IndustryGamers - Informing the Games Industry

Nintendo's Reggie on Wii Core Games, Wii HD, Shortages & More

Posted March 16, 2010 by James Brightman

Last week at the Game Developers Conference, IndustryGamers had the pleasure of chatting with Reggie Fils-Aime, President of Nintendo of America, for an in-depth interview about the Wii business, Nintendo's attitude towards third parties, Wii shortages, PlayStation Move, social gaming and much more. Check out the complete Q&A over the next few pages. Enjoy!

IndustryGamers: It seems like more publishers are reallocating resources towards PS3 and 360, especially when it comes to core games. How is Nintendo addressing that situation? How can Nintendo help out third parties?

Reggie Fils-Aime: Let me answer the question two different ways. First, as a platform holder our responsibility is to create a large installed base for developers to create content, to provide them with the tools and the insight to help them create great games, and to have in place a profit model that motivates them to create the content and reap the rewards. We've done that; global installed base is over 67 million for Wii and there are 120 million in the DS family. So there's a large installed base, an easy platform to develop for and a strong set of tools out there. 

In addition to that, part of the reason why we come to a conference like this, and bring some of our key development talent is also to challenge the mindset of what content can be. To have someone like Sakamoto-san talk about Tomodachi Collection and [Metroid's protagonist] Samus and share his experiences really is a way that we're trying to encourage developers to open their mind to do different things.

On the other hand, the interesting thing about this business is that developers love to create technically advanced games, and very visually stunning games, but the fact of the matter is not all of that content is selling exceptionally well either. Look at the most recent NPD results. I'm not sure how much was infested into a game like Dante's Inferno, or how much is invested into a game like BioShock 2, but if that sales level is the best that they will do in a particular month, and it'll fall off rapidly from there, then those games aren't going to pay off their investment.

So to me, it's a much bigger question than 'why aren't developers creating core content for the Wii?' It's a much broader question: 'How can the development community create content that will strike a chord with consumers and be financially attractive?'

IG: You bring up an interesting point. The installed base is clearly there, so let me play devil's advocate for a minute. From a business standpoint, Nintendo is doing very well and the hardware and software from Nintendo continue to sell. The casual consumer that makes up the majority of the installed base probably only buys a few games a year and is very happy with the Nintendo games that are developed for the platform. And so, the third parties can go do whatever... why should Nintendo care?

Reggie: Well, luckily we don't have that mentality. For us, it is important that third parties bring their very best content to our platform. You could say 'Why?' It's because... well, let me focus in on the West. There are 28 million Wiis out there in the marketplace. We know, based on our data, that we've got consumers from 5 to 95 playing on that platform. The fact of the matter is we know we create great content for younger consumers, we know we've got great content for more casual players, and we want fantastic content for that more active player who loves Metroid or Zelda but maybe also wants something like a BioShock 2 to play as well. And we also recognize that we don't create that type of content ourselves. We're not good at it and it's not a key focus area. So we want that content on our platform, so we have to court third-party developers and encourage them to make [those games], but it also has to be financially viable for them as well.

IG: Right, and I guess that plays into the nature of the Wii as well. I had a conversation with Will Wright earlier this week, and he noted how the Wii is more like something in the toy market where it provides a quick five-minute pick-up-and-play experience. And while it would be great to have a BioShock or GTA on Wii, because it's not as powerful as the 360 or PS3, those third parties can't create that same type of core experience. It has to be very custom-made for the Wii, and the core gamer that's out there probably already has one of those other two platforms. So I think the problem for Nintendo is that most core gamers are getting that experience on PS3/360 and developers recognize that and the Wii it seems has been a little bit pigeonholed into becoming a casual games machine.

Reggie: So let me correct a couple facts. First, based on our own research, the Wii platform by far is the system that stands alone in the consumer's home. In our data, we actually see much more dual-ownership between a PS3 or Xbox 360 both being in the home vs. a Wii and a 360 or a Wii and PS3. Secondly, the point that you make that in order to create an experience for the Wii platform that you really have to approach it singly – you can't simply port something – is absolutely true. That means the development community needs to have dedicated resources; clearly it is easier to create either for the PS3 or 360 and port to the other system. So that's a challenge.

Having said that, there is a consumer appetite for more active player titles. All you need to do is look at titles like Zelda, Smash Bros... the opportunity is there. It needs to be high quality, and it needs to be marketed. I think the one difference in our consumer base vs. the competitive platforms is that our consumers don't rush out to the store the day a title comes out. The sales curve, whether it's our titles or third-party titles, tends to be over a much longer time period. What that means from a publisher's standpoint is that you have to be prepared to support a title over a longer-time period. And isn't it interesting... you look at when publishers have done this with everything from Rock Band, Guitar Hero to EA Sports Active, and the sales are there. The sales don't tend to be there if a publisher takes an approach of let me try to do a big launch and then move onto something else; that experience has not been positive.

IG: Yeah, that reminds me of something Cammie Dunaway had said months ago regarding GTA Chinatown Wars on DS. She commented that sales could have been much better if Take-Two had done more marketing around it. So to your point about the typical “fire and forget” marketing mentality on the other platforms, I guess you would agree that third-parties need to do more marketing beyond launch on both Wii and DS.

Reggie: And when it's done, it works! Most recently, Mario & Sonic at the Winter Olympic Games, a title that launched September or so of 2009. Sega did a great job with the Olympics and went back on air with a marketing campaign and did exceptionally well. And we've seen it with our own titles, whether it's Mario Kart for either Wii or DS, New Super Mario Bros. for both platforms... very long legs and will continue to have long legs. So again, I keep coming back to the [fact] that the game's got to be stellar, you've got to be focused against the right consumer target (whatever that might be for the title) and you need to support it beyond day one. If you're able to do that, the results will be there.

James Brightman has been covering the games industry since 2003 and has been an avid gamer ever since the days of Atari and Intellivision. He was previously the EIC of GameDaily Biz.