The new Nintendo Network ID system that makes its debut on the Wii U is a sign of progress for a company that has, historically, not shown a lot of savvy in setting up its online systems. The Wii U lets users connect up to 12 separate Nintendo Network IDs to a single system and use those IDs to easily connect with online friends and strangers. The new Wii U eShop includes many retail games for download on the same day they reach stores, and does away with the "Wii Points" virtual currency that characterised Nintendo's previous console. The company has even promised to roll out a cloud save feature sometime next year.
Given all of these improvements, it's a bit baffling that Nintendo is still caught in the past when it comes to the extremely limiting digital rights management system that ties downloaded game and content purchases to a single console.
As Nintendo's Wii U FAQ makes clear, "a Nintendo Network Account can only be used on the console where it was created." Thus, any games tied to that unique online ID will only work on the first system they're purchased and downloaded to. This is in essence the same setup that Nintendo used to protect downloaded Virtual Console and
WiiWare games on the first Wii, a setup that not only utterly failed to stop piracy on the system but also caused headaches for many early Wii owners with faulty systems.
Tying downloaded games to a single system means there's no way for a user to access those games at a friend's house short of lugging the entire system along (yes, the Wii is a lot smaller and lighter than other contemporary systems, but still). It also means a game downloaded to the Wii U in the living room won't be playable on a second system in the kids' room, even if the same password-protected Nintendo Network ID was used on both systems.
It also means that if your system breaks down, you can't just go buy a new one (or borrow one from a friend) and immediately recover your content using your account.
Instead, you have to go through Nintendo's official repair process, waiting up to two weeks for the system to be returned just to maintain the system-locked licence data -a caveat I learned about first hand recently. And in the extreme case your Wii U is stolen, it seems there's no way to recover your purchased games (Nintendo has refused numerous requests for comment on its DRM scheme). Sure, you can back up purchases to a USB hard drive, but thanks to this licensing scheme, those backups are no more portable than the actual bits stored on the Wii U's internal storage.
This DRM scheme was already retrograde when Nintendo was still getting its online feet wet with the Wii, but it's really backward in late 2012, when every other major game platform has figured out ways to protect downloaded content while also making it accessible across devices. Microsoft allows downloaded Xbox 360 games to be played on secondary systems as long as you're actively logged in with your Gamertag, and it allows users to transfer an entire library to a new system using a