In-Depth View of the Nintendo Corporate Management Policy Briefing 2006
Recently, Nintendo released the transcript of their Corporate Management Policy Briefing that involved the current president (Iwata), a world-renowned Nintendo developer who needs no introduction (Miyamoto), the general director of the Licensing Division of Nintendo (Hatano), and the general manager of Nintendo’s Integrated Research & Development division (Takeda). They discuss their opinions on certain issues and answer several questions. Read the full breakdown after the jump!
If you aren’t a heavy reader, the titles should sum up all the key aspects. Otherwise, read the content, it’s better than reading the 15 page transcript!
Price Announcement – Before TGS!
Nintendo has traditionally released the most anticipated information of their projects at the Tokyo Game Show in September, but that isn’t going to be the case this year. Iwata stated that the final price will be announced before September (TGS begins September 22). There has been no decision on whether they will sell the console above or below production cost, something of which Nintendo can manage either way according to Iwata.
Recently, Nintendo released the transcript of their Corporate Management Policy Briefing that involved the current president (Iwata), a world-renowned Nintendo developer who needs no introduction (Miyamoto), the general director of the Licensing Division of Nintendo (Hatano), and the general manager of Nintendo’s Integrated Research & Development division (Takeda). They presented their opinions on certain issues and answered several questions. Read the full breakdown below.
If you aren’t a heavy reader, the titles should sum up all the key aspects. Otherwise, read the content, it’s better than reading the 15 page transcript!
Price Announcement – Before TGS!
Nintendo has traditionally released the most anticipated information of their projects at the Tokyo Game Show in September, but that isnÂ’t going to be the case this year. Iwata stated that the final price will be announced before September (TGS begins September 22). There has been no decision on whether they will sell the console above or below production cost, something of which Nintendo can manage either way according to Iwata.
Number of Software Developers for Wii Increases
After announcing the Wii, and having demos available to play at E3, Nintendo has received positive responses from third party developers. Many developers have approached Nintendo and asked to test out the hardware themselves, showing high interest in the console.
Iwata – Software Price Decrease – Too Fast?
Iwata clarified on a comment he made four years ago about the tendency of lowering software prices. Video games have been sold at high prices and then these prices have been lowered over time (sometimes for just a few months). Iwata claims that this should not happen, stating that video games should be sold based on content and time spent on developing (hopefully this will not reflect in Duke Nukem: Forever). The price should not be lowered a few months after production because then consumers will learn the trend and wait for the price to decrease. Iwata states that “we need to be cautious about this” when finishing his statement.
Leaders of Video Game Companies DonÂ’t Play Games *Gasp*
According to Mr. Miyamoto – “I know many people in this industry do not play video games even though some of them are running video game companies, but I have seen them enjoying playing the Wii without any hesitations.”
Wii DeveloperÂ’s Transition
Miyamoto, when talking about challenges that Nintendo presents stated that many developers will find it hard to transition over to the Wii and use its new technology. He stated that this all will be cured with time and that developerÂ’s will learn to adapt to the new platform.
Wii Launch – Aggressive Software Lineup
A first impression is sometimes the last for many, and Nintendo has learned from past console launches as to what is required. With the Xbox 360, there were few launch titles worthy of praise, but NintendoÂ’s next-generation consoleÂ’s launch will be the opposite. Nintendo plans to have a very aggressive launch, including powerful titles from both Nintendo and developers outside of the company.
The Nintendo Difference
Takeda, on discussion of the Research and Development costs, explains that they are spending the necessary amounts of money to make the “Nintendo Difference.” This difference is referring to the “revolution” in video games that the Wii will present to us this fall.
More Manpower at Nintendo?
It seems that with the Gameboy Advance, Nintendo DS, Gamecube and Wii all still alive and kicking, Nintendo needs more people to focus their manpower and efforts. Whenever someone (a developer) comes along with a brilliant idea for a game, Nintendo is at the front supporting them so that they can make games for Nintendo. Mr. Miyamoto gos on to say that the object is to create great titles, and that if the possibility for earning great profit emerges, they will not hesitate to invest in that title.
Nintendo Likes Surprises, and so do Wii.
The Wii puns are getting pretty old, but I just could resist on this occasion. Mr. Iwata believes that when it comes to video games, surprising your customers is a very important task. In the past, we have seen Sony ask its customers what they want as a gamer, and we have responded. Iwata believes that this is the wrong direction and that you shouldn’t ask a person what “surprises them,” as then the whole element of surprise is lost. Nintendo likes surprising its customers with new products and exciting titles, and we as consumers do too! Iwata goes on to explain that Nintendo takes these risks, even when no result is assured. So, no matter what the risk, if it’s a good idea, it will happen! As long as we are not surprised by another Virtual Boy, then I think we will all be happy, no matter what the surprise.
Foresight – Key to Lower Development Times
Before Brain Age was released, Nintendo had already developed hand-writing technology for future games if they choose to use it. It was developed in mind that one day, a game or application will be released that will need this technology. With this technology, Brain Age was able to be developed in 3-4 months, and was a huge success.
WiiConnect24 – Nintendo’s Approach to the Internet
The newly introduced WiiConnect24 will allow players to “share” their information and even download new games, much like the Xbox Live Arcade. Mr. Iwata doesn’t even know the full potential of this new service and will continue to produce these revolutionary technologies.
Wii – Name will Sink in
From the transcript, Iwata stated that the name has found a home with many gamers, and some are still leaving it outside of their house. It will take time for them to accept the name, and let it in their house. Nintendo will do all they can to help those unaccepting gamers accept the name.
Nintendo DS Lite (Japan) – Shortage Reasons
Straight from the transcript – “As far as the launch time shortage of DS Lite, a major issue we faced was that we could not achieve the expected level of the yield ratio with the bicolor molding.”
A New Console will be Released When it is Needed.
Another quote from the transcript – “We don’t need to make new hardware simply because one of our competitions are trying to make a beefed up version of their existing machine. So we will be working on a variety of different projects on an ongoing basis.” Nintendo will release their next console, when they feel it is necessary.
“X-Boy” – A possibility
Mr. Iwata states in the discussion that he would not be surprised if Microsoft releases a portable gaming console. The market is changing everyday and people are spending more time away from the home, and away from the TV than they used to. So, the question still remains if we will see anything in the portable gaming market from Microsoft.
ReggieÂ’s Promotion
The president of Nintendo himself, Mr. Iwata stated that ReggieÂ’s promotion to the NOA president was a good decision. Since he speaks English as his native tongue, he was the perfect figure to run Nintendo in America. They believe that Reggie will be able to deliver NintendoÂ’s strategy in America
Gameboy Micro – Failure Explained
Mr. Iwata explained why he believes the Gameboy Micro has failed. One of the first explanations goes on stating that marketing was not as high as it shouldÂ’ve been and that they were unable to get their point across. I know I was impressed by it when I saw it revealed at E3, but I never saw any marketing strategies other than the E3 presentation myself. It was also introduced after the NDS, making Nintendo focus their marketing on the NDS above the Micro.
Wii – Why it Lacks many “Next Generation” Qualities
Many companies, including Sony and Microsoft have developed hard drives and even HDTV support in their next generation consoles, but Nintendo has not. Nintendo believes that they should focus on what is important and what is better for the consumer. With all these extra additions to a game console, it is becoming a beast in size and power. Mr. Iwata says that if he were to listen to his engineer “spirit” that the Wii would be much larger in size, loading time would be a nightmare, and unique functions like WiiConnect24 would be impossible.
Wii – HD Capable a Possibility
A few sentences can go a long way – “I am not saying that Nintendo will never launch HD-ready hardware. Rather, it can happen.” Nintendo does not see a need to make their console HD-capable at this time, but in the future it is possible.