Gaming and Culture

The Nintendo Wii remains a force to be reckoned with in the video game world and new survey statistics along with new revenue streams suggest that Nintendo has still has something up it's sleeve.

Wii 'Theater no Ma'

(Credit: Nintendo)

The Wii and Wii-related gear were wished for twice as much as the Sony PS3 and Xbox 360 combined though 38 percent of people wanted something other than products--namely cash, and in one case, Satan (I assume for a visit, not as a full-time family member.)

And while a wish, or a request for a gift, is no guarantee that a product will actually sell, there is a dearth of exciting gifts for this holiday season, leaving room for the Wii and other less-new products to be successful.

Just a few weeks ago, Electronic Arts CEO John Riccitiello commented that the "Wii platform has been a little weaker than we had anticipated" but Nintendo of America's executive vice president of sales and marketing Cammie Dunaway was extremely positive about the current sales and the future growth.

But, the focus in the U.S. remains on selling more titles and accessories, not branching out into additional services such as we've seen with Microsoft's Xbox Live, which provides access to Facebook, Twitter, and Last.fm through the console.

Services supporting the Wii are much more sophisticated in Nintendo's home country of Japan, where the company previously launched an advertising program to turn family time into a commercial endeavor and a catering channel that lets users order food from a variety of vendors directly through the console, delivered directly to their front door.

This weekend Nintendo added to the Wii's variety of interactive offerings, with a paid video download service for Japan. "Theater no Ma" will offer a range of movies, anime and other paid content from providers including Walt Disney and Sesame Workshop.

Downloading rental content onto game consoles and set-top boxes has been common in the U.S for awhile, but the reason this service could prove meaningful in Japan is because Nintendo researchers previously found that 87 percent of Wii users use the console on the biggest screen in the house, which is still the one in the living room.

Call of Duty: Modern Warfare 2 is enjoying big success.

(Credit: Infinity Ward)

If you think Call of Duty: Modern Warfare 2 has had a major impact on just the video game industry, you may need to adjust your expectations.

According to Activision Blizzard, the game's publisher, Modern Warfare 2 has set records across the entire entertainment industry.

Call of Duty: Modern Warfare 2 is the "biggest entertainment launch in history," Activision said in a statement. In its first five days of availability, the game set a worldwide record with about $550 million in sales, according to internal Activision figures. It's impressive. But more impressive is the list of launches that it beat out.

In the first five days of availability, Modern Warfare 2 has eclipsed the largest worldwide box-office opening, held by "Harry Potter and the Half-Blood Prince," which tallied $394 million over its first five days. It also beat "The Dark Knight," which holds the U.S. box-office record with $203.8 million in first five-day sales.

The game also narrowly trumped Grand Theft Auto IV, which captured $500 million in sales in its first five days of availability.

In other words, Modern Warfare 2 has had a major release.

The game's success also translated to major numbers on Xbox Live. Activision reported that "more than 5.2 million multiplayer hours were logged playing Call of Duty: Modern Warfare 2 on the first day alone." On November 10, 2.2 million unique gamers played on Xbox Live, setting a new one-day record for the online-gaming platform.

Of course, it should be noted that all these figures come from Activision's internal estimates, which might differ from the NPD Group's official totals when it announces November video-game sales.

But until then, Activision can (rightfully so) celebrate Modern Warfare 2's success. And maybe the video-game industry, which has always received second billing to film in the entertainment space, can finally stake its claim to the top spot. Video games are, based on Modern Warfare 2's success, just as viable an entertainment platform as movies.

The Wii is coming to...Sports Authority?

(Credit: Nintendo)

You might be used to buying your video game consoles only at an electronics store, but all that will soon change. National sports retailer Sports Authority announced Tuesday that it will start selling the Nintendo Wii and Wii Fit Plus in its stores.

Aside from being able to pick up a Wii and Wii Fit Plus, consumers will also find Sports Authority stores that boast a Wii "interactive fitness experience." The section of the store will have "knowledgeable fitness trainers allowing customers to try Wii and Wii Fit Plus before they buy."

While it's certainly interesting to see a Wii being used by a fitness instructor in a sports store, Sports Authority said it believes that it will help set it apart in the marketplace. According to the company, users will now be able to "satisfy their fitness- and sports-gaming needs under one roof."

But just how much of a benefit Wii Fit actually affords its users is up for debate. Sports Authority might claim that it helps users "achieve better health," but a recent study (PDF) from the American Council on Exercise found that the game offers a "very, very mild workout."

That could throw a wrench in Sports Authority's plans as it attempts to make the case that the Wii and the Wii Fit Plus make sense next to other products designed specifically to improve the health of its users. As appealing as it might be to some, Nintendo's game might not be able to stand up against fitness-focused products.

Regardless, Sports Authority has thrown its support behind Nintendo's console. The Wii and the Wii Fit Plus will be available in 102 stores starting on Thursday. It will be rolled out to remaining company stores by spring 2010.

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, 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.

U.S. video game industry sales plunged in October, dropping 19 percent from a year earlier, and 16.4 percent from September, according to data released Thursday by the NPD Group.

But with the tremendous, record-breaking, out-of-the-gate performance of Activision's Call of Duty: Modern Warfare 2 and the coming holiday season, NPD is bullish on the industry's fortunes for November.

Still, the $1.07 billion in total sales turned in by the industry in October were paltry, compared with $1.32 billion in October 2008 and $1.28 billion in September 2009. NPD analyst Anita Frazier tried to soften the blow a little bit in her monthly report, noting that while sales were down precipitously in October, it was still the third-best October sales report turned in by the video game industry.

"The continued economic turmoil, and in particular the troubling unemployment rate, is undoubtedly impacting industry sales," Frazier wrote in a statement. "Our latest Economy Tracker indicated that although consumers' general opinion about the economy is improving, their outlook on their own personal situation is worsening. If consumers' personal outlook continues to erode, they could very well be much more conservative with their holiday shopping this year."

That last sentence is no doubt one of the most chilling group of words imaginable to the honchos at companies like Microsoft, Sony, Nintendo, Electronic Arts, Activision, and many others involved in putting video game hardware and software in consumers' hands, especially as their most important sales months of the year are now at hand.

As always, regardless of the monthly results, the big console makers each had some things to celebrate in the NPD numbers.

For Nintendo, which has seen sales of its once-high-flying Wii dip and perceptions that the console's days of seeming infallible may be over, the numbers had some hope: in October, the Wii took back first place among the consoles--respectively the Wii, Microsoft's Xbox 360, and Sony's PlayStation 3. In October, Nintendo moved 506,900 Wiis, beating out the PS3 (320,600) and the Xbox (249,700).

Sony was coming off the first month the PS3 won since being launched in the fall of 2006, but while the console was beaten out by the Wii, there must certainly be some measure of gratification in having the PS3 come out ahead of Microsoft's console offering.

"In October, we saw continued momentum [for the] PS3, with nearly 70 percent growth, when compared to last October," Peter Dille, Sony Computer Entertainment of America's senior vice president of marketing, said in a statement. It was "the only console to see any growth year over year."

NPD itself touted Microsoft's chief bragging point for October: "Across all categories, the Xbox 360 platform contributed the greatest portion of total industry sales, representing 27 percent of total industry sales for the month," Frazier wrote.

Yet despite the record-smashing first-day sales posted this week by Call of Duty: Modern Warfare 2, the video game industry as a whole is facing a very painful reality: If sales don't improve quickly, there will be layoffs, slashed budgets, canceled games, and more.

Electronic Arts, for example, announced this week that it is planning to lay off 1,500 people as part of a major restructuring--the company's latest--and as a way to stave off growing losses.

And while the industry may have hoped that console sales--especially with prices for next-generation hardware now at their lowest levels ever--would help it rebound, Frazier did not offer much hope.

"Year to date, the hardware category has experienced the sharpest decline in the industry, with unit sales down 10 percent compared to the same time period last year," Frazier wrote. "Recent price cuts helped spur a one- to two-month increase in unit sales, and this month's Wii sales reflect that boost, but the other platforms have not sustained the sales momentum [after] price reduction."

The Wii isn't living up to its expectations.

(Credit: Nintendo)

Electronic Arts CEO John Riccitiello didn't pull any punches when he spoke at a quarterly earnings call earlier this week. As he discussed some of the issues his company faces in today's gaming market, he singled out Nintendo and its Wii as contributing factors.

According to Riccitiello, third-party games on the Wii just aren't performing nearly as well as EA had expected. And as the Wii's sales start to slip, it doesn't seem likely that that will be changing anytime soon.

"To be honest with you, I think the Wii platform has been a little weaker than we had certainly anticipated," Riccitiello said, according to a transcript of the call published by Seeking Alpha on Monday. "And there is no lack of frustration (about this coming out) at precisely the time where we have the strongest third-party share."

But Riccitiello didn't stop there. He said EA is "reaching out to Nintendo to find ways to partner to push third-party software harder." He contended that in order for the Wii to perform up to Nintendo's own expectations, the platform needs help from third parties.

Riccitiello continued on that theme. He said his company is providing high-quality titles for the Wii, but it's Nintendo that needs to do more.

"Wii is where we are missing it," Riccitiello said on the call. "And so I really do think that the opportunity exists to find different ways to partner with (Nintendo) in this case, to sort of help establish in the minds of the consumer legitimacy of some of these other brands, when they are going out multiplatform."

But it was Riccitiello's next statement that might send the most shockwaves through the Nintendo world. The EA chief said "very, very few multiplatform titles are succeeding on the Wii so far, and collectively, Electronic Arts and Nintendo need to tackle that."

Perhaps now the question is, then, how will those two major forces in the gaming industry achieve what Riccitiello wants? Nintendo's platform has enjoyed strong sales since its debut, but the Wii is slipping. Worst of all, during the most successful periods for Nintendo, it was first-party titles, not third-party games that performed best at retail. Whether Nintendo can help change that, making it more profitable for third parties to develop games for the Wii, is very much in doubt.

What do you think? Is Nintendo really in bad shape? Is Riccitiello overstating the Wii's shortcomings? Let us know in the comments below.

The hype surrounding Call of Duty Modern Warfare 2 keeps heating up.

After Gamestop announced last week a $40 trade credit for those who preorder the game and bring it back to a Gamestop store by December 13, Amazon.com has launched a competition, dubbed "The Call of Duty-est Town in America." The contest is seeking the town or city with the most preorders of Modern Warfare 2.

According to Amazon, any town or city with a population of 5,000 or more can compete. It determined population size using the most recent U.S. Census Bureau data.

Whenever a person preorders Modern Warfare 2 from Amazon, the location is tallied. The goal for each location is to have the highest percentage of preorders. Realizing that population plays a role in those figures, the number of orders doesn't factor into the competition.

Amazon said on its contest page that it will give a $5,000 gift certificate to a charity that serves the winning town. If the competition had ended at the time of this writing, the winner would be Grand Forks, N.D.

The page also features some interesting information about those preorders. As of this writing, the Xbox 360 version of the game accounted for 61 percent of Amazon preorders. The PlayStation 3 and the PC versions captured 31 percent and 8 percent of the preorders, respectively.

"The Call of Duty-est Town in America" competition ends on the game's release day, November 10. The winning town will be announced that day.

Though it once appeared to be a tiny sales juggernaut, Nintendo's top-selling Wii console has struggled in 2009. In July, the Japanese publisher reported April-June revenues that slid 40 percent from a year prior to 253 billion yen ($2.81 billion). Nintendo didn't fare much better during its July-September quarter, saying Thursday that sales fell 34.5 percent to 548 billion yen ($6.09 billion) during the first half of its fiscal year.

Nintendo's slipping performance has not gone unnoticed by the publisher's president. As reported by Japan's Mainichi Newspaper and translated by GameSpot, Nintendo executive Satoru Iwata told analysts and investors as part of a post-earnings Q&A that a weak software lineup has contributed to the Wii's sluggish performance.

(Credit: Nintendo)

"The Wii has stalled," Iwata said. "Games of high demand could not be continuously released and the good mood has chilled." Iwata went on to note that it will be difficult to recover from "the slowdown in demand," but he also expressed optimism over Nintendo's ability to continue selling Wiis.

According to Japan's Nikkan Sports (also translated by GameSpot), Iwata said during the conference that Nintendo misjudged market conditions as they pertained to the publisher's sales strategy.

"The mood of the market got colder than expected, and there was a difference in expectations," he said. "Now, we are preparing for next year and thinking about what to do the year after next." Iwata reportedly went on to note that Nintendo is optimistic about its chance to right the Wii's downward sales trend going forward.

Notably, reports have emerged that Nintendo is planning a number of enhancements to its console. Earlier this week, reports surfaced that Nintendo would be introducing Netflix's online video-streaming service to the console, functionality that is already available for the Xbox 360 and will soon be introduced to the PlayStation 3.

Analysts and industry insiders also expect the publisher to launch an HD version of the Wii or an all-new system in 2010 or 2011 to better compete with Microsoft and Sony's consoles.

As for Nintendo's other hit hardware, Nikkan Sports reports that Iwata downplayed suggestions that the DS was losing ground to Apple's increasingly ubiquitous iPhone. "Our presence in the marketplace is growing," he succinctly stated.

Thursday, Nintendo also took the lid off its fourth DS hardware iteration, the DSi XL. The jumbo-size DSi, which features 4.2-inch screens, increased battery life, and a larger stylus, is expected to launch in Japan later this year for 20,000 yen ($220.50). The device's North American and European launch is expected to follow during the first part of 2010.

Tom Magrino reported for GameSpot.

The DSi XL's larger screens make it significantly bigger than the existing DSi.

(Credit: Nintendo Japan)

Nintendo recently announced a new DSi model for the Japanese market. How does it differ from the current DSi, and when can gamers in other parts of the world expect to be able to buy it? Read on for the answers.

What is it?
The DSi LL (as it will be called in Japan) or XL (how it'll be referred to in Europe and North America) is a supersized version of the Nintendo DSi.

What is different about it?
The DSi XL will be almost an inch wider than the DSi, a bit thicker, and it will have two 4.25-inch screens (that's an inch larger than the DSi's screens and 93 percent larger than the screens of the older DS Lite). It will feature two different-sized styli: a traditional thin stylus and a large rounded one that takes the shape of a pen. The portable console will have a similar battery life to the DSi's, about 4 to 5 hours on maximum brightness and 13 to 17 hours on the minimum setting.

Except for the larger size and extra stylus, there doesn't seem to be any other major differences on the XL. Like the DSi, it does not have a Game Boy Advance port, so it can't play older GBA cartridges.

Nintendo DSi XL photos

Can I transfer my downloaded DSi games (DSi Ware) to it?
As of this writing, Nintendo has not said how it plans to handle this issue. That said, DSi Ware games are currently nontransferable.

Why is Nintendo making yet another DS model?
We're not totally sure about this one. The two best bets: the DSi XL's larger screens may appeal to older gamers who are visually impaired, and the larger size could be helpful to those with big hands for whom the DSi's real estate is a bit too cramped. But the obvious sacrifice is portability--the XL will no longer fit into a pocket.

When will it be available, and how much will it cost?
The DSi XL will go on sale in Japan on November 21, 2009 (as the LL) for around $220. Nintendo has confirmed that it will be released in Europe and North America in the first quarter of 2010, but the company has yet to name a price.