So, they have been innovating in gaming the whole time, while sitting back and letting the other consoles start to dominate the "hard core" market.
Nintendo is planning ahead.
They know the market for games is divided among "hardcore" and "casual", and with more casual gamers gravitating onto the Wii U, they can dominate that particular market. The problem is that they were slow to get rolling.
I think part of the problem was in the name "Wii U". It sounded like it was just an updated Wii, so no one saw the reason to buy it. They should have had a new system name, but mentioned the backwards compatibility as a selling point.
So, at this juncture, Nintendo knows they can't win if they only focus on the casual gamers. That's been their strategy, but with Wii U slow to start, they need more "hardcore" games. Bayonetta 2 was a step in the right direction, and Super Smash Bros. has an enthusiast scene unto its own, so they are making a shift.
I think it's telling that Miyamoto already said they're working not he new console. This means they know the Wii U needs to be abandoned as soon as possible in favor of something "new" and "unique".
Don't get me wrong. I love the Wii U. It's the most modern console I have, and I love playing it. My problem is that they completely flubbed the marketing for it.
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If you're interested, I have a video called "Nintendo's diversity problem", which is to say their lack of female representation. I know it's a hot button issue right now, and i don't want to take a side, but Nintendo is really lacking.
Also, I have a video called "I am a Gamer" where I show you how proud I am to be a gamer, and why.
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