Iwata Interview
Kyoto News: Tell us about the new game console that you will announce E3 in May.
Iwata: In many ways, we have reached the limits of game development. For the past 20 years, games have evolved in a linear manner; become increasingly more complex and better looking. But that growth, and that success is now coming to an end, and the creators are worried. Speaking frankly, games have already stopped selling. Nothing has changed up until now. We want to provide something that gives people a new experience, a new way of playing games. The question is... how much can we surprise people?
We're already prepared for the fact that not everyone will be immediately excited by our announcement. If we can get a response where part of the audience think it's interesting, and later others would like to try it out for themselves, that will satisfy me. We want to go back to the start of all this, where anyone can pick up a game and play it. Our business cannot be supported by a single machine which combines hardware and software. A platform is being used, but the current machines are just not suited for the task.
Kyoto News: What is your outlook on this year's game market?
Iwata: I think the Japan market will continue to shrink this year. Up until three years ago, software sales were hiding the stagnation of hardware, but in reality, the software market has been shrinking since 1997. The source of the problem is that games have become too complex, with more time and cost being needed to make them.
This year, our company will be able to present a new form of interactive entertainment for the 21st century. Overseas, the software market is still growing, with Americans showing much enthusiasm for gaming. But it won't be a surprise to see the same thing happen over there that has happened in Japan someday. Our role in this is very important. Whether our new product will be able to put a stop to this industry recession is the key.
Kyoto News: What was the effect of the GameCube price drop?
Iwata: We reduced the price in the US last September, and the week after Thanksgiving we sold 500,000 units, after that around 200,000 each week. That was double our performance in 2002. Our market share also increased, from 15% before the price drop, to around a third after the reduction. In Europe, we sold around 120,000 each week, and compared to 2002's holiday season, sales were up 88%, and our market share increased from 6 or 7% to 20%. Within Japan, response was bad until 10 December, after that we managed to double 2002's rate of sales. Our fiscal year target of 6 million units is well within our sights.
Kyoto News: Can you tell us anything about the development of the successors to the GameCube and Game Boy Advance?
Iwata: As can be expected, our development teams were working on successors as soon as the original machines were announced. Nothing will be shown to the world until the company decides it is the right time to sell. There is this question going around within the company, "Will a new high-performance machine sell if we release it?" With this kind of discussion going on in the company, it's likely we'll see big changes in our future approach.
- Eagle Zephyr
Iwata: In many ways, we have reached the limits of game development. For the past 20 years, games have evolved in a linear manner; become increasingly more complex and better looking. But that growth, and that success is now coming to an end, and the creators are worried. Speaking frankly, games have already stopped selling. Nothing has changed up until now. We want to provide something that gives people a new experience, a new way of playing games. The question is... how much can we surprise people?
We're already prepared for the fact that not everyone will be immediately excited by our announcement. If we can get a response where part of the audience think it's interesting, and later others would like to try it out for themselves, that will satisfy me. We want to go back to the start of all this, where anyone can pick up a game and play it. Our business cannot be supported by a single machine which combines hardware and software. A platform is being used, but the current machines are just not suited for the task.
Kyoto News: What is your outlook on this year's game market?
Iwata: I think the Japan market will continue to shrink this year. Up until three years ago, software sales were hiding the stagnation of hardware, but in reality, the software market has been shrinking since 1997. The source of the problem is that games have become too complex, with more time and cost being needed to make them.
This year, our company will be able to present a new form of interactive entertainment for the 21st century. Overseas, the software market is still growing, with Americans showing much enthusiasm for gaming. But it won't be a surprise to see the same thing happen over there that has happened in Japan someday. Our role in this is very important. Whether our new product will be able to put a stop to this industry recession is the key.
Kyoto News: What was the effect of the GameCube price drop?
Iwata: We reduced the price in the US last September, and the week after Thanksgiving we sold 500,000 units, after that around 200,000 each week. That was double our performance in 2002. Our market share also increased, from 15% before the price drop, to around a third after the reduction. In Europe, we sold around 120,000 each week, and compared to 2002's holiday season, sales were up 88%, and our market share increased from 6 or 7% to 20%. Within Japan, response was bad until 10 December, after that we managed to double 2002's rate of sales. Our fiscal year target of 6 million units is well within our sights.
Kyoto News: Can you tell us anything about the development of the successors to the GameCube and Game Boy Advance?
Iwata: As can be expected, our development teams were working on successors as soon as the original machines were announced. Nothing will be shown to the world until the company decides it is the right time to sell. There is this question going around within the company, "Will a new high-performance machine sell if we release it?" With this kind of discussion going on in the company, it's likely we'll see big changes in our future approach.
- Eagle Zephyr