The Simple Threat of the Wii

Nintendo's new tabletop console Wii represents a radical contrast to the Xbox 360 and the PlayStation 3. The control system is motion-driven, the games are mostly simple and instinctive, and the price is low.

Wii may reshape the industry and force the software developers to rethink their commitment to vastly expensive and complex PS3 and Xbox 360 games.

Clearing Up Controller Clutter

It's hard to remember now, but Nintendo used to be a trailblazer in game control system design -- the company pioneered the use of shoulder buttons and a sensitive analog controller back in the day. The Nintendo vision of the game controller was largely co-opted by Sony (SNE - commentary - Cramer's Take) and Microsoft (MSFT - commentary - Cramer's Take), which have taken the number of buttons, sticks and pads on the controller to a whole new level in the PS3 and Xbox360 consoles.

In the face of the complexity of its big rivals' offerings, Nintendo has executed an abrupt U-turn with its latest console -- Wii has just A and B buttons and a directional pad. The complexity that is lost in the number of buttons and triggers is shifted into motion detection. Moving complexity from the controller into gamers' hands seems tremendously appealing. Human beings are used to performing remarkably complex moves with their hands, yet most consumers loathe devices with 10 to 12 buttons/triggers.

On Thursday, Nintendo announced the details of the Wii launch, and most of them were largely anticipated. It will debut in the U.S. on Nov. 17 at a price of $250, which is $50 above the low-end predictions and doesn't represent quite the contrast to the expensive rival consoles it might have. On the other hand, the simple sports game included in the package is a good introduction to the different ways of using the Wii controller.

The number of games that will be shipped by the end of December is 30, quite large, though many of the titles are far simpler than the baroquely layered software driving Xbox 360 and PS3 sales.

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At time of publication, Kuittinen held none of the stocks mentioned, although holdings can change at any time.

Tero Kuittinen is a senior product specialist for Nordic Partners, Inc., a pan-Nordic brokerage firm. Although Kuittinen is an employee of Nordic Partners, Inc., the statements above are being made in Kuittinen's personal capacity and are in no way are the statements of Nordic Partners, Inc., nor attributable to the company. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Kuittinen appreciates your feedback; click here to send an email.