Nintendo's Big Cheese Stands Alone

[Perfect Stu]

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