Gates now sees Nintendo as primary competition

by Ludwig Kietzmann { Jan 11th 2007 at 8:50AM }

The Nintendo Wii's tremendous commercial success all around the world is having an impact on competing manufacturers who previously viewed the system as an outlying oddity aimed at a seperate market. In the past, both Sony and Microsoft have dismissed head-to-head competition with Nintendo, even going so far as to endorse the Wii as an incidental ally in their graphically superior grudge match.

In a brief clip on a Japanese news station (embedded after the break), Bill Gates notes surprise at the Wii's success and labels Nintendo as Microsoft's "toughest competition" in the gaming arena. Of course, the statement doubles as a jab at Sony, now relegated to third place on the the Xbox 360 threat scale.

According to Japanese sales charts, the coveted second place is still securely held by a largely shrugging Japanese populace.

[Via Nintendo Wii Fanboy]

Tags: Bill Gates, BillGates, Console war, ConsoleWar, Microsoft, MSFT, Nintendo

Reader Comments (Page 1 of 2)

Lou D @ Jan 11th 2007 9:06AM

Now that Inspector Clouseau has been demoted, the real detective work can begin.

Yes, Sony stumbled into the console realm and is bumbling out. I said it.

FrankTheCrank @ Jan 11th 2007 9:06AM

Yeah right!!

Sony is not even on the radar, yeah right!!

360 and Wii are to totally different markets.

Wii is for casual gamers who don't care about the latest and greatest cutting edge technology.

PS3 and 360 share the same space...high priced, cutting edge technology. And at this point, the PS3 is far more cutting edge than the 360. 360 at $399 is overpriced and day by day, looking more dated.

PSWii...4evah!!

Durg @ Jan 11th 2007 9:15AM

Sony never made it on the radar. The 360 was out of stock due to demand from Holiday release until late May 06. Thats nearly half a year of continuous selling. The PS3 demand lasted just over two weeks. Now they are all sitting on shelves with no one wanting to buy. The Wii is following in the footsteps of the 360s and will be hard to find for months yet.

KR @ Jan 11th 2007 9:17AM

"And at this point, the PS3 is far more cutting edge than the 360."

You have no idea what you are talking about. None. At all.

"360 at $399 is overpriced and day by day, looking more dated."

Yeah, Gears looks really dated. The XBox Live service is so past its prime.

PSWii? Boy are you in the minority.

hohoho @ Jan 11th 2007 9:30AM

oh boy, another of them troll baiting thread. Let the orgies begin!

Fred T @ Jan 11th 2007 9:33AM

When they or Nintendo sell 115+ million consoles, they can start trash talking.

lol .. GC + N64 + SNES barely broke the 100 million mark.

vidGuy @ Jan 11th 2007 9:33AM

The PS3 will see nice sales when it hits the mass-market friendly price of $299.99. However, since that may not come until 2009-2010, the generation will be half over, and it may be too late for the PS3 to build any real compelling exclusive games that would pull in a large amount of consumers, most of which would have already been gaming on the Wii and 360 for years.

Unless Sony can find a way to drop the PS3 price AND lock two or three must-have exclusives (MGS4 by itself isn't going to do it - plus it may not even stay exclusive), the PS3 isn't real competition, in terms of consoles sold and viable market share. The PS3 is regulating itself to a niche market, which MS won't really have to worry about.

Worldwide Market Share
Nintendo 45%
Microsoft 40%
Sony 15%

Fubar @ Jan 11th 2007 9:37AM

So if the Wii is #1 on the 360's threat scale and the PS3 is at #3, what's at #2? Gizmondo? lol.

PS3's gonna sell like the PSP. It's too expensive and there is much more fun to be had on higher quality, cheaper alternatives that have more to offer.

I might have picked up a PS3 in 5 years for 50 quid to play VF5 (I live VF) but last week's news that it's coming to 360 means I wouldn't even pick one up for free now.

agent0range @ Jan 11th 2007 9:39AM

He may be talking solely about the Japanese market...

KR @ Jan 11th 2007 9:49AM

I can't wait to magically see Nintendo's position among its fans switch back and forth over the next few years.

If Nintendo has a better season/year/whatever, it will be "YEAH! Nintendo is kicking MS and Sony's ASS! NINTENDO > ALL!!!"

If Microsoft of god forbid Sony outsells Nintendo for the season/year/whatever, it will be "Uh listen up IDIOTS Nintendo isn't competing with Sony or Microsoft, it's a totally different device NOT AIMED AT THE SAME AUDIENCE!!!!!1"

vidGuy @ Jan 11th 2007 9:51AM

@Fubar,

"According to Japanese sales charts, the coveted second place is still securely held by a largely shrugging Japanese populace."

@agent0range,
Quite possible, but he SHOULD be thinking worldwide. The Japanese video game scene, by its very nature, is going to go apesh!t for the Wii for a long time, but the U.S. is already showing signs of adopting the Wii like the videogame iPod. (Okay, I don't expect it to catch like that, but it looks like it will gain a following much faster than previous consoles, even the PS2).

Uh_Oh @ Jan 11th 2007 9:52AM

The Wii isnt competition, wheres the 3rd party stuff for 2007 and beyond? Looks like another gamecube again.

Saneless @ Jan 11th 2007 9:52AM

"statement doubles as a jab at Sony, now relegated to third place on the the Xbox 360 threat scale."

Wouldn't that be SECOND place on the Xbox 360 threat scale? Third place in the market, second place in the threat, unless they view themselves as #2, which I'm doubting. There's only 2 real competitors.

vidGuy @ Jan 11th 2007 10:04AM

@KR, why can't it be both?

The way I see it, the 360 and PS3 are direct competitors in technology, and the Wii isn't a competitor. If you are looking for an HD console that plays a next-gen video format, you are likely choosing between the 360 and the PS3.

If you are looking at sales and media-coverage, the 360 and Wii are the most direct competitors. Many thought that the only reason the Wii would beat the PS3 this holiday was because of initial launch numbers. Now, it looks as if Sony could have shipped 10 million consoles and still lost to Nintendo as 9 million of those sat in stores. The Wii60 synergy is going to help the team beat Sony, but the two "partners" are still competing with each other for consumers' money. Example: if you own both a 360 and a Wii (like me), but you only have the cash to buy four console games this year (like me), which do you buy? Each system is likely to have five or six stellar releases this year alone.

Skwurl @ Jan 11th 2007 10:07AM

#2

"...at this point, the PS3 is far more cutting edge than the 360. 360 at $399 is overpriced and day by day, looking more dated."

You need to stop posting.

Forever.

kris @ Jan 11th 2007 10:13AM

God some people are annoying. Do you guys even read the posts before jabbing ur fat fingers to the key board???? Do any of you 360 fanboys actually look at japanese hardware sales? Do you recognise that the 360 has made little to no impact on the japanese market AT ALL. Do you realise the japanese market is still the forefront of the gaming market along with the U.S.A and Europe?? no? thought not!!

vgamer @ Jan 11th 2007 10:17AM

The PS3 outsold the Xcessory Box 360 in Japan in the first two weeks of it's release. It's the Xcessory Box 360 that is in last place. NO ONE IS BUYING IT IN JAPAN!!!!!!
The Xcessory Box 360 is out in 37 countries and has only 10 mill shipped. Break that down and it's like 270,000 per country. We know that the bulk of the 10 mill SHIPPED (NOT SOLD) are UK and US numbers; they are doing POORLY in every other market! THEY ARE ALMOST NON EXISTANT IN JAPAN!!!!

Paul @ Jan 11th 2007 10:18AM

kris - the japanese market is not the forefront - though the 360 must sell there to be a true success (it isnt) the japanesse market is HIGHLY Xenophobic... this is a well known phenomena across all markets. The Xenophoia there is pervasive and there will NEVER be a non-japanese console on top there.

Corosato @ Jan 11th 2007 10:24AM

Uh for all those people saying "b-b-b-but japan!" Remember this: The Dreamcast and Saturn were both extremely poular in Japan. The fact that they tanked in the US killed Sega.

That is all

FrankTheCrank @ Jan 11th 2007 10:29AM

XBOTS...you have your marching orders.

Now POST!!!
POST!!
POST!!

FrankTheCrank @ Jan 11th 2007 10:29AM

The PS3 and Wii have killed the 360 in JAPAN.

The PS3 has pushed 1 Million in a month in a half. The Wii is pushing 4 million. That's 5 million, half the 360 installed base, in only a month in a half.

10 million is Microsoft's number. It's not official.

The Japanese systems are killing MS.

MosquitoControl @ Jan 11th 2007 10:38AM

You can't underestimate Japan because of the popularity of its games.
For many reasons, Western games sell like crap in the East, so MSFT dominating the US and Europe has little impact over there, at least at first.

On the other hand, Eastern games sell quite well in the West, so a system selling very well in the East impacts the West.

But if Japanese devs start cranking out 360 games and/or ports due to the popularity over here you will see sales beginning to jump over there.

Lastly, if Nintendo does take first this round... what'll happen to them? Is it actually a victory? Remember all those articles about how Nintendo was in such a good place by running a profitable 3rd while the other two slug it out for a barely profitable 1st and unprofitable 2nd? Sure, they'll now be running a profitable 1st, but expectations will change for the company. How will that impact them in the future?

Cynical Pete @ Jan 11th 2007 10:39AM

Bill's sitting right next to the newly announced VAIO's...and to think it has come to this.

MosquitoControl @ Jan 11th 2007 10:48AM

"XBOTS...you have your marching orders.

Now POST!!!
POST!!
POST!!"

You're in no position to question the loyalties of any other poster here.

The 360 tends to have fans.
Sony tends to have people that hate them. But Sony also tends to have unquestioningly loyal fanatics that will gleefully jump in front of a bus if the brand were to die.

You seem to likely fit that category.

Belly Dancer @ Jan 11th 2007 10:50AM

Sony has a console out?

Paul @ Jan 11th 2007 10:51AM

I have come to the conclusion that no more than 3 people that post on joystiq understand economics.

kris @ Jan 11th 2007 10:51AM

Paul, i don't think you can make sweeping generalisations about a whole country being Xenophobic and it would be worth while remembering that this so called Xenophobic country produce two of the three next generation consoles which you will no doubt be playing on and enjoying. The reason Microsoft has failed to grab hold of the market is because it does not understand the market. Look at the japanese top ten. See any madden games in there?? Any FPS's in there?? No, look at the most successful games released in japan over the last few years on the PS2 and i doubt u will even recognise them because they probably were not even released in Europe/US. I will admit that with Blue Dragon they are attempts but they are still a long way off the mark and as you point out there has never been a generation defining console that has not sold well in japan (with the one exception of the megadrive/genesis).

Quick1 @ Jan 11th 2007 10:55AM

2. PS3 and 360 share the same space...high priced, cutting edge technology. And at this point, the PS3 is far more cutting edge than the 360.

I think you mixed up your adjectives and meant to throw in "higher priced". I haven't seen anything that shows the PS3 has more "cutting edge" graphics.

"360 at $399 is overpriced and day by day, looking more dated."

That's stupid, and you're stupid for saying it.

Sly @ Jan 11th 2007 10:55AM

Eventually Nintendo wiill choke.

I @ Jan 11th 2007 10:55AM

lol, xbots

That's right corosato, I'm sure PS3 is nowadays equivalent to a Saturn and/or Dreamcast... not. Man, what a dipshit.

PS3 is sold out in most big cities and cosmopolitan centers in the states. PS3 hasn't even launched in Europe. Just wait till Vf5, Devil May Cry 4, Assasin's Creed Oblivion, Warhawk, Lair, and Heavenly Sword come out. They are coming 1st quarter and 2nd quarter of this year (some of those are cross-platform, but if someone wants that particular X-platform game and prefers a PS3, it'll still help the PS3; if only a little). The next quarters will see Metal Gear Solid 4, FFXIII and White Knight Story. These are just examples, not the only titles that are coming out.

By the way, Blu-ray is very successful in Japan, with 96% marketshare of all HD players, and it's recovering in the west with cheaper prices for movie players, and with more movies than HD-DVD. The only exclusive for HD-DVD doesn't even have officially planned titles for 2007. LG's unified format player could be HD-DVD's last nail in its coffin, since it plays only Blu-ray's bells and whistles, but not HD-DVD's (only the basics; the movie, duh).

Anyway, Gates will soon eat his words after they see themselves battling, not for first place, but for second place with Sony. Wii will probably be first place, but only if they do get continued 3rd party support, innovate, manage to stop being seen as "for kiddies", and drop their price 100 bucks as soon as the 360 does (because there's no way in hell a gamecube should cost more than 150). You know, do another DS kind of success.

And since 360 is such a miserable failure in Japan, they'll probably end up 3rd place, as the second most important Genre in the world is RPG (the first is Sports, which you can find anywhere). Remember the dreamcast sold really fast when it began.

Oh, and KR and Skwurl should shut it if they can't mention any reason for someone to actually stop posting or why someone has "no idea". Wiitards.

By the way, if you didn't notice, I'm not a fanboy of any console, I like all and will own them all. I'm just an anti-fanboy.

SSUK @ Jan 11th 2007 10:57AM

Haha, you all chat big about Japan not liking the 360. I mean, welcome to 2006, it's a simple time but you'll enjoy it here.
So what? Seriously, I believe 8 million sales speaks for itself on this matter, with or without help from Japan. Stop telling us facts we already acknowledge and at least make a point other than "JAPZ DUN LIEK XBOX!!!11".

Thank you.

CJC @ Jan 11th 2007 10:59AM

Ugh... why does it always come to fanboy wars here?

People, pay attention here: Gates considers Nintendo a threat because they are making quite a bit of MONEY, the purpose of ANY business. Money that Gates would like Microsoft to have (who doesn't want money?)

As some people have pointed out, the 360 and PS3 cater to largely the same market, and as the 360 has sold more at this point and PS3 sales have tapered off somewhat; Microsoft only has to worry about other markets it has hardly touched- markets Nintendo has grasped quite firmly.

h0mi @ Jan 11th 2007 11:04AM

"No, look at the most successful games released in japan over the last few years on the PS2 and i doubt u will even recognise them because they probably were not even released in Europe/US."

So why should Americans or Europeans care about the goings ons with the Japanese video game market, when it's clear their interests are not the same?

Fubar @ Jan 11th 2007 11:05AM

"Do you realise the japanese market is still the forefront of the gaming market along with the U.S.A and Europe??"

Is it really State The Fucking Obvious Day today?

"the japanesse market is HIGHLY Xenophobic."

Exactly. From cars to consoles, Japanese people buy Japanese. They don't even believe it's possible to make rice outside of Japan. I really don't see why it's such a surprise to see a Western console in third place there.

Everywher else on earth though, the 360 and Wii are selling great while the PS3 sits on shelves and shop assistants are told to throw even the kitchen sink at trying to sell it.

Not the mark of a successful console is it?

And when you look at the thing Sony says - their arrogance and contempt for everyone else - it makes me feel all warm inside.

Corosato @ Jan 11th 2007 11:05AM

@I Did I say that sony was going to tank? no I'm just pointing out that being popular in japan doesn't make a company safe. As long as any console maker has a good market share between US and Europe they can survive.

I think you are seeing things through your fanboy glasses too much.

Darkness @ Jan 11th 2007 11:06AM

I'm not sure why people have to get all up in arms about the "console wars". Why not just sit back and enjoy the games that come out? I wish I could support more than one system this generation, but with the rising costs of purchasing a system, I can't justify owning more than one. That doesn't mean I don't look at games on systems I don't own. Perhaps everyone should just relax and enjoy the games that are out and drool over the games that are coming.

As for third party support, I would guess that there are LOTS of games for all systems that haven't been announced yet. It's just the beginning of the year, so there's lots of time left.

My only real concern is whether or not there will be any big games released for the Wii that are geared towards the "hardcore" crowd. If they manage some of those games, then the Wii does have a shot at taking the top spot, but I'll hold judgement until then.

Paul @ Jan 11th 2007 11:06AM

kris - thanks for the well thought out response - but to clarify - Xenophobia doesnt mean they dont produce consoles for us - it means they dont buy ours.

I agree that the lack of titles that would interest the market is a major stumbling point for the 360 but i do believe that (short of FF being a 360 only release the 360) would always be a failure in japan as it is an AMERICAN (and by the japanese mindset - inferior - even in products where that is 100% inaccurate).

MosquitoControl @ Jan 11th 2007 11:08AM

"As some people have pointed out, the 360 and PS3 cater to largely the same market, and as the 360 has sold more at this point and PS3 sales have tapered off somewhat; Microsoft only has to worry about other markets it has hardly touched- markets Nintendo has grasped quite firmly."

Actually, hardcore gamers need to worry that Nintendo is "proving" that we're not as important as "casual gamers."
I don't think that's the case, I think hardcore gamers are driving Wii sales, or people that will be hardcore gamers. If not, I think the Wii will fail to be supported by its userbase over the course of its life.

But if Microsoft and Sony decide that lower-powered, lower-cost consumer devices are more important, practical and profitable than systems designed for the hardcore gamer, next generation will look very, very different.

It will, in any case, as no one will ever repeat Sony's mistake of building the best, most powerful system possible. I still can't fathom how they'd be that dumb. Anyone that's ever built a computer knows you always scale back. A system 5% less powerful costs 50% as much (give or take.)

konajinx @ Jan 11th 2007 11:11AM

@17:

There's only one person I know that calls the 360 an "Xcessory Box," and he's some jackass I already told to go dry hump his precious PS3 over on their official forums. So please, if this is indeed the same person, continue on doing that while living in denial. We'll let *you* know when/if the PS3 ever becomes worthy. Until then, keep making sweet love to that oh-so awesome Blu-Ray drive and all those killer games currently out for the PS3. Seriously, how does it feel to play so far "B3YOND" that it actually sucks?

MarioLegend @ Jan 11th 2007 11:13AM

You guys are forgetting that Blue dragon is driving up Xbox360 sales in japan.

If Square did it for sony, they will most definitely do it for Microsoft. Square was the company responsible in pushing all the units in japan when FF7 came out (For PSX), now and again Square will drive the sales of 360s in japan with blue dragon.

And once that game got released the past month, its been overselling in japan.

Xbox360 is not dead yet in the land of the rising sun so check your data when you post. (Blue Dragon beat wii sales of Wii Sports and Pokemon battle Revolution when it debuted in japan selling systems with it as well)

So when SquareEnix releases FF13 and its sequels, that will be the time when Ps3 will shine and it will show that RPGs reign stronger as a genre than any other.

So don't count 360 off just yet. (MS should follow in the footsteps of square to produce more RPGs for the japanese markets than FPS which is unappealing for them because they are peaceful people who feels that need to save the world, not kill virtual human beings or alien monsters with ultra violence, but with magic!)

- g -

Renarudo @ Jan 11th 2007 11:15AM

If it's one thing Joystiq is good at, it's posting retarded articles that purposely generate flamebait.

And you guys pick it up every time. Why are you even going by anything that either Microsoft, Sony or Nintendo say? They're huge corporations vying for our money, so naturally, they'd want to take away from their competitors.

Hey everyone, let's play the "Bash Sony" game, because obviously, everyone who bashed the Xbox last generation is totally cool now. So kicking a company when it's down is the true way to not look like a retard, simply because you prefer one corporate plan over the other.

And Nintendo better come out with some real games, other than novelty ones if they expect to make it another Christmas. "It feels like I'm really sweeping!"

-Rant off

Erick @ Jan 11th 2007 11:17AM

Those that say there needs to be a price drop instantly I think are missing the point. Yeah, cheaper will sell more. But cheaper will sell more in 3 years, too! I have a 360, no PS3, but I'll get one within the year, I bet. However, my nephew won't get one until 2009, if then. He JUST got his PS2, as did millions of people this year. When a console is older it has the benefit of 100's of titles available, at very cheap/reasonable prices, not to mention used for even less. When PS3 has a re-cast (like they made the PS1 and PS2 smaller), and drops the price, then it'll start being mass market, whish is where the money is at. At that point, say, 3 or 4 years from now, the XBOX will be on it's 3rd generation, so it'll be the latest greatest, cool, neat, wiz-bang, but it'll cost 500 +/- and the PS3 by then will be 199, or 249...so it'll do just fine. I'm still guessing the XBOX 4 and the PS4 will launch within a year of each other, with the PS3 likely being about a year earlier, like the PS2 was earlier than XBOX and the XBOX360 was 1 year earlier than the PS3...the interesting thing will be the launch of the XBOX-3...which may just not be a gaming console as much...they may say they're not competing in that space, it'll become a set-top box for IPTV, Download services, media-streaming, PVR with OTA-TV + DCT tuners, oh, and a game machine... So, they'll market it as having a higher price point for all those reasons... I'll be buying my kids VTech and cheap standalone games most likely and let them use my PS3, XBoxes and Wii's...whatever they may be in the coming years.

konajinx @ Jan 11th 2007 11:17AM

Also, don't you PS3 fanboys ever get sick of chanting "just wait until March..."? Wouldn't it have just been cooler to have wasted money on a console that had good games for it straight out of the gate? Not *killer* games, mind you, since launches really never have any of those but at least more than one measly game that people talk about?

Enjoy that waiting.

MosquitoControl @ Jan 11th 2007 11:18AM

" Why are you even going by anything that either Microsoft, Sony or Nintendo say?"

I'd like to think a handful of us are evaluating their comments, not reacting to them but responding to them critically.

Yes, you have people on either side flipping out one way or the other, but you also have people explaining, rationally, whether they believe the words, why they do or do not, and what the impact of the statement could be.

Fred T @ Jan 11th 2007 11:20AM

"But if Microsoft and Sony decide that lower-powered, lower-cost consumer devices are more important, practical and profitable than systems designed for the hardcore gamer, next generation will look very, very different."

Have you heard of something called the PStwo. Its small, half the price of the Wii, comes in fruity colours, and plays 10,000+ games.

Thats why you make a bleeding edge system, so when the next-gen arrives, its still a viable product, and you dont have to start from scratch like MS and Nintendo.

FrankTheCrank @ Jan 11th 2007 11:23AM

You know what the problem is with the 360...

BILL GATES.

Can someone tell this xerox copying machine of a human being to go away? Go hide in your 50,000 sq ft mansion and leave us alone. Your operating system, albeit the standard across the world, is as unsecure in the hands of dolts as it's ever been. Your iPod wannabe is a disaster. And now you took a huge white dump in the gaming world called the XBOX360. Please leave now.

And now you want to squeeeze every penny out of that huge dump you just took. XBOTS prepare to open wallets and take out your overburdened credit cards, your massa needs a new Porsche.

Darkness @ Jan 11th 2007 11:24AM

MarioLegend, Blue Dragon did give the Xbox a spike, but it has not been able to stay there, unlike Wii Sports and Wii Play, that have been constantly driving Wii sales for a few weeks now. Whether those games will be able to sustain this kind of sell-through in the future, remains to be seen. I don't deny that Blue Dragon has had some kind of effect on the 360 sales in Japan, but it doesn't look to have had the impact everyone was expecting before it was released.

Steve @ Jan 11th 2007 11:28AM

Why does Bill Gates always look like a hunchback in his photos?

One of the things I find odd is how the most technologically superior system rarely seems to win. In fact, it's often the least powerful system that wins! For example,

Gameboys vs [place handheld here] = Gameboy wins
N64 vs PSX = PSX wins
GCN vs xbox vs PS2 = PS2 wins
DS vs PSP = DS wins

It really bugged me in the N64 vs PSX days that the PSX and its hideous, nausia-inducing ,3D graphics won hands down. The only example I can think of where the most powerful system won is in the SNES vs Genesis vs TGX battle, and even in that case the SNES didn't win by anything close to an overwhelming majority.

Clearly this means that other elements are more important than horsepower when it comes to a console's success. Horsepower is obviously important, but other things are even more so and I think with this generation Nintendo specifically went after those other aspects of console design.

MosquitoControl @ Jan 11th 2007 11:29AM

"Thats why you make a bleeding edge system, so when the next-gen arrives, its still a viable product, and you dont have to start from scratch like MS and Nintendo."

PS2 was not bleeding-edge. Far from it. It was still made with reasonable technology.
The PS3 is bleeding-edge. Everything is brand new, unproven, top of the line, custom-made (with the exception of that graphics card.) Costly.

FranktheCrank, you're really doing a poor job proving yourself "not a fanboy." But you should wikipedia Bill Gates, see what his role in Microsoft is, and see what it will be in 12 months.