As the release of two major consoles approaches, video game companies are preparing for what could be a very eventful fall. Two video game companies have decided to work with gamers in an effort to increase the appeal of their consoles.
Nintendo’s free game
In a move on June 21 to increase users, Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) announced it is attempting to develop its first free-to-play game. That shows the company is willing to change its traditional business practices to help spur the appeal of its Wii gaming console, and that’s a good sign for investors.
The game is slated to be released in March and would be a free version of Steel Diver, a submarine strategy game; it will be available on Wii U and Nintendo 3DS.
The move to offer a free game is a positive sign for the outlook of this firm, because it shows Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) is moving away from a strict business model, which has stayed far away from new technology such as smartphones. Even a slight change in tactics could indicate Nintendo is ready to work on gaming apps, which could substantially boost profits. Even just the free game offer will get the attention of new users.
The company looks like it needs to make a major change to strike a chord with gamers. Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) has had a lack of major game releases, and reviews of Wii U are mediocre, unlike the rave reviews it received for its 2006 launch of Wii. Probably the biggest challenge Nintendo faces is competition from two companies that have received praise for their consoles: Microsoft Corporation (NASDAQ:MSFT) and Sony Corporation (ADR) (NYSE:SNE). Each company is scheduled to release a new console this fall.
Microsoft listened to gamers
In a previous post, I criticized Microsoft Corporation (NASDAQ:MSFT) for the company’s announcement in June about the upcoming Xbox One. The firm originally was not allowing gamers to give away a game more than once, and it had to be to a friend for at least 30 days. Furthermore, the company initially required users to check in at least once a day online for the system to function. Many others felt the same way I did, and Microsoft Corporation (NASDAQ:MSFT) listened. This is a very positive sign for shareholders and those wanting to buy the stock, because it shows the company is at least trying to be user-friendly. If the Xbox One manages to beat the Sony PlayStation 4 in sales, the company will be in for a share price surge.