In nature, different organisms often have unique relationships with one another that affect the viability of both species. There are parasitic relationships in which one organism survives at the expense of another. An example of this would be a virus, which survives by feeding on essential nutrients of its host. In commensalitic relationships, one organism benefits while the other is unaffected. A good example of this would be the way certain fish will attach onto a whale and feed on the barnacles growing on it. Finally, there is the mutualistic relationship, which brings us to the title of this article.
If you are unaware of what aphids are, they are very small insects that breed in large numbers, but are often preyed on by larger, more aggressive, insects. Fire ants, while they could choose to be one of these predators, use aphids for far more interesting purposes. Aphids produce a honeydew-like substance that fire ants rather enjoy, so in exchange for being able to harvest this substance, the fire ants protect the aphids from other predators. These two species could have been mortal enemies. Yet, because of their mutualistic relationship, both species benefit.
I apologize for my lack of brevity, but it is very important that everyone out there understands the concept of a mutualistic relationship. Business operates in much the same way as the animal kingdom. We see all three of these symbiotic relationships in the business circle. Unfortunately, it is often the parasitic relationship that dominates. However, it's eminent in business (much like science) that mutualistic relationships are preferred over parasitic ones. The bad thing about competition is that in the end, someone's going to lose. Competition is only desired when a company knows it is more likely to win than its opponent.
Nintendo has been in a losing position for a decade now. It's in a competitive market where larger, and far more diversified companies are slowly eating away at its market share. Like a parasite, these companies are benefiting, while Nintendo languishes. How can it fight back against a force seemingly greater than its own? It needs outside help. It needs to ally itself with another company to fight away competition. It also needs to be a company that would also stand to benefit from the arrangement. The question is: who will it be?
In this four part series, we will explore possible candidates that could help Nintendo gain the market share it has lost in the home console business. Keep in mind, this is not meant to imply any of these partnerships are happening or will ever happen; it is simply a "what if" scenario, showing what could be. Perhaps some Nintendo executive (or an executive from any of the companies involved) will see this and a spark will ignite. To be honest though, the simple purpose of these editorials is to show that cooperation, and not competition, is the best answer to any solution.
AOL and Nintendo: "I Got What You Need"
I remember the first time I saw someone use the internet. It was 1994, and I was in a college computer lab watching college students access what they called the "World Wide Web." Watching a computer, which I considered nothing more than an outlet to play video games, access a worldwide network of information using nothing but a phone line...I felt like the people at the World's Fair must have felt when they first witnessed a television. It seemed like nothing short of a miracle.
In my youthful ignorance, I didn't understand what this "internet" would change. Even when I had access to this resource two years later, I didn't know the life-changing phenomenon the internet would become. I didn't truly grasp onto the significance of it until America Online took over the world. What America Online strove for was very simple. They wanted everyone who owned a computer (which more and more was becoming a household necessity) to access the internet. At the time, it seemed like an absurd idea. After all, what could the internet offer "normal" people? It was an outpost for college students and basement nerds, not the general public. Still, America Online and others drove on to make the internet a phenomenon. They succeeded, and AOL has been and remains the largest internet service provider in the world, becoming the face of a worldwide communication force.
Nintendo has had a similar goal as AOL throughout its entire existence. With the NES, they brought home consoles out of the basement and into the family living room. They have targeted audiences that many deemed unreachable. With the Nintendo Revolution, Nintendo is attempting something that has never been attempted. Nintendo wants "everyone" to own their system. They have expanded beyond the teen to young adult male demographic, and are trying to attract everyone from pre-teen girls to 50+ year-old males. They want everyone to enjoy their video games, and in the long run, hope to make the home video game console into a mainstream entertainment medium. Sure, every video game company may have this aspiration. However, unlike the others, Nintendo has actively pursued this goal.
The problem Nintendo has faced is attracting a Western audience. Nintendo, being a Japanese-based company, was far more hurt by their failures with the N64 and GameCube in Japan than its relative failure in North America and Europe. Their main goal, thus far, has been to recapture the Japanese gaming market from Sony. With DS, they have had a lot of success. The Revolution, with its unique playing style, will also likely attract Eastern gamers. What is Nintendo's plan in Western markets though? Speaking purely for Americans, its unique controller will not be enough to sway gamers. They need to convince gamers that those graphics they salivate over aren't really important, and new gameplay experiences are. They NEED to find a market.
Now, before I begin, I want people to remember that I look at this alliance from a purely American perspective. This will do next to nothing for Nintendo's Japanese standing, and it is unknown what type of effect it could have in Europe. I am an American, and America is what I know. So bear that in mind while you read.