Nintendo Talks Again

About Many, Many Things

Easy does it for Nintendo chief
Keep it simple, stupid. That's Nintendo supremo Satoru Iwata's message on video games. Greg Thom reports
02jun04

NINTENDO chief Satoru Iwata has never been to Australia.

He plans to change that this year, but looking at kangaroos and cuddling koalas will be the last thing on his mind.

While holding its own in the cut-throat global video games market, Nintendo's GameCube console is running a very poor third Down Under, behind Xbox and PS2.

Iwata wants to know why.

"First of all, I am most sorry that the GameCube's performance is bad in Australia among any area in the world," he says.

"One of the biggest things I feel unfortunate about is that I have not been to Australia. I am looking forward to learning more about Australia."

Some facts he knows already.

GameCube's late arrival on the market meant it conceded an important headstart to its competitors, ground it has been unable to recover among consumers.

It's a situation Iwata is determined not to repeat, promising the company's yet-to-be-determined next-generation console will not only arrive on time, but hit the ground running.

In his only Australian media interview at the recent E3 games expo in Los Angeles, Iwata offered Connect his views on a range of topics, from the headlong rush to take games online, to his belief in a back-to-basics approach to video game design.

"In Japan for example, games are becoming more complicated, more difficult and more time-consuming. Accordingly, more and more people are shying away from gaming.

"Unfortunately, the games industry in Japan is not growing at all, but rather shrinking. I am afraid the same thing that is happening in Japan might be happening in the rest of the world as well".

While priding itself on being an innovative company -- it was Nintendo that invented standards such as the A/B button on games controllers -- Iwata would like to roll back the clock to a time when all gamers were equal and games much more accessible.

"At the very beginning, everybody was at the same start line. But in the past 20 years, the gap between the avid games fans and novice game players has been widening."

This has prompted the company to break new ground and deliver the innovative new DS hand-held gaming device.

Officially unveiled at E3, the dual-screen DS represents a new way of gaming. For the first time, players can play a game from two perspectives at the same time, in 2D or 3D. Other features include a touch screen, voice recognition and wireless connectivity.

"We really wanted people who have become tired of the current way of gaming, to be fully entertained, even with simple game-play," Iwata says.

The fact that companies such as Nokia and Sony, with their new PSP multimedia device, are entering the hand-held games arena doesn't worry Iwata.

"For Nintendo's part, our mission is to try to provide customers with a machine that lets players play unique and unprecedented games," he says.

Iwata says rival companies appear to see things differently.

"They seem to believe that their machine can sell only if they can add to the functionality . . . it can do this and it can do that.

"We have to make great and unprecedented games if we are going to sell new gaming devices to customers," he says.

"If people want to listen to music on the go, then they should purchase (an) iPod.

"That's my own opinion. The final decision has to be made by consumers."

Iwata is also less than enthusiastic about the headlong rush to embrace online console gaming and services, believing they simply can't generate revenue.

"One million Xbox Live subscribers? We don't say that is successful. If it were a console, that's a total failure," he says.

"However, I believe networked platforms will become a very important part of gaming. When the time comes, that will be a very important way of Nintendo doing business."

As for the next generation of consoles, Iwata is sure of one thing: companies can no longer rely on simply raising the technology bar to keep consumers interested.

Until recently, changes from one video game console to the next were obvious, but now the level of photo realism is so good that future incremental changes will hardly be noticed by most players, according to Iwata.

From now on, companies must dare to be different in order to capture the audience's imagination, he says.

"Nintendo created 20 years ago the standard of how video games were going to be played. There is the TV set, here is the controller, (held) in both hands

"We should not hesitate to crash through the system Nintendo itself created," he says.

"That's innovation."

Iwata would like to roll back the clock to a time when all gamers were equal and games much more accessible.
Officially unveiled at E3, the dual-screen DS represents a new way of gaming. For the first time, players can play a game from two perspectives at the same time, in 2D or 3D. Other features include a touch screen, voice recognition and wireless connectivity.

So which is it, bigguy? Easy and simple or feature-packed and complex? This guy''s all over the map.

""In Japan for example, games are becoming more complicated, more difficult and more time-consuming. Accordingly, more and more people are shying away from gaming.

Nintendo REALLY needs to stop using this as an excuse for their increasingly poor performance. If this is true, why did they make Metroid Prime, which certainly wasn''t simple, easy or short? Is a handheld with double the number of screens ''simpler''?

""One million Xbox Live subscribers? We don''t say that is successful. If it were a console, that''s a total failure,"" he says.

...and if it were bunnies, it''d be a lot of bunnies. What a ridiculous statement.

""However, I believe networked platforms will become a very important part of gaming. When the time comes, that will be a very important way of Nintendo doing business.""

What world do these people live in? It''s been a very important part of gaming for several years now.

Nintendo''s attitude that they can simply enter the world of online gaming without having to cut their teeth will eventually bite them in the ass..

While they''re sitting their calling Xbox Live a failure.. Microsoft is capturing data (network, demographic, trends etc..) that will only strengthen their next efforts..

It''s easy to point fingers and sneer its another thing to implement and do.

This ''innovation'' talk is a bunch of hogwash, and Iwata knows it. However, he does mention something that is very relevant. It is true that right now Xbox live does not generate revenue. This is okay for a company like Microsoft who can, and intend to, operate at a loss for a long time to come. Nintendo on the other hand does not have assets to make these kind of investments. That is why we have all this namecalling. Nintendo is really frustrated that their competitors don''t have to play by the same rules as they do. Unfortunately for them, that is the nature of the game.

Nintendo on the other hand does not have assets to make these kind of investments. That is why we have all this namecalling. Nintendo is really frustrated that their competitors don''t have to play by the same rules as they do. Unfortunately for them, that is the nature of the game

Nintendo has something like 9 billion bucks in the bank. They do have the assets to create Nintendo Live. They are one of the most succesful publishers and developers in the world and lead in all the major markets. #2 in USA and #1 in Japan.

I don''t know where you are getting that.

Nintendo''s attitude that they can simply enter the world of online gaming without having to cut their teeth will eventually bite them in the ass..

Nintendo has experience with online console gaming. The major problem with Xbox Live has been the lack of compelling software that appeals to a broad range of people. Getting EA on board is a huge step in the right direction.

Software will make online gaming work for Nintendo.

While they''re sitting their calling Xbox Live a failure.. Microsoft is capturing data (network, demographic, trends etc..) that will only strengthen their next efforts..

Nintendo knows their core demographic and can spot trends. Nintendo should have gone online this generation and they''ll have to next generation but they''ll implement a system on par with Sony and MS when they do it.

It will all come down to software. Sony has proved this. More people go online with the PS2 than do with the Xbox.

I wouldn''t be surprised at all if Nintendo went to MS to help them with their online system. Iwata likes to throw mud at them (which he must not understand makes him look bad in this country), but from everything I''ve read MS and Nintendo actually get along really well. People working at MS can literally look out their window and see people working at Nintendo across the street. They go out to lunch with people at Nintendo''s American HQ regularly.

From what I''ve uncovered, they both dislike Sony with a passion.

So when Nintendo finally gets off it''s arise and starts working on online games, don''t be to surprised if MS helps them out with software and infrastructure.

I wouldn''t be surprised at all if Nintendo went to MS to help them with their online system. Iwata likes to throw mud at them (which he must not understand makes him look bad in this country), but from everything I''ve read MS and Nintendo actually get along really well. People working at MS can literally look out their window and see people working at Nintendo across the street. They go out to lunch with people at Nintendo''s American HQ regularly.

I would be ok with that if NA actually held any power...which they pretty much dont.

So when Nintendo finally gets off it''s arise and starts working on online games, don''t be to surprised if MS helps them out with software and infrastructure.

It''s possible..but based on his comment that Xbox Live is a failure.. it would be weird for them to ask a company that has ""failed"" to help.

Nintendo has something like 9 billion bucks in the bank. They do have the assets to create Nintendo Live. They are one of the most succesful publishers and developers in the world and lead in all the major markets. #2 in USA and #1 in Japan.

I don''t know where you are getting that.

Then I''ll rephrase it. Nintendo won''t make those kinds of investments. Yeah sure, they have money, but they got that way by not selling consoles at a loss. There''s no reason to think they''d start subsidizing their online efforts.

Why do you say ""Nintendo has experience with online gaming""? A modem adapter for the SNES and N64 is all I can think of. PSO is the online online Cube game and it is mainly a Sega thing. I''d like to see them do an online service similar to XBox Live, however I have never seen anything like that from Nintendo. I haven''t even seen a DNAS equivalent from Nintendo.

More people go online with the PS2 than do with the Xbox.

That''s because there are ridiculously more people with PS2s than XBoxes. A more interesting statistic would be percentages. What percent of PS2 owners go online vs. XBox owners with XBox Live?

It''s possible..but based on his comment that Xbox Live is a failure.. it would be weird for them to ask a company that has ""failed"" to help.

That isn''t exactly what he said. He said that if that were a console it would be a failure, meaning that one million isn''t a hit. I disagree. I said way back that until Xbox Live reaches a million it is a failure.

XBox Live is a failure. Not with the users, though, as obviously it is much loved, and rightly so. But with the number of XBoxes sold, how many get Live? And out of that number, how many renew after their free year? Providing a service like this is ridiculously expensive with the programmers probably taking up a large portion of the money they make (1 million users * $50 = 50 mill), and bandwidth and hardware taking up more than the rest. It is an enormous financial failure, with the only way to recoup being every XBox user getting it and keeping it.

Online will only be success when it becomes as ubiquitous as the operating system on your computer desktop. It needs to be always on, and always used by everybody on your platform. And everybody has to pay for it some way or another. Selling the razors at a loss to sell blades (to use an oft-used example) is just not a strategy in console gaming that has any long-term usefulness. Selling XBoxes to hopefully sell XBox live is dumb, and with only 1 million (very satisfied) users makes it a failure. It is the best, but you can be the best and still be a failure.

"winter" wrote:

Providing a service like this is ridiculously expensive with the programmers probably taking up a large portion of the money they make (1 million users * $50 = 50 mill), and bandwidth and hardware taking up more than the rest. It is an enormous financial failure, with the only way to recoup being every XBox user getting it and keeping it.

By that standard, EQ is even more of a ''failure''. About 500K subscribers in the average month * $13 * 12 = only 78 mil per year, with programming and bandwidth costs that I''ll bet outpace the XBox live costs by an order of magnitude. Yet, more and more companies are trying to enter the MMORPG space. Why? Tens of millions of dollars can cover a whoooooooole lot of bandwidth and programmers with plenty left over for profit.

Providing a service like this is ridiculously expensive with the programmers probably taking up a large portion of the money they make (1 million users * $50 = 50 mill), and bandwidth and hardware taking up more than the rest. It is an enormous financial failure, with the only way to recoup being every XBox user getting it and keeping it.

It isn''t that expensive. The subscription based model is very profitlable if you sell enough copies.

And out of that number, how many renew after their free year?

Its not free.. the minimum Live kit is exactly $49.99 (the cost of a regular year)

The only free Live kit is the 2 months that came with certain games and the Xbox Bundles.

The Premium Live kits (with game) cost $69.99 so your also paying for the pack in slightly.

XBox Live is a failure. Not with the users, though, as obviously it is much loved, and rightly so. But with the number of XBoxes sold, how many get Live?

Everyone I talked to at Microsoft is incredibly happy with the success of Live. Its actually exceeded their expectations and is playing a huge role in the next generation. Only certain people view Live as a failure.. and again..considering they currently have more paying subscribers than any other gaming pay service around (discounting any S. Korea nonsense) I''m curious to how anyone can consider it a failure..

A failure compared to what product then?

"Gameguru" wrote:

A failure compared to what product then?

Didn''t you read the article? Iwata-san spells it out for you: It''s a failure compared to consoles, silly!

I would say a failure at making money. Over time there is no doubt it will eventually recoup it''s money, especially since the framework for Live on XBox2 is pretty much in place. But I don''t consider 1 million people a break-even for this generations service.

As for EQ comment, they also make great money off selling the game and it''s various expansions and compilations for 50 dollars a pop. That covers development costs right there. I am not sure what comes with Live (headset, CD, and?) but it is a one time thing, and some of that stuff costs money to include. MMORPGs make money from selling the CD, and the occasionaly manual, and then the recurring monthly payment. Expansions = more money. MS would have a hard time getting anybody to pay another 50 bucks for version 2.0, or the coming 3.0 update. Not to mention the fact that they lose money on the hardware just to get you look at buying Live.

My opinion is that based on users, it is a success. Based on the Makes Money Matrix, it is a poor investment (hence the overly harsh word ""failure"", maybe that is a poor choice of words). Nintendo''s comments are dumb, because Live is not a console, it is something new, and innovative. I don''t think Nintendo can afford to lose the amount of up-front money it would take to start a service like this. Maybe call it sour grapes?

Its funny....the same people who freak out when you call the GC a failure......are some of the first to call LIVE a failure.

Hmmmmm.....interesting....or not so much.

Anyhow, Satoru Iwata''s been in a ""foot in mouth"" tour while still trying to save face for a couple of years now.

Lot of people on this board say they don''t have the time to get deep into games. Perhaps shorter and simpler titles are what people like us need. That and mashed food.

"1Dgaf" wrote:

Lot of people on this board say they don''t have the time to get deep into games. Perhaps shorter and simpler titles are what people like us need. That and mashed food.

I don''t think they mean games that are any less deep or shorter they just mean more games that are friendly to more people. Better UI, more intuitive controls, etc.

I don''t think they mean games that are any less deep or shorter they just mean more games that are friendly to more people. Better UI, more intuitive controls, etc.

In other words, more Blizzard games.

"Minase" wrote:
I don''t think they mean games that are any less deep or shorter they just mean more games that are friendly to more people. Better UI, more intuitive controls, etc.

In other words, more Blizzard games. :)

More Nintendo games.

More Nintendo games.

Well umm yeah, thats what he meant...but the reality is...

Well umm yeah, thats what he meant...but the reality is...

That Nintendo games by and large can be played by anyone? Pikmin can be picked up and played by anyone, Animal Crossing, Mario, Wario Ware, etc.

I really wish I had Animal Crossing right now, as being sick has totally shot what remains of my old-man reflexes, making Zelda an exercise in futility. I really didn''t enjoy Pikmin all that much, though.