In conjunction with the company's fiscal recap, Nintendo president Satoru Iwata held a lengthy Q&A session in order to touch on a number of subjects asked by media and investors. Topics ranged from the lifespan of systems Wii and DS to price cuts, future software support, third-party contributions, and even developer rules and regulations of using Mii avatars in their games. We've compiled some of the more informative comments below.
Since their respective release dates, both PlayStation 3 and Xbox 360 have seen significant price reductions. Wii, however, has not seen any decrease in cost and there isn't likely to be one any time soon, according to Iwata. "… we are not foreseeing the necessity for us to do a price cut in this fiscal year. If it is predetermined that the hardware price shall gradually decrease, then that model reiterates the notion that early purchasers will suffer a loss, which I do not believe is the right business model," he said. "I believe that something must be wrong if we conduct our business with the premise that we will need to cut prices of our hardware as time goes on."
On a related note, Iwata offered a tidbit sure to excite Wii owners who have already run out of system storage space. "Statistically speaking, it is true that there are a small number of customers who feel that the flash memory is too small, while many others find that they have plenty of memory," he said. "However, because this small number of people are none other than the most avid players, we know we have to review the best possible solution to eliminate their inconvenience."
Changing topics, Iwata also fielded questions about the recently launched WiiWare service in Japan. He called current software sales "relatively good" and also noted that that while he feels digital distribution's future is uncertain, it is something Nintendo needs to prepare for. At the same time, he stated that downloadable software should not signal the end of traditionally sold retail games. "I do not believe that today's packaged software business will simply be replaced by electronic distribution business all together," he said. The packaged software business has its own up side, as does the electronic distribution business. We would like to establish a business model in which both can prosper."
Nintendo is notoriously secret about its titles, choosing to unveil them relatively late in the development cycle. When quizzed on the subject, Iwata used his own experience to explain this approach, saying that when he is exposed to software too early, he becomes bored with it. He added that this is one of the reasons why Nintendo remains hush-hush about its products. At the same time, he reassured Wii owners that there are plenty of titles underway for the third and fourth quarter, as well as into next year. "Rest assured that we are preparing for a variety of products for the latter half of this year and early next year," he said. "Also, you will begin to see the many results of our third party partners, who have since recognized that Wii will be a platform for their success."
Iwata reiterated his belief that traditional system life cycles may not necessarily hold true for new systems, particularly Wii and DS, since they are so different and cater to different audiences. He also drew parallels to the original Game Boy, which was, prior to the release of the Pokemon franchise, said to be at the end of its life cycle by critics. "We should not conclude that the Japanese sales of DS have peaked. In our business, one single software can change the entire picture completely," Iwata said. "For example, there was a time when people thought the Game Boy platform was virtually over. However, a software called Pokémon single handedly changed the situation and expanded the platform's lifespan by several years. Just as we were able to do so with Nintendogs and Brain Training, if we are able to provide customers with an unexpected product, the situation can drastically change."
Quizzed about the rumor that Microsoft is developing a Wii remote-like controller for Xbox 360, Iwata said that Nintendo could not really speculate about such a possibility without knowing much more. "I am also aware of the rumor and have seen a fake image made by a fan on the web which looks like a Wii Remote with the rumor that such a controller may be launched, However there is no way for us to comment on such speculations," he said. "All I can say today is, it is not that easy to develop software which leverages the characteristics of Wii Remote. We are not concerned about what other companies may do but rather more concerned with presenting them with new ideas to our customers based on the prospect that our existing customers will surely get tired of the plays enabled by Wii Remote if we do not try to improve the experience."
Finally, while some third-parties have featured Mii avatars in their games, others have complained that Nintendo would not allow them access to Mii integration. Iwata clarified Nintendo's approach to the licensing of Mii characters to third-parties. "Mr. Miyamoto, the inventor of Mii himself, has been saying that, 'In a sense, licensing Mii is same as licensing Mario - Nintendo should grant the license when we can conclude that the proposed project is worthwhile. Should we allow any and all the licensees to use Mii license for whichever projects, Mii's brand image will be hurt. Because we are not granting Mario license to any and all, we should not do so with Mii either,'" Iwata said. "This is the current policy of Nintendo. So, at the software development stage, we are consulting with the developers as to how they would like to make use of Mii, and our Licensing Department handles on a case-by-case basis."
