What The Alliance Would Do for Nintendo
If you were to ask a typical Xbox or PS2 gamer what could account for the GameCube being the lowest-selling home console in the American market, they might say that the GameCube failed due to a lack of online play. In reality, the answer is far more nuanced, but perception is very important. Nintendo's lack of any type of online service really hurt its image with both third parties and the general public. Obviously, Nintendo knows this, because they have firmly committed the Nintendo DS and Revolution to wireless broadband, or wi-fi. What is unknown at this point, at least in the console realm, is exactly what level of service Nintendo is going to provide for users. The only thing we know is that the service will likely be free.
Let me provide a hypothetical scenario. Let's fast forward in time. We're going to Los Angeles, in the month of May. it's E3 2006, and Revolution is on the main stage. Satoru Iwata has just amazed fans with in-game footage of Mario Revolution, Super Smash Brothers Revolution, and Metroid Prime 3. Just as the excitement is ready to die down, Iwata-san says in semi-broken English, "I have one more thing to show you." He holds his Revolution controller, and accesses "Nintendo Online." He logs on under "SIwata" and as he comes on, a window appears, along with a sound we are very familiar with. It's the AOL Instant Messenger "ding" sound -- the one that sounds when someone sends you a message. A window asks if you would like to accept a message from the user "SMiyamoto." Iwata says yes, and he is greeted with the message, "Would you like to play a game?" Using the new Microphone add-on, he says "Sure," which displays the text, using the new voice recognition technology. Suddenly, a window pops saying, "SMiyamoto Wishes to Play (blank)," and soon, the two are engaged in an online game, reminiscent of minigames one might see on Pogo or MSN. Soon, a curtain is raised, revealing Shigeru Miyamoto, playing on a computer, rather than a Revolution.
I won't go into the entire fictional presentation, simply provide the highlights. It is revealed that Nintendo is working with AOL to provide a new interactive gaming experience, one accessible to all Revolution and AOL users. In addition, AOL-Time Warner and Nintendo will be collaborating to form an online gaming service, which is also free to all Revolution users. Also, the "Instant Messenger" service will be available out-of-the-box on the Revolution, utilizing voice recognition software to communicate with other users.
This may sound a bit fantastical, but even looking at the bare minimum, the benefits to Nintendo are apparent. The majority of AOL users are in the very market Nintendo is trying to reach: families. In addition, aspects such as instant messaging are tools Nintendo needs to woo female gamers, which Nintendo has been attempting to cater too. After all, if playing video games on a Nintendo console were a social activity, young women would jump right in. That was AOL's key to success in that market.
In reference to the network, as seen with the launch of DS's online service, Nintendo has a long way to go if they wish to compete with Microsoft and Sony's networks by the time the Revolution comes out. AOL and their experience in the online realm would give Nintendo that trump card that they've sorely needed. Using AOL/IM friend lists, playing against one's buddies becomes completely painless, as opposed to the tedium that is Nintendo's current setup.
After all, look at all the attention Xbox Live has garnered. The network they've created for their system has become bigger than the system itself. Very few people are looking to Nintendo for the next big thing in online gaming. With a name like AOL on their side, they turn the attention away from Microsoft and their gaming network. With words like "AOL" and "Free" coming from Nintendo's camp, few gamers could ignore such a prospect.
What the Alliance Would Do For AOL-Time Warner
However, though the benefits for Nintendo are clear, the benefits AOL-Time Warner would enjoy are not as obvious. Still, that doesn't mean those benefits don't exist. In fact, AOL will stand to benefit from this alliance even more than Nintendo if it were pulled off successfully.
During the mid-90s into the new millennium, AOL (as an online service) enjoyed unparalleled success. Every year, more and more people subscribed to AOL, helping perpetuate AOL become and remain the world's largest online service provider. However, in recent years chinks have appeared in AOL's armor. Cable and DSL services emerged, and starting in 2002, AOL began to lose subscribers. In fact, for the last three years, AOL has shown a consistent decline in subscriptions.
Of course, AOL is still the world's largest online provider, but such losses have proven that AOL as a company is not infallible. That may have been the reason they merged with another struggling company, Time Warner. This has increased their profits, but it has done nothing to slow the decline of their online division.
In recent years, we have seen AOL diversify significantly. It has become more than an online service provider; it's become a hub for the largest online community in the world. From its instant messenger, to its chat rooms, music players, and the multitude of other services they provide; AOL has proven that even with users moving on to different service providers, AOL can still serve as their central online hub.
With that in mind, one of the largest growing segments in the online community is online gaming. More specifically, console online gaming. This is something that AOL has not delved into, and something they've wanted to delve into for years. In fact, AOL was set to ally itself with Sony to provide services to the PlayStation 2. The plans never came to fruition though, and now Sony has decided to go on their own with their online gaming services for the PS3.
Nintendo and AOL, however, make the perfect match. AOL would give Nintendo legitimacy in terms of online gaming, and AOL would gain a foothold in an online domain outside of computers. It truly is a win-win situation.