Nintendo's Future (Longest Post Ever)

[ThirdMarioBro]

Well, Nintendo has revealed what some of their plans for the future are, and have admitted to their mistakes in a HUGE Gamespy article. If you have time and patience or are a Nintendo fan, then read ahead, because good times are coming.

*prepares poor clipboard for a monster copy paste*


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Iwata Tells All, Proposes GCNext

In conducting research for a new book on the gaming industry, Steven Kent (of Newsweek/MSNBC) has just released a lengthy article on Nintendo focusing on President Satoru Iwata-san. GameSpy is publishing Kent's reports in a series of specials that are certainly worth checking out.
Among other things said in the interview, Iwata-san (and primarily for the sake of illustration, mind you) asked Kent to consider their next console the GCNext, or GCN for short. [Editor's note: Obviously, this raises a bit of a dilemma for us fansite writers as the new acronym is identical to the official GameCube one.] This select mention makes GCNext the closest thing we have to an official project name at this time (barring third party documentation tossed around months ago).
Iwata-san shared the following key points of his business philosophy:
• A portable GameCube/Game Boy hybrid system, while a fun concept, would not be considered by Nintendo until the price, weight, and battery life were low enough to make it appropriate to bring to market.
• Sony and Microsoft have been much more formidable competition for Nintendo than companies founded on gaming (e.g. Sega) ever were. Iwata-san admitted that the GameCube's mediocre performance relative to the other consoles has resulted in a decline of profitability.
• He asserted that as long as people play games on TVs, and as long as Nintendo's software development is top-notch, Nintendo would continue to make money off its current business model of producing its own hardware.
• Microsoft is only concerned on releasing a technologically "beefed-up" version of its console, whereas Nintendo hopes to focus on making the process of game development easier and cheaper with its next machine. (This line is very similar with what was said during the GameCube's development as well.)
• On the topic of the growing adult market of game players and its immediate effect on Nintendo's revenues: "To answer your question, in the short term, there is some impact [from Nintendo's inability to reach older audiences]; but in the long term, I think it is most important for Nintendo to reach the widest variety of customers. That is our main emphasis right now, and it will be in the future as well." Again, the company line hasn't changed radically from years' past.
• Third party support, while once a way for console makers to line their pockets with licensing fees, are now crucial to a console's success. Iwata-san reiterated Nintendo's dedication to building relationships with established third parties (though so far they have primarily been exclusively Japanese) with collaborations like F-Zero GX and Donkey Konga
• As opposed to Sony, who is trying to develop new semiconductor technology for its game systems that no one knows how to program for, Nintendo would be best off cooperating with and investing in the best hardware available and thus already familiar to designers and programmers.
• Nestled into the third page of the story was Iwata-san finally gives us something to call what up until now has colloquially referred to as N5:
"Nintendo is working on its next-generation system. Allow me to call it GCNext or GCN. The abilities of GCNext will be different from what you have seen from consoles in the past. What Nintendo is currently discussing is not about state-of-the-art technology for enhancing processing power. But what I, Miyamoto, and Mr. Takeda [engineering leader Genyo Takeda] are discussing is what should be done to entertain people in a new way; and in order to achieve this, what functionality must be added to our current technology."
Perhaps the most important quote in the article was Iwata's closing concession that while inexpensive and easy to develop games for, GameCube did not succeed because PS2 beat it to market.
"I think that its biggest shortcoming was that we were late in launching it," says Iwata. "Because of that delay, our competitors were able to create a large install base for their consoles. Even though it was easier for software developers to create games for GameCube, because of the delay, the developers had a chance to learn more about our competitors' machines. In the end, we could not match that advantage."
Iwata-san promised that next time around, Nintendo would launch "GCNext" alongside its competition to prevent the same problems GameCube has faced in the market. (js)
Nintendo's New Direction
Nintendo President Satoru Iwata discusses what's gone wrong, what's gone right, and why Nintendo will end up on top.
By Steven L. Kent | Apr. 11, 2004


Nintendo does not open the doors of its gleaming white Kyoto tower to the press very often, so when Nintendo Company Ltd. President Satoru Iwata agreed to meet with GameSpy last month, it was an invitation that could not be refused.

Nintendo stands at a significant crossroads. While GameCube is still the number two console in Japan, it has dropped to third place in the North American and European markets. Game Boy Advance is the unrivalled leader in the portable market, but Nintendo will face a strong challenge in the form of the Sony PSP in 2005.


During his meeting with GameSpy, Iwata-san was candid about his company's current situation, mistakes his company has made, and why he believes Nintendo will still end up on top.

One of the first topics of conversation was Sony's PSP. With its high-resolution screen and packed with processing power, PSP has the look of a genuine Game Boy killer. The response to PSP seems obvious -- a Game Boy Advance/GameCube hybrid that can play both GBA cartridges and GameCube discs.

This response is so obvious, in fact, that some joker created a seriously believable mock-up of a prototype device called "Game Boy Enhanced" and showed it on the Internet. Talk about your clever hoaxes, even people at Nintendo wanted to believe it.

So why not make a Game Boy Enhanced?

"Some time in the future we may be able to combine the technologies of Game Boy and GameCube in a unit that will be small and light with a long enough battery life and a low enough price for the market," Iwata said. "We [will] need to find a reasonable balance between the high-functionality and the other requisite features in a portable system.

"Timing is very important. Even if there are new technologies that will make portable games more fun to play, if the price is too high or the other requisites are not met, we say it is premature."

History agrees in this case. Shortly after Nintendo launched Game Boy in 1989, Atari launched Lynx. Lynx had higher-resolution graphics and a back-lit color screen. It also retailed for more than twice the price of Game Boy, burned through batteries at five times the speed, and had a smaller library.

Lynx died quickly and was followed by Game Gear, TurboExpress, game.com, Wonder Swan, Neo Geo Pocket, Nomad, and most recently Zodiac and N-Gage. All of these units (except maybe game.com) have had some form of technological advantage over Game Boy. None of these systems managed to cut into Game Boy's sales.

Along those same lines, Nintendo stands accused of letting the console market slip through its hands. Sony waltzed into the market in 1995, one full decade after Nintendo launched the NES in the United States, and walked off with 66 percent of the market. Now Microsoft has snatched away another 15 percent of the Western markets. And the latest rumor is that Nintendo may not even launch another game console in the future.


"In the past, Nintendo competed with SEGA, another gaming company," says Iwata. "Now our competitors are Sony and Microsoft, companies that do not have games at the core of their business. I must admit, the competition is tougher than ever before; and in the short run, we have seen declining profitability.

"At least in the near-term, as long as people are playing games on televisions and we can create the best games to be played over televisions, we will benefit by creating hardware."

So how will they compete with the biggest name in electronics and the wealthiest corporation in history?

"When it comes to the philosophy of making hardware, our philosophy is completely different than the direction Microsoft is taking," says Iwata. "I think they are simply looking toward beefed up technology for the next-generation console. And from the developers' and programmers' point of view, that kind of machine will be very difficult to work with. In the end, there will not be a sufficient reward in exchange for the hardships they will need to endure.

"That should create an opportunity for Nintendo because we are trying to make unique hardware -- not just a beefed-up version of GameCube, but something that will be easy to program. In the long run, that will make game development on our new system more profitable."

That might well be profitable in the long run, but from a short-term view. In the here and now, Microsoft and Sony are tearing up the ever-growing young adult market and leaving only the scraps of the dwindling kids market in their wake. Asked about this, Iwata shows that he is not ducking the hard questions.

"Our competitors are always saying that Nintendo is just for children. To counter that, what we really need to do is explain to customers and potential customers [that we do not just make games for kids]," says Iwata.

"I think that the shift from Game Boy Advance to Game Boy Advance SP has attracted more and more young adults to play with the Game Boy product line.

"To answer your question, in the short term, there is some impact [from Nintendo's inability to reach older audiences]; but in the long term, I think it is most important for Nintendo to reach the widest variety of customers. That is our main emphasis right now, and it will be in the future as well."

And that brings the conversation back around to consoles and what Nintendo has planned for the next generation. Asked how Nintendo goes about creating a new console, Iwata contrasted Nintendo's philosophy with Sony's.

"In the world of gaming, if you are going to only purchase hardware, you will not enjoy yourself at all. It is our assumption that it is the software that provides the sensational experiences, and that [the games] are the only reason to buy the hardware," says Iwata.

"So, from the viewpoint of the software creators, their favorite new hardware will be the console that will enable them to make their dreams come true. That is true for the customers as well.

"Once we can identify these unique points [features], we can begin thinking about which partners we should take for their technology and know-how. Past generations [of consoles] have been measured by functionality such as computer graphics technology, processing speed, and power. It was as simple as that.

"To put it another way, before the launch of PlayStation 2 and GameCube, game creators mostly cared about working on the most powerful machines so that they could make games more attractive. But, if you ask me, if the situation will stay the same in the next generation, [both] Mr. Miyamoto [Shigeru Miyamoto, creator of the Mario and Zelda games] and I really doubt it.

"With the next generation of consoles, if the only thing they have is ten times the functionality [meaning processing power and improved graphics], I don't think people will be able to tell them apart from this existing generation. In the end, if the next generation of consoles only represents beefed-up technology, there will not be much of a future.

"Nintendo is working on its next-generation system. Allow me to call it GCNext or GCN. The abilities of GCNext will be different from what you have seen from consoles in the past. What Nintendo is currently discussing is not about state-of-the-art technology for enhancing processing power. But what I, Miyamoto, and Mr. Takeda [engineering leader Genyo Takeda] are discussing is what should be done to entertain people in a new way; and in order to achieve this, what functionality must be added to our current technology.

"Please understand, I am not saying that technology is unimportant. I understand that technology is important. But if we are just focusing on technology and investing in an IT manufacturing plant to come up with higher performance processing [chips], we will not succeed."

And here Nintendo highlights a well-tapped resource. The best-selling games for PlayStation 2 and Xbox may come from outside publishers, but Nintendo's in-house games still rule on GameCube.

When discussing the future, Mr. Iwata often mentions meetings that he holds with Genyo Takeda and Shigeru Miyamoto. Asked if he weighs their opinions equally, Iwata gives the right answer.

"When Mr. Takeda was working on the GameCube, he stated that they [his team] were making the hardware strictly to support the software. In other words, Mr. Miyamoto's group and the people who create the software are more important. I think this is a unique feature of Nintendo's structure."

So Iwata says that the games are the most important thing? Agreed. But in this market, no company, not even Nintendo, can float a platform on its own. Sony and Microsoft have worked hard to create good relationships with third-party publishers. Nintendo, on the other hand, has a predatory reputation in this area.

"In the past, our third-party relations were quite different," Iwata admits. "These are companies that look around, and if they think that Nintendo has created a lucrative market through its efforts and investments, they enter it. That was our view of third-party companies in the past.

"Now we take a different view. We are more willing to cooperate with third-party companies. They are thinking in terms of development efficiency and maximizing the appeal of their products. Sometimes we license our characters to these third-party companies so that our characters become guest characters in their games.

"We are also actively working with Sega, Namco, and Konami to create software. For a platform to succeed, it must have a wide variety of different kinds of software available. In the future, I believe, it will be even more important for us to work with third-party companies."

Iwata holds "F-Zero," a co-creation of Nintendo and Sega's Amusement Vision studio, as a good example of Nintendo's new open-door policy. Namco, which teamed up with Nintendo to create "Donkey Konga," has openly applauded Nintendo for its new partnerships.

But Nintendo's new open-door policy has its limits. Mr. Iwata did not want to discuss what new abilities or technologies might be found in its upcoming DS and GCNext systems. In his view, Nintendo must drop out of the race for the most processing power. It must rely on strong technology partners for developing hardware and provide an easy environment for its software partners.

We are going in a different direction than Sony. We believe that other companies are already investing in state-of-the-art semiconductor development, says Iwata. "Nintendo is not actually trying to create a state-of-the-art technology that is not known to the world. We are reviewing technologies that are in the early stages of development [by other companies]. Nintendo should be able to find the optimal solution to make the best possible hardware by cooperating with several partners.

According to Iwata, the technological jump from the current generation of consoles to the next will be so incremental that most consumers will hardly notice the difference. Perhaps he is correct, but he is hedging his bets.

Even after losing more than two-thirds of the console market to competitors, Nintendo has managed to stay profitable. Letting good technological partners bear the brunt of manufacturing chips is the best way to cut costs and maintain power. Providing an easy-to-use programming environment is the way to attract game developers

But GameCube, which featured ATI graphics technology and an IBM processor, was both easy to program and inexpensive to build. What went wrong?

"I think that its biggest shortcoming was that we were late in launching it," says Iwata. "Because of that delay, our competitors were able to create a large install base for their consoles. Even though it was easier for software developers to create games for GameCube, because of the delay, the developers had a chance to learn more about our competitors' machines. In the end, we could not match that advantage."

Indeed, while Nintendo would have been unlikely to unseat Sony had GameCube come out on time, the company would be in a far better situation. Asked if Nintendo will come to the party on time next time around, Iwata assured GameSpy that next time it will.

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Well, there you have it, stright from the ThirdMarioBro Copy Paste News (poor clipboard). E3 is gonna rock a whole lot more than last year. sony will sell on their "coolness", and Nintendo will have the games, which is all that matters. Game Boy will rule the day regardless of Sony's loud mouth statements. No one can beat a 20 Million user base. Game Gear, Nomad, Wonder Swan, and the others had batter make room in that grave. The industry really needs innovation to stay alive, because the same ole crap isn't gonna cut it forever. Nintendo seems to be the only ones who try to innovate while the other two rip them off. Yeah Nintendo has done that some too, but not to their extent. My point is that if Nintendo ever fell, Sony and Microsoft would run rampant for awhile, but after consumers get tired of buying the same system over and over, and playing the same games over and over, Sony & Microsoft would need something new. And there wouldn't be anything left to copy. The industry really needs Nintendo, and without them, it would eventually fall.

OK, I'm done ranting

really.......

I can't help it....

NINTENDO WILL KICK A**




Oh shut up.