Nintendo's New Year's Revolutions

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...number of not only worldwide but even US-centric million-unit selling games, and Sony doesn't.

We have games that are successfully expanding the audience for gaming for DS, and that's not true for Sony. The buzz for the DS is huge and growing, and the most anticipated handheld titles are on our platform, not on Sony's.

OK, so what about the fifth resolution?
The mythical performance vector for this industry is more processing power and prettier pictures, but what's really driven growth is actually improving the way consumers play and get into the game. It's what we've successfully done with the Nintendo DS and what we're committed to doing with the Revolution and the controller we've unveiled for Revolution.

Tell me about the controller. What makes it noteworthy?
It allows you to essentially manipulate the game by pointing at it. The activity that happens in the game is quite responsive with the controller, and we've shown that sports games can be brought to a new level of immersion with the controller.

How so?
It allows you to manipulate not only a puck or a football, but also to manipulate the player in a way that's never been done before. So if I'm developing a football game, I can move across he field, focus against a particular receiver with pinpoint accuracy and throw the ball right to that receiver much as a real-life quarterback does.

That level of immersion really has never been done before. We know it's exciting because we have partners like EA and Ubisoft and Activision and THQ excited about developing for the Revolution.

How many launch titles will there be for the Revolution?
That question's a bit premature. We'll be showing a lot of titles at this year's E3, and we think that's where consumers will get a flavour for the full range of titles and the full range of activity that we will have for our launch window.

And what is the launch date?
We've said 2006.

What else will set the Revolution apart from the Xbox 360 and the PlayStation 3?
A number of things. First, our titles. We have the huge luxury of a stable of franchises that's unparalleled in this industry. Also, we're working on new franchises and our first-party line-up will be better than our competition. We're also getting strong third-party support.

Secondly, our virtual console concept, which lets you play your favourite games from the Nintendo 64, Super NES and NES systems, will also be a differentiator. Plus, Revolution will be backwardly compatible with GameCube games.

How do you think Revolution will sell?
We will sell more units than Xbox 360 did here in the United States in our launch window. I mean, in December, we sold more GameCubes in the United States than Microsoft sold 360s, and Revolution will do better than that.

How will the DS do head-to-head against the PSP, going forward?
We expect a gangbuster year for DS in 2006. I think that's because we've successfully launched the Wi-Fi Connection for Nintendo DS. We've had more than 10 million connections to the servers on a worldwide basis and over half a million unique users in a short seven-week time frame.

Just for perspective, it took Xbox Live over six months to get to that level, so we're very proud of the way we've grown that business. We're also very confident with DS, given a number of impending launches we've announced, including Metroid Prime: Hunters.

We've also announced Tetris DS, which has a total of six different modes of play, including classic Tetris play as well as a number of mechanisms that are playable both in local-area networks and via Wi-Fi. There will also be a new Super Mario Bros. title in 2006. So just in looking at the tools and packages we have, we're very confident in our success for Nintendo DS this year.

Terrific. Finally, can you tell me how Nintendo will reverse the perception that the console market is Sony and Microsoft and then Nintendo?
The fact is this: On a worldwide basis in the home console area, we are the number two player. Here in the United States, if you look at today, we are the number three player, so I understand where the perception comes from that we are not doing as well in the home console market as we are in the handheld business where we dominate worldwide.

Our focus for Nintendo Revolution is to provide real meaningful differentiators versus our competition, and we believe that is what will drive our success. First, focusing on a single-minded gaming device. Second, bringing real innovation to the controller in the way consumers play the game. Third, a value orientation that certainly is not present with our competitors. And fourth, leveraging the power of our library with the virtual consoles.

So that's how we believe our success formula will play out in home consoles, and our focus is on executing that four-point program.

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