Shadow_Link
08-13-2002, 11:27 AM
Dengeki: Why did you choose Iwata-san to replace you as the company president?
Yamauchi-san: The reason for Iwata-san's selection comes down to his knowledge and understanding of Nintendo's hardware and software. An executive, regardless of his vast successes is fundamentally an executivewho doesn't intimately understand our products. Within our industry there are those who believe that they will succeed simply because of their successes in other ventures or their wealth, but that doesn't guarantee success. Looking at their experiences since entering the gaming world, it's apparent that our competitors have yielded far more failures than successes. It's been said that Sony is the current winner in the gaming world. However, when considering their "victory," you should remember that their success is only a very recent development. Though Sony is widely held to be the strongest in the market, their fortunes may change. Tomorrow, they could lose that strength, as reversals of fortune are part of this business. Taking into account the things I've encountered in my experiences as Nintendo president, I have come to the conclusion that it requires a special talent to manage a company in this industry. I selected Iwata-san based on that criteria. Over the long-term I don't know whether Iwata-san will maintain Nintendo's position or lead the company to even greater heights of success. At the very least, I believe him to be the best person for the job.
Dengeki: Did you intentionally select someone in their forties for the position?
Yamauchi-san: I didn't pay particular attention to that fact. I must say though, someone my age would not have been a consideration. [laughs..] I didn't focus on age specifically, but the question of youth did factor into things. Health was another consideration. In this business the president must travel to America and Europe to establish contact with various people. I had a strong desire to do such things, but that desire was outweighed by my health concerns, and I was often unable to travel. In that respect, Nintendo's ability to communicate internationally was insufficient. As the structure of things continue to change, I'm confident Iwata-san will remedy that. In short, the question of health and age was a concern insofar as being able to take care of business both abroad and at home.
Iwata-san: I've noticed people focusing on the issue of my age. It's remarkable that a person my age could serve as [president of] a company of such magnitude. When Nintendo introduced the Famicom in 1983 I was in only my second year in "the real world." A chance presented me with the opportunity to work for Nintendo and their products from the beginning. Since the introduction of the Famicom, I have watched the gaming industry grow. When I began working here there was no one to teach me how to build games. I pondered things on my own, looking over at Miyamoto-san as we worked together, and learned throughout the years. And that has brought me to this point.
When I was selected as new president, I didn't think of my age as a disadvantage. Currently, 70 percent of our sales come from abroad. America is an especially large market, which means that we must consider how to deepen communication between Kyoto and America. While the internet and video conferencing has lessened the need for direct contact, there is still much to be gained from physically meeting with our international contacts. For the past three years as the Gamecube was being developed as Project: Dolphin, I have been going to America every month. Over that time, I made more than 40 round-trip flights from Japan to America. Having commuted so heavily, I have a genuine feeling of accomplishment. Youth certainly is an advantage for such endeavors. Rather than thinking of my age as a liability, I consider it more of an asset.
Dengeki: Is the company's group leadership structure Yamauchi-san's legacy, his "last will and testament," as it were?
Iwata-san: I think that Yamauchi-san can provide you with a more interesting answer than I can, so... [smiles..]
Yamauchi-san: Well, I'm not certain when I'll die but I may not be around too much longer.. [laughs..] As for the structure, it's not a will so much as a wish. Having worked for this company for so many years, my greatest concern is how the industry will progress from here. I have my own ideas regarding the future of gaming; however, if I spoke at length, it would require too much time. Instead, allow me to summarize. As the business of gaming spreads, I think it will be very hard for one individual to lead the company.
Dengeki: Yamauchi-san, with your retirement, do you have any words for the new management executives?
Yamauchi-san: As I retire from management, I have no words to share. Coincidental to my leaving the company, I would like to make one request: that Nintendo give birth to wholly new ideas and create hardware which reflects that ideal. And make software that adheres to that same standard. Furthermore, this software should attract consumers as new and interesting. Lastly, and of equal importance, is completing these products quickly and at a cost comparable to today's current market. I imagine most people question the feasibility of my request, but Nintendo has always pursued those objectives. I'd ask that the company continue to follow this goal as my final and only request to the new management staff. I can't say what these new types of software will be, but I'm sure they'll release it during my lifetime.
Dengeki: How do you intend to use Nintendo's vast financial resources?
Iwata-san: I can't answer that in simple terms, but our competitors have altered the playing field - notably Microsoft with an estimated 41 billion dollars in potential capital. In comparison, Nintendo has approximately 7.5 billion dollars available. That means we must use our money wisely. In the high-risk gaming industry, competition with a wealthy company like Microsoft means that we cannot cut corners and limit ourselves. There will come a day when operating costs will be measured by billions of dollars; we just don't know when that day will come. Even when Yamauchi-san was young, companies experienced risks of bankruptcy. Throughout the years, the specifics may have changed but hard facts remain: a lack of cash flow means the end of that company's business, and we are fully cognizant of that. Although we have the financial power to do so, we have no intention of willfully pursuing any ventures other than our company's primary focus of gaming.
Dengeki: What are your plans for reclaiming the number one spot in the home gaming industry?
Iwata-san: Most people [equate] number one with the largest number of consoles sold. I understand that reasoning because realistically the greater number of consoles sold equals increased software sales. However, there are many people who view the sale of home consoles the same way as refrigerators and washing machines. Most customers only replace these items when they break. To extend that line of thinking, that would mean people who have already purchased a PlayStation 2 won't buy a Gamecube. However, we don't follow that line of thinking.
First off, we aim to create quality software that the consumer will want to play. Developing exclusive first-party titles is our way of saying to players, "If you want it, you'll need a Gamecube." Certainly we'd like the Gamecube to be the platform of next generation gaming. Simply because the PlayStation 2 may lead in number of units sold, I don't believe Sony is unbeatable. In many Japanese households the PlayStation 2 serves only as a DVD player, with its gameplay capability ignored. Taking that into account, it's meaningless to compare the number of PlayStation 2 vs. Gamecube units sold. At Nintendo, we'll do our best to win the praise of players as the company with the best games available.
Yamauchi-san: The reason for Iwata-san's selection comes down to his knowledge and understanding of Nintendo's hardware and software. An executive, regardless of his vast successes is fundamentally an executivewho doesn't intimately understand our products. Within our industry there are those who believe that they will succeed simply because of their successes in other ventures or their wealth, but that doesn't guarantee success. Looking at their experiences since entering the gaming world, it's apparent that our competitors have yielded far more failures than successes. It's been said that Sony is the current winner in the gaming world. However, when considering their "victory," you should remember that their success is only a very recent development. Though Sony is widely held to be the strongest in the market, their fortunes may change. Tomorrow, they could lose that strength, as reversals of fortune are part of this business. Taking into account the things I've encountered in my experiences as Nintendo president, I have come to the conclusion that it requires a special talent to manage a company in this industry. I selected Iwata-san based on that criteria. Over the long-term I don't know whether Iwata-san will maintain Nintendo's position or lead the company to even greater heights of success. At the very least, I believe him to be the best person for the job.
Dengeki: Did you intentionally select someone in their forties for the position?
Yamauchi-san: I didn't pay particular attention to that fact. I must say though, someone my age would not have been a consideration. [laughs..] I didn't focus on age specifically, but the question of youth did factor into things. Health was another consideration. In this business the president must travel to America and Europe to establish contact with various people. I had a strong desire to do such things, but that desire was outweighed by my health concerns, and I was often unable to travel. In that respect, Nintendo's ability to communicate internationally was insufficient. As the structure of things continue to change, I'm confident Iwata-san will remedy that. In short, the question of health and age was a concern insofar as being able to take care of business both abroad and at home.
Iwata-san: I've noticed people focusing on the issue of my age. It's remarkable that a person my age could serve as [president of] a company of such magnitude. When Nintendo introduced the Famicom in 1983 I was in only my second year in "the real world." A chance presented me with the opportunity to work for Nintendo and their products from the beginning. Since the introduction of the Famicom, I have watched the gaming industry grow. When I began working here there was no one to teach me how to build games. I pondered things on my own, looking over at Miyamoto-san as we worked together, and learned throughout the years. And that has brought me to this point.
When I was selected as new president, I didn't think of my age as a disadvantage. Currently, 70 percent of our sales come from abroad. America is an especially large market, which means that we must consider how to deepen communication between Kyoto and America. While the internet and video conferencing has lessened the need for direct contact, there is still much to be gained from physically meeting with our international contacts. For the past three years as the Gamecube was being developed as Project: Dolphin, I have been going to America every month. Over that time, I made more than 40 round-trip flights from Japan to America. Having commuted so heavily, I have a genuine feeling of accomplishment. Youth certainly is an advantage for such endeavors. Rather than thinking of my age as a liability, I consider it more of an asset.
Dengeki: Is the company's group leadership structure Yamauchi-san's legacy, his "last will and testament," as it were?
Iwata-san: I think that Yamauchi-san can provide you with a more interesting answer than I can, so... [smiles..]
Yamauchi-san: Well, I'm not certain when I'll die but I may not be around too much longer.. [laughs..] As for the structure, it's not a will so much as a wish. Having worked for this company for so many years, my greatest concern is how the industry will progress from here. I have my own ideas regarding the future of gaming; however, if I spoke at length, it would require too much time. Instead, allow me to summarize. As the business of gaming spreads, I think it will be very hard for one individual to lead the company.
Dengeki: Yamauchi-san, with your retirement, do you have any words for the new management executives?
Yamauchi-san: As I retire from management, I have no words to share. Coincidental to my leaving the company, I would like to make one request: that Nintendo give birth to wholly new ideas and create hardware which reflects that ideal. And make software that adheres to that same standard. Furthermore, this software should attract consumers as new and interesting. Lastly, and of equal importance, is completing these products quickly and at a cost comparable to today's current market. I imagine most people question the feasibility of my request, but Nintendo has always pursued those objectives. I'd ask that the company continue to follow this goal as my final and only request to the new management staff. I can't say what these new types of software will be, but I'm sure they'll release it during my lifetime.
Dengeki: How do you intend to use Nintendo's vast financial resources?
Iwata-san: I can't answer that in simple terms, but our competitors have altered the playing field - notably Microsoft with an estimated 41 billion dollars in potential capital. In comparison, Nintendo has approximately 7.5 billion dollars available. That means we must use our money wisely. In the high-risk gaming industry, competition with a wealthy company like Microsoft means that we cannot cut corners and limit ourselves. There will come a day when operating costs will be measured by billions of dollars; we just don't know when that day will come. Even when Yamauchi-san was young, companies experienced risks of bankruptcy. Throughout the years, the specifics may have changed but hard facts remain: a lack of cash flow means the end of that company's business, and we are fully cognizant of that. Although we have the financial power to do so, we have no intention of willfully pursuing any ventures other than our company's primary focus of gaming.
Dengeki: What are your plans for reclaiming the number one spot in the home gaming industry?
Iwata-san: Most people [equate] number one with the largest number of consoles sold. I understand that reasoning because realistically the greater number of consoles sold equals increased software sales. However, there are many people who view the sale of home consoles the same way as refrigerators and washing machines. Most customers only replace these items when they break. To extend that line of thinking, that would mean people who have already purchased a PlayStation 2 won't buy a Gamecube. However, we don't follow that line of thinking.
First off, we aim to create quality software that the consumer will want to play. Developing exclusive first-party titles is our way of saying to players, "If you want it, you'll need a Gamecube." Certainly we'd like the Gamecube to be the platform of next generation gaming. Simply because the PlayStation 2 may lead in number of units sold, I don't believe Sony is unbeatable. In many Japanese households the PlayStation 2 serves only as a DVD player, with its gameplay capability ignored. Taking that into account, it's meaningless to compare the number of PlayStation 2 vs. Gamecube units sold. At Nintendo, we'll do our best to win the praise of players as the company with the best games available.