Topic: Iwata Stresses Need to Differentiate from iPhone

[NWR_DrewMG]

Nintendo chief says the "future is dark" if their customers can't tell what sets their handhelds apart.
 http://www.nintendoworldreport.com/newsArt.cfm?artid=20298

 Nintendo president Satoru Iwata recently weighed in with his thoughts on the competition presented in the handheld gaming space by Apple's iPhone.  While he said that it makes him "uncomfortable" to have Apple consistently presented as a Nintendo rival, he did admit that Nintendo has to be sure to communicate what sets their portables apart from the iPhone and iPod Touch.    

While gaming fans are already aware of the strengths of the Nintendo DS platform and its stellar library of exclusive franchises, Iwata stressed the importance of communicating these selling points to the broader game-buying audience.    

"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 expanded-functionality Nintendo DSi, released last year, is still selling well, and the soon-to-be-released Nintendo DS LL is aimed at expanding the system's reach to older users.    

However, research firm DFC Intelligence recently stated that they feel the growth of dedicated portable game platforms like Sony's PSP and Nintendo's DS has peaked, and that Apple's iPhone will drive the portable gaming segment over the next five years.  They estimate that the iPhone game market will rise from its current $46 million to $2.8 billion by 2014, while they expect revenue from dedicated handheld software platforms to shrink 27 percent to $6.3 billion in the same time frame.    

Iwata has recently expressed interest in a handheld digital distribution model akin to Amazon's Kindle e-Reader, which gives users free wireless content downloads for the device within the United States through an agreement with wireless carrier Sprint.  This means that, unlike the iPhone, there is no ongoing fee for users to pay.    

As usual, Iwata played his cards close to his chest regarding the future of Nintendo's portable strategy.  "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," he said.

[AV]

i really do think iphone is a threat to DS and PSP.

iPhone games are no more than $10 while all PSP and DS games are $30 or up. For casual gamers they don't care about quality games. I'm guessing majority of iphone gamers are casual gamers and that will take away from DS casual brain age people. It can potentially a race to the bottom as people don't want to buy a $30 ds game vs. a $1 iphone game. I worry the iPhone is going to bring about the 2nd major videogame crash.

[TheFleece]

While Apple's portable media players are robust well rounded able-to-do machines I think people are over looking just what has kept Nintendo on the front of handheld systems. While there are much cheaper games on sale from Apple the quality of these games are below the bar of what most gamers expect. Often times I find that the control interface on the iPod touch to be laggy and generally not welcoming.
I downloaded the Metal Gear demo recently to show my girlfriend because she is a big fan of the series and I was horrified that it took me three days of trying (NO LIE) to touch through the title screen. Then we laughed at how much it reminded us of the Punisher NES game. The controls didn't get better.
Sure Apple's hardware will get better in years to come, but look at the long history of Game Boy systems. The games available for those systems delivered solid game play and we can still play those titles today with the same effect. The DS is setting up to deliver the same gratification and I don't think that Apple will be offering Super Mario or Sonic quality titles any time soon. I think what Nintendo has on it's side is a solid reputation rather than a mountain of people downloading $1 games for a quick fix. Apple has a lot to do to prove that they understand game culture and until they can I think that console owners won't buy into their offerings as quickly.

[BwrJim!]

NINTENDO...   SKYPE or SKYPE LIKE SERVICE...


    is your key.

[Arbok]

I think there is a lot of danger here, and I speak from someone who recently traded in carrying their DS everywhere... to just carrying around their cell. Our culture is one of convenience and simplicity, and could see the DS being hurt from that angle.

I'm not too worried about Nintendo here and the handheld market in the grander scheme of things. Their strength lies in their franchises, and as long as Pokémon and other things that remain top sellers they have something to fall back on. They will take a hit from the loss of the casual buyers, but still have a fanbase to support them. Sony is in greater danger here, especially if third parties start flocking to phones with gaming in mind and Sony doesn't counter with adding a plan similar in their next PSP. It will be interesting to see what Sony does from here: fight Nintendo or fight Apple.

[King of Twitch]

Obviously, as they've already added two screens and two digital cameras to the handheld, the next logical step is to create a phone with two phones built in.

[TJ Spyke]

I know most analysts or deluded or idiots, but this on especially is if he thinks the iPhone/iPod Touch games market will grow from just $48 million to $2.8 billion in 5 years. No one thinks of it as a serious platform. Most of the crap sold in the iTunes App store are simple little games that are played a few times and forgotten (a study even showed that most Apps are used and then deleted in less than a month). Add in that developers make very little money from them (first by the low prices they have to use, and then by the fact that Apple takes a very large chunk from every sale) and developers will never put the resources into a iPhone game as they would for a DS/PSP game. iPhone games are a novelty basically, it will never be a serious threat to Nintendo.

[NinGurl69 *huggles]

Obviously, as they've already added two screens and two digital cameras to the handheld, the next logical step is to create a phone with two phones built in.

AHAHAHAHAHAHAHA

[NinGurl69 *huggles]

I know most analysts or deluded or idiots, but this on especially is if he thinks the iPhone/iPod Touch games market will grow from just $48 million to $2.8 billion in 5 years. No one thinks of it as a serious platform. Most of the crap sold in the iTunes App store are simple little games that are played a few times and forgotten (a study even showed that most Apps are used and then deleted in less than a month). Add in that developers make very little money from them (first by the low prices they have to use, and then by the fact that Apple takes a very large chunk from every sale) and developers will never put the resources into a iPhone game as they would for a DS/PSP game. iPhone games are a novelty basically, it will never be a serious threat to Nintendo.

I don't see kids going, "Mommy, mommy!  Buy me this iPhone app!  I can capture monsters and battle with friends!"

or  "I can raise a little doggy of my own!"

So yeah iPhone gaming is $48million in wasted cash.  If the library is huge, then that dollar value is spread too thin to make a difference wherever it ends up.

[Guitar Smasher]

I don't disagree that the iPhone will become more popular.  But I don't think it will affect Nintendo's sales, not significantly.  Nintendo just has to stay the course with its handhelds: keep them very affordable, and high quality.  That's what differentiates them from the competition.

[yoshi1001]

A few days ago, I realized there is one major advantage to the DS over the iPhone-startup time. My iPhone takes about a minute to become usable, while my DS takes a few seconds-a major differentiator on planes.

[NWR_insanolord]

A few days ago, I realized there is one major advantage to the DS over the iPhone-startup time. My iPhone takes about a minute to become usable, while my DS takes a few seconds-a major differentiator on planes.

This is true, if you're starting up from being powered off, which I can't remember the last time I did.

Right now the iPhone is more like the Wii than the DS in that it's insanely popular and flooded with software but not much of it is worth anything and developers still haven't found a way to consistently make money off the thing, and there's a solid lineup of quality games there with a potential for a lot more if a few things get figured out.

[broodwars]

I don't think we're in any danger of the iPhone taking over the handheld business if the software lineup remains as weak as it currently is.  We only have a problem if someone like Pop Cap manages to consistently create something extremely addicting and extremely low-cost on the thing, and then we have a generation of gamers used to paying $1 for such experiences.  Then we have a problem, much as we have a problem with an entire generation who grew up with readily-available internet piracy.  But that's a lot of "If"s, and Nintendo's not likely to just sit on their laurels and watch it happen...at least, not for very long.

[BlackNMild2k1]

Obviously, as they've already added two screens and two digital cameras to the handheld, the next logical step is to create a phone with two phones built in.

I know I'm late but....

[Spinnzilla]

Until the iphone has real interface buttons I don't think we're going to get games that are on par with the DS/PSP.  So, I don't see gamers flocking to the Iphone for hardcore games because of it's interface...hell people bitch enough about the wiimote negatives already. 

[ShyGuy]

Iwata always seems to have bleak headlines.

Iwata: "If a meteor hits Japan, nobody will be around to make Nintendo games"
Iwata: "If Miyamoto dies in the next forty years, Nintendo could be in trouble"
Iwata: "I found a lump in my armpit, it's possibly late stage inoperable cancer."

[oohhboy]

Just because he is realist doesn't mean he is a pessimist. He looks like a pessimist because everyone else is roaring USAUSAUSA when they are up to their neck in brown.

While I don't think iPhone/iPod will ever be a direct threat to handhelds without destroying the very space they exist in. They are still smart phones and music players first. Pushing it towards gaming by adding buttons they removed so it can be a better phone/player would break it's form. They had removed the buttons for a very good reason.

[BlackNMild2k1]

While I don't think iPhone/iPod will ever be a direct threat to handhelds without destroying the very space they exist in. They are still smart phones and music players first. Pushing it towards gaming by adding buttons they removed so it can be a better phone/player would break it's form. They had removed the buttons for a very good reason.

[NinGurl69 *huggles]

What are all those square things doing on that?  Gotta remove them.

[Ian Sane]

iPhone games are no more than $10 while all PSP and DS games are $30 or up. For casual gamers they don't care about quality games. I'm guessing majority of iphone gamers are casual gamers and that will take away from DS casual brain age people.

I think Apple could take over the casual market but Nintendo is clearly talented enough that they could always be the portable of choice for the core market.  No the sheer numbers aren't as great but the Gameboy brand was successful in an era before any of this blue ocean non-gamer stuff was talked about.

There are tons of people who buy a DS, not to play Brain Age, but to play a strategy RPG or a 2D shmup on the go.  There will always be a market for GOOD games and if Nintendo can make it so that their portable has the best games, they can succeed.  The Dreamcast is the only example I can think of where a console had a really solid lineup but wasn't able to last.  But that's partially because of Sega's then financial situation.  Nintendo has no such issue.

But with the casual market I don't think Nintendo can win.  Casuals don't have loyality and have low standards.  The iPhone is also a phone and an MP3 player and the games are cheaper.  They could all be terrible but that market doens't notice and doesn't care.  To compete with that Nintendo would have to match features and price and I think that's getting too outside of their expertise and they could risk losing the core market to Sony.  Nintendo's strength is videogames and they should stick to it.

[RABicle]

i really do think iphone is a threat to DS and PSP.

iPhone games are no more than $10 while all PSP and DS games are $30 or up. For casual gamers they don't care about quality games. I'm guessing majority of iphone gamers are casual gamers and that will take away from DS casual brain age people. It can potentially a race to the bottom as people don't want to buy a $30 ds game vs. a $1 iphone game. I worry the iPhone is going to bring about the 2nd major videogame crash.

Careful It gets messy sometimes. Civilisation Revolution is the SAME GAME on both systems, iPod version is 1/10th the price.