GameCube production halted~Nintendo clears console inventory, hints at new product

[Jewels]

TOKYO, Aug. 7 — Nintendo is to press the pause button on production of its Game Cube consoles while it clears inventory of unsold machines, the company’s president said on Thursday. But Satoru Iwata promised the struggling games company was developing a radical new product to be announced next year — however he gave few details save to say it would be a departure from mainstream gaming consoles “that will have a big impact on the world”.

THE HALT IN PRODUCTION will last until autumn as Nintendo struggles against competition from Sony’s PlayStation 2, the leading console in the global market, and Microsoft’s XBox. PlayStation 2 has shipped more than 51m units since its launch in 2000 compared with under 10m for Nintendos competing Game Cube, which was launched in 2001.

Mr Iwata, who gave no figures on how much inventory was left to clear, acknowledged that the group had stumbled with the Game Cube console and conceded that it had made a strategic mistake by not ensuring that it had a consistent flow of attractive software for the Game Cube.
But he cast doubt on the ability of Nintendo’s competitors to continue attracting users with games that are becoming more and more graphically sophisticated and difficult to play.
“Games that are sophisticated require a lot of time and energy,” he said. As games became more complicated, players were given up playing and this was leading to the gradual shrinkage of the market, he warned.
“We are thinking of launching a completely different kind of game.
We are confident that we can develop a product that anyone can enjoy and that will provide people with a new kind of excitement,” he said. Mr Iwata declined to provide any more details about what kind of new product Nintendo is working on, saying only that the company would make a further announcement with details next spring.
He did, however, suggest that the new console would aim to return the games industry to its roots of providing fresh excitement through games that can be enjoyed by anyone, including those who do not normally play video games.
Investors are concerned that Nintendo has not risen to the challenge provided by competitors, such as Sony and Microsoft, by targeting the casual user, which is where most of the growth in games demand has been coming from.
Earlier this year, Nintendo’s share price plunged on news that Sony would launch a handheld game, challenging Nintendo in a market that it has dominated. It was hit again when Sony announced a new multi-function machine that would combine a DVD recorder with the PlayStation. Nintendo’s share price, which closed at Y9,690 on Thursday, is 19 per cent below this year’s high of Y11,890.

Nintendo’s mission is to develop simple games that anyone can enjoy, and by doing so bring back those people who have given up playing games into the market. If Nintendo succeeds in doing that, it might even achieve sales of Y1,000bn, Mr Iwata said. That compares with sales last year of Y504bn.

http://www.msnbc.com/news/949543.asp?0dm=T1FTT#BODY

[GameMaster]

Interesting. Is this "radical new product" the big surprise that has been speculated for so long now?

*cough*Megaton*cough* :D

[Stonecutter]

/me sits and waits for nintendo's "radical" product to be a system that hooks up to a closed network so that gamers can play eachother in multiplayer titles with a broadband connection for a reasonable price.

[GameMaster]

*wakes Stonecutter up from his wonderful dream and shows him Nintendo's crappy new E-Reader Advance aka, the radical new product* ;)

[Stonecutter]

It wasn't so much a wonderful dream as it was poking fun at nintendo for potentially ripping off Xbox Live and making it their own, but claiming to be revolutionary.

[Idiot]

Well, I just hope that this new product meets the high standards I expect of Nintendo. On the issue of a temporary production halt, I believe that it makes sense for Nintendo, seeing as videogame sales are lowest traditionally around the summer season. All in all, a very upbeat message in my opinion, even ignoring Iwata-sans unnessecerly pessimistic message.

[Jonbo298]

Jewel's....posting.....'Cube news?:hmm: meh

I heard about it a couple of days ago. Not the greatest of news, but it is useless to continue making a product for a period of time, if that time period is the slowest time of the year.

[Jason1]

While a revolutionay new product sounds fantastic, Im not overly thrilled with some of his other comments...the ones about making games simple...I mean I guess we really dont know what exactly he means by that...I just hope we dont see games that are so simple to the point where they're not challenging anymore...thats my biggest concern I suppouse...

[Shadow Fox]

me sits and waits for nintendo's "radical" product to be a system that hooks up to a closed network so that gamers can play eachother in multiplayer titles with a broadband connection for a reasonable price.Um, haven't you heard how much Nintendo is against the pay-for-play practice? If Nintendo is unvieling their Gamespy plans, I'm sure they'll be for FREE, considering how much they've harped on "gamers not wanting to pay again to play a game online they just spent $50 on".

Could it be an online plan? Sure. Would it be ripping off XBL? Hell no. Infact, it would be alot closer to Sony's model right now, since they still have free online gaming going on strong right now; alongside the glorious PC an Mac online realms...

Or, it could really just be the 64-bit GameBoy prototype they've denied for four years now... :rolleyes:

-Official Ninja of [coming soon]...

[Jason1]

Or it could be something horrible like Virtual Boy. We'd all be blind if we kept playing that thing, its good that nobody ever played it.

[thatmariolover]

NOT!



All kidding aside, this had better be good. I'm rather getting tired of Nintendo's lackluster performance. I'm sticking it out for them, but I am REALLY sick of their, shall we say, non-traditional way of fixing things. But I suppose, that's what makes them Nintendo. I just wish their luck would change.

[Crash]

i bet its a nintendo flame thrower, or nintendo machine gun....maybe nintendo nuclear warhead!!!! They said that it would change the world...but is it video game related?

[DeathsHand]

It had best be good... And not expensive... I spent money on me Gamecube and I sorta regret ever buying it... 200 on the system, some money on games... Sure I wanted the games I got, but if I didn't get them I could have just spent the money on some of the many PS2 games I also want...

Bah... Stupid having to get Nintendo games on Nintendo consoles...

I bet it will just end up being a big overhyped bundle of nothing special...

But hey if it's something worth buying, fine by me :D

[PuPPeT]

Oh what a surprise!!! Why does every thing that comes out of the Nintendo’s mouth of late seem to be total crap? Nintendo big “radical” rethink well just be another mad cap way of trying to save the company which will end up hurting them. Any one recall the last couple of time Nintendo use the word “radical” the N64 so called dream team of developers was one of them and also one of the most stupid things the company has ever done. Why doesn’t Nintendo just ask it fans what they want for once instead of doing what some miss guided out of touch 45 year man thinks they do. =/ It would be really sad to see Big N drop out of the console market but how long can they keep in it like they are. :(

[Neo]

I say it's a headset peripheral with a tiny gyroscope. When you look left and right the screen moves accordingly. Good for 1st person shooters.

[GameKinG]

If its overhyped it likely isnt Nintendo's fault, but probably some of its more blind fans. *cough*megaton*cough*

[Jonbo298]

Oh what a surprise!!! Why does every thing that comes out of the Nintendo’s mouth of late seem to be total crap? Nintendo big “radical” rethink well just be another mad cap way of trying to save the company which will end up hurting them. Any one recall the last couple of time Nintendo use the word “radical” the N64 so called dream team of developers was one of them and also one of the most stupid things the company has ever done. Why doesn’t Nintendo just ask it fans what they want for once instead of doing what some miss guided out of touch 45 year man thinks they do. =/ It would be really sad to see Big N drop out of the console market but how long can they keep in it like they are. :(

What about the GBA SP? That signifies the first step in Nintendo listening to the consumers, and look at how well its selling. At least 30,000 units (usually more) of it a week are being sold in Japan, and other countries are selling it quite well too.

Also, the Gameboy Player is a godsend to gamers (at least to me:D) The first time you can "officially" play GBA games on your TV.... oh yeah:hump:

Then you can't forget that the former prez left awhile back, and look at the progress being made after he left. Exclusive games from certain 3rd party games and great collaborations with Ninty and other companies to make games. *still anticipation how F-Zero GX turns out*

So as you can see, Nintendo is making an effort now. Its not an overnight thing, but by next gen., it should be a fun console battle to see.

[thatmariolover]

What about the GBA SP?

While the GBA SP might be a step in the right direction, Nintendo practically put themselves at square 1 with the hefty price tag attatched to it. Nintendo is still abusing their monopoly on the handheld industry by charging twice as much as they have any honest right to.

Perhaps the PSP will give them a little heat and make the reconsider.

[Jonbo298]

While the GBA SP might be a step in the right direction, Nintendo practically put themselves at square 1 with the hefty price tag attatched to it. Nintendo is still abusing their monopoly on the handheld industry by charging twice as much as they have any honest right to.

Perhaps the PSP will give them a little heat and make the reconsider.

Yes, the PSP might make Nintendo reconsider what they are doing now.

With the added things of the SP, it would make sense to charge a little more. If they charged the same price for the GBA and the GBA SP, NO ONE would want the *edit* original GBA*, so you have to keep the prices seperate. It's common business pracitice to do that.

An example could be the difference between an Nvidia FX 5900 video card and the FX 5900 Ultra. You can't charge the same price for an extra thing or 2. Gotta make the consumers decide;)

[DeathsHand]

If they charged the same price for the GBA and the GBA SP, NO ONE would want the SP, so you have to keep the prices seperate

I think you mean nobody would want the normal GBA... And what they can do in that case is instead of charging more for the SP, charge less for GBA (Meaning mark the normal one down to say 40/50 and let the GBA SP take the 60 or 70 or whatever the current GBA price tag is)...

[Jason1]

I say it's a headset peripheral with a tiny gyroscope. When you look left and right the screen moves accordingly. Good for 1st person shooters.


That would only be a good thing if its super-lightweight and its just as easy to move your head as it is in real life. Too many times those kinds of things at arcades are so heavy, its painful.

Also, about the GBA SP being too expensive...I really dont know how you can say that...when Sony is going to charge 300+ dollars for the PSP when it comes out. But IGN says the price of the Cube will be dropped to 99 US smackers soon, its a safe bet the GBA will follow suit with it's own price drop.

[DeathsHand]

Also, about the GBA SP being too expensive...I really dont know how you can say that...when Sony is going to charge 300+ dollars for the PSP when it comes out

And you know this how? I havn't been paying too much attention to PSP details, but I'm pretty sure no price (or price range) has been announced, and people are just speculating that it will cost a ****eload of money because it blows GBA SP out of the water in every way possible... :sneaky:

But come on... Do you really think Sony would be stupid enough to release a handheld for 300+ bucks when there's another handheld on the market for 100 (even though it will probably be less by the time PSP comes out)?

[Perfect Stu]

PSP will be priced fairly close to GBASP's current price tag. Sorry, but only an idiot would think that they would charge $300+ for a handheld.

[Jonbo298]

I think you mean nobody would want the normal GBA... And what they can do in that case is instead of charging more for the SP, charge less for GBA (Meaning mark the normal one down to say 40/50 and let the GBA SP take the 60 or 70 or whatever the current GBA price tag is)...

My mistake. I didn't even notice I said no one will want the SP instead of no one wanting the GBA.

And I think a price cut might come for the GBA and the SP, maybe as early as sometime in late sept. With the 'Cube going to $99.99 (according to IGN), it would seem wise to drop the SP to $69.99 and the GBA to $49.99. But who knows, Nintendo might hold off and use that price point for the handheld until December to up the sales.

[Null]

PSP will be priced fairly close to GBASP's current price tag. Sorry, but only an idiot would think that they would charge $300+ for a handheld.

hard to say. if its everything they are saying. its more then just a 'handheld' you go out and look at all the gizmos they have that do things like what sony is saying. I've seen portable media devices that play movies media files songs and stuff for 600. mp3 players up to 500.

granted sony wont charge THAT much for the PSP cuz they need to keep it competitive with the market they are competing with.

but i think it will be more then GB, IMO somewhere like 150 to 200 which wouldnt be worth it for a handheld. but as i said. if its 'the walkman of the 21st century' then its more then a handheld

[Jason1]

PSP will be priced fairly close to GBASP's current price tag. Sorry, but only an idiot would think that they would charge $300+ for a handheld.


Okay, now that I think about it, I was thinking of the Nokia's N-Guage with that price tag. Sue me.

[bobcat]

Okay, now that I think about it, I was thinking of the Nokia's N-Guage with that price tag. Sue me.
Niles......call my lawyers

*Niles calls bobcat's lawyers*

[thatmariolover]

I say that the price is rediculous because the technology to make these handhelds (including the PSP) has been around for about 5 years now (the hardware to make something so powerful so small). And so, Nintendo pumps these things out at about $20-$25 apiece for production charges, and then sells them for $70 to stores, and the stores sell them for $100.

[Jonbo298]

That's the way the world of business is run. You don't expect a company to sell something for cheaper then what it costs to make, do you? oh wait........;)

The technology has been around for awhile, yes, but making it smaller actually costs more. Maybe when the psp is released sometime next year, it might be cheaper, but who knows. By that time we could have $50-$70 SP's and Nintendo in full speed with its next handheld.

[Yoda9864]

I say that the price is rediculous because the technology to make these handhelds (including the PSP) has been around for about 5 years now (the hardware to make something so powerful so small). And so, Nintendo pumps these things out at about $20-$25 apiece for production charges, and then sells them for $70 to stores, and the stores sell them for $100.
How do you know all these "facts"? You spit them out like they are common knowledge.

Generally, smaller=more expensive. It costs Nintendo $ to manufacture it, it cost them money to develop it, it costs them money to support it. They gotta make a profit somewhere.

[thatmariolover]

How do you know all these "facts"? You spit them out like they are common knowledge.

Generally, smaller=more expensive. It costs Nintendo $ to manufacture it, it cost them money to develop it, it costs them money to support it. They gotta make a profit somewhere.

I don't assume to know facts, I know general price locations of the hardware they're putting in the things, and when they're mass produced by Nintendo or somebody they've got a contract with, it's going to cost even less.

I seriously apologize. I didn't mean to give people the idea that those are the true to life prices. I merely gave my own guesstimate. No need to listen to me. Make your own guesstimates.

And yes, I understand that smaller is generally more expensive. The GBA, as far as I have seen, is not a whole lot more powerful than the SNES, and a lot less powerful in some areas (resolution for instance, DK Country looks TERRIBLE on the GBA in comparison to the SNES game). The GBA was released on June 11, 2001 in the states. It had been in development for 2 years. The technology was there, but it wasn't utilized. That's four years.