Iwata believes expansion will bring new customers to consoles.
Nintendo will use smart devices to bring new customers to their consoles according to President Satoru Iwata. The service will start later this year.
First-party Nintendo titles will not be released, but rather smart devices will be used to "make connections with customers." Iwata believes that by conveying "the charm of entertainment for Nintendo platforms" through smart devices, customers will be drawn to the consoles and the Nintendo brand, while connections with current Nintendo users will be strengthened.
Iwata was keen to point out that Nintendo is not interested in simply expanding the business to smart devices, as they "cannot show our strength as an integrated hardware-software business in this field," which would hurt business in the long term.
Nintendo will attempt to create a smart device experience that is engaging and used frequently. A small development team will be selected to create a "truly valuable [experience] that is unique to Nintendo." The development team will have no restrictions and will be able to use Nintendo games and characters in their application.
Iwata also explained the need to recognize the influence of such devices and the success that third-party smart device apps, such as Angry Birds and Puzzle and Dragons, had on the 3DS. An increasing number of companies that previously designed games solely for smart devices have approached Nintendo with offers to expand titles to the 3DS.
Once a smart device connection with consumers is solid, Nintendo will push to use smart devices to distribute information and "content distribution infrastructure."
Marketing will also change to reflect the new direction toward smart devices and will strive to be interactive and fun.