http://www.nintendoworldreport.com/blogArt.cfm?artid=18026 
Nintendo World Report is blogging live at Game Developers Conference 2009. What follows is a live update of Nintendo President Satoru Iwata's keynote address.
Hey folks, this is Jonny giving you updates from Chuck Jose at the GDC keynote address. Aaron and Chuck don't have Internet access in the auditorium, so Chuck is texting updates to me, and I'm putting them up for you as fast as possible. Please note that all quotes should be considered to be paraphrased.
(All times are Pacific Daylight, a.m.)
9:37 - We're catching up on a few things. Iwata is on stage and discussing Miyamoto's development philosophy. Further updates will be more timely.
9:38 - "How can the producers of a rhythm game make the game when they don't have rhythm? Make them dance. It was part of the development process."
9:39 - Showing a trailer for Rhythm Heaven.
9:42 - The Rhythm Heaven (DS) team started off as three members. They created a prototype for the DS version (based on the earlier GBA version).
9:43 - Iwata is giving away a free copy of Rhythm Heaven to all GDC attendees after the keynote!
9:50 - Wii Balance Board is a success. About 15 million have been sold to date.
9:50 - A new WiiWare game called Rock 'n Roll Climber is being introduced.
9:51 - Something about a storage solution for Wii...
9:54 - Iwata and Bill Trinen are showing the "SD Channel", which allows for up to 240 additional channels.
9:56 - Wii System Menu version 4.0 adds support for SDHC (high capacity SD cards) -- up to 32 GB. You can download straight to the SD card and play directly from it. This system update is available NOW. [Correction: You do not need to download anything from the Shop Channel for this to work.]
9:58 - In case you haven't seen it on the front page of NWR, Chuck is also posting (faster) updates to the NWR Twitter.
9:59 - Iwata is showing a demo of DSiWare and the Movie Memo application. You can create an animated GIF.
10:00 - From Chuck's Twitter updates: The original Final Fantasy and other FFs are coming to Virtual Console. Final Fantasy IV: The After is also confirmed for WiiWare. (It was previously released on cell phones in Japan.) A sequel to My Life as a King is on the way, called My Life as a Dark Lord.
10:04 - Update from Jonny: The SD Channel takes a really long time to read my SD card. We're getting some reports that the new channel can freeze up your Wii if you try to access it without having an SD card in the system, so be careful!
10:07 - Virtual Arcade is announced -- Wii will be offering downloads of classic arcade games, including Space Harrier, Gaplus, and Star Force.
10:08 - New Zelda for DS...
10:09 - Update from Jonny: The SD Card Menu looks much like the Wii Menu. I started Milon's Secret Castle, and it took about three seconds to load up. When I pressed the Home button within the game, there was no option to return to the SD Card Menu. I had to exit back to the Wii Menu, then reload the SD Card Menu (which is still really slow the second time -- do I just have a slow SD card or what?).
10:10 - The Legend of Zelda: Spirit Tracks will be released later this year for DS.
10:11 - Virtual Console Arcade is available NOW on the updated Wii Shop Channel.
10:13 - Update from Jonny: The initial lineup for Virtual Console Arcade is Tower of Druaga, Star Force, Mappy, and Gaplus. They are all 500 Wii Points except for Gaplus, which is 600 Wii Points. Don't buy Mappy, it sucks!
10:15 - Iwata's keynote is over. Go download the Wii system update and check out the SD Card Menu and Virtual Console Arcade!
-- Aaron's not-so-live blog:
9:08 Talk beginsÂ… no internet here, sorryÂ…
9:09 Iwata enters
9:10 100 million DS 50 million WiiÂ… lots of industry growth only on Nintendo systems worldwide, everybody else is flat
9:12 Consumer audience expanding “Software sells hardware.”
9:13 Data shows more than Nintendo software sells on Nintendo systems, but that is not true, others can compete and not worry about NintendoÂ’s huge investments. Iwata once felt the same way as other developers.
9:15 Iwata called it Super “Ness” “Death spiral” example of HAL. Can’t keep quality up due to time pressure… quality decline leads to poor sales and it’s hard to get out of and can lead to bankruptcy.
9:17 Miyamoto sees opportunity where others donÂ’t and this is to the benefit of Nintendo and game players. He is the best in the world and can offer a few hints.
9:19 He loves observing human beings. When he sees something people enjoys, he considers what part of the activity people find fun. This is why he can invent games that appeal to veteran players and new players. He analyzes himself as wellÂ… puppies, gardening. Iwata asked Miyamoto to stop talking about his hobbiesÂ… NDAÂ’d 24/7.
9:22 Most developers make a thick design document, but Miyamoto almost never produces one, he assembles a small team to talk and makes prototypes. Wii boxing prototype shownÂ… cubes only.
9:24 Miyamoto keeps several projects going and uses trial and error. Eventually some prototypes succeed and then he begins discussing timeline with Iwata.
9:27 Iwata is happy that Miyamoto, his mentor, reports to him, but it is not always pleasant since he has to be worried about sales.
9:29 Miyamoto upends tea table, but he does not get angry, he explains how to rearrange the table. Most projects work well since the core concepts are solid. Upending takes more timeÂ… Nintendogs and Super Mario Galaxy were supposed to be launch titles, but this didnÂ’t happen. Wii Sports was finished.
9:31 Iwata hopes understanding MiyamotoÂ’s methods will be of help to developers.
9:32 Miyamoto randomly kidnaps junior employees. Victim is handed a controller and told to enjoy his/herself. Miyamoto prevents developers from telling them how the game should be played so that victim. He observes player “over the shoulder” to see what works naturally.
9:34 Entertainment is supposed to be enjoyable. If it is not enjoyed, it is the developersÂ’ fault, not consumersÂ’. To surprise consumers, they must first surprise themselves.
9:35 Tsunku approached Nintendo wanting to develop game. They went for it and Sakimoto and Osawa (both working on Warioware games) talked with Tsunku. They put together a prototype. How can a good rhythm game be produced if developers donÂ’t have good rhythm. Tsunku made developers dance. Iwata had to approve dance lesson budgetÂ… this was a surprise. Only five members were needed to make Rhythm TengokuÂ… they were best suited. They thought it was too late to release in US since it came out so late.
9:39 Rhythm Heaven DS video shown. Only made by three members, a yearÂ’s worth of tiral and error before touch and flick were decided on.
9:40 Nintendo was confident but didn’t expect huge sales since the franchise wasn’t established. “Evergreen” title as it has continued selling. What about US? We’ll find out starting in 11 days. Nintendo giving it as a gift to GDC attendees!
9:42 Guitar Hero, Spore, World of Goo new ways of thinking about games, but expanded audience isnÂ’t the only target. Large expanded audience is partially due to veteran players. Large fraction of DS owners are female, but veteran players have still been the main support. Misconceptions about where the industry is going. This is why huge franchises were all released eearly and why Virtual Console is out.
9:45 Third party games have more sales on Wii and DS than other systems. Seven different publishers . Wii balance board has sold nearly as much as PS3 worldwide at end of last year. May have surpassed it by now.
9:46 Rock n Roll Climber Wiiware balance board game shown. Uses balance board and Wii Remote/Nunchuk. Where does the Rock n roll come from? Guitar at the top of the climb.
9:50 Most Wiiware comes from third party. People are frustrated with download storageÂ… solution shown by Bill Trinen: System Menu 4.0 shown. Up to 240 titles on SD card. Big memory change: SDHC finally, up to 32GB! Wii Shop Channel can save directly to SD card. Last key addition: launch content from SD card, games, VC, channels with short load time. No new Zelda game shown :-p Zelda II
9:54 Iwata announcements: System Menu 4.0 available TODAY.
9:55 Downloadable games from WiiWare: Final Fantasy My Life as a Dark Lord and Final Fantasy IV The After Years, all in 2009. Six Final Fantasy Virtual Console games, available in Japan, first starting in May. I and IV will come out in the US.
9:56 Nintendo DSi: Bill Trinen is back to show off DSiWare. He draws a crappy car on the Moving Memo and then animates itÂ… poorly and then adds background vroom vroom sound, completing the embarrassment. Can share and download creations from a central server and edit downloads.
10:00 He shows off good animations that can be found on NCLÂ’s site.
10:01 Wario Ware Camera moves. Like eyetoy. Records moving images of actual action for replay afterwards. Hilarious!
10:04 Nintendo DSi has good reception, 2 million sold in Japan, more preorders on Amazon than any other system in history.
10:05 Iwata spent too much money on Space Invaders. Virtual Console Arcade announced and will launch with 6 arcade games in Japan and 4 elsewhere. These will be available for download TODAY.
10:07 Wants to satisfy Nintendo fans. Trinen lied: new Zelda game: Link shows up in aÂ… train. The Legend of Zelda Spirit Tracks, a new DS game similar to Phantom Hourglass.
10:09 Jet engine, TV, chocolate chip cookies invented in the great depression. WiiWare/DSiWare should create opportunities for everyoneÂ… the cost is not high.
10:10 THE END!
Check back later today for lots of photos and footage!