Nintendo Sees no Rivalry with iPhone, but “Future is Dark” if They Can’t Differentiate
Nintendo president, Satoru Iwata loves his MacBook and his iPhone, and firmly believes Nintendo and Apple aren’t competitors (they appeal to different customers), and any talk of it makes him uncomfortable.
Yet Apple is most assuredly aiming at gaming (even if John Carmack thinks it’s between clenched teeth), especially with the funner iPod touch ever, and its game-heavy marketing.
With Nintendo profits down 52% for the first half of the year, and Apple selling record numbers of iPhones and reporting 100,000 apps and 2,000,000,000 downloads (with games weighed heavily among them).
Even with a dedicated gaming device like the DS (and perhaps a new platform on the way next year?), and a high-profile set of first-party properties like Mario, Metroid, Zelda, Pokémon, etc. those are tough numbers to look at. And Nintendo isn’t kidding themselves about that:
“If we can’t make clear why customers pay a lot of money to play games on Nintendo hardware and Nintendo software and differentiate ourselves from games on the mobile phone or iPhone, then our future is dark.”
Still, there are no plans for a WiiPhone (no matter how cool that might sound to us!), though an Amazon Kindle-like model, where the end-user doesn’t see any of the cell network bills, does appeal to Iwata.
Likewise, we can’t hold our breath for even older 1st party GameBoy titles to show up on the iPhone either. At least not anytime soon.
[Wall Street Journal -- thanks to everyone who sent this in!]
November 11th, 2009 at 11:00 am
1st iPhone and iPod touch have good games but I don’t think there at the nintendo psp level yet.
November 11th, 2009 at 11:08 am
Agreed the games on iPhone are cool but nowhere near the level of a gaming system like wii. Not to mention ps3
November 11th, 2009 at 11:26 am
games like eliminate and gangstar for iPhone compare pretty nicely to the ds
November 11th, 2009 at 11:31 am
I have about 20 games on my iphone 3gs paid apps ranging from 0.99 to 10.00 as well as a few screens of free games and I have to say the convenience of a all in once device that can store my music collection, work as a cell phone and instantly access a online database of games is a great platform.
I usually play these games on my bus ride to work, about an hour commute each way. but one thing i always wish for is a set of real buttons and controls. If Apple or a 3rd party could build a solid case with a D-pad or joystick with at least 4 buttons, maybe with a extra battery something like the new case apple just made for their stores, then you would see a huge explosion of games. Don’t get me wrong, games like Hero of Sparta, Tiger Woods PGA tour and Meteor Blitz have figured out how to utilize the touch screen but the combination of real buttons and the touch screen would amazing.
November 11th, 2009 at 11:33 am
iPhone games are not at Nintendo’s level, but they do not have to be to put a hurt on the big N. Iwata correctly forsees the danger, and keeps it in perspective.
It is not that iPhone games are as good as DS games — in my opinion, it is not even close — it is that more and more people are going to be carrying games-capable machines at all times, and a large chunk of those people are not going to be interested in buying a separate game machine if they already have “good enough” games in their pocket. Superior quality is not enough against a “good enough” and extremely convenient rival. The iPhone is the first and best example, but there will be others.
Nintendo does not have to be just better against the iPhone — they have to be so much better that people will be willing to shell out an extra $120 for a separate device to carry around. As phones get better and better, that hurdle gets harder and harder to clear for a mass audience, and at some point it may no longer be profitable to try.
Nintendo certainly has the talent to keep waging that battle if they so choose, but given their history of dramatic moves, it would not surprise me if Nintendo decided to avoid fighting to be the extra device, and instead introduced a game-centric DSPhone (no N-Gage jokes, please) to aim at becoming that default device in people’s pockets.
November 11th, 2009 at 12:00 pm
Future dark? I doubt that. They have a number of properties that they own the IP to which have never been on any platform but Nintendo. They could always develop for other platforms and do just fine if they can’t do anything on the hardware side.
November 11th, 2009 at 12:00 pm
If I had a child, I would consider getting him/her a DS in the early ages (until 10 or maybe little later) then move onto an iPod Touch eventually.
November 11th, 2009 at 12:57 pm
Iwata may also benefit from loving Theodore Levitt’s quick read entitled, Marketing Myopia. Game business or entertainment business? Big difference and it seems to me that Apple’s figured it out.
November 11th, 2009 at 1:28 pm
If I was a serious gamer, I’d still go for a PSP or a DS. The lack of a physical direction pad kills the deal. Even a trackball would add much more functionality to the iPhone. Games on the two dedicated platforms have much more depth than compared to games on the iPhone. Of course, that is why they are more expensive too……what am i saying? Just give me Mario Kart on the iPhone and I’ll be happy. =)
November 11th, 2009 at 2:36 pm
This reminds me of when people always used to say Nintendo was gonna fail because they weren’t the “top” dog. Yet they never even bowed out or was even close to it. They are the only gaming company to even make a profit from consoles on day one!
As long as Nintendo is Nintendo. And they have the mainstays (Mario, Zelda, Metroid, etc) they will never be knocked down or replaced. Especially in handheld. No one has done it for ages.
I’m with Iwata. Apple and Nintendo aren’t rivals. They actually share the same business models and beliefs. Simple is better, it’s not spec game but an interface game, and target the crowd that most people in their business normally leave alone (Blue Ocean strategy)
November 11th, 2009 at 3:04 pm
Is gaming like cameras? The best device is the one with you the most and convergence makes that an iPhone or similar?
November 11th, 2009 at 3:30 pm
I feel like a “Wiiphone” or other Nintendo phone is the next step, at least when it comes to the DS. If they could make a decent phone with a screen size to match combined size of both screens, 3.2 MP camera, wifi bluetooth, touchscreen etc., and the ability to fully play DS games and others, then this would certainly be a competitor to the Iphone. Of course this phone would place 90% of its capabilities to games, whereas the Iphone can do most things (business apps, internnet, gamers etc.) very well already. It’s definitely going to be an interesting future for the companies.
November 11th, 2009 at 3:49 pm
As long as iPhone games aren’t subject to ESRB ratings, games on the iPhone platform will stay inexpensive and will be made by small, independent developers as well as large companies. Those are the two main advantages of the iPhone game scenario: cheap games and a lot of competition. The lack of controls is a negative; convergence device and OTA downloads (for small games) are positives.
I have no worries about Nintendo’s future in any case.
November 11th, 2009 at 6:10 pm
@Rene
It depends on what you mean by “best.”
The iPhone/iPod touch’s controls (or lack thereof) and incredibly poor battery life compared to a DS or PSP make it a poor game machine (my opinion) and not nearly in the same class as a DS or PSP.
But the iPhone could become good enough to take a chunk out of dedicated portable console sales, because some of those so-called “casual gamers” will decide not to spend $120 on a DS when they already carry a game-capable machine.
The camera analogy is not all bad — hard-core photogaphers carry a Nikon D300 or equivalent, serious photographers carry at least a point-and-shoot. There will always be a market for those people. But that market has shrunk a bit, as more and more people rely purely on their cel phone cameras for every day use. Games could follow a similar track, though game capabilities are harder to build into a phone than a camera.
Still, I also do not fear for Nintendo’s future. Not only do they have top-notch engineering and design talent, Iwata seems smart to enough to avoid complacency, recognize the dangers that a “good enough” convergence machine poses, and guide Nintendo’s efforts accordingly.
November 12th, 2009 at 2:17 am
U know what the iPhone is not a true gaming device. U guys exagerate things wwway to much. If I wanted a gaming device I’d buy a PSP or NINTENDO. The iPhone I would use for a quick poker game while waiting at the dentist. Lol plus with the iPhones battery life?? Please.
November 12th, 2009 at 10:09 am
ill say exactly what i said on appleinsider when they ran this story.
APPLE IS IN NO WAY KILLING NINTENDO
Nintendos profits have fallen massively because their Wii sales have literally plummeted (they still outsell everyone but not at the same pace as last year, they expected this) The iPhone/iPod has had a negligible effect on Nintendo.
Its been said again and again, the content on the ipod/phone is not there, 1mil downloads for bejewled isnt exactly all that amazing when i look at titles like Metal Gear Solid: Peace Walker its easy to tell they are not even in the same category.
The touch/phone is getting its boost mostly from being a PMP or phone FIRST and it isnt going to be enough to hurt Nintendo significantly in their sector and heres the main reasons why.
Audience – the average price and audience set it well above your 4-10 year old (120 bucks for a DS or 199 for a ipod?) Nintendo targets the younger crowd (not true in japan though), Apple targets teens and up so they pose a more serious threat to Sonys PSP (which without content makes it not feasible)
Content – 3 words Mario, Zelda, Metroid. You can put this on any system and have it be successful. Nintendo has high profile 3rd party developers at the helm on their device, and in Japan they go nuts over this device both young and old. Games like Final Fantasy and the new Dragon Quest move systems, i have yet to hear one person who owns an iphone say “i bought this phone because it has this siiiick app and no other on the market does”.
Performance – the phone/touch is capable but its woefully behind PSP standards and the new Tegra 2 is going into Nintendos next handheld. Also how can i address the PATHETIC battery life, because i know that if i used the thing as a gaming device id better get about 10 hours out of it…
App Store – This is a negative and a huge one at that. theres over 100k apps, almost 9k games. Why on earth would you release a product in a over saturated market only to have it get buried by literally thousands of titles? Also, most game titles are about 29.99 you think that kind of market can flourish on the App Store where most people clamor for free or .99?
iPhone/iPod gaming will stay relegated to the burn 10 mins on the bus ride or sitting in the lobby waiting on someone status, right now they cant compete in the same market as Nintendo for games.