This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nintendo Focuses on Fun

Nintendo is one of the venerable names in video games. But when it comes to making and selling game consoles, it hasn't been very vital of late.

As the industry embarks on a new technology cycle, President Satoru Iwata is trying to change that. While rivals Sony (SNE - Get Report) and Microsoft (MSFT - Get Report) argue over whose new console has the best graphics or the fastest processor, Nintendo hopes to lure gamers by focusing on making its upcoming Wii game machine fun to play.

Iwata's idea is that there are millions of consumers out there who represent a potential market but who aren't currently playing games. And they won't be lured in by great graphics if the games behind them are too complex or just plain boring.

Nintendo's focus on fun has paid off in the handheld battle. Despite heated competition from Sony's PlayStation Portable, Nintendo's DS has sold well, and -- with its aging Game Boy Advance system -- helped Nintendo maintain its overall lead in the handheld market.

At the E3 game conference last week, I talked with Iwata about Nintendo's plan with the Wii and his outlook for the game industry. (Iwata's comments were translated by company public relations representative Yasuhiro Minagawa.) Nintendo was the distant also-ran behind Sony in the last two console cycles. Where do you expect to end up in this console cycle, and how do you get there?

Satoru Iwata: Actually, we were not acting in terms of what happened in the past. Of course, it's always important to differentiate from the others in this business -- especially in the console business. When Nintendo introduced the GameCube system, we thought we made enough differentiation for the public. Unfortunately, it appears we could not make enough differentiation with other products. When it comes to the Wii console, actually, that kind of differentiation is not that important.

That is, in the history of the video-game industry, all of what the industry has been trying to do is ... beef up the horsepower of the machines. And then, with that beefed-up horsepower, the industry is simply trying to create more gorgeous-looking and more complex video games. Unfortunately, however, that kind of past success formula does not work anymore, and we thought that we really had to change the situation.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $53.93 0.00%
SNE $26.49 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs