Iwata on 3DS software shortages, avoiding that issue and directly talking to fans
The following comes from Satoru Iwata...
Let me first explain the reason for the software shortage. As you just pointed out, the period when we needed to shift from the Nintendo DS to the Nintendo 3DS overlapped with the period when we had to prepare for the Wii U. If there had been no overlap, or if there had been a three or four year interval, Nintendo could have focused upon just one new hardware system while also taking care of two existing platforms. However, as we have had to take care of two existing platforms and two new ones, it has been more of a challenge. We need to face these hardware transitions from time to time, but the intervals between these transitions are not fixed. The Nintendo DS, for example, has been able to maintain a large presence in the market for a relatively long period of time, which has resulted in a huge installed base of the hardware and an unprecedented number of software sales in the history of portable video games. So, it is not a good idea that we stick with past product cycles. But we think it is true that the longevity of the Nintendo DS has created this challenging aspect for us today.
In such a circumstance, we are more conscious that we must once again re-think how we can create a good balance between what we do internally at Nintendo and what can be done externally. Looking back, certain experiences enabled by the Nintendo DS and the Wii were created just because Nintendo took on these challenges internally, and these experiences were able to drive the overall sales of these platforms. Nintendo was fortunate to have that kind of successful experience. Although I try not to use the term “success” at all, and particularly for this kind of opportunity, but this time I’d like to use this expression. With the experience of success, we tended to have the mindset that it would be the safest and most secure if we took care of everything by ourselves. As I said, however, the time always comes when we must prepare for the next platform. When that time comes, rather than trying to do everything by ourselves, we must try to narrow down what we really have to do inside the company and think of how we can best collaborate with people from other companies. For example, the teams led by Shigeru Miyamoto of Nintendo’s Entertainment Analysis & Development Division have already been cooperating with external developers in order to create titles which would have been developed internally at Nintendo in the past. Now that we realize there may be times when we need to take care of four platforms at once, we are initiating these new challenges, and I believe that such a fixed notion as, “we have to do everything by ourselves,” has faded inside the company to a large degree. So, I am expecting the situation to further improve from now. On a similar note, we often receive criticism that Nintendo is not good at deploying its services on the Internet. We are also internally discussing whether it is the best use of our development resources if those developers who are capable of making hit video game titles have to devote themselves to Nintendo’s Net-related services. Our basic idea today is that our internal game developers should focus on making new, unique and fun software while we collaborate with outside resources, especially in the fields for which Nintendo is not specialized in.
As for our direct communications with consumers, there aren’t many things I can discuss other than what I confirmed at the beginning of my presentation today, but, in a few words, we believe that, depending on the information, we have to separate the places where we communicate our messages. For example, as for the information and details of the game contents that we shared during Nintendo Direct we held last week, it does not make sense for us to explain this information to those who do not play video games and ask them to report about it. Now that we have the means to deliver this kind of information directly to our consumers, we believe we should take that approach. On the other hand, we are not saying that any and all information should be delivered by us directly to consumers. After all, there is always a certain limit in the number of people who are willing to access our messages through such media. When it comes to messages which we wish to spread as widely as possible, we must depend upon the mass media. For us to deliver our messages to our investors, we have to ask for help from those who are attending meetings like this one. We have no notion that we will be all right in directly dispatching any and all the information. We are trying to change the way we communicate, depending on the nature of the information. Depending on the recipients of the message, we identify the information that is relevant to them, and we will structure our messages so that these recipients will be able to receive information they want to know and deliver it to them at the most appropriate opportunities, such as at our events or through various other methods.
Link
Let me first explain the reason for the software shortage. As you just pointed out, the period when we needed to shift from the Nintendo DS to the Nintendo 3DS overlapped with the period when we had to prepare for the Wii U. If there had been no overlap, or if there had been a three or four year interval, Nintendo could have focused upon just one new hardware system while also taking care of two existing platforms. However, as we have had to take care of two existing platforms and two new ones, it has been more of a challenge. We need to face these hardware transitions from time to time, but the intervals between these transitions are not fixed. The Nintendo DS, for example, has been able to maintain a large presence in the market for a relatively long period of time, which has resulted in a huge installed base of the hardware and an unprecedented number of software sales in the history of portable video games. So, it is not a good idea that we stick with past product cycles. But we think it is true that the longevity of the Nintendo DS has created this challenging aspect for us today.
In such a circumstance, we are more conscious that we must once again re-think how we can create a good balance between what we do internally at Nintendo and what can be done externally. Looking back, certain experiences enabled by the Nintendo DS and the Wii were created just because Nintendo took on these challenges internally, and these experiences were able to drive the overall sales of these platforms. Nintendo was fortunate to have that kind of successful experience. Although I try not to use the term “success” at all, and particularly for this kind of opportunity, but this time I’d like to use this expression. With the experience of success, we tended to have the mindset that it would be the safest and most secure if we took care of everything by ourselves. As I said, however, the time always comes when we must prepare for the next platform. When that time comes, rather than trying to do everything by ourselves, we must try to narrow down what we really have to do inside the company and think of how we can best collaborate with people from other companies. For example, the teams led by Shigeru Miyamoto of Nintendo’s Entertainment Analysis & Development Division have already been cooperating with external developers in order to create titles which would have been developed internally at Nintendo in the past. Now that we realize there may be times when we need to take care of four platforms at once, we are initiating these new challenges, and I believe that such a fixed notion as, “we have to do everything by ourselves,” has faded inside the company to a large degree. So, I am expecting the situation to further improve from now. On a similar note, we often receive criticism that Nintendo is not good at deploying its services on the Internet. We are also internally discussing whether it is the best use of our development resources if those developers who are capable of making hit video game titles have to devote themselves to Nintendo’s Net-related services. Our basic idea today is that our internal game developers should focus on making new, unique and fun software while we collaborate with outside resources, especially in the fields for which Nintendo is not specialized in.
As for our direct communications with consumers, there aren’t many things I can discuss other than what I confirmed at the beginning of my presentation today, but, in a few words, we believe that, depending on the information, we have to separate the places where we communicate our messages. For example, as for the information and details of the game contents that we shared during Nintendo Direct we held last week, it does not make sense for us to explain this information to those who do not play video games and ask them to report about it. Now that we have the means to deliver this kind of information directly to our consumers, we believe we should take that approach. On the other hand, we are not saying that any and all information should be delivered by us directly to consumers. After all, there is always a certain limit in the number of people who are willing to access our messages through such media. When it comes to messages which we wish to spread as widely as possible, we must depend upon the mass media. For us to deliver our messages to our investors, we have to ask for help from those who are attending meetings like this one. We have no notion that we will be all right in directly dispatching any and all the information. We are trying to change the way we communicate, depending on the nature of the information. Depending on the recipients of the message, we identify the information that is relevant to them, and we will structure our messages so that these recipients will be able to receive information they want to know and deliver it to them at the most appropriate opportunities, such as at our events or through various other methods.
Link
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