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N-Query

Matt's thoughts on the IGN Live next-generation panel.

The Future

Hey Matt,

Big fan of the site. I'm gonna help you ease back into the Mailbag updates by hitting you with a sweet question. Will Nintendo be the catalyst behind affordable "virtual reality" style games? It seems like the Revolution is designed on capturing the motion of the controller in space and translating to the video game. Combine that with games that fill a whole room (by projectors maybe?) and you've got some mind-bending gaming possibilities on your hands. Thoughts?

Matt responds: I'm going to dig deep into my vocabulary and pull out two words to describe that scenario: nifty and rad. You were probably searching for these same words, but I get $6.35 an hour to come up with this stuff and so it's only natural that it flows directly out of me like blood from an open wound. But back to the original point, which is that Nintendo has already hinted that we do not yet know everything about Revolution so there's always the possibility that Miyamoto is working on a super happy tree fruit to be packaged with the unit. But frankly, I don't think said mystery element will be the ability to spray rooms with 3D gaming goodness. The console was demonstrated to us on regular old televisions and everything we know about it -- from specs to comments from Nintendo executives -- indicates that it has been designed to work with all kinds of TVs. I'm not going to come right out and dismiss such a notion -- Miyamoto has in the past said he would like to create a "flying machine," so anything is possible -- but it might be something to think about post-Revolution.


On and Off

Hi Matt. Did you see the revolution video? The last guy turns the TV off with the controller? Isn't that strange? Or does the revolution maybe have something more..?

Matt responds: I think that little bit in the video was mostly for effect. But with that said, Revolution's controller does have an on/off power button to turn the actual console on and off respectively. Incidentally, the controller for Xbox 360 comes complete with the same feature. Pretty handy, so to speak, as getting up and flipping consoles on and off has always been a bit of a nuisance. Yes, I'm lazy. So what?


In Prison

Hey Matt, I was watching Prison Break tonight and noticed one of the characters sent an email to LJ@ign.com. Someone on the show a fan of the site?

Matt responds: Yeah, that's a pretty cool reference. The guys working on Prison Break arranged it through Fox with IGN and we were all happy to be mentioned on the show. I really think it's one of, if not the best new series on television so it was cool to see IGN featured (if only very briefly) in an episode. If you e-mail lj@ign.com, you will receive some kind of reply, too, so be sure to do that.


Matt and Mark

Hey Matt,

I just watched the video clip of the panel at IGN Live. Didn't you just want to slap Mark from Epic Games?? Graphics are everything? I think anybody that has the nerve to say that knows nothing about gameplay. I believe all rational gamers have finally come to Nintendo's view that great graphics alone do not make a game special. And his criticism of the Revolution without even trying it out yet was downright laughable. You could easily deduce that he was speaking with a lack-of-knowledge state of mind about Nintendo's next-gen console when he didn't even know that Nintendo had announced any games.

(p.s. The Gamecube Analog stick has never hurt my thumb. It was a BIG improvement over the N64 stick, so I don't know where he was going with that criticism either. I think he just has it in for Nintendo.)

What did you think about his rants?

Louie55

Matt responds: Since I received about 1.2 million e-mails on this subject, I figured it'd be a smart move to address in today's mailbag. I'm actually surprised so many people downloaded that thing. A couple of preemptive strikes for people who watched it or are planning to do so: first, I was severely hung over that morning and struggling not to collapse -- I'm not proud of the fact, but there it is. Second, you can download the entire video if you're an IGN Insider and you'll get roughly 40 more minutes of back and forth between Mark and the rest of the panel members, including myself. I was slightly disappointed to see some of my comments cut from our all-access video because I called him a graphics whore, a label traditionally reserved for myself, so that was a bit ironic.

Clearly Mark pissed off quite a few Nintendo fans with his comments on the IGN Live panel. I don't think he was expecting so many diehard Nintendo fans in the audience, either. For some odd reason, IGN's got a pretty big Nintendo fanbase. But I digress.

My opinion of Mark hasn't changed and I can understand where he's coming from. He's a smart guy who has clearly done well for himself and he's got some great games to back up his outspoken opinions. Do I agree with everything he said? Not by a long shot, no. My biggest beef with his beliefs wasn't his claim that better graphics will be the big innovation of next-generation games and that this improvement should be enough. I think he more or less said what so many of us are thinking, but are either unwilling or afraid to admit. I mean, the promise of high-definition clarity and improved visuals are easily the biggest factors determining my excitement for the arrival of Xbox 360. I haven't seen a single 360 game that has me excited for other reasons, including Gears of War, and I'm not entirely sure this is something that Mark should be celebrating.

My only beef with Mark's comments is his dismissal of the Revolution controller as anything other than a gimmick, and on top of that his acceptance of the 360/PS3 pads, which have made virtually no innovations, as adequate. Actually, he loves the 360 controller. And you know, as far as conventional pads go, it's fantastic. However -- and call this an epiphany if you want -- the potential of the Revolution controller has really opened my eyes to just how archaic today's traditional pads are. Think about it. Even the best dual-analog control setup in a console FPS is a poor substitute for a keyboard and mouse. I would think that he of all people would be embracing a controller that has the potential to duplicate or possibly even improve upon the keyboard and mouse configuration. But instead, he's hung up on graphics to the point where everything surrounding them has become secondary, and I just don't share that view. However, given that Gears of War remains one of the most widely anticipated games, based on IGN traffic results, there are apparently quite a few gamers who are just fine with Epic's direction.

So many Nintendo fans took issue with Mark's comment that Revolution will get a lot of gimmicky games. And you know, this is actually a statement that I agree with. I think some developers are going to fart out quick, thoughtless games that make use of the controller in a fundamentally retarded manner, and that's just an unavoidable drawback to the device. On the other hand, though, I think Revolution will also see some truly pioneering games. And most importantly, if Nintendo really delivers on the controller's potential, the device may by comparison make playing traditional games on 360 and PS3 feel downright archaic. That, to me, would be the ultimate irony: 360 and PS3 software with cutting edge graphics and fundamentally dated and limited controls, at least when shown next to Revolution.

P.S. I want you all to have this important image. I made it in under three seconds.

The Nintendo Insider: Issue #1
The New Nintendo Software Technology Corporation

The Redmond-Seattle based Nintendo Software Technology Corporation development group was formally established in 1999. The idea and creation behind it was to incorporate Nintendo's funding of Digipen University along with Nintendo of America's desire to have a direct software development arm. The core group was originally composed of a few NOA producers, Digipen professors, and Digipen graduates and students. Winter 2000 saw the fruition of NSTC's first development cycle with the release of Bionic Commando: Elite Forces and Ridge Racer 64. The first batch of software releases were original titles based on foreign IPs not owned by Nintendo, but instead by Capcom and Namco respectively. The aforementioned titles received good reviews by the media. NSTC hit its first blotch by releasing a controversial port of Crystalis for the GBC. NSTC would go on to release other software including Pokemon Puzzle League, Wave Race: Blue Storm, 1080* Avalanche, Mario VS Donkey Kong, Ridge Racer DS, and the upcoming Metroid Prime: Hunters. Aside from individual releases, NSTC has also contributed partially to NCL titles like Nintendo Puzzle Collection, and The Legend of Zelda: Collector's Edition.

In many ways still a work-in-progress, the development group has undergone many changes over the past 18 months. Many of the original founding members have left. Andy Hieke, Scott K. Tsumura, Josh Atkins, and Claude Comair are the bigger names. Former lead programmer (Ridge Racer 64, Wave Rave: Blue Storm) Prasanna Ghali has gone back to teaching at Digipen.

Nintendo, in response, decided to add several new personnel. Nintendo wanted to bring in some experience and talent with a different perspective than what most of the Digipen-NST disciples were exposed to. The new blood came from all around the world. Some of the recruits were transplanted from Japan's EAD group, while others were lured from third party companies like Electronic Arts and Rockstar. Some new talent from DigiPen and other universities were also added to the mix.

Shigeki Yamashiro: Manager & Producer (From: Nintendo Co., Ltd)
» Credits: F-Zero, Star Fox, Stunt Race FX, Donkey Kong Country

Yukimi Shimura: Manager & Producer (From: Nintendo Co., Ltd)
» Credits: Unknown

Colin Reed: Program Director (From: Nintendo Co., Ltd)
» Credits: Stunt Race FX, 1080* Snowboarding, Pikmin

Katsuhiko Kanno: Designer (From: Nintendo Co., Ltd)
» Credits: Luigi's Mansion, 1080* Snowboarding

Wing S. Cho: Designer (From: Rockstar Games)
» Credits: Smuggler's Run 2, Midnight Club 2

Vivek Melwani: Designer (From: Electronic Arts)
» Credits: Road Rash: Jailbreak, Future Cop L.A.P.D

Keith Friedly: Designer (From: Sony Computer Entertainment America)
» Credits: Mark of Kri, SOCOM: US Navy Seals

Richard Vorodi: Designer (From: No Previous Employment)
» Credits: 1080* Avalanche, Metroid Prime: Hunters

Current rumblings report that NSTC has 2-3 development teams in full-force. One confirmed project comes from Richard Vorodi, who is finishing up Metroid Prime: Hunters. The only other title mentioned has been rumored to be a futuristic realistic first-person shooter for the Nintendo Revolution. Nintendo is in dire need of creating first-party software that will attract the American audience for the Revolution launch; it makes sense that they would try to recoup the loss of Goldeneye/Perfect Dark with an original FPS that isn't as alienating as Metroid Prime to the casual gamer. Will we see a Perfect Dark killer from NSTC? We shall see...

Nintendo Futurna. Not VR but cool. *UPDATE

Nintendo Futurna UPDATE: “Phoenix” as he calls himself, now tells me that I can expect more from him sometime after the 3rd. I’ve seen a lot of pranks concerning the Revolution in my time so I think we all know that if nothing pops up after the 3rd then this guy is full of it. He told me to announce there is one more key peripheral coming. Well I guess we’ll just have to see.

*Nintendo Futurna UPDATE: You saw it here first at Playbomb.com! Man this guy just doesn’t stop! The guy said I could just call him Phoenix. He told me not to quote his e-mail message this time or I won’t be recieving anymore material. So no “quoting“. I’m beginning to see how awesome this would be. It looks like the screen in the picture the guy sent me can scroll up into a small tube. Either this guy is just really really good or this is actually what Nintendo means by revolutionizing portability.

Here’s the second image he has sent me:



Nintendo Futurna UPDATE: He tells me that the images of the Futurna in these pictures (he wouldn’t tell me what the pictures were of) were images from early conceptual stages and that this model of the “Revolution” as we have been calling it are a bit larger than even what they had shown at E3. So I guess this was a while back.

He also said there is some kind of control panel on the side of the Portascreens that are navigated with a little stylus that sits in the top of the unit. Supposedly those ovalish areas on either side of the screen are speakers. He said since that time the Nintendo Futurna has been made much smaller and the Portascreens have changed a whole lot but he doesn’t have the means to show me.

Once again people, I cannot guarantee that this is legitimate. This guy seems convincing though, I’m going to take it with a grain of salt but I definitely find this concept to be awesome.



Disclaimer: Playbomb.com does not just post random rumors. If it *might* be real then we want to post it just in case it ends up being the big news and we had it first.

I got this in the inbox:

“hey,
i figured since there is only about a month left until the full unveiling i would go ahead and send this out. i havent sent it to anyone else. i think youll like it”

Here’s the fullsize image that was sent to me: Fullsize

I’m not sure if this is actually what the Nintendo Revolution is or not but I will tell you right now, I wouldn’t be dissapointed. If it’s photoshopped it’s very good, if it’s not then heck yeah - but I have a feeling it probably is just because I doubt the Revolution will shoot crazy little lightning beams out of it. : P

I’m guessing the person plans on sending it to all sorts of places actually. Probably trying to make me feel special so I’ll post his crap or something. Either way, it’s cool looking. I dig.

Nintendo Futurna UPDATE: The system name is Futurna. Well, according to these pictures which may or may not be real. I was calling them fake at first but now I’m not so sure. It just seems like a plausible realistic thing Nintendo would do. I think the light beams just represent the projection and the pictures aren’t literal. Either way it still could be fake, I’m not going to have an up front opinion on this one, it’s teetering on the verge of real and fake.

Posted by Thought Epiphany on Tuesday, November 1st, 2005 at 4:52 pm.

Jim Merrick Talks Revolution Launch, Downloads, and More
by Shawn White (10/31/05)


In a recent interview with MeriStation, Nintendo of Europe’s Senior Director of Marketing Jim Merrick discussed a number of details concerning the Nintendo DS and the machine’s online functionality. In the midst of the interview he also divulged a few tidbits concerning Revolution’s worldwide launch, its virtual console feature and among other topics.

According to Merrick, the USB Wi-Fi adapter will be compatible with Revolution. Also, multiplayer mode with the Nintendo Revolution will be similar to the Nintendo DS in that only one copy of the game is required for multiple players.

Following Iwata’s recent comments about a worldwide launch for Revolution, Merrick said that Nintendo hopes to launch the console globally within 14 weeks or less (that meaning in the same quarter) of each other.

When discussing the Revolution's virtual console feature, Merrick stated that players will have the ability to download classic games regardless of regional differences. For example, Super Mario RPG, which was never released in Europe, could be downloaded by someone living in Europe thanks to the virtual console. Merrick also made note of the fact that Nintendo 64 titles would run at a better framerate when downloaded, but would not receive a significant graphical improvement in the process.

Merrick went on to talk about how Revolution will have the Zelda and Metroid games, as well as titles like the Brain Training series in order to find appeal with a wide range of audiences. In addition, Merrick reiterated that Nintendo will be offering the controller shell to third parties so that developers can create games that might be better suited for traditional control.

Finally, Merrick confirmed that no Revolution games will be shown in 2005 because developers are just now receiving final development kits and working on definitive software titles, as well as because "Miyamoto... does not like to show incomplete games." However, he held firm that the graphical output of the Nintendo Revolution would be comparable to that of the competitor’s machines.

Meet Mario's Papa
Legendary designer Shigeru Miyamoto talks how he aims to bring the family together around Nintendo's new console

As the brains behind the video games at Nintendo, Shigeru Miyamoto has shown a knack for inventing games that kids would get hooked on. In 1985, his Super Mario Bros. -- the world's hottest-selling game ever -- was the first with a scrolling screen, which expanded the playing space vertically, not just horizontally. The next year, he came up with the labyrinthine fantasy world called The Legend of Zelda, which could take skilled gamers hours, and sometimes weeks, to complete. And in the 1990s, his Super Mario 64 was the first console title with 3D graphics. It even forced him to tweak the standard joystick to handle more complex commands.

Miyamoto, 52, recently spoke with BusinessWeek Tokyo Correspondent Kenji Hall about video games, how they have changed, and what to expect in the future. Edited excerpts of their conversation follow:

What do you think was the biggest innovation in video games since the 1980s?
The biggest change was when 3D graphics came to Nintendo 64 and PlayStation. Before that, arcades had the edge in game technology. In the pecking order, game consoles for homes came last. 3D changed that and made home consoles the front-runner.

But I had no idea how quickly technology would change everything. Economies of scale were allowing game hardware makers to spend lots of money to develop new consoles. Suddenly, we were working with consoles that were 10 times faster than anything I had ever imagined, and the disk-storage space was vast.

What's the secret to creating a hit game?
Whether it's a new game or a sequel, we want anyone to be able to play right away. That's why I think Rubik's Cube was so brilliant. I saw it for the first time at a toy convention in Japan in the early 1980s. The moment you see a Rubik's Cube, you know you're supposed to twist the pieces. And it's beautifully designed. Even if you've never handled one, you want to pick it up and try it. And once you do that, it's hard to walk away until you've solved it.

Supercomputing power has improved game graphics to the point where characters can be made to appear almost lifelike. But the characters in your games are mostly cartoons. Why?
Nowadays, software makers want games to be so realistic, but first and foremost games should evoke emotions. When I made Pikmin, I wanted people to feel a mix of sadness and happiness. The Japanese word itoshii is used when you think fondly of someone. You wouldn't normally feel that when playing games, but that's what I was striving for.

Games aren't just about recreation and getting to the next stage. People often tell me nobody would play a game that isn't that way -- it would be too boring. But I don't agree with them (see BW Online, 10/13/05, "Indie Gamers Hit the Right Buttons").

Does Nintendo target a certain age group with its games?
We want our games to be for anyone from 5 to 95 years old (see BW Online, 10/19/05, "Attack of the Gaming Grannies").

We disagree with people who say, "Nintendo is for kids, and Sony (SNE ) is for adults." There are plenty of 60-year-olds who will play the games we make. Women in their 20s haven't been a major target for game makers. But many young women have found our games fun, especially Nintendogs.

What's the most important ingredient in your games?
The most basic element is fun. Games are interactive. They must challenge you, and reward you when you rise to the challenge. In my view, the game begins the moment a person touches a console -- everything builds from that.

When I first started creating games, I mainly wanted to make something that would surprise people. Actually, I never imagined I would be making video games. I thought I would be designing toys, like Dr. Rubik of Rubik's Cube.

Where do you get ideas for your games?
It's hard to remember. Sometimes I rely on childhood experiences. For instance, what did I find scary? Some ideas are spontaneous, some come from notes I've kept. I used write down things I saw or heard on a Post-it, which I would stick in my scheduling book. It could be a game or something funny on TV I saw, or a story I heard someone tell.

Do you remember how you came up with Super Mario Bros.?
It started with a simple idea. I thought: "I wonder what it would be like to have a character that bounces around. And the background should be a clear, blue sky." I took that idea to a programmer, and we started working on it.

Mario ended up being too big, so we shrank him. Then we thought, "What if he can grow and shrink? How would he do that? It would have to be a magic mushroom! Where would a mushroom grow? In a forest." We thought of giving Mario a girlfriend, and then we started talking about Alice in Wonderland.

How will Nintendo's next-generation platform, Revolution, differ from others?
Most people think video games are all about a child staring at a TV with a joystick in his hands. I don't. They should belong to the entire family. I want families to play video games together. That was the concept behind the Revolution (see BW Online, 10/4/05, "Nintendo's Revolutionary Man").

I also redesigned the Revolution's controller to look more like a regular TV remote, so anyone who saw it would know instantly how to use it, and so they wouldn't think they had to always stash it away.

Do you have a favorite video game?
The only time I play is maybe the 20 minutes I spend testing rivals' new machines. I don't play video games in my free time. On the weekends, I fix things around the house, garden, or play the guitar. Or I'll exercise, go swimming, take the dog for a walk, or go for a hike.

In the future, what do you think video games will be like?
It's convenient to make games that are played on TVs. But I always wanted to have a custom-sized screen that wasn't the typical four-cornered cathode-ray-tube TV. I've always thought that games would eventually break free of the confines of a TV screen to fill an entire room. But I would rather not say anything more about that.

You've been called the Steven Spielberg of video games. Recently, some gamers have been making movies using game software. Are games and movies converging?
It's a common comparison, but I don't think it's an appropriate one because movies aren't interactive the way games are. Even so, I've learned a lot from movies. For instance, I pay attention to how movies use music to create a mood, how many camera angles there are, or how the director sets up a scary scene.


Edited by Patricia O’Connell

Nintendo is officially disclosing plans to release new info regarding Revolution in the coming weeks.

"...we do plan to release more information about the system by the end of the year, which may include details about the games or the final name of the system."

-- Nintendo Representative

It's likely this will happen before Christmas; possibly much sooner (given the approaching launch date of a certain competitor).

Stay tuned to N-Sider as more details become available.

Reggie Talks Nintendo's Future
At Nintendo's press summit today, the Regginator lays it on the line.
by IGN Staff

November 4, 2005 - At Nintendo's press summit this afternoon, Nintendo's executive vice president of sales and marketing addressed the eager crowd regarding the company's current and future strategies.

The following is the full transcription of his hour-long presentation.



I wanted to do three things with you this morning. The first is to step back for a moment and talk a little bit about the Nintendo strategy. To put it in context so it's understandable. And this is going to touch on from both a DS perspective as well as a Revolution perspective. Second is to talk about our key initiatives for the balance of this year going into the holidays as well as first quarter of next year. And then thirdly, as Beth said, take some questions.

So let's start. As we talk about the Nintendo strategy, I think a lot of you know about my background -- classical marketing training, I still know my way around the business section of a Barnes and Noble. To help frame for you what we're doing from a strategic standpoint, let me spend a little talking about two current business thoughts out there in the market place. And how it corresponds to what we're doing from a Nintendo perspective.

The first is a first the concept of "Blue Ocean Strategies." I don't know how many of you might have taken a look at this book. I've read it and I'm a big fan of the thinking. Really what it talks about is how, from a company perspective, you ought to focus on expanding your market boundaries versus singularly being focused on your competition. The thought being, if all you do is focus on your competition, imagine it's like sharks in the water, dealing with blood in the water, constantly going at each other. Take a wider view, look at broader opportunities out there in your marketplace.

What's important about that is if you do it successfully, you're able to create new demand -- demand that never existed in that way before. Part of this is thinking about what can be versus what is. Thinking about broader horizons, broader opportunities.

The second book is "The Innovator's Dilemma." I actually had the opportunity to meet the author of this. The thinking is similar, slightly different bend. What this focuses on is the concept of disruptive technologies. There's a lot of examples in history that touch on this. The thought being that if you are a market leader, you focus on doing what you are doing a little bit better.

And then out of nowhere, some one comes with a disruptive technology and impacts your marketplace. A great example is one of our competitors. You look at how Sony was so focused on creating a better Discman, a better disc-playing portable device, MP3 players came out of nowhere and impacted their marketplace. And then, out of nowhere, came Apple with IPod and ITunes and further disrupted their marketplace.

What this talks about is creating new definitions of performance, new definition and what the consumers wants and delivering on that in new and provocative ways. These disruptive technologies typically appeal to new customers, people entering the category for the first time, but done successfully really blow open a marketplace and bring all types of consumers -- new, existing -- into the marketplace.

Typically, simple, simpler, more straightforward applications versus again, a market leader focusing on "I'm simply going to do more of the same that has lead me to a successful marketplace."

Let's stop here for a moment, step back for a moment.

What I'm not trying to frame is that we as a company go manage our business based on what the current, popular business thinking is. But I wanted to bring these two up because there are a lot of examples in the marketplace of successful companies that have applied these approaches to winning in the marketplace.

Southwest is a really interesting example. They didn't see themselves in competition with other airlines. They said, "I wanna be a better system and beat out buses and cars." So they drove all their costs down, low price, what did they do? They truly disrupted the airline industry.

Mr. Iwata has been focusing on these key thoughts truly for about the last three years. These are excerpts from a variety of these speeches whether its at Tokyo game show, GDC, even our own E3 events. They are all focused on creating disruptive technologies, approaching the market in a different way offering new news and innovation to the consumer. We can't simply expand the market. If that's all we try to do, slowly this industry will die. It is our responsibility to make games for all skill levels. Technology can't advance the business. The idea that Revolution doesn't follow the conventional path of game systems. That's what we're about; disruptive technologies, new ways to think about the market place, and driving the industry forward. There are a lot of examples that I can speak to that show how we are bringing this into practice today. But certainly we ought to step back and look at why we are doing this. I think many of you have seen this data. This is the Japanese marketplace in the gaming industry. Certainly not a pretty picture. This is a downward trend, and they have had this for years. Interesting tidbit. This year software sales are actually going to be up in Japan. Why? Nintendogs, Brain Training, key games and key innovations that we have brought to the marketplace behind DS. You're all saying "That's Japan, that's over there… that's not here."

Here are a couple things to think about: This is fresh data; current marketplace. Last 2003-2004 decline years. This year it will probably be up on a year over year basis. It has taken two systems in the handheld place: DS and PSP. Plus we have Xbox 360 to drive growth in a year over year basis. Three systems to drive that. "But c'mon Reggie, still that is it really a good example?" You tell me. Was September a fluke? Down 24% software sales year over year. The entire third quarter down year over year. Was it still a fluke? You tell me.

Let's look at the install base for the last four generations. First thing to note: As recently as about a year ago, projections were made that the current generation would reach 60 Million household penetration: Ain't gonna happen. Ain't gonna happen. Another couple tidbits: So this chart is pure number of units sold. It doesn't take into account duplicate ownership, and doesn't take into account population growth. You overlay those two facts to get a percent population with a console in the household, and that's what it looks like. 8 Bit years, 31% of households had a gaming system. This year, where is going to end up? Somewhere between 31-32%. The growth we have seen has been driven by population growth, and by duplicate ownership.

I'm about to lay down some more bad news. Let's talk about people who are playing games. This is a study from Piper Jalfray. They have been doing this for the last three half-yearly installments. This looks at young teens, and who is increasing their game play, and who is decreasing their game play; just a rough measure. The red is the % of teens that are saying they are decreasing the amount of time they are playing games. It's gone up; gone up fairly consistently every time they have run this study. And the amount of teens that say they have increased their game play have been stagnant, and down fairly substantially from fall of 04. Couple other tidbits. This is our core audience in terms of that pipeline of young boys that are coming into the US population. As you can see 2004 there are less male 10-14 year olds in that area. A little more bad news: The group that feeds into this are down another 8-10%. So fewer teens; our key gaming audience here in the US. That's why we are stepping back and saying "more of the same is not going to motivate this industry." That's why we are stepping back and saying "we have to disrupt this marketplace that we helped create 20 years ago in order to be successful in order to move forward." How are we doing that?

Certainly Nintendogs is a great example in our view of a disruptive view in the marketplace. First, it is a game that isn't really a traditional game. It isn't win or lose. It is a type of thing that you pick up and play constantly, and the more you play it the more enjoyment you get; the more you play it and find other people playing it, the more enjoyment you get. It's only possible on the DS obviously, because of the touch screen and voice recognition. And on a worldwide basis it sold 2 Million units, against an installed base of about 8 Million. 24% penetration; that is huge. Absolutely huge.

Here's a couple other tidbits from a Nintendogs perspective; certainly from a U.S. perspective and all of the western hemisphere, we went after the female gamer: And it's working. There area a number of other initiatives in our line of thinking that is coming here to the U.S. marketplace. Electroplankton. It is interesting the stories that we are taking electroplankton online so that we don't have to sell it into retail and not give into retail margins. It is a bunch of hooie. The reason that we are selling this online is that we believe online is the best way to go after the target consumer that is going to play this game. It is the most efficient way to go. Brain Training/Brain Flex; we are in the process of localizing these for the U.S. marketplace and we think there is a huge opportunity. If you haven't played Brain Flex you will have a chance to play that later today. Big big ways of disrupting the marketplace, and we are confident we will be successful here in the U.S. and all through the Americas.

We have gone to great pains here today to paint for you a gloomy scenario for the potential of the U.S. marketplace. I also want to let you know though is that from a Nintendo perspective we are not an Either/Or company; we have said this many times. We're not placing all our bets in this fundamentally different/unique types of games. We're doing things for the core gamer as well. We are not an either/or, we believe you have to have both. But bringing both to the marketplace means you have to do them both differently, both a bit specialized. So as you look at what we are bringing into the marketplace Q1, again we have a bit of a balance.

So that is a summarization of what we will be releasing from Q4 to Q1. Again that is not an either/or. You have to do both in truly provocative ways. In terms of what we are doing with the balance of this calendar year; we believe in driving the marketplace in both traditional means, as well as new and unique means. In terms of traditional means: Very strong value emphasis on GameCube. We are at the tail end of this product's life cycle, and it is all about driving value, and leveraging key franchises to drive sales. We are certainly going to be doing that with Mario Party 7, and obviously Pokemon XD is already out in the marketplace. Two very strong value offerings for this product line.

We have great value coming from the DS library as well. The teal and pearl pink Nintendogs bundles are going to hit the marketplace and let me tell you, if you have friends or family that want this bundle you better buy it now. I have just gotten off the phone with some of our key retail outlets and we are selling out. We are selling out and there are no more of that particular SKU coming into the marketplace.

Mario Kart DS, and yes I have my handy dandy tricked out Mario Kart red DS that we are building with Mario Kart, and we think that is going to be huge. But again it is a subset of what we are doing for the overall marketplace to drive the sales of the Nintendo DS.

New news! We will be bringing a 20th anniversary version of the micro to the U.S. That is the packaging, and this is the unit. We will be bringing the unit here to the marketplace in early December, and we think it is a great opportunity that continues to drive the marketing of Game Boy Micro. The idea that it is fun, unique, and fashionable, and we are very excited about bringing this. The target for this is to have it ship into retail on the 28th of November.

As you know we have launched a brighter screen for GBA, which is selling extremely well in the marketplace right now. So again, it is not about either/or; it is about both. Driving the existing consumer and the existing fan base as well as bringing in new ideas and approaches to bring new consumers into gaming.

Let's talk about some other key initiatives that we will be bringing in this quarter. Obviously Nintendo WiFi Connection. This we believe is another example of being disruptive in the marketplace. This is not the first online system, but it is certainly an online approach that is fundamentally different than what has been done. Free to the consumer, hot spot driven, wireless that is driving portability. Also games that are focused on delivering a great experience in a wireless online mode. You guys have played Kart; I think it is going to be huge. Our target is to get every consumer that buys Kart to try online at least once. We believe that if they try it just once, they will have a great experience and keep playing. We want the consumer to play against both friends and people we don't know: Kart has that capability.

Let me stop here. We are going to give you another little tidbit of news. As we drive the business, we are focused on not only communicating software messaging as in Kart and Animal Crossing, but it is very important that the consumer understand what we are doing with WiFi Connection. We need to communicate the core benefits: The match making, the free connection, and the ease. So we have created a specific piece of advertising to drive that messaging; this is advertising that will go on air later this week that you will get to see first.

That's still a rough, and we are making some final tweaks. This is scheduled to go on the air later this week. In terms of the micro it will be announced as the "20th anniversary addition" to celebrate the anniversary of the NES launch that was 20 years ago October.

So that's how we will be supporting Nintendo WiFi Connection out in the marketplace; really supporting the connection from an overall perspective of the offering of what we are doing. Certainly in terms of key titles: You have had a chance to play Kart, and on the same day we'll be launching Tony Hawk. We are thrilled that the folks at Vicarious Visions and Activision have made this game online enabled; we think it's fantastic.

Animal Crossing is December 5th, and Metroid Prime: Hunters launching March 20 next year; all supporting WiFi. So as we talk about being disruptive in the marketplace I hope you can see this from a DS perspective; creating news behind the WiFi elements and making sure that we have games that support both the core consumer as well as bringing in new consumers into the marketplace. Fundamentally it is quite similar in the Revolution aspect. We have already talked about "Virtual Console" and making that available. We have shared some information in terms of the controller. I had an opportunity to demo the controller and it really is fantastic. As far as what you can do, the range of motion, and the feedback that you get… What I am trilled about and truly enjoy in the follow-up conversations with NCL are all the possibilities that are out there. All of the things we can bring to market. We touched on some of these possibilities in the video that we created for the Tokyo Game Show, and though many of you have had the chance to see it on small screens we have it here for you today on the big screen to share: Take a look.

When you talk about possibilities: To imagine playing a type of survival horror game where you can rotate flashlight to weapon and then back and forth, it is pretty provocative. So imagine what a Zelda game might look like with sword and shield that you can use all at the same time. To imagine a racing game that is truly responsive; it's pretty provocative.

The thing that I am really excited about is as we have shared the technology and the capability with the developers… how they responded. And it is not simply a Japanese developer who is living in their market contraction, but EA, Activision, and Ubisoft who are all stepping back and saying "wow, this is provocative and I can see ways of creating games and new ways of bringing existing franchises to life." It truly is exciting: That is what we mean when we talk about being "disruptive in the marketplace" and doing things that will drive consumers into gaming as well as keep the core fans excited about new types of gaming experiences.

So we have touched on Revolution in the past, and the whole litany of benefits. Certainly backward compatibility with the GameCube, the idea of the "Virtual Console," the WiFi integration out of the box. We are seeing very strong third party support, and already talks about exclusive titles that will truly make use of the revolution controller and everything we are bringing in the machine. Affordability: Certainly from the standpoint of being a single-minded gaming device, it will absolutely be much more affordable than any of the other competing systems, and certainly on track to launch in 2006.

So that's where we are, a little summary of our strategy both for this holiday season as well as Q1 of next year. The messaging from my standpoint is amazingly consistant. We are all about driving the user interface and driving new players into this category as well as satisfying existing core gamers. Truly being the innovator, the disruptor, and the leader in bringing new ways of thinking in this business. And certainly doing it in a way that rewards our shareholders from a profitability standpoint. And of course when we put profitability up on the slide, I'm sure it isn't lost on many of you that in the last 48 hours a number of companies have announced earnings, and there is a lot of bad news out there. Again this reinforces why doing simply more of the same old thing is not going to be successful in the long run.

With that I will open it to some questions.

Q: With the Micro: With the GBA you designed it to look like the NES when you brought it over. When you do the NES Micro will it come with an NES faceplate or will it come just the Famicom Micro.

A: What I passed around will be exactly we will be launching on the 28th of November. Do I envision other micro designs in the next few months? Yes. Might we do a true NES version? Maybe; we'll look at it. We feel though that there are other ways to bring life to this particular device and we have said all along that the micro is a unique shortish term opportunity that we will leverage by making it cool and hip and fun by use of the different faceplates.

Q: When you say "Shortish…" Does Nintendo plan to make Micro a short run, or will you keep producing them if the market continues to buy them up?

A: We've always said from the time that I pulled it out of my pocket at E3 that it would be a limited opportunity for us. The question is "is it for the next three months, six months, or next year?" We're not sure. But it certainly is a limited opportunity that's why the current execution of faceplates, we then move on to Famicom. Once that is complete we will move onto the next phase.

Q: Can you talk a little more about the ad campaign for the WiFi connection? Are you looking for partners outside of McDonalds?

A: We are putting substantial weight on the WiFI messaging. It will be on all of the usual suspects as far as MTV, Spike, Comedy that go after the core demographic of the gaming community. We will be doing things from a print standpoint as well to get a broader audience involved. As far as partners away from McDonalds: Our partner in this is Wayport. Wayport happens to be in McDonalds. As the site goes live you will see other partners (J-Wire for Example) where the system will work. We would love to have as many partners on board as possible.

Q: You mention Wayport and McDonalds. Will this only work at McDonalds and those hotspots or will it work at any Wayport hotspot?

A: It will work at any of the 6,000 + McDonalds hotspots and a limited number of T-Mobile hotspots. That is why we are driving consumers to Nintendo WiFi Connection. That is where you can put in your address and up pops all of the hotspots where it will work seamlessly.

Q: What about home configurations and WPA (Secured Networks)?

A: Nintendo WiFi Connection has all of the information in terms of which existing routers are compatible and which ones have the best compatibility. It's all there. In terms of the different authentications, all the info is there and it will be very easy for the consumer. That was our goal from the start; we wanted a consumer whether they have a LAN line and the USB connector, or whether you have an existing router… it is all there on Nintendo WiFi Connection.

Q: At E3 you had a demo of voice chat and online chat support. Is that something that is going to be pursued?

A: There is a lot of testing going on, and we thought it was something intriguing enough to show at E3 as a tech demo, and is maybe something that is incorporated into a game in the future. We'll look into it. It is certainly something that intrigues us.

Q: There are now multiple platforms and multiple price points. Now that there is the SP at 79.99, the Micro at 99.99, and the DS. It becomes a little less clear when trying to differentiate those. Has there been any consumer confusion?

A: We have seen no consumer confusion. I believe the average consumer can wrap their head around GBA, especially with the new brighter screen, Micro; something different. And we have been clear that Micro is something that is not for everyone. It is for a consumer that wants something they can slip in the pocket, different faceplates to capture a personality and an image, and those consumers are willing to pay an extra $20 for that opportunity and benefit. DS is our workhorse. From 129.99 we are looking to drive significant volume. And the consumer has certainly responded to that.

Q: One of my issues with DS is this: When it was announced the possibilities seemed endless and now we have seen developers wanting to go out and create new kinds of games. However, success outside of Japan has to deal with developers outside of Japan and I'm not seeing a lot of western developers and publishers wanting to take that step and do something different. Everything seems to be touch screen features and ports. Do you see that as a problem, especially with Revolution following this. How do you want to change the developer's minds from that standpoint?

A: From my standpoint maybe I look at this too simplistically. The best answer for a third party developer is to show performance in the system, strength in the market place, and innovation working. Quite frankly, we have now answered those questions with Nintendogs (2 Million Units sold), and DS outselling PSP on a weekly basis here in the marketplace. Outselling on a 3 to 1 in Japan. They needed to see that, and they are seeing that now. I am trilled with folks like Vicarious and Activision that have jumped on board early to support the platform. I think it is great, and we will see more of it. Supporting the DS is a good business decision, and that is what licensors look for. From a Revolution standpoint, we have been spending time to share the tool and information to get that support early.

Q: I'm curious what your thoughts are on having DS as a web browser. Is that soothing you are going to steer clear of since it is a kids platform or is that something you could look into?

A: Actually having a web browser on the DS? I think it is a provocative idea. I think it is very provocative. And again, looking at it with our "Disruptor Lens" by saying "how can we bring new people on board to buy DS and play DS" I think having a web browser would be highly disruptive; I would love to do it.

Q: Do you see Microsoft and Sony as competitors the way you are building the Revolution's strategy?

A: I see Sony and Microsoft pursuing the same strategies. Center of the home, multipurpose, very expensive… Ya know I got a kick out of the latest comments on the PS3 and its frame rate. It is like 3X the rate that your eye can see a difference! I mean talk about overshooting consumer needs and creating an opportunity for a disruptor to come in and say "look at this different solution." So going back to my examples, do I think Southwest thought of the other airlines as competitors? Well sure I did. Do I see Sony and Microsoft as a competitor? Sure I do. But they are on a different path. I'm not saying one path is right and one is wrong. I am just saying that one has the potential to lead to a very very different marketplace. I see that it is working based on Nintendogs and Mario Kart. It isn't either/or. It is doing both.

Q: Apple is taking the music industry a new direction with IPod and ITunes. When is the videogame industry going to take that direct download approach onto a handheld?

A: I don't know about a handheld device, but talk to me in May when we talk about details on the Revolution and the Virtual Console.

Q: Can we talk now?

A: We can talk, I don't think you will get all the answers you want! (laughter). From what we talked about in Revolution to download and have the game playable right there, we're doing it.

Q: Is it just 1st party or will it be third party as well?

A: Yes we will.

Q: The new Zelda. Still to Cube even though the Revolution is so close?

A: Mr. Miyamoto and Iwata have said repeatedly that they want it out on GameCube, and since I take my orders directly from them I would have to say it is going to be on GameCube.

Q: How does your marketing strategy affect where advertisements will be made? Will things like Brain Flex be seen in women's magazines or what? (laughter) How do you reach them?

A: You are absolutely right. To show these games to that specific market with games like Brain Flex, you better believe I won't be buying MTV. You have to follow the strategy.

Q: Do we have a price point for the wireless adapter?

A: 34.99

Q: How do you handle the possible shortage of USB adapters, and having people rely on the hotspots?

A: It's interesting I would actually turn that around. Our primary strategy here in the U.S. is to first show the promise of Nintendo WiFi Connection though Wireless routers and hotspots. The other two areas such as Canada and Latin America, we will be focusing on the USB adapter due to the lack of wireless hotspots. In order to win overall you need to have the ability to use LAN, Hotspots, and Routers.

Now I know there are going to be the negative nancys that will automatically read the title and come in here to piss and moan about the countless threads and whatnot about this etc etc etc. Frankly I can care less at this point. If your not going to actively contribute to the thread then don't bother, I sudjest you spend your time and know how on a thread of your interest.

Anyways, now that I got that off my chest, time for the story. I hope this hasn't already been posted. I know there have been a large amount of threads on the subject and I haven't gone to each one to see if this has been brought up but here it is anyway.

There was a comment left at Falafelkid's blog (a credible blog site for those that frequent the site) about a japanese patent. Here's the quote.
:



This seems to be the most concrete proof at the allegations of a 3d projection I've run into so far.

By Jon "Hannibal" Stokes

Monday, October 31, 2005
Introduction

With receipts from video game sales poised to pass those of Hollywood movies sometime this decade, there's quite a bit more at stake in the coming round of the console wars than there was when Microsoft first entered the fray with the Xbox. Video games, once the domain of geeks and kids, are now mainstream global entertainment, but even that doesn't tell the whole story.

Something else has happened since the advent of the previous generation of consoles with the Playstation 2: the mainstreaming of digital media downloads and the widespread adoption of broadband. Even though Apple isn't (yet) a full-fledged player in the coming battle for the networked living room, the success of its iTunes Music Store shows that the next-generation console champ may gain the privilege of providing the gateway through which multiple forms of home entertainment pass.

We at Ars Technica have been covering "convergence" devices since the site's inception, and I in particular have focused on home networked devices and game consoles. As a kind of follow-up to my previous round of technical articles on the hardware that powers the PlayStation 3 and the Xbox 360, I decided to step back a bit from the technical details and take a broader look at how the next generation of consoles fit into the home entertainment picture.



The table above breaks down the general features of the three next-generation consoles. Just from glancing at the table, a few general trends are apparent. First, all of the consoles come standard with network connectivity options. These consoles are made to talk to other devices and to the outside world, but as we'll see below their unique approaches to connectivity tell us quite a bit about their makers' ideas for the digital home.

The second trend that should be apparent is what I'll call "complexity." The PS3 includes more features, more options, and more hardware, and as a result it'll be more expensive and arrive later. The Xbox 360 is slightly less extravagant, but by no means limited. The Revolution is the most modest of the lot, and as we'll see below Nintendo intends for this console to do more with less.

Third, the two most-connected consoles, the PS3 and the Xbox 360, will likely ship in their optimal configurations with hard drive storage capabilities. While the Xbox 360 Core System does not include a hard drive, it's clear that Microsoft considers the hard drive to be part of the optimal package, since the branded "Xbox 360" (not the Xbox Ultra or Premium) has one. As for Sony, we simply do not know whether or not a hard drive will be included with a base package, but I am inclined to think that in Sony's eyes, a hard drive will be part of the optimal experience. The inclusion of the hard disk is of a piece with the Ethernet connectivity, because you'll need a place to cache the content that you get off the network.

Also of a piece with the hard drive and the connectivity are the HDTV video options of Sony's and Microsoft's consoles. Both of these consoles have the horsepower to do HDTV decoding, the storage capacity to hold HDTV video (either via a next-gen DVD format, hard drives, or in Microsoft's case, streaming from a Media Center), and the network connection to grab that video from the Internet and/or to obtain the key to unlock it.

But before I get carried away with trying to put all of these pieces together, let's talk a bit about the technology that underlies the three consoles.