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May 18, 2005

Nintendo Talkin' 'Bout a Revolution (and a Micro Too)

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With Microsoft and Sony unloading their plans for next-generation game consoles this week, we were expecting Nintendo to make a big splash with its own console, the Revolution. That didn't quite happen: Nintendo officials were indeed on hand this week at Electronic Entertainment Expo (E3) in Los Angeles to briefly preview the Revolution but made few details available. Instead, Nintendo talked up a new, smaller GameBoy device called the GameBoy Micro, which will ship this fall and won't feature any new technology. Has this company lost it?

Not completely, as it turns out. Despite seeing its current-generation console, the Game Cube, get a thorough drubbing in the market at the hands of the more capable Sony PlayStation 2 (PS2) and Microsoft Xbox, Nintendo believes it still knows what its customers want in a next-generation game machine. The Revolution, the company says, will be a game machine only and won't offer any digital hub functionality.

"The consumer wants a pure gaming device, rather than us forcing a less elegant solution on them," Nintendo Executive Vice President for Sales and Marketing Reggie Fils-Aime said. The Revolution is certainly cool looking. It's a tiny black obelisk sitting in a white base, and the whole unit is about the same size as three stacked DVD cases. It will use a proprietary CD-like format but will also play all Game Cube titles. Like the Xbox 360 and PS3, the Revolution will use wireless controllers.

From a technical perspective, details on the Revolution are vague, and it's still unclear how this machine will stack up against the powerful PS3 and Xbox 360 devices that Sony and Microsoft will ship, respectively, in the next 12 months. The device will feature 512MB of flash RAM, Nintendo says, and use a new IBM microprocessor and an ATI-based graphics processor. It will include networking features, a first for a Nintendo console. Nintendo didn't publicize technical details about Revolution or show off any game play, suggesting that the device is still at least a year away from shipping.

It's not all bad news, however. The Revolution will be able to play DVD movies using an added cost adapter of some kind. And in a bold move, Nintendo will let Revolution owners download every console game Nintendo has ever made, from any console it's ever shipped. That's right, NES, SNES, and Nintendo 64 fans: The games from your past are about to make a comeback. What's not clear, however, is whether Nintendo will charge for this feature.

Meanwhile, most of Nintendo's preshow press conference concerned a new GameBoy device, dubbed the GameBoy Micro. Measuring just 4" wide by 2" tall and weighing only 2.8 ounces, the GameBoy Micro is to the GameBoy line what the iPod Mini was to the iPod line of MP3 players--a smaller device with identical functionality. Going on sale in third quarter 2005, the GameBoy Micro will play all GameBoy Advance and GameBoy games but will offer no new features (other than its size). The device will be sold alongside its GameBoy Advance SP and Nintendo DS stable mates.

End of Article



Reader Comments
"Despite seeing its current-generation console, the Game Cube, get a thorough drubbing in the market at the hands of the more capable Sony PlayStation 2 (PS2) and Microsoft Xbox, Nintendo believes it still knows what its customers want in a next-generation game machine."

Paul, I disagree with your characterization of Nintendo's situation with the GameCube. It was hardly a "drubbing". Sure, Xbox may have gotten a slightly larger market share, BUT in order to do that Microsoft has had to absorb a $1.2 BILLION DOLLAR LOSS PER YEAR on the Xbox project. (Perhaps over $4 Billion in losses so far? That's a lot of money, even by Microsoft standards.) Nintendo, on the other hand, has been running a profitable business. I honestly think that the term "drubbing" is more applicable to Xbox's situation. It's been bleeding enormous amounts of red ink from day one.

Anyway, I hope that Nintendo continues to succeed with their next system. They're a creative company and make a lot of great games.

Anonymous User May 18, 2005 (Article Rating: )


Yawn!

Anonymous User May 18, 2005 (Article Rating: )


Nintendo did not have anyone wanting more..The press was de-pressing.

Anonymous User May 18, 2005 (Article Rating: )


Even though this doesn't contain many details, it is the only report I've seen so far on the matter. I think revolution may have a good chance at coming out on top from all of this, seems how the physical size of the other two consoles seems as though they haven't learnt ANYTHING from the XBox. (They're BIG) Although ever since the game cube I've found a huge number of people are turned away from nintendo products because of they're incompatability with other media. I mean, to buy a addon just to play dvds? When the others are all set to play HDVD from the word go... Yet there may still be hope going by the "CD like format"...

Anonymous User May 18, 2005 (Article Rating: )


Even though this doesn't contain many details, it is the only report I've seen so far on the matter. I think revolution may have a good chance at coming out on top from all of this, seems how the physical size of the other two consoles seems as though they haven't learnt ANYTHING from the XBox. (They're BIG) Although ever since the game cube I've found a huge number of people are turned away from nintendo products because of they're incompatability with other media. I mean, to buy a addon just to play dvds? When the others are all set to play HDVD from the word go... Yet there may still be hope going by the "CD like format"...
____
Did that stop the gamecube from selling?

Anonymous User May 18, 2005 (Article Rating: )


"It will use a proprietary CD-like format but will also play all Game Cube titles."

All the accounts I've read stated that the Revolution will be using a standard DVD-9 drive.

Anonymous User May 18, 2005 (Article Rating: )


"I've found a huge number of people are turned away from nintendo products because of they're (sic) incompatability with other media."

Yeah, it's killin' the PSP, isn't it? And GameBoy? Who buys those? VideoNow players? Can't find 'em. Oh, and the most successful Online Music Store in the Universe uses a proprietary format.

Honest to God. THINK before you type.

Anonymous User May 18, 2005 (Article Rating: )


Nintendo typically never releases info at E3. They do it at the Tokyo Game Show or other Nintendo-biased venues.

Let the tech press eat up Sony's pre-rendered CG movies and Microsoft's underpowered "iBox" for a week. Nintendo will wait until the spotlight is just on them. It remains to be seen if it will be as revolutionary as they've been claiming. Nintendo would have to do a LOT to be #1, or at least be a healthy competitive #2.

Anonymous User May 18, 2005 (Article Rating: )


Um two consoles seems as though they haven't learnt ANYTHING from the XBox. (They're BIG) . Um so can u enlighten me on how size matters on a console as long it's not overly huge. Gamecube was small ya. But it was underpowered compared to the Xbox and we all saw how its sales went.

Anonymous User May 18, 2005 (Article Rating: )


" But it was underpowered compared to the Xbox and we all saw how its sales went. "

Why is there this view that because Xbox had (slightly) more sales than Nintendo that Nintendo "lost" against the Xbox? Microsoft heavily subsidized their sales of the Xbox by pricing it below the manufacturing cost, resulting in a $1.2 billion per year loss on the project. In what sense is that "winning" the console battle? If the purpose of business were to lose massive amounts of money, then I would agree that no one does it better than Bill Gates and the Xbox team. The purpose of business is to make a PROFIT. Nintendo, despite its smaller market share, has been doing that. Microsoft hasn't. The Xbox project must be close to $5 billion in the red by this time.

I think that a lot of people get caught up with the idea that market share is all-important and ignore profits. In the case of Nintendo, what is the importance of market share? It seems to me that the importance is that having a large market share entices more software companies to make games for your console, right? But most of Nintendo's big hits come from its own in-house and very talented software group. Therefore, Nintendo's market share in comparison to Xbox and Playstation isn't all that important. It can humm along quite happily and make nice profits even with a small market share.

Xbox has captured a lot of market share, all right. But its business model appears to be similar to the idea of selling $10 bills for $5 each. They do a lot of business. They capture a lot of the all-important "market share". But the financial model is ridiculous.


Anonymous User May 18, 2005 (Article Rating: )


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