Nintendo: Free-to-play is hurting our hardware business - GameSpot
The free-to-play genre is growing and growing, with shining examples like League of Legends and DOTA 2, but the business model is not adored by all. Nintendo president Satoru Iwata recently commented that free-to-play is actually hurting the company's hardware business because it means the Japanese game giant must work even harder to convince gamers to buy a 3DS or Wii U.
"It has been 30 years since Nintendo started its business of dedicated video game systems, and if I want to maintain that size for the next 10, 20, or 30 years, leading a software-only business would only put us at a big disadvantage, which is another reason why we insist on our integrated hardware-software model," Iwata said during last week's Q&A with investors. The English translation of the briefing was published today.
Iwata further explained that Nintendo's longstanding hardware-software model is suffering through a "significant handicap" today because it is increasingly difficult to communicate the value of its hardware when free-to-play offerings have become so commonplace....
Apparently it's everyone's fault but theirs.