Nintendo admits 'dark' future if it can't differentiate from iPhone
As the iPhone has proven itself to be a formidable competitor in the handheld gaming business, the president of Nintendo has said his company must differentiate itself to survive.
As Apple portrays the iPod touch and iPhone as the ultimate portable gaming machine, Nintendo, maker of the Nintendo DS, has seen its profits freefall last quarter, from 133 billion yen a year prior to 64 billion yen. Highlighting the newfound competition between Apple and Nintendo, The Wall Street Journal noted that Nintendo has fended off several potential portable challengers, but it hasn't quite faced a competitor like the iPhone.
Satoru Iwata, president of Nintendo, is reportedly an Apple fan who uses an iPhone and Mac laptop. He also denied that there is a rivalry between his company and Apple, noting that attempts to create one makes him "uncomfortable." But Iwata also allegedly sees the iPhone as enough of a threat that Nintendo must work to stand out from it and devices like it.
"If we can't make clear why customers pay a lot of money to play games on Nintendo hardware and Nintendo software and differentiate ourselves from games on the mobile phone or iPhone, then our future is dark," he said.
The Journal cited research firm DFC Intelligence as stating that growth for dedicated portable gaming machines like the Nintendo DS and Sony PSP has reached an apex. That firm believes that Apple products will be the driver of portable game sales in the next five years, rising from $46 million in 2008 to more than $2.8 billion in 2014.
To combat declining interest in its Nintendo DS platform, the company will launch a new form factor for the hardware in Japan in this month, and next year in the U.S. The Nintendo DSi LL will feature 93 percent larger 4.2-inch dual screens and will carry a $222 price tag in Japan.
For two years now, Apple has pitched its iPod touch as a portable gaming machine, dubbing it "The funnest iPod ever" at its September events. The latest upgrade to the hardware includes the ability to run Open GL ES 2.0, with up to 50 percent faster performance.
Iwata and Nintendo said they believe the iPhone attracts a different kind of game playing market, as dedicated hardware like the DS offers unique titles unavailable anywhere else. Among those are Nintendo-exclusive franchises like Mario and Zelda.
But one advantage Apple does have over Nintendo and Sony is the price and availability of software. The company boasted at its media event in September that, at that moment, the iPhone OS had 21,179 game and entertainment titles available via its App Store, compared to 3,680 for the Nintendo DS and 607 for the Sony PSP. Many of those are budget-priced, with major franchises like Madden football selling for under $10. Comparatively, most games for the Nintendo DS and Sony PSP cost between $25 and $40.
This year, large publishers with key properties have brought titles like Tetris, The Sims 3 and Metal Gear Solid Touch to the iPhone and iPod touch. They have helped to bring the total number of applications on Apple's App Store to over 100,000.
As Apple portrays the iPod touch and iPhone as the ultimate portable gaming machine, Nintendo, maker of the Nintendo DS, has seen its profits freefall last quarter, from 133 billion yen a year prior to 64 billion yen. Highlighting the newfound competition between Apple and Nintendo, The Wall Street Journal noted that Nintendo has fended off several potential portable challengers, but it hasn't quite faced a competitor like the iPhone.
Satoru Iwata, president of Nintendo, is reportedly an Apple fan who uses an iPhone and Mac laptop. He also denied that there is a rivalry between his company and Apple, noting that attempts to create one makes him "uncomfortable." But Iwata also allegedly sees the iPhone as enough of a threat that Nintendo must work to stand out from it and devices like it.
"If we can't make clear why customers pay a lot of money to play games on Nintendo hardware and Nintendo software and differentiate ourselves from games on the mobile phone or iPhone, then our future is dark," he said.
The Journal cited research firm DFC Intelligence as stating that growth for dedicated portable gaming machines like the Nintendo DS and Sony PSP has reached an apex. That firm believes that Apple products will be the driver of portable game sales in the next five years, rising from $46 million in 2008 to more than $2.8 billion in 2014.
To combat declining interest in its Nintendo DS platform, the company will launch a new form factor for the hardware in Japan in this month, and next year in the U.S. The Nintendo DSi LL will feature 93 percent larger 4.2-inch dual screens and will carry a $222 price tag in Japan.
For two years now, Apple has pitched its iPod touch as a portable gaming machine, dubbing it "The funnest iPod ever" at its September events. The latest upgrade to the hardware includes the ability to run Open GL ES 2.0, with up to 50 percent faster performance.
Iwata and Nintendo said they believe the iPhone attracts a different kind of game playing market, as dedicated hardware like the DS offers unique titles unavailable anywhere else. Among those are Nintendo-exclusive franchises like Mario and Zelda.
But one advantage Apple does have over Nintendo and Sony is the price and availability of software. The company boasted at its media event in September that, at that moment, the iPhone OS had 21,179 game and entertainment titles available via its App Store, compared to 3,680 for the Nintendo DS and 607 for the Sony PSP. Many of those are budget-priced, with major franchises like Madden football selling for under $10. Comparatively, most games for the Nintendo DS and Sony PSP cost between $25 and $40.
This year, large publishers with key properties have brought titles like Tetris, The Sims 3 and Metal Gear Solid Touch to the iPhone and iPod touch. They have helped to bring the total number of applications on Apple's App Store to over 100,000.
Comments
But did Iwata actually even remotely hint at it this time?
Satoru Iwata, president of Nintendo, is reportedly an Apple fan who uses an iPhone and Mac laptop. He also denied that there is a rivalry between his company and Apple, noting that attempts to create one makes him "uncomfortable." But Iwata also allegedly sees the iPhone as enough of a threat that Nintendo must work to stand out from it and devices like it.
"If we can't make clear why customers pay a lot of money to play games on Nintendo hardware and Nintendo software and differentiate ourselves from games on the mobile phone or iPhone, then our future is dark," he said.
Source?
Source?
Originally, I have to assume the source was Mr. Iwata.
PS: The App Store has only been out for a year and half, and first iPod Touch to advertise being the ‘funnest iPod ever” was at the iPod Special Event in 2008. Wasn’t that less than 14 months ago, not years?
Originally, I have to assume the source was Mr. Iwata.
Fair enough. It's time to take the iPhone seriously in this sphere. It's no joke. Not only does the iPhone (and iPod) do games very well, it also does so many other things very well.
Iwata is also worried about the wohle "device convergence" issue. And rightly so.
Nintendo has been in this position before. They are one of the wealthiest companies in Japan and have been out of favour with customers. I have no doubt at this time they will find away to come back stronger than ever. Like Apple, they often redefine the market.
I have to agree. Apple needs to be mindful of the competition, but they have been through this before and always seem to come out stronger on the other end. Everybody thought they were dead in the water when the Playstation and Playstation 2 (and to a lesser extent, the original Xbox) were the market leaders, and declared them nearly out of business when Sony released the PSP. In comes the Wii and DS, which redefine their respective markets, and they are back on top. Also, don't forget SEGA coming in in the 90's and almost running them out of town only for the Super Nintendo to come out and mop the floor with the competition. Nintendo knows what they're doing, but they are a company that needs competition in order to innovate. They are getting it from more directions now than ever, and that will only help all of us.
Iwata is also worried about the wohle "device convergence" issue. And rightly so.
Nintendo really should have made their DS a proper PMP a long time ago.
I have to agree. Apple needs to be mindful of the competition, but they have been through this before and always seem to come out stronger on the other end. Everybody thought they were dead in the water when the Playstation and Playstation 2 (and to a lesser extent, the original Xbox) were the market leaders, and declared them nearly out of business when Sony released the PSP. In comes the Wii and DS, which redefine their respective markets, and they are back on top. Also, don't forget SEGA coming in in the 90's and almost running them out of town only for the Super Nintendo to come out and mop the floor with the competition. Nintendo knows what they're doing, but they are a company that needs competition in order to innovate. They are getting it from more directions now than ever, and that will only help all of us.
Agree totally with your comments, actually if Apple decide to really pitch for the gaming sector and not a nice add-on via iPhone, but use iTablet, then Nintendo will cause them to raise their game and I can tell you it will be come very interesting.
I enjoy healthy competition has I said many times, GREAT for the consumer!
WII2 would have legs for one more round though, but handheld, no way. Unless they bring out their own phone and app store and change the model considerably.
Reality is, Nintendo caught Sony and MSFT sleeping (how asleep they were astounds me), and got lucky last time. Whereas at Apple they never sleep, they take amphetamines all night long.
(allegedly )
Satoru Iwata, president of Nintendo, is reportedly an Apple fan who uses an iPhone and Mac laptop. He also denied that there is a rivalry between his company and Apple, noting that attempts to create one makes him "uncomfortable." But Iwata also allegedly sees the iPhone as enough of a threat that Nintendo must work to stand out from it and devices like it.
It's refreshing to read that an executive at a competing company can make statements like this without a lot of bluster or histrionics. Too often the business world is framed in epic battles with no room for reflective thought. Compare and contrast with the CEO of Creative, or just about anything that Steve Ballmer says or does.
Fair enough. It's time to take the iPhone seriously in this sphere. It's no joke. Not only does the iPhone (and iPod) do games very well, it also does so many other things very well.
Iwata is also worried about the wohle "device convergence" issue. And rightly so.
It is amazing how many devices an iPod touch or iPhone can replace.
Phone
iPod
point and shoot camera
flip video camera
DS or PSP
GPS
digital voice recorder
alarm clock
satellite radio
flashlight
Apple is doing the same thing to the whole consumer electronics industry.
…actually if Apple decide to really pitch for the gaming sector and not a nice add-on via iPhone...
I’d like to see a proper API for gaming. Something where gaming controls can be done virtually or through any number of 3rd-party gaming attachments for D-pads. This way, a game can be sold on the App Store without the user being required to use an attachment but one can be added and the game can choose the physical input method for proper handheld gaming without the developer having to specifically code for its use through the 30-pin connector. I have no idea if that is feasible but I want it.
I?d like to see a proper API for gaming.
I'l second that! My bets it's on it's way, right about the time they release the iPad
Fair enough. It's time to take the iPhone seriously in this sphere. It's no joke. Not only does the iPhone (and iPod) do games very well, it also does so many other things very well.
Iwata is also worried about the wohle "device convergence" issue. And rightly so.
I don't see anywhere in the article where Iwata says he is "scared" I do see this however.
"Mr. Iwata says the company's hand-helds offer an experience that mobile phones?no matter how smart the phone?can't match."
Nitendo has been on the ropes before and has always come out ahead.
Nintendo is also great at doing this.
"My job is to find the potential in something that others can not see, to secretly pour our resources into them and turn them into hits before anyone else catches on,"
That last quote almost sounds like something Steve Jobs would say, funny part is when SJ says it he is being innovative yet when someone else says it they are scared.
"If we can't make clear why customers pay a lot of money to play games on Nintendo hardware and Nintendo software and differentiate ourselves from games on the mobile phone or iPhone, then our future is dark," he said.
I've always appreciated how honest and candid Satoru Iwata is. It's almost as if he doesn't know he's talking on the record.
Iwata and Nintendo said they believe the iPhone attracts a different kind of game playing market, as dedicated hardware like the DS offers unique titles unavailable anywhere else. Among those are Nintendo-exclusive franchises like Mario and Zelda.
Ironically, this is at least part of the problem affecting Wii software sales: many large third party studios are afraid to develop for the platform because they fear the users simply won't buy their games because they'll just buy Nintendo-developed franchises (Mario, Zelda, Wii Fit, etc).
While this might sound like a nice problem to have for Nintendo, when they can't put out big games on a consistent basis their hardware sales suffer. Of course, many of the big developers not backing the Wii are also turned off by its subpar graphics and processing power.
It's not exactly the same situation on DS but then, that platform is getting rather long in the tooth.
Reality is, Nintendo caught Sony and MSFT sleeping (how asleep they were astounds me), and got lucky last time. Whereas at Apple they never sleep, they take amphetamines all night long.
(allegedly )
LOL! Yes I think Ive heard that too.
For years now, Apple has pitched its iPod touch as a portable gaming machine, dubbing it "The funnest iPod ever."
Hey AI - let's try this past September when the Touch failed to get its rumoured camera and Steve Jobs first made the "primarily a gaming device " statement. Enough with the history rewrites.
Fun doesn't only apply to games but music and videos as well.
Hey AI - let's try this past September when the Touch failed to get its rumoured camera and Steve Jobs first made the "primarily a gaming device " statement. Enough with the history rewrites.
Fun doesn't only apply to games but music and videos as well.
... and your favorite horse to whip: BlueRay. I knew I'd find ya here... sorry for busting the topic thread... so have ya checked out this article over at Ars?
Blu-ray discs get Managed Copy; hardware support nonexistent
After four years in the oven, "managed copy" is done?and boy, is it a stinker.