Nex Playground CEO Credits Subscription Model for Solving Wii's Long-Term Challenges

While Sony and Nintendo have expanded their lead over Xbox, a dark horse console had a very strong showing in third place in November. The Nex Playground has emerged as a breakout hit, and CEO David Lee believes that one of the reasons why it's been so successful is because the console has solved the Wii "problem."

Nearly two decades ago, the Wii powered Nintendo's post-GameCube comeback with its motion controls and unique games. Lee argues that the scope of Wii's success made it difficult to sustain in the long term. Instead of trying to sell games like Wii, Nex Playground is offering its titles as part of a subscription service.

One of the most important things we should do is learn from history and try not to commit the same limitations, and that's why we have a subscription model, Lee told The Game Business. Nintendo expanded the audience with Wii. When you expand the audience, and they want different things, and they only buy Wii Fit, Wii Sports and not many others … that's a bit of a problem.

Lee was very complementary toward Nintendo in his follow-up remarks, but he added that the Wii's model of selling only a few games to certain members of its install base was not sustainable. The subscription approach addresses this by providing continuous value to all users, regardless of their gaming preferences or experience levels.

It's very important that we set ourselves up to serve our customer continuously with new innovations, added Lee. That is how the whole system can sustain. But it started with Wii. We are standing on a giant's shoulder.

Nex Playground reportedly accounted for 14% of all console sales on Black Friday, finishing ahead of the Xbox family of systems. This impressive performance demonstrates the appeal of the console's unique approach to gaming, which combines motion controls with a subscription-based content model.

The Wii's success story is well-documented in gaming history. The console brought motion controls to the mainstream and attracted millions of casual gamers who had never owned a video game system before. However, this expanded audience created challenges for Nintendo, as many of these new customers only purchased a handful of games, primarily fitness and sports titles.

This limited software sales model meant that while the Wii sold exceptionally well, the revenue from game sales didn't match the hardware success. Many Wii owners became inactive after their initial purchases, creating a sustainability problem that Nex Playground aims to solve through its subscription service.

By offering games as part of a subscription rather than individual purchases, Nex Playground ensures that all console owners have access to a wide variety of content. This approach encourages continuous engagement and provides developers with a more predictable revenue stream, creating a healthier ecosystem for both content creators and consumers.

The subscription model also allows Nex Playground to regularly add new content and innovations without requiring users to make additional purchases. This continuous value proposition addresses one of the key weaknesses of the Wii's business model, where users who weren't interested in the limited selection of popular games had little reason to continue using the console.

Lee's acknowledgment that Nex Playground is standing on a giant's shoulder shows respect for Nintendo's pioneering work while also highlighting how the new console has learned from the Wii's limitations. The success of Nex Playground suggests that there's still significant demand for motion-controlled gaming, provided it's delivered through a sustainable business model.

As the gaming industry continues to evolve, the Nex Playground's approach represents an interesting experiment in console business models. The combination of motion controls, subscription services, and lessons learned from previous generations could shape how future consoles approach audience expansion and content delivery.