with the original Sony PlayStation. How did that work out for Nintendo?

Based on the platform totals from VGChartz, the original PlayStation is the fourth best selling video game system to date, selling 104.25 million units (note that the Wii is fifth, behind the PlayStation). The PlayStation 2 is the best selling video game system of all time, selling more than 155 million units worldwide. It was also the fastest console to reach the 100 million units sold. PlayStation 3 has also been successful, selling over 80 million units to date. The PS3 is ninth on the all-time platform totals above the Game Boy Advance and NES. PlayStation 4 holds the record of the fastest selling console after its launch on November 15, 2013, selling over 1 million units in 24 hours.

Why am I discussing Sony PlayStation, you ask? Because through Nintendo’s own actions and corporate hubris, they created their own worst enemy. Sony entered the console market like a rocket and crushed other competitors. Even Sega could not stand up to the juggernaut that was the PlayStation 2.

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Blue Ocean Strategy was a book published by two professors (W Chan Kim & Renée Mauborgne ) based on the study of 150 strategies used by 30 companies of a 100 year period. The basis of the strategy is that most companies compete head-to-head in the “red ocean.” In order not to battle competitors, a company would create an uncontested marketplace or “blue ocean.”

Nintendo adopted the strategy after the Nintendo GameCube, which led to the development of the Wii. The problem is that instead of a “blue ocean,” Nintendo created a bubble market of gamers by implementing a successful gimmick centered on motion controls. This bubble of new consumers were not really gamers, but people who were attracted to the simplicity of the Wii and games like Wii Sports.

The problem came with the assumption by Nintendo that these new customers would convert to full gamers and be constantly engaged in Nintendo software and hardware. That assumption proved to be a huge mistake as those same expanded customers became disengaged near the end of the Wii’s life cycle and didn’t purchase the Wii U.

While reaching out to get new customers in the “blue ocean,” Nintendo left behind much of their base to remain engaged and loyal without much support. This flawed assumption resulted in disappointing Wii U sales. The Wii U has sold only 13.8 million units to date. In comparison, the Wii sold 101.18 million units and the GameCube sold 21.74 million units.

The Blue Ocean Strategy failed Nintendo, and yet they are still using it to market the Nintendo Switch.

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Artificial Scarcity is defined by Wikipedia as: “ . . . the scarcity of items even though either the technology and production, or sharing capacity exists to create a theoretically limitless abundance . . . ”

Nintendo started this with the introduction of the Wii. Treading cautiously into the gaming market after the lackluster sales performance of the GameCube, Nintendo produced a low number of Wii systems. They underestimated the initial demand for the Wii, and because it was difficult to find, it became a hot commodity. Wii sales exploded and Nintendo seemingly could not keep up with the demand. At least, that was their narrative throughout the Wii life cycle. In reality, they keep production of Wii systems low on purpose to keep the demand high.

The strategy worked so well that Nintendo continued to use it with other products. Special editions of Nintendo 3DS systems, Amiibos, and the Wii U were all introduced to market using the same scarcity tactic. Soon, gamers became wise to what was happening.

This was due to the fact that competitors like Microsoft and Sony had no problems meeting the demands for their systems. The Xbox 360 was dominating most of the seventh generation of consoles and there was huge demand for the console. Microsoft had no issues keeping stores stocked with systems.

Since Nintendo systems were manufactured at Foxconn, which also produced Xbox and PlayStation systems, it became clear why Nintendo had shortages: They created the short supply to keep demand high for as long as possible.

Also goes into how they flubbed the marketing on the Wii U, their Creators Program, and their BS about how the 3DS XL was the only handheld capable of playing SNES games.

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How can a handheld system that is powerful enough to run upscaled Nintendo 64 ports (Starfox 64, Super Mario 64) not be capable of running Super NES games? The two generation old Game Boy Advance had ports of Super NES games, yet somehow the Nintendo 3DS was not up to the task?