While Nintendo has done very well by the DS and its most recent variation DSi, many have wondered if Apple's iPhone and iPod Touch haven't stolen some of their portable mindshare. Still, Nintendo of America president and chief operating officer Reggie Fils-Aime doesn't seem too worried about competition from Apple.
“There's been no data to suggest an encroachment on our business. The iPhone has been out on the marketplace for just a couple of years. In the last two years we've set two records on our DS business, last year selling over 11.2 million units. So there's been no evidence that we've lost any business to that competitor,” said Fils-Aime to Forbes. “On the other hand, we recognize that consumers have a limited amount of entertainment time, and anything that takes entertainment time away from the Nintendo DS, DSi and Wii is a competitor. And so from that standpoint, we need to build experiences that are compelling and sticky, and that consumers can get excited about. That's our challenge.”
When asked about “innovative jumps,” Fils-Aime was indirect but clear in his message about the Wii 2. “We pride ourselves on the big innovative jump, typically in the area of the consumer experience,” said Fils-Aime. “The way we approach that innovation, because we have hardware developers working side by side with software developers, is that when the software developer comes forward with an idea that can't be executed on the current platform, that's when we start thinking seriously about the next system. We're not there yet, from a Wii perspective.”
While micro-transactions have become features on Xbox 360 avatars and Home characters, Fils-Aime dismissed the idea for the Mii. “We don't think it's an idea that creates value for the consumer,” said Fils-Aime. “Consumers love to make Miis and that has been core to the Wii experience. We don't believe selling clothes or hats is something that the consumers will find valuable. And candidly, if you really challenge the competitors who are playing in this space, I think they would be hard-pressed to show any true value from a consumer standpoint.”
When asked about display technology like HD and 3-D, Fils-Aime downplayed them as a necessity. “When people talk about high definition for the Wii console, our feedback is that that by itself will not create a brand new experience. Therefore, we're not interested. What we have to push for are groundbreaking new experiences. Technology has to enable it, not to be a means all by itself.”
