IG: I was going to ask you about PlayStation Move, because it's sort of like Wii in HD. The controls are pretty similar but the graphics are much better. And I guess Sony is hoping that people will upgrade from Wii because of those motion controls. Sony wants Wii consumers to say now, 'Hey let's go get a PS3.'
Reggie: And why would they say that? That's the piece that to me is very interesting. So I'm a consumer and I'm having a great experience with my Wii. And we know that's the case – we look at the software that's being purchased. Consumers love the Wii. What's going to motivate them to spend minimally $300 for a new [PS3] system, plus minimally $100 for the Move motion bundle? So [as a consumer] now I'm into this for $400 and I still have to spend money on software. What's going to motivate me to do that?
IG: Well, I can't speak for the consumer, but I played around with Move and it's an interesting product.
Reggie: I'm sure it is.
IG: Have you had a chance to play around with it?
Reggie: I have not had that chance. One of the things I find very interesting about this industry is that people don't seem to want to look at propositions from the consumer viewpoint. And I think that's very troubling. We're constantly thinking about how the consumer is thinking about the product. How do they approach it? What's in it for them? Why should I as a consumer open my wallet or pocketbook to buy product X? We constantly think about that, because in the end, if the experience isn't compelling enough, if the value isn't strong enough – and value meaning what you get for what you pay – then there's nothing in it for the consumer. And a product will die. I can look back over the last 2-3 years with products that have died in the marketplace, because they were not thought of from the consumer point of view.
IG: Right, to Nintendo's credit, you wouldn't be where you are today without that mindset. Switching gears for a minute, one of the big buzz words in the industry now is social gaming. I wrote an op-ed a while back suggesting that Nintendo should bring its IP to Facebook. I realize it's a completely different business model, but Nintendo in my view could do amazingly well in that social space. Imagine the power of Mario, Animal Crossing, Pokemon or Zelda on Facebook. Look how well Zynga's done with FarmVille. Would Nintendo want to get into that space?
Reggie: You know, we are very fortunate in having fantastic franchises. And we believe those franchises are integral in driving our installed base and creating an environment where we and third-party publishers can create business opportunities. The social gaming space is very interesting, and the elements within that space of truly bite-sized, morsel-sized entertainment and micro-transactions is very interesting. But the concept of our franchises being leveraged in that way is, at least right now, something that we have absolutely no interest in. We want the next great Zelda experience to be on one of our own platforms. We want the next great Pokemon experience to be on one of our platforms. For us, that's what motivates the consumer to buy software, buy hardware and to create this environment for us and others to participate in. Now, that's not to say that we're not looking at the social gaming phenomenon, looking at micro-transactions – I mean, we have to in order to continue being leaders in this industry. But it's not a place in the near-term that you'll see our franchises.
IG: I realize we're almost out of time, so I'll finish by asking you about the DSi XL. Your favorite analyst Michael Pachter told us a few weeks ago that he didn't think the XL would be a success at launch because the pricing is too high. He believes that pricing it just $10 below the Wii is a bad move and makes the handheld a much less attractive purchase. So what is your thinking on the DSi XL price point and what it offers consumers?
Reggie: First factoid: In Japan, where the DSi XL has fabulous momentum and is currently outselling the base DSi model and outselling it pretty substantially, the price point for the DSi XL is exactly the same price as the Wii home console. So what that suggests to us is that the value proposition inherent in that system – 93% larger screen, wider viewing angle, essentially a more sociable gaming experience in a handheld – is certainly resonating with consumers, at least in Japan. We think that will resonate here in the U.S. So we believe the $189.99 price point is consumer relevant; we think the $20 premium vs. the DSi is the right level of difference and we think it's going to do quite well here. Personally, I believe that our DSi business will continue to be the largest part of the DS family. I don't think we'll have that same phenomenon that Japan has had, but I could be wrong.
And one of the things that I love about Michael, as well as all the analysts that cover this industry, is that they can make some pretty bold pronouncements and not be held to going back and looking at how good the batting average is. Our batting average has been pretty high. And we believe that not only the hardware, but the software that we're launching concurrently with DSi XL – everything from WarioWare D.I.Y. to America's Test Kitchen, Picross and 100 Classic Books coming shortly thereafter – we think we've got a great software lineup to drive the installed base of DSi XL.
IG: Thanks very much for your time Reggie.
41 Comments
March 17, 2010
Great questions.
March 17, 2010
Great interview James.
March 17, 2010
Thanks guys. I had to 'torture' Nintendo to get the interview, but it was well worth it. I walked out of the room really feeling like I'd had a great conversation.
March 17, 2010
AWESOME interview, James!!! I'm always bugging journalists to ask the tough questions and you finally did it. Way to go, bro....please keep it coming!!!
-Paul
March 17, 2010
Thank you Paul.
March 18, 2010
Too many mentions of Pachter. What are you his publicist?
March 18, 2010
Haha, believe me, Pachter doesn't even need a publicist. Pachter raised some points that I thought were interesting and I felt I should bring up with Reggie. It's as simple as that.
March 18, 2010
This interview was a long time coming, and James really knocked it out of the part. Reggie was very sharp on his responses too.
March 19, 2010
cool interview very thurough, and i loved that u just went for it with the questions we all wanted to know answers to :) thanx for the good read.
May 5, 2010
The previous two God of War games sold 8 million copies combined for PS2, and Sony is confident that the third installment will sell millions of copies as well, so it’s critical that Sony ship more PS3 consoles to retail as games move the most units within the first month of release. drivers scanners
May 9, 2010
So, extraoficially speaking, for non-american people, how could "crunch" be politely explained...?
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May 23, 2010
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May 24, 2010
t's very comfortable to hold, and definitely sleeker than Nintendo's four-and-a-half-year-old device.
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May 25, 2010
I love this game.You can simply buy God of War Collection and play the previous two.online fax
May 27, 2010
Thanks guys. I had to 'torture' Nintendo to get the interview, but it was well worth it. I walked out of the room really feeling like I'd had a great conversation.identity theft service
May 30, 2010
Paramus, New Jersey - IndustryGamers, the leading US games industry trade publication, today announced the launch of its video game industry job board.
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May 30, 2010
Paramus, New Jersey - IndustryGamers, the leading US games industry trade publication, today announced the launch of its video game industry job board.
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May 30, 2010
An early milestone in the rise in importance of blogs came in 2002, when many bloggers focused on comments by U.S. Senate Majority Leader Trent Lott
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May 31, 2010
Presentations given by Microsoft in 2008 focused on multi-touch support, a redesigned Windows Shell with a new taskbar, referred to as the Superbar, a home networking system called HomeGroup,and performance improvements. Some applications that have been included with prior releases of Microsoft Windows, including Windows Calendar, Windows Mail, Windows Movie Maker, and Windows Photo Gallery, are not included in Windows most are instead offered separately at no charge as part of the Windows Live Essentials suite. online fax
June 9, 2010
Retro-gamers are partly responsible for the popularity of console emulation.online fax
June 10, 2010
After Castle dies, Kable requests for Castle's technicians, who have been watching, to release him and his family from their control. They release them and depart, while walking uncaringly past Castle's dead body. Sometime later, Kable is driving with his daughter and wife down a scenic country road. identity theft guard
June 13, 2010
The gameplay is interesting, and the puzzles get very challenging in the real campaign. inflatable boats
June 14, 2010
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.Dog Biting
June 16, 2010
I'll have a review up later today, however the performance of one of the other monologues he did but never committed to film.CSS3 Buttons
June 20, 2010
I’ve always thought it’d be fun to buy the game rights to MST3K. best identity theft protection
June 21, 2010
Would that not be the coolest MMO ever? Spend some of the dev budget buying the rights to crappy old movies. online storage
June 27, 2010
Another player who went by the handle "Merlock" was considered the other favorite. Due to a random draw, we ended up facing each other in the semi-finals. top email marketing solution
June 28, 2010
While being questioned about why only a quarter of PS3 owners have actually downloaded Home, which seems low for a free service, Buser stated that most users never take their PS3 online and therefore never get the option. driver update
June 30, 2010
It was clearly evident in talking to senior vice president of marketing and PlayStation Network Peter Dille that he is very confident in the upcoming God of War III.Motorbike gloves
June 30, 2010
It was clearly evident in talking to senior vice president of marketing and PlayStation Network Peter Dille that he is very confident in the upcoming God of War III. The executive is so upbeat in the product, he thinks it will continue Sony Worldwide Studios' recent tradition of huge acclaim and success.Quality Directory
July 2, 2010
"Everything about God of War, we run by the dev team and they had very specific feedback about how to market it; the game is a testament to their work. 17 inch laptop cases
July 2, 2010
One of the aspects about Jimmy Fallon's "Videogames Week" on his Late Night show that we've been curious about is who will be showing off each particular game. Kudo Tsunoda came out to show off Kinect for Microsoft, and one of the project leads from Treyarch showed off Black Ops.
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July 4, 2010
We've tried hard to put together the extensive campaign and we think it deserves it. The environments are four times larger than what is in God of War.attache case
July 5, 2010
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July 7, 2010
We're constantly thinking about how the consumer is thinking about the product. How do they approach it.Quality Directory
July 13, 2010
Founded in May 2009, IndustryGamers is the top resource for gaming professionals seeking comprehensive news, features, interviews and pertinent industry discussion about the burgeoning $45 billion global games industry. Its mission is to explore, analyze and inform you about all aspects of the business of gamesonline fax
July 13, 2010
The share of play on Wii…is higher than its share of ownership. Not only is purchase intent effectively that of the PS3 and Xbox 360 combined, but this shows that as many people plan on buying a Wii…as the 360…iPhone…iPod and iPod touch put together.
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July 15, 2010
Though Lott's comments were made at a public event attended by the media, no major media organizations reported on his controversial comments until after blogs broke the story.Porsche Parts
July 19, 2010
Good news. This was just great interview. I liked the question put up by the journalists. I also liked the games which were developed by the industry gamers. Thanks for this great article.
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July 22, 2010
Kudo Tsunoda came out to show off Kinect for Microsoft, and one of the project leads from Treyarch showed off Black Ops.
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August 5, 2010
THANKS