Nintendo boss calls Apple 'the enemy of the future'
After experiencing its first drop in profits in six years, Nintendo is gearing up to turn its business around and sees Apple as a primary new competitor on the horizon.
According to a report published by the UK Times, Nintendo president Satoru Iwata reportedly told senior executives that the company has already won its war with Sony and that Apple was now its "enemy of the future."
Nintendo's confidence about have vanquished Sony is supported by the fact that its Wii outsold the PlayStation 3 by nearly double over the last holiday season, but Wii sales have also been falling off. In the first quarter, Nintendo reported sales down 21% from the year ago quarter.
Similarly, while Nintendo's DS remains the best selling handheld games machine, its position is now being encroached upon by Apple's iPhone and iPod touch platform.
Nintendo has recently focused its attention on broadening the market for video games outside of youths and dedicated male gamers. It famously and successfully positioned the Wii as a game console for entire families, girls, and older people.
However, Nintendo's expanded gamer demographics of high school girls and men 30-40 now say they'd rather have an iPhone than carry a DS, according to the report.
The relatively high prices of traditional console games also took a beating during the economic downturn, shifting the attention of many gamers toward Apple's iTunes App Store, where there are thousands of free games and most paid titles are less than $10.
According to a report published by the UK Times, Nintendo president Satoru Iwata reportedly told senior executives that the company has already won its war with Sony and that Apple was now its "enemy of the future."
Nintendo's confidence about have vanquished Sony is supported by the fact that its Wii outsold the PlayStation 3 by nearly double over the last holiday season, but Wii sales have also been falling off. In the first quarter, Nintendo reported sales down 21% from the year ago quarter.
Similarly, while Nintendo's DS remains the best selling handheld games machine, its position is now being encroached upon by Apple's iPhone and iPod touch platform.
Nintendo has recently focused its attention on broadening the market for video games outside of youths and dedicated male gamers. It famously and successfully positioned the Wii as a game console for entire families, girls, and older people.
However, Nintendo's expanded gamer demographics of high school girls and men 30-40 now say they'd rather have an iPhone than carry a DS, according to the report.
The relatively high prices of traditional console games also took a beating during the economic downturn, shifting the attention of many gamers toward Apple's iTunes App Store, where there are thousands of free games and most paid titles are less than $10.
Comments
Nintendo's confidence about have vanquished Sony is supported...
Grammar!
When/if Apple decides to take Apple TV seriously and transform it on a true multimedia hub and open the App Store for it, Nintendo/M$/Sony will be f***ed.
Interesting article, Nintendo may have its hand full in the near future, game prices will be lowered and non physical media based on Apple's business approach. If Nintendo continues to sell overpriced game media then they will surely be in trouble. Besides, its becoming apparent consumers want multi purpose devices, unlike the DS that can only perform one singular function.
I don't know that i would want 10 different multi purposes devices though...
Nintendo vanquished Sony? Lol wut? That's like saying Nokia defeated Apple in the smartphone market just because it still sells more crappy phones. Nintendo is as lazy as Microsoft, and could use some real competition to show them what they get for making sub-par products and making $$$ with them (Yeah Wii and pretty much every Nintendo Wii game that isn't Zelda or Mario, I'm looking at you).
When/if Apple decides to take Apple TV seriously and transform it on a true multimedia hub and open the App Store for it, Nintendo/M$/Sony will be f***ed.
Oh and the iPhone games are really that much better? I took a look in the store on my Mac and almost every game for iPhone (with the exception of Final Fantasy, Sonic, Megaman, and a few others) look like utter bulls***. I'd hardly call the games for the iphone/ipod touch/ipad quality games. Which would also explain their cheap prices
John Connor
Funniest post of the week!
When/if Apple decides to take Apple TV seriously and transform it on a true multimedia hub and open the App Store for it, Nintendo/M$/Sony will be f***ed.
Yep! I agree.
After experiencing its first drop in profits in six years, Nintendo is gearing up to turn its business around and sees Apple as a primary new competitor on the horizon. .
Funny, but isn't this the same Nintendo that was telling everyone who would listen (mostly bloggers) that they weren't concerned about Apple?
I guess it finally sunk in that Apple products are already responsible for 25% of the money spent on handheld game software.
They never asked me, but if they did, one of the biggest things they could do to increase profits is fix that lousy excuse for manufacturing. I just bought a Wii a month or two ago and it took forever just to find one in stock. WTF? The product has been out for years without any significant changes and they STILL can't manufacture enough to keep them in stock? It's one thing when it's a brand new product, but after a couple of years, they should have figured out how to make them.
Not only are they losing money on lost sales (some people have chosen other game consoles instead), but it's also an indication of manufacturing inefficiency which is undoubtedly increasing their cost per unit manufactured - probably by quite a bit.
Yep! I agree.
Just because they decide to make Apple TV a game console doesn't automatically mean its going to be a success. You have to have the proper backing for it and a big game franchise being exclusively produced for that console to make it a success i.e. Final Fantasy, Call of Duty etc. This is why PS3 has had so much trouble, it hasn't managed to be able to land exclusive deals. iPhone isn't successful as a gaming console its successful as a multipurpose device, everyone who buys an iPhone doesn't necessarily buy it to play games on it. Everyone who buys a Nintendo DS buys it to play games on it.
In order to be successful in the gaming arena with a console (Apple TV) Apple would have to secure some deals to bring popular game franchises to their platform. To do that they would probably have to make the Apple TV a little more powerful because game companies like good graphics, did you see what they did with Final Fantasy XIII? If Apple can do these things then they may have a case.
The product has been out for years without any significant changes and they STILL can't manufacture enough to keep them in stock?
Ditto. Nintendo loses out entirely on spontaneous purchases and to most everyone else, Nintendo looks disorganized/incompetent.
IMHO Nintendo is its own worst enemy.
The difference is, I will have my iPhone with me when I leave the house...
Sony and Nintendo need to make phones if they want to compete in the mobile market now. However, I don't know about you, but I don't think I'm willing to give up everything my iPhone does well just for a better gaming experience.
Interesting article, Nintendo may have its hand full in the near future, game prices will be lowered and non physical media based on Apple's business approach. If Nintendo continues to sell overpriced game media then they will surely be in trouble. Besides, its becoming apparent consumers want multi purpose devices, unlike the DS that can only perform one singular function.
DSi can go online, hold music and movies, similar to a PSP. I wouldn't call that one singular function. True it can't do everything the iPhone can do but it is much better to play most games on.
Oh I agree. Apple hates the future. It would like to kill it in hand to hand combat.
That's enemy of NINTENDO's future. Not the future of mankind as you stated above.
If Nintendo wants to get into the cell phone business, they need to hurry and outbid HP for Palm. That's pretty much their only option. And even if they took that route, it's still pretty risky, and chances of catching up to the iPhone are slim to none.
If Nintendo doesn't want to miss the new mobile revolution, they should start talking with Apple. Nintendo could sell millions and millions of games on the iPhone, iPod Touch and iPad. That would pretty much destroy their Nintendo DS sales, but it would be in their own best interest.
That's why Apple is a juggernaut right now, and no one else is competing. Everyone else is afraid of cannibalizing existing business, they are afraid of innovating too much and alienating legacy software. Apple is not afraid and consumers are loving it. Definitely the right business decision, though it is scary.