Nintendo's Big Cheese Stands Alone [Archive]

Perfect Stu

01-16-2003, 05:02 PM

Nintendo Big Cheese Stands Alone

Following the departure of Nintendo patriarch Hiroshi Yamauchi last spring at age 74, control of the company has largely been delegated to 43 year old president Satoru Iwata. Despite a renewed emphasis on software development, GameCube hardware sales have recently fallen below expectations. To discuss his immediate vision for the company, president Iwata-san recently went on record in Tokyo.

Question: Does Nintendo plan to continue partnering with third-party software developers in 2003?

Iwata-san: A year ago I don't think anyone would have predicted the Square and Enix merger, so things are always changing. While Nintendo has partnered with other companies for software development, we have no plans whatsoever to explore a possible merger or buyout.

Question: What are Nintendo's plans this year in regard to the Internet?

Iwata-san: All the talk in the industry regarding online gaming has been misleading. Network swindlers have made it seem like companies can't survive in this business without network compatibility. That's the same type of rhetoric people have been saying about the newspaper business, that the paper-based periodical business will be dead in 3 years. In reality, the number of users willing to pay a monthly fee for online games is small. Many of the American companies who were focusing almost exclusively on network games last year, now view network capabilities as an advertising tool. The fact of the matter is, network games can't provide a stable source of profit for a company of Nintendo's scale.

Question: GameCube sales have been slightly lower than expected. If Nintendo has only sold 10 million units globally by the end of fiscal 2002, can you realistically meet projections of 50 million units by March 2005?

Iwata-san: The domestic (Japanese) battle intensified last year although overall sales were down 30-40 percent, so the situation was severe. However, sales of Pokemon Ruby and Pokemon Sapphire have exceeded 4 million units since their release on November 21, and have also lifted sales of the GameBoy Advance. Going forward, we plan to release more games which feature compatibility between GameCube and GameBoy Advance. Our sales target of 50 million units by March 2005 hasn't changed.

Question: You were inaugurated as president of Nintendo last spring at age 43, your thoughts since then?

Iwata-san: Former president Hiroshi Yamauchi built this company over 50 years, I've only inherited his work. I don't think the transition was difficult because of Nintendo's collective management strategy. That strategy of six representative directors making key decisions for the company reflects former president Hiroshi Yamauchi's philosophy regarding the needs of the constantly changing videogame market.

Translation Asst. Tsuno Okashi

Kakyo

01-16-2003, 05:16 PM

Bond

01-16-2003, 05:17 PM

BreakABone

01-16-2003, 05:24 PM

Well, um that character sure is interesting.

I really do hope Nintendo has some plans for online games, I may some of them would be so much better online, but eh. Nintendo hasn't always made the right choices.

Null

01-16-2003, 05:41 PM

part of the problem with console on line games is that many of them require the montly payment

and the number of users who want to pay the monthly payment is small.

i sure as hell will not pay anything extra to play a game.

console games have it a bit rougher cuz unlike computers. people cant setup dedicated servers.

Playing games online is a big thing. Nintendo is a bit blind in that reguard. Online games are NOT going away. online games have been around on computers for years and years now. they get stronger and stronger. i dont see why nintendo cant see this.

it just sounds like nintendo sees no way to play them besides nintendo setting up a server. in which case it wouldnt be profitable. but to include a way to connect to other users does not cost them money. users dont really NEED nintendo's servers.

personally i dont get consoles for online games. my PC is what i use for online games. but there are some console exclusive games that would be fun to play online.

Sooner or later Nintendo will be forced to see the internet is important. just gotta hope they see it soon.

Smuggletrain

01-16-2003, 06:02 PM

Only 10 million sold WTF is wrong with gamers these days. Cube is by far the best system out there with titles such as Metroid Prime, ED:SR, SMS, Pikmin, PSO 1+2, Lost Kingdoms, Starfox Adventures, SBA2 etc. I dont think I have ever been this angry in my life. *spends about fifteen minutes to cool off*

The question is what is wrong with the big N. The games you list are good but they do nothing to attract casual gamers. Nintendo
just doesn't have a broad enough title range to bring in the fence
sitters in the console wars. Where are their top-of-the-line sports
or driving games? Don't get me wrong Nintendo does have great games but they are too limited to games that have a very deep immersion level. They need more "popcorn" games before they really start moving high console numbers. Mass game appeal moves more systems than Mario.

GameKinG

01-16-2003, 06:38 PM

Thats why Nintendo has Factor 5, Silicon Knights, Retro, and Capcom making exclusive games for it. But still most people whi buy cube dont buy it for sports games, or at least not repurchase one every year. Madden 2002 sales were significantly better then 2003, and THPS3 sold better on cube then THPS4. Its a similar case for other sports.

Yoda9864

01-16-2003, 07:08 PM

Originally posted by Kakyo
Only 10 million sold WTF is wrong with gamers these days. Cube is by far the best system out there with titles such as Metroid Prime, ED:SR, SMS, Pikmin, PSO 1+2, Lost Kingdoms, Starfox Adventures, SBA2 etc. I dont think I have ever been this angry in my life. *spends about fifteen minutes to cool off*
Anyways way I still believe Nintendo's got something up their sleave. Praise Nintendo and Shigeru Miyamoto.
I own two cubes
I guess I have to buy a used PS2 now so Sony doesnt get anymore money. grrrrrrrrrr!:mad: :mad: :mad: :mad:
%*&# im so angry
Ok, Mr. Fanboy :rolleyes:. I agree that the Gamecube is an excellent machine. It does have very good games. But, it doesn't have a lot of the little games that PS2 and X-Box have. It also needs more mature games. I know that it's getting a little better at that, but the intended age range is still too small to attract lots of gamers.

GameKinG

01-16-2003, 07:13 PM

Ehh, n/m. The rumors have come back. And it still stands as a 50/50 chance they get ported later on in life. But, this is comming from a capcom USA rep guy, and they dont seem to know as much about these games as the main capcom does. I also dont thing they would make this page totaly exclusive to cube games and show them exclusivly to cube with videos and junk, and say all this stuff about it, then add "Oh and BTW..."

Perfect Stu

01-16-2003, 07:51 PM

Originally posted by GameKinG
Ehh, n/m. The rumors have come back. And it still stands as a 50/50 chance they get ported later on in life. But, this is comming from a capcom USA rep guy, and they dont seem to know as much about these games as the main capcom does. I also dont thing they would make this page totaly exclusive to cube games and show them exclusivly to cube with videos and junk, and say all this stuff about it, then add "Oh and BTW..."

you would think so, wouldn't you?

hmm......

hey, wasn't Resident Evil dubbed GAMECUBE EXLUSIVE?

now maybe I'm wrong, but I seem to have read that this interesting new title 'Resident Evil Online' is being produced for Sony's Playstation 2. Oh, and that new FP/3PS...Resident Evil: Dead Aim (http://gamespot.com/gamespot/stories/news/0,10870,2908934,00.html)...I believe that's slated for a Playstation 2 release as well.

hmm.......

GameKinG

01-16-2003, 07:58 PM

Only the specified titles in were announced exclusive (REmake, RE0, RE4, and RE2/3). Capcom USA even said before their release that they MAY not be cube exclusive. Now, who has been playing RE0 on their PS2?

Though they may have announced 2/3 releasing after the announcement, I forget.

Jonbo298

01-16-2003, 08:06 PM

All of the MAIN RE games are exclusive to 'Cube.(ie: RE1, RE2,etc....) Any of the "spinoffs" can go wherever Capcom says. But Nintendo will realize online has possibilities if they include it in either the new F-Zero or the new Mario Kart or both! But until then, I'm content with offline multi with real friends around me. (Don't make any stupid replies saying "You have friends?!")

Kakyo

01-16-2003, 08:29 PM

Originally posted by Smuggletrain
The question is what is wrong with the big N. The games you list are good but they do nothing to attract casual gamers. Nintendo
just doesn't have a broad enough title range to bring in the fence
sitters in the console wars. Where are their top-of-the-line sports
or driving games? Don't get me wrong Nintendo does have great games but they are too limited to games that have a very deep immersion level. They need more "popcorn" games before they really start moving high console numbers. Mass game appeal moves more systems than Mario.
The problem si there its these casual gamers. Gaming has somewhat gone downhill in quality since the beginning of 3D gaming. In the ancient past gaming was an underground thing. It appealed to an elite sect of nerds. It s pity that we have to lower the quality and difficulty of our games to appease there fence sitters. Nintendo is the only console system that is keeping true to gaming's origins(not that ps2 and xbox dont have their share off good hardcore games, but they are all third party)
I miss when it was just Sega and Nintenod. Those were the days :(

Jason1

01-16-2003, 09:21 PM

While I will agree the Industry has gone downhill in the last 2-3 years, I dont think it went downhill right after 3D gaming started. There were so many great 3D games made...

GameMaster

01-16-2003, 09:41 PM

Pokémon Ruby and Sapphire will have a strong effect. I don't their solely going to make the goal themselves but they'll definatley be an influence.

Blix

01-16-2003, 09:53 PM

I think the problem started with the casual gamers (obviously) and it was when the people started thinking -I don't know why- that the games had to be "mature". A game definitely doesn't have to be mature to be fun. And if we enjoyed these games in the past, why can't we enjoy them now? I some times wish gaming would be considered uncool once more.

Seth

01-16-2003, 11:53 PM

I don't understand why Nintendo doesn't just take the plunge into online gaming now? Really, they must know that they'll have to do online gaming some time...so why not do it now and just get it over with. But no, they have to wait and wait until Sony and Microsoft have a fairly strong online base. Also, I was at my local eb a couple of days ago and 2 people went away with the xbox because the clerk mentioned online gaming. They went in there all interested with the cube but by the time the clerk was done with them they wanted an xbox because the idea of online gaming with a console appeals. From what I've seen Nintendo is losing sales because they're not taking the initiative. I talk to my friends at schoool(casual gamers) and they think the ps2 and xbox are shiazz because xbox=mature/online ps2=sooo many games/online. GC=kiddy games/offline. This is how people see it. The majority of gamers now are casual ones. They walk into a gaming store wanting to pick out the best console. Once the word "online" gets mentioned or "mature" they jump on it. I'm fine with the games Nintendo themselves make. But, most people like the idea that their console is not a toy. It's a source of intertainment. Nintendo just doesn't do that. If they announced right now that they're going online then all would be good. But, I'm beginning to think that the GC won't even recieve online support by Nintendo throughout it's life.

GameKinG

01-16-2003, 11:58 PM

I dont think its any more mature to play games online then at with friends. Maybe it would contribute to your maturity more if you had actual interaction (somehow). I know thats not what you were trying to say, I was just thinkin'.

Xantar

01-17-2003, 12:53 AM

I'll be convinced that Nintendo should plunge into online gaming as soon as someone demonstrates to me that they will make money off the business (that's the name of the game, after all).

Otherwise, Nintendo's position seems reasonable to me. If you don't like it, well guess what? Nintendo doesn't exist to do what you want, it exists to take your money while spending as little of its own money as possible.

Seth

01-17-2003, 01:15 AM

but wait a tic, by not entering into the online market now, Nintendo is actually losing money because people are buying the other 2 sytems. Also, say someone owns a cube and xbox. They see NFL2k3. Which do you think they will buy. The xbox of course because they can play their cousing who lives 2000 miles away. Sure, online gaming may not be profitable from the start, but Nintendo is still losing money to sony and MS. The GC also has the disadvantage of not being equipped with a dvd player. Now, to us die hard gamers that's not a big deal. But, to the casual gamer, having a console/dvd player is a big incentive. So, "mature, larger library, and dvd" Those are huge points to the casual gamer looking to buy a console. Add on the fact that Nintendo isn't giving any hint of supporting online play and they wonder why their console isn't selling well. Geez, now that Nintendo hasn't made any indication of online support...it's almost too damn late for the system. They have to jump on the online bandwagon if they want to compete with sony/MS. Am i the only one who sees this logic. As for Nintendo's future console....people are going to be coming off of this console's generation and remembering what a ****up the GC was because Nintendo didn't make the right marketing moves. The "CASUAL GAMER" remembers all their casual gamer friends who wished that they had bought an xbox instead of their cube because all of their other friends could play each other online and also had a huge library/and mature games. So, not only is Nintendo screwing themselves over now but they're also screwing themselves over in the future console race. Also, if Nintendo keeps on relying on the GBA and ****ed up gimmicks to sell their system they won't be in the home console business for too much longer. Nintendo has to relize that online gaming is a must if they want to compete. In the end they'll be losing money because of their current marketing.

Angrist

01-17-2003, 06:27 AM

Hit the ENTER man!! :(

Perfect Stu

01-17-2003, 11:10 AM

Originally posted by Xantar
I'll be convinced that Nintendo should plunge into online gaming as soon as someone demonstrates to me that they will make money off the business (that's the name of the game, after all).

Otherwise, Nintendo's position seems reasonable to me. If you don't like it, well guess what? Nintendo doesn't exist to do what you want, it exists to take your money while spending as little of its own money as possible.

yeah, Nintendo wouldn't dare lose some money in order to please their customers, which in turn would most likely lead to bigger profits in the future...

and I don't think GAMING has gone down hill since the third dimension entered the picture...I think Nintendo did

Bad Religion

01-17-2003, 11:16 AM

Hey Bouncer, watch out for Angrist, he is the crusader for proper form here. :p
At least his politics are straight, though
:D

anyway, it just seems to me that N has been a day late and dollar short since N64 (carts!?),and sadly they seem to be not learning much from their missteps though... personally I just use my PS2 for online console gaming and my cube for phenomenal single player games, and fun party style games with friends, oh and when I talk to casual gamers, some of them don't even know what a Gamecube is!

Xantar

01-17-2003, 06:47 PM

Yeah, Nintendo could invest in online gaming to please gamers and thus secure future profits and all that. It's a beautiful theory, and I'll believe it if you guys have the numbers to back it up.

The problem is you don't. You guys have no idea how much money Nintendo is potentially losing by not going online. You don't even know how much it would cost Nintendo to go online. You don't have any analysis of the markets which can give you any clue at all about how the market is going to react.

Nintendo has all that and more. How can you claim to know what they should be doing?

Perfect Stu

01-17-2003, 07:09 PM

Originally posted by Xantar
Yeah, Nintendo could invest in online gaming to please gamers and thus secure future profits and all that. It's a beautiful theory, and I'll believe it if you guys have the numbers to back it up.

The problem is you don't. You guys have no idea how much money Nintendo is potentially losing by not going online. You don't even know how much it would cost Nintendo to go online. You don't have any analysis of the markets which can give you any clue at all about how the market is going to react.

Nintendo has all that and more. How can you claim to know what they should be doing?

all I'm saying is that they should think about having their CONSUMERS as a higher priority. Sony went online with PS2. Microsoft did the same with XBox. Why can't Nintendo?

Nintendo does nothing for their fans...churn out Mario, and then Mario Party...then we all know Mario Kart, Golf and Tennis are coming eventually...How about something original, something of more appeal to a wider audience...like a futuristic FPS or an epic anime-inspired RPG?

they're even worse with the GBA...instead of doing the consumers a favour by making a NEW, ORIGINAL Mario game they release ports of 10+ year old games and sell them for full price.

I look at Sony and Microsoft...they're taking strides to supply gamers with new concepts, franchises and business moves that will all contribute to consumer satisfaction (Frequency, SOCOM, Mark of Kri, Ratchet and Clank, Sly Cooper, Primal, Dark Cloud, Online gaming, etc. for PS2.....Halo, Project Gotham Racing, XBox Live, purchase of Rare, etc. for Microsoft)

Gamers have begged for a 3D Pokemon RPG. Instead Nintendo milks the franchise on their portable systems. I mean, why not? It's half the development cost and since the GBA userbase is much bigger than Gamecube's, more copies will be sold, which leads to more profits...$$$. Listen to the fans, give them what they want...and try to grab the attention of potential new consumers as well.

And maybe, JUST MAYBE, if they came up with at least a decent advertising campaign more Gamecube's would be sold to the casual gamer. Everyone knows that leads to bigger exlusive 3rd party titles. Userbase is everything...look at the PS2.

It's a shame, because I used to be a diehard Nintendo fan. But they gave me no reason to stick with them...

/rant :mad:

Smuggletrain

01-17-2003, 09:02 PM

Originally posted by Nemesis
I think the problem started with the casual gamers (obviously) and it was when the people started thinking -I don't know why- that the games had to be "mature". A game definitely doesn't have to be mature to be fun. And if we enjoyed these games in the past, why can't we enjoy them now? I some times wish gaming would be considered uncool once more.

The problem started with casual gamers? Without casual gamers
no console would be boasting the numbers sold that they have
now. Plus, no-one has said a game had to be mature to be fun,
but it doesn't need Mario in it either. Games that appeal to a
broad audience and move millions of units make the more
innovative games possible by bringing in more investment
capital to the developers. If you really think about it, doesn't the
number of mediocre games really make the great ones stand out
that much more?

Smuggletrain

01-17-2003, 09:10 PM

Originally posted by Perfect Stu

Nintendo does nothing for their fans...churn out Mario, and then Mario Party...then we all know Mario Kart, Golf and Tennis are coming eventually...How about something original, something of more appeal to a wider audience...like a futuristic FPS or an epic anime-inspired RPG?

Exactly.

Xantar

01-17-2003, 11:11 PM

Perfect Stu:

Gamers shouldn't be happy about all the things you complain about. That I agree with.

But Nintendo gets away with it somehow. Maybe Nintendo fans are just fanatics. Maybe Nintendo is just that good at first party games. I don't really know. All I know is they've managed it and are probably making lots of money in the process. More, in any case, than they would have had they gone online and added DVD playback and so on.

You talk about how much Nintendo is hurting itself with these business practices, but you might as well talk about how well Nintendo is doing despite them. Microsoft is spending money like mad and has added all kinds of extras to their machine. They're even bundling two games free with every Xbox, but they haven't managed to sell more Xboxes worldwide than Nintendo has managed to sell GameCubes (this may change next year, so keep watching). Isn't that remarkable, too?

I look at Sony and Microsoft...they're taking strides to supply gamers with new concepts, franchises and business moves that will all contribute to consumer satisfaction (Frequency, SOCOM, Mark of Kri, Ratchet and Clank, Sly Cooper, Primal, Dark Cloud, Online gaming, etc. for PS2.....Halo, Project Gotham Racing, XBox Live, purchase of Rare, etc. for Microsoft)

You think they're doing that just because they want to do good things for the fans? Or better yet, do you think Sony and Microsoft are doing this because they "should think about having their CONSUMERS as a higher priority?" If so, you are making a classic mistake in assigning some kind of morality to these companies.

Think about what would have happened if the Xbox didn't have DVD playback, a hard drive or an online plan. Microsoft would have gotten killed in the console market. The Xbox might not have lasted more than 6 months. Microsoft has not simply done these things to satisfy the consumer. It's doing this to survive.

The same could be said to a lesser extent about the PS2.

The rest of your post is pretty much irrelevant. You talk a lot about what games Nintendo has been putting out as opposed to Sony and Microsoft and say that Nintendo hasn't been satisfying consumers with what they put out. But that's highly debatable. You'll probably find plenty of people who think your view of Nintendo's games is rather narrow. And I know there are plenty of people who are satisfied with the games Nintendo has put out. And on the subject of advertising, I agree that Nintendo needs to rethink its strategy.

But we weren't talking about either of those. We were talking about going online, and you have still failed to convince me that Nintendo has any reason to do it. You're continuing to talk from the perspective of what you want rather than what Nintendo wants, and as long as you do that, your argument will be fundamentally flawed.

Perfect Stu

01-18-2003, 12:03 AM

Why Nintendo should go online?

Loyalty to consumers. Spend some money to fulfill the wants of your userbase. It always results in good things. You give the gamers what they want, and they'll stay loyal. You'll also attract new gamers that wouldn't give the system a second look before. I know people who would consider buying a Gamecube if Mario Kart Online was announced. I'm dead serious.

I think you'd be mistaken if you were to think that online gaming can never be profitable in the future. You need to get your foot in the door at some point, right? Why not do it now, for the sake of keeping up with competition? If online gaming becomes a hit (like it is becoming) on the PS2 and especially XBox, Gamecube will start a downfall. Once big-hitters go online like Halo, Perfect Dark and Gran Turismo, you'll start to see network adapters and XBox Live starter kits FLYING off shelves. Xbox and PS2 sales go up, Gamecube sales, if anything, start to decline.

In the end, a sales company only goes as far as their consumers take them. Fail to please them, and you'll lose them. Like me. Like other 'once Nintendo' fans I read about in PS2 and XBox gaming boards. Have you checked the Gamecube board at IGN lately? It's gotten depressing...fans are lashing out against Nintendo...if they don't do something to keep the smiles on these gamers' faces, they won't think twice about picking up a PS3 or an Xbox 2 instead of Nintendo's next offering in a few years.

Stonecutter

01-18-2003, 10:11 AM

Originally posted by Perfect Stu

Question: What are Nintendo's plans this year in regard to the Internet?

Iwata-san: All the talk in the industry regarding online gaming has been misleading. Network swindlers have made it seem like companies can't survive in this business without network compatibility. That's the same type of rhetoric people have been saying about the newspaper business, that the paper-based periodical business will be dead in 3 years. In reality, the number of users willing to pay a monthly fee for online games is small. Many of the American companies who were focusing almost exclusively on network games last year, now view network capabilities as an advertising tool. The fact of the matter is, network games can't provide a stable source of profit for a company of Nintendo's scale.

I think can vouch for all cube owners when I say......

:banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead:

Xantar

01-18-2003, 11:19 AM

Once again, Perfect Stu, that's a nice argument if you have the numbers to back yourself up.

Yes, Nintendo is going to lose some gamers by not going online. But how many are they going to lose?

Let's be more specific for the sake of our problem here. How big will the GameCube's userbase be if it has an online plan? How many do they stand to lose over the next, say, 5 years if they don't go online? What does this translate into in terms of potential profit lost? Related to this is the question of how many gamers will be playing online in 2005 and how many will have broadband. Just saying that the IGNCube boards have gotten depressing doesn't cut it. So fans on the internet aren't happy. Well, what numbers does that tranlate into? How many people, to within a few ten thousand, will buy the next Nintendo console when it launches?

And of course, how much does it cost to set up an online plan? This depends on what online plan Nintendo chooses, of course, but we can be sure that they know what the costs involved are.

My point has been that Nintendo knows this information. You don't seriously think that Nintendo doesn't realize that they will lose some fans by not going online, do you? But apparently, Nintendo has decided that the loss in potential revenue is worthwhile compared to the cost of setting up a viable online plan. It may very well be the wrong decision. I never said Nintendo was perfect or prescient.

But they have solid, real numbers. You don't. And so you can't tell me with any kind of certainty that it's worthwhile for Nintendo to go online. Spouting an ethereal concept like "loyalty to customers" doesn't cut it.

Perfect Stu

01-18-2003, 05:03 PM

You know what? I'm tired of convincing you. I know I'm right, and the fact that it doesn't 'cut it' for you and your Swarthmore bullcrap doesn't bother me in the slightest.

I ask myself why you're still defending Nintendo, when they're making decisions that hurt the consumer...maybe you're that much of a fanboy, that you put Nintendo ahead of your own gaming wants/needs. Maybe you work for Nintendo. Maybe you just wanted to use it as an excuse to enter an arguement having an entire corporation on your side, which in your mind you couldn't possibly 'lose'. That would certainly feed to your 'I'm smarter than you' attitude.

I represent a consumer and NOT a corporation...why SHOULD I put myself in Nintendo's shoes and convince YOU of all people that Nintendo should go online. Poll GT, ask them if they're satisfied with the news. Looks as though Smuggletrain has been thrown into some weird kind of depression and Stonecutter's head must be hurtin by now.

Xantar

01-18-2003, 05:34 PM

Wait wait wait. Where was I defending Nintendo? I never said they are doing the right thing. I never said anybody should be happy about what they're doing. If I have, I take it back right now with profoundest apologies.

All I'm saying is that you don't know for sure that they've done the wrong thing by apparently deciding to wait until the next generation to go online. Nintendo doesn't either, but they have a much better idea than you.

This could end up being a mistake on the same level as going with carts in the N64 generation. I'm not discounting the possibility. But think about how unpredictable this industry is.

You have every right to complain about Nintendo doing things that don't satisfy the consumer. You are a consumer, after all. But you can't claim that what you want is also good for Nintendo. You just don't know that it is.