Author Topic: Nintendo on Xbox360, PS3 & Moblie Gaming - Jim Merrick speaks (Read 11402 times)

BlackNMild2k1 · « **on:** October 26, 2005, 12:30:31 PM »

Quote
The short story:
Merrick reiterates that Hardware/HDTV isn't important, attacks Microsoft, says he hopes Revolution will be cheaper than Xbox 360, states that there's a high chance for Nintendo to attain world leadership in late 2007 (if their strategy works out), disses mobile phone gaming.

The long story (translation):

Nintendo skips high-tech race with Sony and Microsoft

October 24th 2005 The market for video games is preparing for a quantum leap: Sony, Microsoft and Nintendo are about to release the next generation of video consoles shortly. While Sony and Microsoft are taking on a fierce battle for the fastest processor or the best graphics, Nintendo deliberately heads down a different path. "Our approach lies in opening up to new users - not new technology", says Jim Merrick, NoE's head of marketing.

"Hardware is irrelevant"

While Microsoft and Sony gear up their gaming consoles to turn into multimedia devices that also allow users to listen to music, watch films or surfing the net, Nintendo is reclaiming their roots. "Nintendo is an entertainment company. We don't own any film studios and we are no hardware company either. The Revolution is capable to play DVD films - but that isn't an important functions to us. We offer good interactive entertainment instead. But that's not a question of the hardware or power. This is all irrelevant. It's all about the games", Merrick said.

"Nothing for average people"

The problem of the industry according to Merrick: "An average person today can't make head or tails of a video game." Instead of the usual input devices (controllers), Nintendo would be focussing on a sort of remote device similar to TV remotes average people are used to. "When thinking about a gamer today, you picture a pale teenager, drinking cola and eating chips. This shouldn't be." A way in the direction of new users would be Nintendogs. "In Japan, more than a half of the registered Nintendogs gamers is female. Additionally the age spread is much greater", Merrick says. In Germany, Nintendo sold 50,000 Nintendogs games in the first eight days after release.

The company traditionally has a strong position among young consumers, backed up by games like 'Pokemon' or 'Mario'. "The youngest gamers are 4 to 5 years old. We won't give up our position for this group, but we also want to score with older people. In Japan, brain training games are strong with gamers who are 35 years or older. That are not the people that are traditionally referred to as video gamers", Merrick says.

Revolution cheaper than Xbox 360

Beside the games, the price is also supposed to broaden the user base: "We are very aware of the price sensitivity of the gaming market, especially when going for the mass market. I strongly hope that the Revolution will be cheaper than the 400 Euros of the Xbox 360.", Merrick says. The new Microsoft console is that expensive, because it supports HDTV, for example. "But only few people are benefitting from that. We won't do that", Merrick says. However, in one area, Microsoft has set new standards: building online communities. "Nintendo is also going to establish an online community. But we don't wont to make the mistake of monetarizing the service first and put in value for the customers only later. We want to go the other way with our mobile console Nintendo DS: when we're starting the online service for the game 'Mario Kart', it is free for the gamers", says Merrick. The online games for the Nintendo DS, which has sold 200,000 units so far in Germany, are not regarded as a self-contained source of income, but as a catalyst, to sell more games. "With the Nintendo-'Revolution', not all online games will be free for the users", Merrick notes.

"We don't worry too much about Xbox 360"

For christmas season, Nintendo doesn't intend to lower the price for their current console Gamecube at 99 Euros. Nintendo sold 800,000 consoles in Germany so far and is expecting good christmas sales - even with the Gamecube at the end of its lifespan and a strong competitor with the Xbox 360. "We don't worry too much about Xbox 360. The supply will be limited and the types of games offered won't appeal to all target groups. There will always be a group of technology fans, that buys any next-generation console on release. But there won't be an impact on the mass market - at least not until they see what is offered to them by Sony and Nintendo next year. When our strategy of expanding on the customer base works out, we have a very good chance to achieve world leadership by late 2007", Merrick hopes. Since March, the company has sold about 1,5 million Nintendo DS. They want to have sold 3 million DS in Europe by end of the year.

Merrick hasn't high hopes for games for mobile phones, though. "Every year mobile gaming is expected to go big business. This didn't happen so far. Only few consumers buy cell phone games. Most consumers play the games already preinstalled on their cell phone. So far we didn't see any mobile phone which our games could be played on properly. The second generation of the Nokia N-Gage was much better than the first generation, but its reputation is already tarnished.

Soruce

Djunknown · « **Reply #1 on:** October 26, 2005, 04:44:20 PM »

I was going to do some armchair modding by saying you shouldn't cut and paste whole articles, but since its originally in German, its almostunderstandable.

Anyway, on to the dissection:

Quote
We won't give up our position for this group, but we also want to score with older people. In Japan, brain training games are strong with gamers who are 35 years or older. That are not the people that are traditionally referred to as video gamers", Merrick says.

True for Japan, but untested in the USA and Europe. No word as of this writing if NCL has any intention of mass releasing "Touch Generation" titles outside Japan (I say 'mass releasing' because of Electroplankton.). Instead of testing the waters with the DS, they're diving head-first with the Revolution.

Quote
The new Microsoft console is that expensive, because it supports HDTV, for example. "But only few people are benefitting from that. We won't do that", Merrick says.

Its already been argued to death so I'll keep it short: The percentage of HDTV owners won't shrink in the coming years, so why not 'future proof' a little...

Quote
When our strategy of expanding on the customer base works out, we have a very good chance to achieve world leadership by late 2007", Merrick hopes.

Not even Reggie, the kick-ass American makes this type of big claims. I'd hold him to that statement, but this industry points the finger in your direction if you do...

Quote
Merrick hasn't high hopes for games for mobile phones, though. "Every year mobile gaming is expected to go big business. This didn't happen so far. Only few consumers buy cell phone games. Most consumers play the games already preinstalled on their cell phone. So far we didn't see any mobile phone which our games could be played on properly. The second generation of the Nokia N-Gage was much better than the first generation, but its reputation is already tarnished.

That's because Nokia's been going at it the wrong way. Mobile Gaming in Japan is top-notch, the rest of the world can't keep up.

Interesting article. It sounds like Mr.Merrick wants to tell the people more but can't. C'mon a few slips won't hurt.

Nephilim · « **Reply #2 on:** October 26, 2005, 05:55:34 PM »

I dont like there attitude on multimedia
I want rev to support media, esp since it has a sd card slot

KDR_11k · « **Reply #3 on:** October 27, 2005, 05:25:00 AM »

Djunknown: HDTV is much less of a topic in Europe than in the US and apparently there aren't even plans to broadcast any HD channels so there's not much reason to buy one.

vudu · « **Reply #4 on:** October 27, 2005, 09:19:44 AM »

Before Ian chimes in, I'd like to point out one thing. This interview isn't meant for gamers--it's meant for investors. Nintendo isn't giving up on traditional markets.

Ian Sane · « **Reply #5 on:** November 01, 2005, 06:41:10 AM »

I think this guy is grossly underestimating the Xbox 360. The Xbox 360 has a huge advantage on the Rev: people actually care about it. There's hype and interest in it. No one aside from die-hard gamers even know what the Rev is (ironic considering the non-gamer focus) and we know very little about it. I, as a Nintendo fan, can't even commit to it because I haven't even seen any games yet. At this point with the Cube I had already decided "yeah I'm getting one".

Of course this is Europe and I'm already expecting Nintendo to completely bomb there and in Australia regardless of how they do in North America and Japan. Those Nintendo affiliates are run by idiots and that problem won't be fixed by any console. When it comes to anything regarding sales or marketing we really have to pay attention to the Japanese and American reps.

Mario · « **Reply #6 on:** November 01, 2005, 06:53:47 AM »

Quote
No one aside from die-hard gamers even know what the Rev is (ironic considering the non-gamer focus)

Doesn't matter yet, they can't buy it anyway. It'll seem more fresh when they first see it rather than "oh hey i remember this I heard about it a year ago".

Think of the Xbox 360 demographic, showing Revolution now will do NOTHING to alter sales of it, if they've got $1000 to plunk down on a gaming console they aren't interested in saving money and only going with Revolution. Not to mention systems sell out at launch anyway, even the GameCube did. It's best to let the Xbox 360 dust settle.

Think, pretend it's May 2006, Nintendo is about to finally blow their load, they will have the worlds attention, will any of this matter then?

KDR_11k · « **Reply #7 on:** November 01, 2005, 08:50:40 AM »

The Xbox 360 has a huge advantage on the Rev: people actually care about it.

Depends on who you ask. Apparently the graphical leap isn't large enough even for many casuals. That'll hurt MS. Since they're talking about a "gradual launch" (i.e. deliberate shortage) that could hurt them big time.

Look at the situation: You can buy either that console right there that'll be on short supply for months, has a meagre launch lineup, that had a predecessor that lacked exclusives and that's not much of an improvement upon the existing consoles or you can wait for the new console by the current market leader that promises a much larger graphical advance and a huge number of exclusive games.

Since hype always sounds better than reality and the X360 will not be able to compete with the PS3's claims MS might take a big hit from the early launch. They're hoping to pull a PS2 but they may end up with a Dreamcast. Sure, no guarantees but I wouldn't expect everyone to rush out and buy an Xbox 360 just yet.

KnowsNothing · « **Reply #8 on:** November 01, 2005, 08:55:51 AM »

My neighbors are selling all their video game stuff for a 360. N64 + games + Dreamcast + games +PS2 + games. And they're trading it all in at gamestop. Plus they still need to pay more money after that. I even offered to buy some of it off their hands, but they were convinced that gamestop would give them a better deal.

So yeah, stupid people. Really though, I agree with KDR, I haven't been hearing much hype about the 360. People are like "Maybe I'll get one" or "The games cost HOW MUCH? Screw that."

ThePerm · « **Reply #9 on:** November 01, 2005, 12:37:32 PM »

no your neighbors need to sell i t to me!

NinGurl69 *huggles · « **Reply #10 on:** November 01, 2005, 12:59:32 PM »

In exchange for recycled paper!

couchmonkey · « **Reply #11 on:** November 02, 2005, 05:25:18 AM »

We can talk about friends and neighbours all we want, I wonder what the real overall situation is? The 10 gamers I know are a drop in the bucket compared to the 80 million other potential customers Xbox 360 has in North America. My wild guess is that people are warming up to Xbox 360 and that it will not fail, but it won't take the world by storm either. But that's still based on my own limited experience. I think Nintendo should be taking Xbox seriously, anyway, because it probably will lose some consumers to Microsoft between now and whenever it reveals some serious new Revolution info.

I wish Nintendo would include HDTV as well, but I'm not going to miss it too much.

zakkiel · « **Reply #12 on:** November 02, 2005, 10:50:17 AM »

Quote
The Xbox 360 has a huge advantage on the Rev: people actually care about it.

A year ago,no one cared about the 360 either. At least hard core gamers are intrigued by the Revolution. Casual surveying of that repository of all knowledge, the Internet, suggests to me that the reaction there after the first hour or so was overwhelmingly positive.

Ian Sane · « **Reply #13 on:** November 02, 2005, 11:33:17 AM »

"A year ago,no one cared about the 360 either."

A year ago a console competing with the X360 wasn't launching. It's a totally different situation. The next gen starts this month and Nintendo is not only not at the start line but hasn't even signed up for the race yet. Nintendo presently has a console where a month can go by and literally no games are released. Their big Christmas title was delayed until next year. If you're a Cube owner you don't have much to do right now. However MS is releasing a brand new console. Now you have the choice of either waiting an unspecified amount of time for a console you know virtually nothing about or dropping a company whose consoles have consistently not lived up to expectations for the last two generations and buying a new console within the next few weeks with brand new games available from a console maker whose presence in the console market is growing. What do you think most people are going to choose? The underachiever whose future is unknown or the sure-thing superstar that keeps going up? A lot of people are going to pick MS when presented with that choice. It just logically is a safer choice.

We live in an instant gratification society. MS is providing that instant gratification and that's a huge advantage.

Kairon · « **Reply #14 on:** November 02, 2005, 11:55:48 AM »

Or Ian, you can drop your Boolean thinking and consider that Nintendo has already said something to the effect of GO AHEAD and buy an X360! Because when the Rev comes out you'll want to buy it ALSO because of the thing that make it unique that the PS3, or the X360, neither of them can offer anything in comparison to.

So I can't possibly see what you're up in arms about. The Rev's success is not based on cannibalizing people who'll buy an X360, it is based on being something that every gamer and non-gamer will need to have because it'll be something truly and uniquely appealing.

Besides, you better accept it Ian that the X360 will sell like gangbusters and move maybe 2 or 3 million units worldwide this holiday season. EVERY console at launch sells out. Heck, AND Microsoft is doing a with-in 3 week world launch, so there will definitely be supply problems that will make the hype seem bigger, but the sales numbers seem less.

Nintendo shouldn't fight the X360 launch because Sony probably will anyways, and because in reality there's nothing you can do about it. Priced at 400 bucks the X360 is hitting the friggin early adopter crowd who buy EVERYTHING ANYWAYS!

~Carmine M. Red
Kairon@aol.com

Avinash_Tyagi · « **Reply #15 on:** November 02, 2005, 12:25:08 PM »

I agree with Kairon, even Nintendo has stated that the REV will likely be a 2nd console for most gamers, but if it hits it off with non-gamers, then it'll be huge.

I'm becoming more and more convinced that the REV will easily surpass the sales of the cube.

PaLaDiN · « **Reply #16 on:** November 02, 2005, 12:35:32 PM »

"If you're a Cube owner you don't have much to do right now."

Dammit. If one more person casually dismisses Fire Emblem...

What the hell, people. The game just came out. It's like you hoarded all your bitter whining so you could pounce on the Cube right after one of its biggest games this year is no longer listed in "upcoming releases".

Give the damn game a chance to die before you bury it.

KnowsNothing · « **Reply #17 on:** November 02, 2005, 12:46:47 PM »

Fire Emblem? Sounds gay.

Ian Sane · « **Reply #18 on:** November 02, 2005, 12:49:52 PM »

"Or Ian, you can drop your Boolean thinking and consider that Nintendo has already said something to the effect of GO AHEAD and buy an X360! Because when the Rev comes out you'll want to buy it ALSO because of the thing that make it unique that the PS3, or the X360, neither of them can offer anything in comparison to."

Well that strategy is a whole other can of worms. It does explain why Nintendo wouldn't care though.

"Dammit. If one more person casually dismisses Fire Emblem..."

I'm not. It's on my Christmas list.

But it's not for everybody. Technically there are games coming out and some good ones too. But there's not much to pick from and I imagine a fair bit of Cube owners are stuck with no upcoming game on their Christmas list just because they're not interested in the handful of titles available.

zakkiel · « **Reply #19 on:** November 02, 2005, 01:00:55 PM »

Quote
A year ago a console competing with the X360 wasn't launching.

Nintendo's strategy isn't to keep people from buying the x360. Nothing they could do would make much impact anyway. Early adopters for the X360 are either a) Micrososft fanboys, or b)general hardcore gamers who have to have the latest greatest in consoles. Neither market could possibly be dissuaded; they're buying because it's teh xbox or because it was released first.

All that aside, there just isn't much exceitement about the X360. It's being launched prematurely, and there just doesn't seem to be much appetite for it.

Don'tHate742 · « **Reply #20 on:** November 02, 2005, 01:25:35 PM »

Agreed. Fighting fire with fire won't have the effect your hoping for Ian.

Nintendo will let the Xbox 360 launch go unscathed for now, come next year however, Nintendo has a plan. The Xbox frenzy will have died down, and gamers, nay, the world will be listening to what Nintendo has to say. They can take away any precedence the Xbox has in a second. How? With games. Show some awesome games and anything made by Microsoft will look archeic.

So who cares if about those early adopters. They were bound to buy it anyways. You must remember that Microsoft may have a head-start, but their not even in the same race.

Kairon · « **Reply #21 on:** November 02, 2005, 01:45:22 PM »

Quote
Originally posted by: Ian Sane
"Or Ian, you can drop your Boolean thinking and consider that Nintendo has already said something to the effect of GO AHEAD and buy an X360! Because when the Rev comes out you'll want to buy it ALSO because of the thing that make it unique that the PS3, or the X360, neither of them can offer anything in comparison to."

Well that strategy is a whole other can of worms. It does explain why Nintendo wouldn't care though.

So it just comes down to you completely disagree with Nintendo's strategy, lol.

That's perfectly fine, it's just that I haven't seen much at all to convince me of the "Nintendo should just get in a slugging match with Sony and MS" mentality.

~Carmine M. Red
Kairon@aol.com

Ian Sane · « **Reply #22 on:** November 02, 2005, 01:55:02 PM »

"So who cares if about those early adopters. They were bound to buy it anyways."

I get what you mean by this so I'll clarify my point. Nintendo's goal shouldn't be to keep people in general from buying the X360. Like you said launch is going to sell out anyway. My point is that of those people buying the X360 at launch as few Cube owners as possible are among them. Nintendo has to keep people who for this generation where Nintendo fans, or at the very least exclusively Cube owners, from jumping ship. So that's why they shouldn't underestimate the X360 because it could steal people away. I feel they need to do something to keep those gamers with Nintendo ie: something to make them wait for the Rev.

Kairon · « **Reply #23 on:** November 02, 2005, 02:14:39 PM »

Quote
Originally posted by: Ian Sane
"So who cares if about those early adopters. They were bound to buy it anyways."

I get what you mean by this so I'll clarify my point. Nintendo's goal shouldn't be to keep people in general from buying the X360. Like you said launch is going to sell out anyway. My point is that of those people buying the X360 at launch as few Cube owners as possible are among them. Nintendo has to keep people who for this generation where Nintendo fans, or at the very least exclusively Cube owners, from jumping ship. So that's why they shouldn't underestimate the X360 because it could steal people away. I feel they need to do something to keep those gamers with Nintendo ie: something to make them wait for the Rev.

Umm..I'm confused. It's okay for gamers in general to buy the X360, but it's NOT ok for Nintendo fans to buy the X360?

Ian, mercantilism went out of style with the middle ages. According to Nintendo's strategy on the REV there is NO STEALING customers. Regular gamers today are highly likely to own more than one console, such that "theft" of a customer doesn't really exist. Of those people who DO own only one console this is because of two main reasons:

1. Price. And at $400 the X360 isn't going to be winning any budget conscious shoppers anytime soon.

2. They're casual or non-gamers to begin with. This is why Nintendo has angled their console to offer unique experiences such that if you can only get one console, Nintendo's is the console that has something truly extraordinary, something unique and revolutionary and a definite must-have exclusive over the other consoles.

*sigh* Nintendo isn't a company we follow because we've bet upon them to win some horse race. Nintendo is a company we follow because we believe that they believe in videogames as videogames, and not just another product for a corporation to hoist upon us.

~Carmine M. Red
Kairon@aol.com

P.S. If you think about it... with Nintendo hoping to "expand" the market, they're actually trying to get more customers for Sony or Microsoft to steal! Oh noes, Nintendo is just helping the competition! kekeke...

Don'tHate742 · « **Reply #24 on:** November 02, 2005, 02:20:45 PM »

You may have a point, but think about what your saying. Is not having the great game ready for christmas GC an incentive to buy an Xbox 360?

Most people (I know anyway) don't have the thought process "Well, this $50 game isn't coming out, so I'm going to buy a $460 system and a game." Rather, most people would look for another game that appeals to them or spend the $50 on something unrelated. Your making a mistake, but I can't exactly pin-point it. Furthermore, those GC gamers that do buy an Xbox were probably planning to anyway before Zelda was delayed. Either way, Nintendo isn't in any position to stop the gamers from buying an Xbox.

They could have, however, made a sh!t-ton of cash from all those people who:
A) Were going to buy the game
B) Didn't want to spend a bunch of money on the Xbox, but rather a $129-150 bucks on a system and a stellar game.

They could have decreased the general demand for it, but that's not the same thing as "protecting" their cube owners because they were most likely going to buy it anyway.

News:

Author Topic: Nintendo on Xbox360, PS3 & Moblie Gaming - Jim Merrick speaks (Read 11402 times)