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Nintendo's Iwata On GameCube Sales, Future Plans

Thanks to 1UP for its article covering a recent interview with Nintendo president Satoru Iwata, in which he discusses "Nintendo's current state and its plans for the future in what will be a critical year for the company." Iwata seems to be confident in Nintendo's "..current target of 6 million GameCube consoles sold worldwide in the current fiscal year, which will conclude in March", and also notes that he believes the China-launched iQue "will grow into a major business in three to five years." Finally, Iwata has comments about the mysterious new Nintendo device due to launch at E3 in May, suggesting he "doesn't necessarily expect this product to be an immediate hit upon its announcement - he's prepared to see a lack of applause from some of the audience."

16 of 75 comments (clear)

  1. "games have stopped selling"? by *weasel · · Score: 2, Insightful

    Game development is deadlocked today. Games have grown in pursuit of more beautiful graphics and more complex systems for 20 years, but that growth is no longer translating into success, and games have stopped selling. The situation won't change if we keep expanding in a conventional way. Instead, we want to offer a gameplay experience which players haven't encountered until now.

    This guy must have shot out of some sort of bizzare-o world. I mean, Nintendo may be having a rough generation, but the rest of the industry seems to be just fine, and the overall numbers are still always better than last year.

    And it also feels just odd to hear the implication, that innovation in games can't continue without their new hardware, from a Nintendo guy.

    It comes off like a suggestion that writers can't continue to churn out new and exciting books without adding whiz-bang 'pop-up' technology.

    --
    // "Can't clowns and pirates just -try- to get along?"
    1. Re:"games have stopped selling"? by Zangief · · Score: 2, Informative

      This guy must have shot out of some sort of bizzare-o world. I mean, Nintendo may be having a rough generation, but the rest of the industry seems to be just fine, and the overall numbers are still always better than last year.

      You must be looking at EA/Vivendi numbers, who have no problem in releasing the same games every year, with small modifications. If somehow they stumble into some innovation (GTA), they will quickly make the creators release a new edition every year.

      Out of that, every succesful gamehouse (blizzard, ID, Valve) has a strict set of games they know will be a success, and they stick to that. Innovators die slowly, but they die.

    2. Re:"games have stopped selling"? by xenocide2 · · Score: 4, Insightful

      The above poster must have been born out of some bizzare-o world. The publishers (Take Two) of the arguably most popular game in existance (Grand Theft Auto) are under fierce scrutiny from government men in charge of finance, for overstating earnings. Two senior and influential men in the conception of the XBox have left Redmond.

      The most popular online PC games are all in the range of five years old: Halflife with its mods still leads the FPS usage charts, and as I recall, Everquest still leads the way in subscription numbers. Then look at The Sims. Four years after first publication, EA is still pumping out expansions, the one EA way. And they top the charts.

      None of these games are graphical masterpieces. For the most part their continued popularity rests on human interaction. Playing with and against other people in Halflife, forming parties and "guilds" in MMORPGs, and the general gameplay of The Sims. Graphical masterpieces need so many things these days. You need an advanced rendering engine capable of per pixel lighting and shading, high resolution textures, a growing number of levels with a growing level of detail (polys). Fluid character animation, a solid fps, etc. And none of this is directly related to gameplay in general.

      Nowhere in the article is it mentioned that innovation won't happen without Nintendo's stuff. Its just that there's very little reward for pursuing graphical mastery alone anymore. I expect that their new hardware will emphasize human interaction. Perhaps a wireless transmitter/reciever that finds opponents for you when you turn it on. Like those little devices in Japan that are supposed to go off if someone "compatible" with you is carrying one as well.

      --
      I Browse at +4 Flamebait

      Open Source Sysadmin

    3. Re:"games have stopped selling"? by fireduck · · Score: 3, Informative

      This guy must have shot out of some sort of bizzare-o world. I mean, Nintendo may be having a rough generation, but the rest of the industry seems to be just fine, and the overall numbers are still always better than last year.

      not true. according to this random article, "Game sales, meanwhile, shriveled 9 percent to 336.7 billion yen." (when compared to the previous year, i presume). Combined with a 33% decline in console hardware sales for the year, mentioned in the article, the video game industry in Japan is going through hard times. Especially relevant given that no new hardware is planned for release for at least another year or 2... (i.e., hardware sales are only going to get worse.)

    4. Re:"games have stopped selling"? by nelsonal · · Score: 2, Informative

      The investigation regarding Take-Two is about a fairly obscure bit of accounting, although it's common to the game industry. You have to understand that in the game industry retail stores are allowed to return unsold merchandise (or get a credit to mark them down). Well more than half the years sales occur in the months of November and December, and game makers would rather have some unsold merchandise returned than run out halfway though black friday. As a result, when game makers book a sale to the store, they are required to estimate how much product will be returned (and subtract that amount from the sales the just recorded. ie 100million copies of Madded 2004 go out, we figure that 5 million will come back, and so we shiped 100 million copies, but only record as sold 95 million copies. As you can guess this is still pretty much a black art, but there are some guidlines (how much got returned last year). Since the product is not returned until January (into the next quarter) a tactic that some companies use to appear to sell more than they really have is to under reserve, in the above example book 97 or even 100 million copies as sold. Then take the hit in March long after anyone cares, or you ship that really cool game that was late, so no one notices, or something else. However the wheels of justice turn slowly, I believe this case dates back to revenues recorded in the PS1 cycle.

      --
      Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
    5. Re:"games have stopped selling"? by scabb · · Score: 3, Interesting
      "So sure, I'm pessimistic - particularly with their previous innovation track record (robbie the robot, exercise pad, powerglove, virtual boy)."

      Nintendo's innovations aren't all bad. For instance, if you look at control pads alone, Nintendo were the first to introduce shoulder pads, analogue sticks and make the pad vibrate - at least to a mainstream anyway (I'm pretty sure the N64 pad & rumble pack were released before the Dual Shock).

      Of course, it's a lot easier to remember the stupid ideas, and complain how Mario Sunshine is just Mario 64 with prettier graphics and not innovative at all, but everyone always seems to overlook the entire genres that Nintendo have "created", from the recent "suck-em-up" that was Luigi's Mansion to the old "Stripped-Down-RPG/Action-Adventure-athon" that is Zelda. Smash Bros was a completely unconventional beat 'em up that still ruled. Nobody can decide what genre Metroid Prime is. Pikmin stripped out a lot of the complexities of the RTS and still managed to kick complete ass.

      It's like special effects in a film. If they're done brilliantly, you don't even think twice about them. If they're bad, then they're laughed at, and people remember how bad they were. However, Special effects don't make a movie

      To conclude, I am a Nintendo zealot with a knack for making bad analogies :)

  2. Musings by TwitchReflex · · Score: 2, Interesting
    Here's some keyboard quarterbacking, just a couple loosely threaded thoughts.

    If Nintendo did have something that wouldn't smack an audience in the mouth, it would be 50/50 between something Completely Different (abstract hard/software) or Me-Too ("It's a game system, a home media hub, a fondue, AND MORE!"). Personally, the latter would be like Dylan going Electric. Dogs and cats living together, etc.
    The N has had a focus exclusively on making Games, not trying to jam as many tech.swiss army gear into their hardware. Not that there is anything wrong with gadget laden stuff, but hopefully that keen focus on Just Games will keep Nintendo in motion. All they really need is just a game that can capture the hearts and minds of a generation, like another Mario. My guess?
    Donkey Konga.

  3. Not an immediate success, huh? by Gothic_Walrus · · Score: 4, Insightful
    One of the things Nintendo is best at is coming up with extremely bizarre products...and then making them work. More than a few of their games and accessories have been innovative but not successful. Then there are the ones that take off and perform very well. A short list...

    ROB The Robot - A robot you can control with your NES? Spiffy! Unfortunately, there was almost no support (two games, IIRC) and he died a quick death

    Game Boy - A portable game console? GASP! Since the Game Boy is still around (now as the GBA), it's fair to say that this one succeeded

    Virtual Boy - Ooh...pretty 3D graphics. It's too bad that they were just red and black, and that the VB caused massive headaches. Still, the idea was nice.

    Kirby's Tilt 'n Tumble - Control Kirby by tilting your Game Boy. Definitely a unique idea, but the game wasn't exactly a hit.

    e-Reader - The ability to add things to GBA games cheaply (buy a $3 pack of cards) is nice, but there hasn't been very much support. Thankfully, that appears to be changing.

    That's just what came to mind at the moment. We've got to remember that most of Nintendo's biggest successes - Mario, Zelda, Pokemon - were completely unlike anything else out there at the time of their release.

    I've got a feeling that this will be another one of Nintendo's gambles...a completely wild idea that might or might not succeed. We'll see in a few months...

    Come to think of it, this situation reminds me of another famous company...

    Nintendo: the Apple of gaming.

    --
    Goo goo g'joob.
  4. Re:visual adolescent non-gender specific entity DE by PainKilleR-CE · · Score: 3, Informative

    I'm pretty sure that he was referring to the Japanese game industry when talking about a decline. Since this is actually just 2 interviews translated and chopped up, it's hard to say whether or not that was clarified, but at the same time since the interviews were conducted in Japanese mags, it's more likely that the context of the interview would be enough to justify the lack of clarification.

    Anyway, the article does state:
    Elsewhere in that same interview, Iwata reiterated his confidence in meeting sales targets for GameCube hardware, but was more pessimistic about the general fortunes of the Japanese games business. In the Japanese market, he said, sales of hardware have been declining over the last three years, and though software sales have been able to cover up that decline in the past, that's no longer possible now. While the overseas market still has a passion for playing games, Iwata explained, that's not the case in Japan, although Nintendo plans to play an important role in revitalizing the market in the coming year.

    If you look at earlier portions of the article, he states that Cube sales doubled in Japan, but more than doubled in the rest of the world, showing that there's still a market in Japan that will respond to price drops, but unless the price drops were not as significant as elsewhere, it also shows that the market isn't as interested in the industry (of course, other economic factors are at work, as well).

    Looking at Japanese sales figures for 2001, 2002, and 2003, you can see some trends such as more games selling over a million units in 2003, but the top-selling game for 2003 sold fewer units than the top-selling game for 2002, and the top-selling game for 2002 was the #2-selling game for 2003.

    Overall, games seem to stay in the weekly top-selling lists for either a fairly long period of time or a very short period of time, with little falling in between. In other words, they sell extremely quickly to their core audience and probably receive mild reviews or little attention from those outside that core audience and disappear after the first week or two on the charts. Games with broader appeal and a more well-known name seem to stay in the charts indefinitely, even on fairly moderate weekly sales, as only new highly-awaited titles will shoot up the charts.

    To put it another way, how good is the market when Pokemon Ruby & Sapphire was #1 in 2002, beaten out of #1 by FFX-2 in 2003 (by a small margin), and is still in the top 15 on the weekly charts a little over a week ago? Good for Nintendo to be able to maintain a title to almost 5 million sales in the Japanese market and hold the charts for 2 years, but everyone's released plenty of titles since then, and the North American charts reflect a much more friendly environment for new games, and a more moderate timeframe for successful games to stay on the charts through continued sales.

    All of that being said, there could be some other more blatantly obvious explanation ;)

    --
    -PainKilleR-[CE]
  5. Re:Old-school deck to play NES and SNES games? by cloudwilliam · · Score: 2, Interesting

    Planet GameCube has a bit about how they're re-releasing a mess of old NES games for the Game Boy Advance, as well as producing a new GBA/SP with a color scheme with the old color scheme. It sucks from my point of view, since I spent a lot of time in used game stores and pawn shops this Christmas looking for an old NES for my wife. She loves Super Mario and Dr. Mario.

  6. Re:Device? by CashCarSTAR · · Score: 2, Interesting

    My guess from what I know, is that Nintendo will debut their long announced wireless project.

    In a nutshell, it'll be a wireless device, that will send/receive a signal and create a grid/P2P type network. This will allow almost lag-free gaming across a fairly wide area. It'll be good if you're in a city, for example, and it catches on, you could play against all the locals. Would really catch on if it came with voice chat.

  7. Re:Old-school deck to play NES and SNES games? by gamgee5273 · · Score: 2, Interesting
    My thought, for a while, has been that it will be a Nintendo online game archive and a player for it. Nintendo keeps flirting with an online strategy, and this is the perfect way of jumping into it.

    The iQue really seems to be the predecessor for such a device. You pay for the player (an internal hard drive, possibly?) and then can download all of those old school games (NES, SNES, GB, GBC, N64) to your GC, paying by the game, not the month. Possibly even have a Nintendo-blessed compact flash cartridge for the GBA (one a little less unwieldly than the eReader) that you could then download the game (well, non-N64 one) to your GBA...

    Those of you with a GCN: check the underside of the console. There is a third port, aside from the online adapter and GB Player ports. You can create a third device that sandwiches between the GCN and the GB Player, with a pass-through port for the GB Player to access its port.

    I really think there's going to be an online component to this. There has to be a better reason to buy the online adapters other than Mario Kart, Kirby and Phantasy Star...

  8. Re:Bye Bye Nintendo by chrismcdirty · · Score: 2, Interesting

    Wow. I wasn't aware that having $6+ billion in the bank was classified as "standing on your last leg". I must have lost my legs long ago..

    --
    It's like sex, except I'm having it!
  9. Innovation Out, Evolution In by superultra · · Score: 2, Interesting

    One of the things Nintendo is best at is coming up with extremely bizarre products...and then making them work.

    At first, I had to check your list there to see if it was a list of things that didn't work. They all are, save the GB. More importantly, many of those things are items from the golden age of Nintendo. The e-reader is more recent, but compared to what they were churning out prior (add the powerglove to your list, the Mario mouse, the exercise pad) most of these are from years ago. Nintendo introduced them and then they quickly faded into the background of popular culture. Really, the only innovation that is still being used is the Gameboy. Even Mario and Zelda are from their glory days (Pokemon was an idea from a company that Nintendo bought).

    That's not to say that I didn't love Windwaker, or the GBA SP. But these are evolutions of concepts formed years ago, not fresh innovations. This makes them completely unlike Apple, who is still actively a market leader in design (from the iMacs to the iPods to, well, putting a small letter in front of words to make them sound cool). Nintendo, on the other hands, is doing its best to catch up. Even the Wavebird, a fantastic wireless device, is an evolution and not an innovation. Meanwhile, and in the same industry, Sony is releasing Nintendo-esque products like the Eyetoy - and, at the same time, getting a good deal of success while doing it, which is more than we can say for Nintendo's efforts.

    I like Nintendo's apathetic "investor-may-care" attitude; this idea that they'll cater to 10% of the market for the duration of their corporate lifespan (which is, admitedly, very Apple-Like). Unfortunately, (and unlike Apple) I just don't know if there's room enough in the console market to support that kind of niche company. I hope so.

  10. Re:Device? by UserChrisCanter4 · · Score: 2, Funny

    "Ladies and Gentlemen, I give you: The Powerglove... 2!" ::Crickets heard chirping::

    It would be worth it for the sheer humor value.

  11. Re:Device? by The_dev0 · · Score: 2, Insightful

    Dude, just use the google cache for those particular pages, that's how I get around it at work :P

    --
    Never fight naked, unless you're in prison...