"GameCube Could Lose Final Round" -NY Post

[BoneStormer]

Quote:

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GAMECUBE COULD LOSE FINAL ROUND

By STEPHEN LYNCH

September 10, 2003 -- It could be "game over" for the GameCube, Nintendo's struggling video-game console, analysts said. In the latest blow, Eidos Interactive - maker of the popular "Tomb Raider" titles - announced this week that it would no longer write for the Nintendo system.

The GameCube and Microsoft's Xbox lag far behind the industry leader, Sony's PlayStation 2. But Microsoft expected to lose nearly $3 billion just to get a foothold in the $27 billion worldwide video-game market, said Schelley Olhava, an analyst with IDC.

The Japanese company, a fixture of the video-game business since "Donkey Kong," may not be so patient.

"Nintendo is slowly being squeezed out the market," Olhava said.

She added that Nintendo could go the way of Sega Corp., which abandoned its Dreamcast system in 2001 to concentrate on software. Nintendo's games, including the Pokemon and Mario franchises, continue to be bestsellers.

In August, Nintendo temporarily halted production of the GameCube to clear out a retail backlog. But even if the company continues making the purple boxes, Olhava said Nintendo may decide not to compete against the Xbox 2 and PlayStation 3, which are expected in 2005-06.

"Right now the jury's out on whether they will create a next-generation system," she said.

Nintendo officials said a new console is in development, and denied that the software defections would hurt the GameCube.

"The GameCube library will expand to 320 games by year-end, the biggest support for any Nintendo console ever," said George Harrison, the company's senior v.p. for marketing. "Some of the biggest developers in the industry, including Electronic Arts, LucasArts and Capcom, are all on board."

Eidos is the second software maker to abandon the GameCube. Acclaim, producer of titles like "NBA Jam," dropped the system in June. Olhava said other smaller producers could follow suit if the incremental costs of developing for three systems prove too high.

Nintendo also is hurt by its reputation for targeting younger gamers, Olhava added. Although it has supported more "adult" games (including the "Star Wars" titles), the average Nintendo buyer is about 10 years younger than the owner of a PlayStation 2.

www.nypost.com/business/5379.htm

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What a great factual article. Riiiight... (it goes both ways though since I don't think 320 games (and where are they?) is more then NES or SNES had, and Nintendo has claimed a million times they arn't going software only, but they also claimed their relationship with Rare wasn't changing...)

But the thing is, it's articles like this that worry me. I just got done posting here how misinformation helped lead DC to an early death. The same could doom GC (if it hasn't already) or worse, Nintendo themselves. You can yell as loud as you want on how GC has this or is selling that, but in the big picture of things, the general buying public isn't so convinced. In a way it reminds me of what DC fans were saying in the months leading up to its death...

Get out, and take your Sacagawea dollars with you! I'll give you 'til three. One!

Edited by: BoneStormer  at: 9/10/03 1:56 pm

[Psydd]

You're correct about the library size. I believe the nintendo site itself claims something like over 700 titles for NES. Looks like a reporter didn't feel like doing his homework.

[nbrid]

Yeah I found this to be a lil comical. Eidos, the nail in the coffin? HA! However, GC, the largest supported Nintendo system ever? HA! It's more like "supported more than n64 and virtua boy." This article may or may not have some form of impact. Ok it probably affected Nintendo stock a tiny bit somewhere, but it may or may not have an effect in the future. Frankly, I dont care. Steven Kent will be the one to make me worry, not whoever this weiner is.