Analyst Cautions Wii Investment May Be "Fool's Gold"

Illustration for article titled Analyst Cautions Wii Investment May Be "Fool's Gold"

Investors looking to score some easy green on Nintendo's little white console may be left blue, particularly if they fall for the "red herring" that is the console's massive install base, says one analyst.

Cowen & Company's Doug Creutz says the Wii may represent "fool's gold for someone looking to invest in video game development" in a new Gamasutra editorial and that investing in cross-platform Xbox 360 and PlayStation 3 development may offer "more control over your fate."

Creutz follows that argument with an opinion that calls the Wii "a bit of a crapshoot for what works and what doesn't."

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One foundation of the analyst's reasoning is something we've heard before—that only Nintendo games sell on the Wii. Nintendo has countered that argument, noting that third party publishers have had some success on the platform, with multiple one million-sellers "making it" on the Wii.

But Creutz says that the majority of third party success comes from Guitar Hero and Rock Band, which he writes accounts for one-sixth of Wii sales.

"You're rolling the dice on succeeding in a market which has proved very resistant to generating meaningful hits away from Nintendo titles and the music genre," he writes.

Analyst: Wii Is 'Fool's Gold' For Game Investors [Gamasutra]

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DISCUSSION

Okay, Kotaku. I'm not going to keep sticking up for you if you can't be bothered to read your own articles and report on the actual *subject* of the article, instead of skimming through and finding the one most flame-baiting comment you think will get the trolls out and the hits coming.

Ed Barton, Screen Digest:

[www.gamasutra.com]

"Opinion of investing in game development for each platform...

In an abstract sense, one looks at the size of the addressable market only. In reality, games development focuses on the skills of one's creative resources, and targets the most appropriate platform(s).

The most successful publishers tend to leverage investments and minimize commercial risks by developing across multiple platforms."

Billy Pidgeon, IDC

[www.gamasutra.com]

"I would invest in Wii-packaged goods, but also in downloadable — indie, not casual — games for all three consoles and for the DSi, if not the PSP.

I'd invest heavier in PC games, delivered to PC and online wherever possible, and at emerging models such as free-to-play and other micro-transaction-based business models in all regions including North America.

I also see big potential for game developers to make virtual worlds a success by transforming them into something much more game-like."

Whoa whoa whoa! Wait, one of these guys *supported* the Wii? That's like, the complete OPPOSITE of this news post!