The 2006 Academy of Interactive Arts & Sciences' D.I.C.E. conference has come and gone. As you've all probably heard by now Reggie spoke about Nintendo's strategy, some new features coming to Nintendo DS, as well as a heads-up that Metroid Prime Hunters will feature voice chat. Here's a full recap of Reggie's speech.
Fils-Aime mentioned NPD figures which show that three of the top four platforms of 2005 were handheld. This includes the Nintendo DS, Game Boy Advance, PlayStation 2 and Sony PSP. The numbers indicate that handheld gaming is the fastest growing segment of the market - from 20 percent of the overall game market in 2004 up to 25 percent in 2005.
Nintendo DS hardware has seen strong sales worldwide, selling more than 14.4 million units as of December. In Japan, the NDS sold 5 million units within 13 months making it the fastest-selling video game console ever. Thanks to portable hardware and software, the market for video games grew in Japan for the first time since 1997.
In 2005, nine titles on the Nintendo DS reached over 1 million units sold. Nintendogs has sold 1.5 million units in the U.S. alone, largely to female players. Worldwide the title has reached over 4 million in sales. Meanwhile, Brain Age and Big Brain Academy sold over 2.5 million units in Japan, largely to an older demographic.
Fils-Aime noted in his speech, "Nintendo DS was the only video game system that exceeded expectations in 2005, simply because it dared to be different. By further enriching the ways in which players can compete, play and sample new games, that process is accelerating in the opening weeks of 2006."
Nintendo's Strategy: New Audiences
Fils-Aime mentioned that only 21 percent of the potential gaming market is "hardcore" and that Nintendo is determined to acquire the untapped other 79 percent.
Nintendo's strategy can be summarized by two books. Blue Ocean Strategy describes how a company can move from the blood-red waters of competition to the blue ocean of opportunity. Innovator's Dilemma describes the impact of disruptive technologies on existing markets. Disruptive technologies such as Apple's iPod took Sony and its music industry by surprise. Similar stories include companies such as Cirque du Soleil, Southwest Airlines, and Dell in their respective markets.
Fils-Aime believes Nintendo already has a "blue-ocean lead" over its competitors. He feels the key to this lead is the "simpler, easier, more approachable types of experiences." Fils-Aime mentioned a Piper Jaffray study that showed that 75 percent of high school students are losing interest in video games. He believes there are five things developers can do to improve this situation.
Dean Takahashi asked Fils-Aime if it was such a good idea that developers will be faced with new challenges such as developing around the Revolution controller. Fils-Aime responded saying it will be a good thing to have differentiation, with different takes on the same games based on different console features.
DS Download Service
Fils-Aime revealed that Nintendo will offer Nintendo DS owners free downloadable game demos and other downloadable content at thousands of participating retail locations around the United States. An in-store kiosk will wirelessly transfer demo versions of "demos, trailers, minigames, and sequelized content" to your Nintendo DS handheld. Users drop by the store with their Nintendo DS, click DS Download Play on their system and choose one of a variety of DS demos they want to sample. The demo will download automatically and users can play all they want until the Nintendo DS is turned off. The content will be stored in temporary memory and only playable on the DS as long as the handheld remains powered on.
The first DS Download Service stations will include free demos of Tetris DS, Brain Age: Train Your Brain in Minutes a Day, Mario Kart DS, Meteos, True Swing Golf and Pokemon Trozei, along with a Metroid Prime Hunters video clip. The demo selection will change every four months.
The DS download booths will have a 15-foot radius of connectivity and will initially be available at GameStop, EB Games, and Game Crazy stores. Fils-Aime revealed Nintendo is also in "advanced discussions" with Target and Wal-Mart. Reggie hopes it will also extend beyond retailers one day.
"Can I see the DS download stations evolving beyond retail? Absolutely," he said. "It will [might eventually] work on the DS local network service, which means it will work anywhere there are wireless networks." Fils-Aime used the Wi-Fi enabled train stations in Japan as an example.
Metroid Prime Hunters Chat
The new Metroid Prime Hunters game, releasing on Nintendo DS March 20, will provide gamers with the ability to chat directly with one another before and after matches played via Nintendo Wi-Fi Connection. After clicking the chat icon, players speak through the microphone which transmits their voice to people on their friend list. Fils-Aime emphasizes this functionality would not be for "trash-talking" during the game but instead for chatting before and after a match.
Nintendo Wi-Fi Connection
It was also revealed that Wi-Fi wireless networking is now available at over 7,000 McDonalds restaurants. In addition, there have been over 860,000 unique users and more than 21 million connections made to the Nintendo Wi-Fi Connection service. Alongside the Wi-Fi Connection compatible Metroid Prime Hunters there will also be Tetris DS releasing on March 20. Up to four players can compete in wireless two- or four-player Tetris DS battles.
Nintendo DS Lite
The Nintendo DS Lite goes on sale in Japan on March 2. Nintendo DS Lite is about two-thirds the size of the original Nintendo DS and more than 20 percent lighter. Its availability in other regions will be announced at a later date.
Nintendo Revolution
Fils-Aime said the Revolution freehand controller's resemblance to the television remote was intentional. "There really was a lot of thought in what this looks like," he said. "It's really meant to look like a TV remote...it's supposed to be approachable to the non-gamer." Fils-Aime also said the Revolution controller "can be used more traditionally" with the help of a "cradle" designed to look like a regular controller.
Software is already being supported by third-party developers including Sega, Square-Enix, Namco, Ubisoft, and Electronic Arts. Fils-Aime expects development of games will be much cheaper on Revolution compared to competitors. "Games [for the Revolution] will be smaller, easier, better than before," he said.
Fils-Aime mentioned NPD figures which show that three of the top four platforms of 2005 were handheld. This includes the Nintendo DS, Game Boy Advance, PlayStation 2 and Sony PSP. The numbers indicate that handheld gaming is the fastest growing segment of the market - from 20 percent of the overall game market in 2004 up to 25 percent in 2005.
Nintendo DS hardware has seen strong sales worldwide, selling more than 14.4 million units as of December. In Japan, the NDS sold 5 million units within 13 months making it the fastest-selling video game console ever. Thanks to portable hardware and software, the market for video games grew in Japan for the first time since 1997.
In 2005, nine titles on the Nintendo DS reached over 1 million units sold. Nintendogs has sold 1.5 million units in the U.S. alone, largely to female players. Worldwide the title has reached over 4 million in sales. Meanwhile, Brain Age and Big Brain Academy sold over 2.5 million units in Japan, largely to an older demographic.
Fils-Aime noted in his speech, "Nintendo DS was the only video game system that exceeded expectations in 2005, simply because it dared to be different. By further enriching the ways in which players can compete, play and sample new games, that process is accelerating in the opening weeks of 2006."
Nintendo's Strategy: New Audiences
Fils-Aime mentioned that only 21 percent of the potential gaming market is "hardcore" and that Nintendo is determined to acquire the untapped other 79 percent.
Nintendo's strategy can be summarized by two books. Blue Ocean Strategy describes how a company can move from the blood-red waters of competition to the blue ocean of opportunity. Innovator's Dilemma describes the impact of disruptive technologies on existing markets. Disruptive technologies such as Apple's iPod took Sony and its music industry by surprise. Similar stories include companies such as Cirque du Soleil, Southwest Airlines, and Dell in their respective markets.
Fils-Aime believes Nintendo already has a "blue-ocean lead" over its competitors. He feels the key to this lead is the "simpler, easier, more approachable types of experiences." Fils-Aime mentioned a Piper Jaffray study that showed that 75 percent of high school students are losing interest in video games. He believes there are five things developers can do to improve this situation.
- Its not about horsepower or pretty pictures. Its about entertainment.
- Keep mass in mass market. Reach beyond hardcore. Dont be self limiting.
- Dont alienate new players with high prices or narrow content.
- Innovate or die.
- Create a democracy of ideas for new games, where the focus isnt on the biggest production budgets.
Dean Takahashi asked Fils-Aime if it was such a good idea that developers will be faced with new challenges such as developing around the Revolution controller. Fils-Aime responded saying it will be a good thing to have differentiation, with different takes on the same games based on different console features.
DS Download Service
Fils-Aime revealed that Nintendo will offer Nintendo DS owners free downloadable game demos and other downloadable content at thousands of participating retail locations around the United States. An in-store kiosk will wirelessly transfer demo versions of "demos, trailers, minigames, and sequelized content" to your Nintendo DS handheld. Users drop by the store with their Nintendo DS, click DS Download Play on their system and choose one of a variety of DS demos they want to sample. The demo will download automatically and users can play all they want until the Nintendo DS is turned off. The content will be stored in temporary memory and only playable on the DS as long as the handheld remains powered on.
The first DS Download Service stations will include free demos of Tetris DS, Brain Age: Train Your Brain in Minutes a Day, Mario Kart DS, Meteos, True Swing Golf and Pokemon Trozei, along with a Metroid Prime Hunters video clip. The demo selection will change every four months.
The DS download booths will have a 15-foot radius of connectivity and will initially be available at GameStop, EB Games, and Game Crazy stores. Fils-Aime revealed Nintendo is also in "advanced discussions" with Target and Wal-Mart. Reggie hopes it will also extend beyond retailers one day.
"Can I see the DS download stations evolving beyond retail? Absolutely," he said. "It will [might eventually] work on the DS local network service, which means it will work anywhere there are wireless networks." Fils-Aime used the Wi-Fi enabled train stations in Japan as an example.
Metroid Prime Hunters Chat
The new Metroid Prime Hunters game, releasing on Nintendo DS March 20, will provide gamers with the ability to chat directly with one another before and after matches played via Nintendo Wi-Fi Connection. After clicking the chat icon, players speak through the microphone which transmits their voice to people on their friend list. Fils-Aime emphasizes this functionality would not be for "trash-talking" during the game but instead for chatting before and after a match.
Nintendo Wi-Fi Connection
It was also revealed that Wi-Fi wireless networking is now available at over 7,000 McDonalds restaurants. In addition, there have been over 860,000 unique users and more than 21 million connections made to the Nintendo Wi-Fi Connection service. Alongside the Wi-Fi Connection compatible Metroid Prime Hunters there will also be Tetris DS releasing on March 20. Up to four players can compete in wireless two- or four-player Tetris DS battles.
Nintendo DS Lite
The Nintendo DS Lite goes on sale in Japan on March 2. Nintendo DS Lite is about two-thirds the size of the original Nintendo DS and more than 20 percent lighter. Its availability in other regions will be announced at a later date.
Nintendo Revolution
Fils-Aime said the Revolution freehand controller's resemblance to the television remote was intentional. "There really was a lot of thought in what this looks like," he said. "It's really meant to look like a TV remote...it's supposed to be approachable to the non-gamer." Fils-Aime also said the Revolution controller "can be used more traditionally" with the help of a "cradle" designed to look like a regular controller.
Software is already being supported by third-party developers including Sega, Square-Enix, Namco, Ubisoft, and Electronic Arts. Fils-Aime expects development of games will be much cheaper on Revolution compared to competitors. "Games [for the Revolution] will be smaller, easier, better than before," he said.