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November 17, 2009 7:15 AM PST

Nintendo's Dunaway: What, Wii worry?

by Lance Whitney
  • 32 comments

Correction at 4:50 a.m. PDT November 18: Cammie Dunaway incorrectly described Wii's October sales figures compared with other next-generation game consoles. Wii sales were nearly the total of its rivals combined.

Stung by lower Wii sales and a couple of down quarters, Nintendo may be a bit off its game this year. But Cammie Dunaway, Nintendo of America's executive vice president of sales and marketing, keeps focused on the company's strengths and positive numbers.

The recession and a paucity of blockbuster titles have taken a bite out of the overall video game industry this year, with revenue down from record levels in 2008. Nintendo certainly hasn't been immune. For the first half of the year, earnings fell about 50 percent from 2008, while Will sales dipped.

Cammie Dunaway

Cammie Dunaway, Nintendo of America's
executive VP of sales and marketing

(Credit: Nintendo)

In the midst of this atmosphere, I spoke on Thursday with Dunaway, known to many video game buffs for her high-spirited appearances at E3.

Though I asked Dunaway about the company's revenue decline, lower console sales, and potential competition, she continually championed Nintendo's assets, including its Wii and DS consoles and recent popular games like Wii Sports Resort and Wii Fit Plus, as well as new titles like Super Mario Bros.

Dunaway's optimism about Nintendo may have been borne out by the latest results. Though overall video game revenue fell in October, the Wii bounced back to recover its spot as the top selling console, according to NPD.

Last month, Nintendo sold 507,000 Wiis, compared with 320,600 Sony PlayStation 3s and 249,700 Microsoft Xbox 360s. Coming in second in video game hardware sales was Nintendo's portable DSi and DS Lite, with gamers scooping up 457,000 units.

Four of Nintendo's titles also did well in October, finishing in the top 10. The company sold 232,000 copies of Wii Fit Plus alone, and 209,000 of Wii Fit Plus bundled with the Balance Board. Wii Sports Resort scored with 179,000 copies sold, while Kingdom Hearts 358/2 Days for the DS found 169,000 new customers.

I spoke with Dunaway by phone before before NPD released the October sales figures. But she certainly knew ahead of time that the numbers would look good for Nintendo.

Q: The question on everyone's mind is Nintendo's performance this year. For the first half, earnings were down about 50 percent. Sales for the Wii have dropped. Your president, [Satoru] Iwata, recently admitted that sales of the Wii have stalled. What do you pin as the reasons for this downturn, both for the company and for the Wii itself?
Dunaway: Let's talk about the U.S., and let's break it down into the separate platforms. So, speaking first about the Wii--what's important to understand is that in 2008, we sold 10 million units of the Wii, which was a record for any console ever in history. And so it's a high mark.

What's also important to understand is that the pacing of our software this year was quite different than it was in 2008. In 2008, our big titles were released early in the year. And this year's huge title, released a few weeks ago in October, Wii Fit Plus, is doing quite well. And then arguably, the largest title of the year, New Super Mario Bros. for the Wii, only releases Sunday [November 15]. So we believe that going into the holiday season, consumers will continue to look for the products they see as representing the best value and the most fun.

Now on DS, we also had a record setting year last year, selling over 10 million units, and we are actually 16 percent above that pace year-to-date in 2009. So the combination of DS Lite and our new product DSi is really resonating with consumers.

Then on software, here in the U.S., our software for both Wii and Nintendo DS is actually up over a year ago. So despite the fact that our big titles are yet to come, we still have had a good year overlapping a tremendous year with our software.

Can you talk about some of the new titles Nintendo has in store for the holidays and next year? You mentioned Super Mario Bros. is a key title for the holidays. Are there others?
Dunaway: Looking to some of the additional titles for the holidays, New Super Mario Bros., for the first time enables four people to play a Mario game together. And it is going to be something that provides tremendous challenge to experienced gamers, and something a brand new gamer can jump in with their friends and family and enjoy. So that one will be a monster hit.

We also on the DS side have a new Zelda title--Zelda Spirit Tracks--coming on December 7. And Zelda titles are always strong performers, and it's a franchise that loyalists look forward to, line up to get copies of. And it's a title that we also think expanded market consumers will enjoy because of its heart. It's really about solving puzzles and going on an adventure, which is something that really anyone can have a good time doing.

Then as we go into next year, while we haven't announced timing, we have announced that we'll be launching a new Pokemon Gold and Silver, which has broken all records on its launch in Japan. [We're also launching] a title that will be great for loyalists called Sin & Punishment and a title called Endless Ocean that really provides a wonderful family experience on the Wii.

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September 23, 2009 7:06 PM PDT

Nintendo drops Wii price to $199

by John P. Falcone
  • 148 comments
Nintendo Wii (Credit: Nintendo)

Nintendo has officially announced that the price of the Wii will drop to $199.99, effective on Sunday. The long-rumored $50 price cut comes in the wake of recent price drops for the PlayStation 3 ($299, with built-in Blu-ray player) and Xbox 360 ($299 for the 120GB version with built-in DVD player and Netflix support), which have boosted sales of the Sony and Microsoft consoles. (To date, the Wii remains the best-selling home game console of the three.)

Other than the price cut, there are no other changes to the current Wii bundle--you're still getting the console, along with the Wiimote and Nunchuk controllers and the bundled Wii Sports game. By contrast, there's at least one rumor that the U.K. will get a Wii package that adds the MotionPlus peripheral and Wii Sports Resort to the mix. Meanwhile, white remains the only color choice in North America (Japanese consumers can choose black as well).

Nintendo also took the opportunity to officially announce the release date for New Super Mario Bros. Wii, which had previously been slated for a vague "fall 2009" window. The multiplayer Super Mario game will hit store shelves on November 15.

So, what do you guys think? Does the price drop make the Wii more attractive? Would you prefer a more enticing bundle? Or are you holding out for the Wii HD? Share your comments below.

The following product mentioned is available.

On Sale Now: $199.00 - $219.99
View the latest prices for Nintendo Wii

Originally posted at Crave
June 5, 2009 4:00 AM PDT

Nintendo's Fils-Aime takes aim at rest of world

by Daniel Terdiman
  • 29 comments

Nintendo president and COO Reggie Fils-Aime talks about the company's latest iteration of its motion-sensitive controller, the Wii Motion Plus, at its E3 press briefing in Tuesday in Los Angeles.

(Credit: Daniel Terdiman/CNET Networks)

LOS ANGELES--Although the video games industry has begun to take some hits--suggesting it may not be recession-proof after all--Nintendo has managed to maintain a solid financial performance.

Its sales are up 19 percent year-over-year, according to the company, which would be impressive in any year, but is particularly so in the current economic climate.

At E3 here this week, Nintendo made a few bold moves, but tended to play it relatively safe. It unveiled a new version of its mega-hit exercise game, "Wii Fit Plus," and showed off the next-generation of its motion-sensitive controller, the Wii Motion Plus.

Nintendo President and COO Reggie Fils-Aime

Nintendo President and COO Reggie Fils-Aime

(Credit: Daniel Terdiman/CNET)

Overall, however, there was the impression that the company was sitting on its lead. For while Microsoft has had some very impressive sales numbers and Sony has picked up its pace over its early PlayStation 3 stumbles, Nintendo's Wii has managed to stay on top of the sales charts. Similarly, the Nintendo DS has also had sky-high sales, and continues to defy expectations, more than four years after its launch.

At E3, CNET News' Daniel Terdiman had a chance to speak with about the video game industry as a whole, and about how Nintendo plans to go after the few demographics it hasn't already captured with the Wii and the DS.

Q: What's your feeling about where the video game industry is right now?
Reggie Fils-Aime: The video games industry is not just at the center of the entertainment industry, but is driving the entertainment industry, not only economically, but from a cultural impact standpoint. Having said that, consumers are having to make tough economic choices today. Nintendo's in a very fortunate place. The industry through April is down about 4 percent, but we're up about 19 percent. So consumers are voting for us with their wallets, which is a great place to be, especially when so much of our best content will be coming in the second half of the year.

Can Nintendo sustain that performance if the economy worsens?
Fils-Aime: Consumers are looking for ways to entertain themselves. In tough economic times, certain parts of the entertainment business have always done well. Whether or not the industry or Nintendo can sustain where we are really comes down to the experiences we're offering. And based on E3 and the smiles I see from people playing Wii Sports Resort, or Zelda DS, or Mario vs. Donkey Kong, I believe that as long as we continue to bring great, innovative entertainment, consumers will continue to choose us.

Speaking of Donkey Kong, I was thinking about the attempt at E3 on the world-record Donkey Kong score, and about how well the game and other classics like Pac-Man and Frogger and others from that era have held up. Are there current games that 20 or 30 years people will still be playing and appreciating?
Fils-Aime: It would be wonderful to see. If you look at something like Super Mario 64, that was a launch title for DS, 53 months ago, and continues to sell exceptionally well, as does Super Mario Galaxy for Wii. I do think there will be some key titles that folks will look back on 10 or 20 years from now, and say, "Boy, I would have loved to be a gamer when these games were launched."

Was there a design philosophy in the 1980s that designers could learn from today?
Fils-Aime: I think actually (Nintendo president and CEO Satoru Iwata) touched on this during our press conference. He talked about games like Donkey Kong or Space Invaders presenting an incredible challenge but also being inviting at the same time. And that duality is something that is really tough to do from a game design standpoint, and as we think about Wii Sports Resort, or Super Mario Galaxy 2, we're also trying to find that great balance.

Nintendo is currently selling both the DS Lite and the DSi. Is that not confusing to some consumers?
Fils-Aime: I don't think so, because a consumer walking in the door is going to be compelled by the plethora of great titles for DS. Then it's going to come down to, "Do I want a DS Lite or a DSi?" The first thing they'll see is that there's a price difference, so that will drive people one way or the other. The other thing they'll say is, "How important is it to me to download games. How important are the two cameras. And as we showed yesterday, with a million DSis sold in two months, and 400,000 DS Lites. And I think consumers are making their choice based on a number of factors. We have some who are saying, "I want pink." To little 8-, 9-, 10-year-old girls, features don't matter, It's, "I want the pink one." And having that available just for DS Lite is driving it that way.

"We're not going to be satisfied just picking up that existing gamer. We have to reach beyond and get that consumer who doesn't game. That's the only way we'll be able to continue growing as a company and as an industry."

Do you think all the innovation we're seeing in accessories for Wii, Xbox, and PS3 is making a rush to the next generation of consoles unnecessary?
Fils-Aime: We certainly believe there's a lot more Wii volume to be done, and a lot more games for the Wii. And that's not just what we've been able to do with accessories like the Balance Board, or future accessories like the Vitality Sensor. It's also what we're able to do with Wii Motion Plus, from an archery standpoint, or what we're doing with ping-pong, in putting this big spin and curve on the ball. Who would have thought that possible three or four years ago? Nintendo's driving a focus on innovation that maybe wasn't in our industry four or five years ago. I think that's where the major difference is.

One of the things that has driven the mystique of the Wii has been how hard it has been to buy one. But now it's available anywhere, anytime. Does that take away the mystique?
Fils-Aime: I don't think so. From the start, we wanted to reach out to people who did not consider themselves gamers. The only way to reach them is for the product to be readily available, because they won't sleep out in front of a store to buy a Wii. We had to get to the point of having massive availability. We're selling 300,000 or 400,000 units a month, 30 months after launch, and that's never been done before. We've blown past the PlayStation 2 sales rate after 30 months.

How did you solve the availability issue?
Fils-Aime: We've been manufacturing it at a rate that's never been seen before.

But why were there still shortages last holiday season?
Fils-Aime: The fact is, we've been producing at this rate for a year. It's taken us that long to satisfy all of that pent up demand. Now we can do some outreach to people who in the past were saying, "I might be interested in the Wii, but I'm not going to go sleep out in front of a retailer."

With their announced new motion-sensitive control systems, Sony and Microsoft seem to be planning to aggressively go after the elusive mainstream audience. But perception-wise, at least, Nintendo maybe has the opposite problem: You've got the mainstream. How do you reach that core gamer?
Fils-Aime: We have near-term, mid-term and long-term opportunities. The near-term opportunity is the consumer who owns an PS3 or an Xbox 360 and has been bad-mouthing Wii to their friends. We can reach that consumer with games like The Conduit or Tiger Woods with Wii Motion Plus. The mid-term opportunity is the more mainstream consumer who saw Wii at a friend's house but just needs a little extra incentive to get into our game. That's what Wii Motion Plus and Wii Fit Plus and new Super Mario Bros. Wii will hopefully achieve. And the long-term opportunity is that person who currently says, "I don't play video games and I have no interest in playing video games."

What about the Halo audience?
Fils-Aime: We think we win over the Halo audience with something like The Conduit, a multi-player, online, shooting experience, or Dead Space Extraction. And you know what? Once those people buy into Wii, they'll go buy Mario Kart or Wii Fit Plus. We're not going to be satisfied just picking up that existing gamer. We have to reach beyond and get that consumer who doesn't game. That's the only way we'll be able to continue growing as a company and as an industry.

That's not an unlimited audience, right?
Fils-Aime: It's not. And actually the challenge increases the further you dip into this group. Two years ago, theoretically, there were ten consumers who said, "I would never play video games." We picked them off one at a time with Wii Fit or Brain Age 2. Now maybe there's five left, but now the bar is substantially higher for how to get them. Which is why we're looking to push the envelope with something like the Vitality Sensor, and why we have to make current gamers say, "Huh? What is that?" But that's exactly the type of reaction we got a couple of years ago when we first talked about "Wii Fit," and look where we are now.

You just announced the multi-player Super Mario Bros. Wii. How important is that for broadening your Mario audience?
Fils-Aime: I think Super Mario Bros. Wii will first appeal to the traditional Mario fan. But I think we'll also appeal to the consumer who first bought a Wii to play Wii Fit or Wii Fit Plus, who maybe has felt that platforming games are a little too challenging. We'll get that consumer because it's Mario, and because they can play with other people, whether competitively or cooperatively. That's exactly what happened when we launched Super Mario Bros. DS. Initially it was the Nintendo fan. But the only way it's been able to stay in the top ten month after month is because we've reached beyond the Nintendo fan into the brand-new consumer who's picked up a DS for the first time.

Can you talk about what you saw from Microsoft and Sony when it comes to the motion-sensitive controllers. It will be a sort of a new arms race.
Fils-Aime: The only thing I'll say is a rhetorical question. Is it fun? If it's fun, then I tip my hat and say, "Well done." But what's happening sounds to me a lot like, "Who's got the prettiest picture. Who's got high-definition. Who has the best processing power?" It sounds like technology, when the consumer wants to be entertained. Our focus is how do we take active play and make it entertainment. And that's what we're going to continue to focus on. And I think we've done a great job with Wii Motion Plus, and the Balance Board. And we're going to continue to push the envelope in ways to make it more fun.

June 2, 2009 9:10 AM PDT

Nintendo tries to regain the momentum

by Daniel Terdiman
  • 35 comments
Nintendo at E3

Nintendo prepares for its annual E3 press conference.

(Credit: Daniel Terdiman/CNET)

LOS ANGELES--Microsoft on Monday set the tone for a newly revitalized E3 with the announcement of its Project Natal, a hands-free motion-sensitive controller for the Xbox. Now, on the heels of some less-than-stellar sales numbers, Nintendo has a chance to steal back the attention of the world's video game press, many of whom are on hand this week for the industry's most famous trade show. But can Nintendo do it?

This is our live blog of Nintendo's E3 press briefing, which kicked off shortly after 9 a.m. PDT at Club Nokia in Los Angeles. Sister site Gamespot will post a video of the presentation here later today.

9:02 a.m.: Nintendo is a little late starting. And Sony's briefing (which is scheduled for 11 a.m.) won't start until they get everyone bused over there from Nintendo.

9:09 a.m.: Nintendo of America executive vice president of sales and marketing Cammie Dunaway: Shigeru Miyamoto has been thinking about one new way to let you play a Mario game that has never been possible before.

9:12 a.m.: Nintendo starts its press briefing off with what may be its most anticipated new game: Super Mario Bros. for the Wii, a four-player version of the classic game.

It allows players to play major parts of the game in single-player mode, but then allows them to call friends over if they need help with a particularly hard level.

"We're happy to announce (the game will be available) worldwide holiday 2009," said Dunaway. "We know players will be lining up to play with and against each other in Mr. Miyamoto's newest masterpiece."

9:16 a.m.: Dunaway announces a new version of the 15-million-plus-unit selling Wii Fit. Called Wii Fit Plus, it is designed to help people design better workout routines. She said it featured 15 new balance games, and offers 6 new strength and yoga routines. "The key is how you mix and match different elements. You can combine it in any order you want."

She adds that Wii Fit Plus will be available this fall, and be offered as a bundle with the Wii Balance Board.

9:22 a.m.: Next, Nintendo of America CEO Reggie Fils-Aime takes the stage to announce the next version of the company's Wiimote, the Wii Motion Plus. A video shows a martial arts expert "chopping" a stalk of bamboo by slicing down with the controller, and an archer pulling back on a bow and shooting arrows.

Cammie Dunaway

Cammie Dunaway touts Nintendo DS sales.

(Credit: Gamespot)

9:30 a.m.: Nintendo showcases the way its Wii Motion Plus interacts with one of the games it announced at E3 last year, "Wii Sports Resort." The idea behind the new version of the controller is that it offers enhanced feedback, what they called "physical reality."

The idea is that the controller allows for much more precise, feedback-oriented motion. So, for example, a video that they showed demonstrated that players can, for example, slice bamboo with a slicing action, or shoot an arrow by "pulling back" on the bow. And the game itself begins with players skydiving from an airplane. Players use the controller to orient themselves in the air.

9:34 a.m.: Fils-Aime says, speaking about the new controller, "Every little mistake you make in the real world when you currently bury your backhand into the net...will be faithfully re-created in the game."

He adds, "We will have you muttering the same bad words you (usually say) in real life."

Fils-Aime says that "Red Steel 2" will be playable only with Wii Motion Plus control, and then, speaking about third-party support for Nintendo, says that last year, more third-party games were sold for the Wii and Nintendo DS than any other platform.

9:40 a.m.: Fils-Aime also talks about new integrations with traditional partners. He talked about Square Enix's forthcoming "Final Fantasy: Crystal Bearers" and another former hit, "Golden Sun DS."

He says that franchise "went dark" six years ago. This, as fans in the audience clearly were excited by, is a franchise that had been popular on Nintendo in the past, but had been put on the back burner.

9:42 a.m.: Dunaway comes back on stage and announces that mystery writer extraordinaire James Patterson is collaborating with Nintendo on "Women's Murder Club: Games of Passion," which will be released on October 13, by THQ.

It will "usher casual gamers and passionate readers into wider world of video games," Dunaway says.

Dunaway talks about Mario and Luigi franchise

(Credit: Gamespot)

9:48 a.m.: Moments earlier, Fils-Aime touted the next Mario and Luigi game for DS, "Mario and Luigi: Bowser's Inside Story." He said it would be available this fall.

Then Dunaway talked about the success of Nintendo's DSi handheld. All told, the DS line has sold more than 100 million units. She said that when the company put out the new DSi, "We predicted it would naturally complement DS Lite. So far, that's exactly what's happening. As of today, total DSi sales in North America have surpassed 1 million units. (And consumers) have purchased another 400,000 DS Lites."

9:51 a.m.: Dunaway says that starting this summer, DSi owners will be able to upload and share their photos on Facebook.

She then shifts directions and says the game that Satoru Iwata announced at the Game Developers Conference in March, "Legend of Zelda: Spirit Tracks," would be playable on the show floor at E3 this week. She does not give a release date, however.

9:53 a.m.: Iwata takes the stage to talk philosophically about Nintendo's advances in video gaming.

Satoru Iwata

Satoru Iwata at E3

(Credit: Gamespot)

9:55 a.m.: Iwata says that Nintendo has been examining how to expand the video game audience. He says that in Japan, the United States, and six European countries, there are currently 295 million game players. But he says there are also 149 million people who "say they might be interested in getting involved."

"For every two people now playing, there's now one more just waiting to jump into the game. Imagine the opportunity if the number of players were 50 percent larger than it is right now. (It shows) we still have a long way to go in expanding the gaming population."

10:03 a.m.: "Most of the games we talked about today are familiar even to non-gamers," said Iwata. "So, what's next? I thought, I should give you at least one potential answer. So today, as a sneak peek, I'd like to show you another entirely different way of thinking about games. With Brain Age, Nintendo proposed training your brain. With Wii Fit, using balance to train your body."

Wii Vitality Sensor

Nintendo's Wii Vitality Sensor

(Credit: Gamespot)

Then, he offers the first look at Wii Vitality Sensor, which collects signals being broadcast by our bodies.

"For example, how nervous am I up here on this stage today?" Iwata joked. "How focused am I on remembering my script? Just as we enable you to center your body with Wii Balance Board (with) Vitality Sensor (we can) see information relating to inner world of your body. People will be able to use the product we're developing with (this)...to achieve greater relaxation.

10:03 a.m.: Dunaway announces another full Mario game, "Super Mario Galaxy 2."

10:09 a.m.: Fils-Aime is back on stage to announce a series of new third-party titles.

First, he talks about a Sega title created just for Wii, called "The Conduit." Next up is Capcom's top-selling "Resident Evil" franchise, and announced that in "Resident Evil: The Darkside Chronicles," Wii players will "see familiar characters in a new light."

And he says Electronic Arts has been working on "Dead Space: Extraction," the latest version, for Wii only, of the "Dead Space" franchise.

10:11 a.m.: "And what about Nintendo?" Fils-Aime says. "Could a new, edgier game be coming from us? Absolutely."

He explains that Nintendo has commissioned Team Ninja to work on a new Nintendo title, "Metroid: Other M," which will be available in 2010.

Metroid

A new Metroid game for the Wii is considered "edgy" by the company.

(Credit: Gamespot)

10:13 a.m.: And that's it for Nintendo's press briefing.

We're heading over to Sony's presentation now. You can follow our live blog of that event, scheduled to start at 11 a.m., here.

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