Nyko - First parties threatened by us
A portion of a GI interview with Nyko's founder and CEO, Herschel Naghi...
Q: Making unlicensed accessories has led at times to disputes with console manufacturers. What are the pros and cons of licensing versus not licensing, and why have you chosen to avoid licensing?
Herschel Naghi: The pros to licensing include the ability to say your product is officially licensed, put a stamp or seal of approval on the box, and ideally receive support and cooperation during development, marketing and distribution from the first-party licensor. Frankly, the only con is the cost. It can be very expensive to obtain a first-party license, and in some cases the costs outweigh the benefits.
In general Nyko has always been open to producing products licensed by console manufacturers, and in some cases such as our licensed Memory Card for PlayStation 2 we have maintained successful licensing arrangements. In an ideal world all of our products would carry the first-party license, but in reality there can be exorbitant commitments that would impinge on the viability of our business. When need be, we will create hardware without the blessing of the license. In most cases our unlicensed approach is more successful for us and allows us to provide a superior product to the consumer at a lower cost than would have been possible with the license. Plus, we can get them on store shelves sooner.
Most first parties see Nyko as a threat to their business; after all, we fix flaws in designs that represent a great deal of labor and testing. As a result, first parties can be reluctant to license Nyko. But despite these setbacks, we have continued to work hard and include new and advanced features such as our Transport Technology in the Wand. We have made a very successful business by capitalizing on opportunities that first parties have neglected. At its core, our goal is to solve problems no matter the cause so that players have the best possible gaming experience.
Q: Making unlicensed accessories has led at times to disputes with console manufacturers. What are the pros and cons of licensing versus not licensing, and why have you chosen to avoid licensing?
Herschel Naghi: The pros to licensing include the ability to say your product is officially licensed, put a stamp or seal of approval on the box, and ideally receive support and cooperation during development, marketing and distribution from the first-party licensor. Frankly, the only con is the cost. It can be very expensive to obtain a first-party license, and in some cases the costs outweigh the benefits.
In general Nyko has always been open to producing products licensed by console manufacturers, and in some cases such as our licensed Memory Card for PlayStation 2 we have maintained successful licensing arrangements. In an ideal world all of our products would carry the first-party license, but in reality there can be exorbitant commitments that would impinge on the viability of our business. When need be, we will create hardware without the blessing of the license. In most cases our unlicensed approach is more successful for us and allows us to provide a superior product to the consumer at a lower cost than would have been possible with the license. Plus, we can get them on store shelves sooner.
Most first parties see Nyko as a threat to their business; after all, we fix flaws in designs that represent a great deal of labor and testing. As a result, first parties can be reluctant to license Nyko. But despite these setbacks, we have continued to work hard and include new and advanced features such as our Transport Technology in the Wand. We have made a very successful business by capitalizing on opportunities that first parties have neglected. At its core, our goal is to solve problems no matter the cause so that players have the best possible gaming experience.
