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"The Need To Go For Broke"

For anyone who's paid attention to the whole saga recently, ITV Digital have been experiencing some, difficulties shall we say. It would appear that they fell well short of their targets, and as a result cannot financially afford to continue as a TV broadcaster. The thing is, as a corporation, ITV (or indeed any of it's funding companies - Granada/Carlton, etc) are far from broke. The situation isn't that they are on the brink of completely dropping out of the market. They have the money to go on, albeit on a slightly smaller scale. However, the situation is, if things don't begin to improve quickly, debts will begin mounting up and then the company really will be doomed. They have spotted the downward spiral before it has really got a hold of the company (although to be fair most of us spotted it ages back) and are taking action to rescue for the future of the company.

But, why did ITV find themselves in this situation, and what has this got to do with the gaming world?

Well, a similar situation MAY be unfolding infront of our very eyes.

At the time, ITV were in desperate need of doing something drastic to keep up with their rivals. BSkyB were running away with the television market, with the likes of NTL and Cable&Wireless only very small fish in the ocean dominated by Sky. The television market has grown so massively over recent years that simply being a terrestrial operator isn't enough to really earn big money. ITV couldn't afford to sit around and be happy just to run one television channel when companies the likes of Sky and NTL were moving forward.

It's the same with all advancements in technology. There's always one company leading the way, and others lagging behind, dropping closer and closer to losing out with each and every day.

ITV Digital was the only logical step that could be taken to try and rescue the company from mediocrity, and for ITV to really mount any serious challenge on Sky Digital, they needed to get into the market as soon as possible. Biding their time would have done their chances no favours, so they dived in head first, and subsequently are regretting it.

Maybe they never expected to compete with Sky, but understood the need to at least go down fighting. Then again, maybe they were just aspiring to something well above their reach, maybe they really believed they could compete.

If you look at the gaming industry now, a similar situation is occurring. Sony and Microsoft (absolute GIANTS in the electronics field) are "doing battle" for supremacy in the gaming world, with companies without so much clout in other markets (Sega/Nintendo) struggling for survival. We've seen Sega give in and leave their hardware development roots, but is the same the future for Nintendo?

The fact is, Sony and Microsoft have invested phenomenal money into their new products, and will continue to do so as long as these products sell as well as they have been doing. However, can Nintendo afford to compete? Like ITV, if they are to have a chance, they can't hang around. They have to get into the market and begin competing again. But, does that mean that they will lose out in the long run? ITV saw others leading the market. ITV saw others making giant strides in the quest for market domination, and the same is happening to Nintendo. As Microsoft take their first steps in the industry (and we've been led to believe they've been fairly successful first steps) and Sony continue to corner all area's of the market, Nintendo are still without a warrior with which to do battle.

Like ITV, Nintendo won't go out of business. They're worth too much to go completely out of business, but they might end up following the lead of Sega. It may be so hard to have any chance of winning back the part of the market that used to be theirs, that in the end it is only economically practical to go into software development.

Maybe, this next-generation battle won't be won or lost on the basis of money, or marketing abilities, or support from other parties. Maybe this next generation battle will be won on the ground that has already been won by Sony, and Microsoft. You can almost see Nintendo's path crumbling ahead of it, and before too long there'll be nothing left to stand on.

ITV were rash, they had to be. Nintendo haven't necessarily been (they've been damn brave actually! [what with hinting against looking to online gaming and to waiting so long to release their console here]), but certainly can't wait much longer. They need to throw everything into this, because anyone who's left standing when an industry moves forward, ultimately faces completely losing out.

The ITV debacle was seen coming a mile off. For Nintendo, the case isn't so. They've made mistakes, and haven't done any favours for themselves with some of their decisions concerning the GameCube, but, it still seems hard to believe that the future for Nintendo may lead to a dead end.

Nintendo were always going to be releasing a new console, and no-one was surpassed when it was officially announced. But, I wonder, were they forced to make that announcement early? The rumours surrounding the PS3 have been circulating, as people speculate that Sony is indeed concerned that Microsoft may be onto a winner with it's Xbox. If what we're being told is true, and plans really have been discussed, who would doubt that maybe Sony have been rushed into doing something about the situation?

The market moves itself along, and only those quickest to react can keep up with it. Sometimes, decisions are made rashly, and sometimes (ala ITV) made poorly.

I too find it hard to beleive that Nintendo will struggle, but the facts are they're now under a lot of pressure to keep up with Sony and Microsoft.

Nintendo can't afford to lose too much more ground on the other companies, else they'll have no chance of ever really competing on a grand scale.

There is definately no way Nintendo are struggling this time round.

They've got one gaming market all to themselves anyway with the Game Boy Advance in the handheld market.

At the moment, the only companies who are actually struggling in the gaming fields are Microsoft and Sega. Sega because of the very quick demise of the Dreamcast, though deals with the other three console companies have started to up their profits, and Microsoft because of the lack of sales for the X-box.

I'm not sure whether this is official or not, someone on Codejunkies claims to have heard this news on one of the major Radio stations that the people in charge of marketing for Microsoft of Europe and Japan have both resigned because of the poor amounts of sales so far in Europe and Japan of the X-box despite the hype and the TV adverts. They allegedly resigned before Microsoft could sack them.

One of my friend's brothers works in the Cardiff HMV, and he's said that he's only ever seen one X-box leave the shop (and no it wasn't stolen) since it's launch. For a capital city store to have such a low number of X-box sales (there's bound to be more than just one sale in that shop) is quite a poor result from Microsoft.

I'm not saying Microsoft will continue to struggle, infact they can afford to stay in the market for as long as they want being the richest company 'n' all, but in competing with Nintendo and Sony, they're not doing too well at the moment.

I agree with GO GO

Sorry.
I suppose I should actually read the topic before replying, eh?

Damn hastiness!

I actually said that Nintendo would never go broke, just as ITV won't go back.

What I did say however, is the time might come where they can't financially compete. Look at it this way. ITV aren't going anywhere, they've just had to cut their loses in that particular market.

Of course Nintendo won't go broke, but I can see the time when they're not able to compete, and all because they're slipping behind.

Nintendo will never go bankrupt. Think about it. They've already made a tremendous amount of profit from selling the Gamecube in Japan alone, and with the USA release profit has gone into hyperdrive...just wait until the Gamecube reaches Europe!
Another reason as to why I think Nintendo will never go bankrupt is because of...Pokémon. Can you begin to imagine how much money Nintendo have made through this monolithic franhise?! I believe it did, or almost did, reach into the billion mark! :-O
So from Pokémon alone I think Nintendo have set themselves up nicely for future projects. I think it's also why Nintendo have so much money to advertise now.
Oh yeah, and did I mention the...GAME BOY ADVANCE?! Blimey, Nintendo are far from bankruptcy, matey.
You know, I think it's safe to say that all three gigantic companies are very safe from any money troubles...either that, or they're keeping it very secret.
The only way they could ever get into such trouble is if they make one tremendous decision blunder, like Sega. Otherwise, Microsoft, Sony and Nintendo are far too experienced when it comes to marketing that it's very unlikely any of them slip up.

For anyone who's paid attention to the whole saga recently, ITV Digital have been experiencing some, difficulties shall we say. It would appear that they fell well short of their targets, and as a result cannot financially afford to continue as a TV broadcaster. The thing is, as a corporation, ITV (or indeed any of it's funding companies - Granada/Carlton, etc) are far from broke. The situation isn't that they are on the brink of completely dropping out of the market. They have the money to go on, albeit on a slightly smaller scale. However, the situation is, if things don't begin to improve quickly, debts will begin mounting up and then the company really will be doomed. They have spotted the downward spiral before it has really got a hold of the company (although to be fair most of us spotted it ages back) and are taking action to rescue for the future of the company.

But, why did ITV find themselves in this situation, and what has this got to do with the gaming world?

Well, a similar situation MAY be unfolding infront of our very eyes.

At the time, ITV were in desperate need of doing something drastic to keep up with their rivals. BSkyB were running away with the television market, with the likes of NTL and Cable&Wireless only very small fish in the ocean dominated by Sky. The television market has grown so massively over recent years that simply being a terrestrial operator isn't enough to really earn big money. ITV couldn't afford to sit around and be happy just to run one television channel when companies the likes of Sky and NTL were moving forward.

It's the same with all advancements in technology. There's always one company leading the way, and others lagging behind, dropping closer and closer to losing out with each and every day.

ITV Digital was the only logical step that could be taken to try and rescue the company from mediocrity, and for ITV to really mount any serious challenge on Sky Digital, they needed to get into the market as soon as possible. Biding their time would have done their chances no favours, so they dived in head first, and subsequently are regretting it.

Maybe they never expected to compete with Sky, but understood the need to at least go down fighting. Then again, maybe they were just aspiring to something well above their reach, maybe they really believed they could compete.

If you look at the gaming industry now, a similar situation is occurring. Sony and Microsoft (absolute GIANTS in the electronics field) are "doing battle" for supremacy in the gaming world, with companies without so much clout in other markets (Sega/Nintendo) struggling for survival. We've seen Sega give in and leave their hardware development roots, but is the same the future for Nintendo?

The fact is, Sony and Microsoft have invested phenomenal money into their new products, and will continue to do so as long as these products sell as well as they have been doing. However, can Nintendo afford to compete? Like ITV, if they are to have a chance, they can't hang around. They have to get into the market and begin competing again. But, does that mean that they will lose out in the long run? ITV saw others leading the market. ITV saw others making giant strides in the quest for market domination, and the same is happening to Nintendo. As Microsoft take their first steps in the industry (and we've been led to believe they've been fairly successful first steps) and Sony continue to corner all area's of the market, Nintendo are still without a warrior with which to do battle.

Like ITV, Nintendo won't go out of business. They're worth too much to go completely out of business, but they might end up following the lead of Sega. It may be so hard to have any chance of winning back the part of the market that used to be theirs, that in the end it is only economically practical to go into software development.

Maybe, this next-generation battle won't be won or lost on the basis of money, or marketing abilities, or support from other parties. Maybe this next generation battle will be won on the ground that has already been won by Sony, and Microsoft. You can almost see Nintendo's path crumbling ahead of it, and before too long there'll be nothing left to stand on.

ITV were rash, they had to be. Nintendo haven't necessarily been (they've been damn brave actually! [what with hinting against looking to online gaming and to waiting so long to release their console here]), but certainly can't wait much longer. They need to throw everything into this, because anyone who's left standing when an industry moves forward, ultimately faces completely losing out.

The ITV debacle was seen coming a mile off. For Nintendo, the case isn't so. They've made mistakes, and haven't done any favours for themselves with some of their decisions concerning the GameCube, but, it still seems hard to believe that the future for Nintendo may lead to a dead end.

Nintendo were always going to be releasing a new console, and no-one was surpassed when it was officially announced. But, I wonder, were they forced to make that announcement early? The rumours surrounding the PS3 have been circulating, as people speculate that Sony is indeed concerned that Microsoft may be onto a winner with it's Xbox. If what we're being told is true, and plans really have been discussed, who would doubt that maybe Sony have been rushed into doing something about the situation?

The market moves itself along, and only those quickest to react can keep up with it. Sometimes, decisions are made rashly, and sometimes (ala ITV) made poorly.