No Immediate Plans for iPod Competitor, Nintendo Says
No Immediate Plans for iPod Competitor, Nintendo Says
by , 6:00 AM EST, November 8th, 2004
Hand-held game player maker Ninetendo has no immediate plans to introduce a device with functionality found in the Apple iPod, that is until the company is sure it could compete against the dominate digital media device, a company executive told The Wall Street Journal Monday.
Reginald Fils-Aime, the head of sales and marketing at Nintendo's North American unit, told the financial daily Nintendo will not be marketing its new hand-held game player, the DS, as a portable music or movie player.
Mr. Fils-Aime said that until it could develop a multifunction device that had iPod-like features such as playing music and manipulating photos, it would not try and compete with the iPod.
"If you deliver multifunctionality, it should be the gold standard," Mr. Fils-Aime said, giving accolades to the Apple device.
While saying it has no immediate plans to develop a device with iPod-like features, Mr. Fils-Aime did not categorically say Nintendo would want to ever compete in the portable media player market.
The comments came as Nintendo prepares for a vicious battle early next year against arch rival Sony, who is preparing to launch its first hand-held game player, dubbed the PlayStation Portable, or PSP, in the U.S. in early 2005.
While Nintendo isn't offering iPod-like features, the PSP from Sony is. The PSP will be able to play movies as well as videogames stored on a new kind of read-only optical-disk cartridge. PSP users also will be able to use the device's memory stick to store and play digital music in the MP3 format.
In the game player market, Sony is number one in the game console market, while Nintendo controls the hand-held games and game player market. Sony wants to be number one in game players and plans an aggressive marketing campaign in the U.S. next year to promote the PSP. Nintendo will do the same, spending US$40 million to sell the DS.
Observer Comments
That's a load off my mind!
Just heard recently about them wanting to get into the animated film business as well. Props to them for looking at new markets before their conosle market share hits 0%. I wonder how long until they axe their console business and pull a Sega. Well obviously that would be for the home console business. There is no evidence that their handheld market is in danger! Oh wait this is an Apple forum not a Nintendo forum.
Remember, Nintendo is the #1 seller of video game systems worldwide, when you include the GameBoy lines and GameCube, or even without the GameCube. GameBoy Advance consistently outsells the PS2.
I am excited for the launch of the DS, and the PSP will be appealing if they can get more and better games, fix the battery life (VERY BIG ISSUE), and keep the price low, but for now, Nintendo is King, in spite of the performance of the GameCube in the United States and Europe. (Globally GameCube is #2, well ahead of Microsoft due to poor sales of the Xbox in Japan.)
Why would nintendo chut down a business thats making huge profits for them? This isn't the XBOX we're talking about. Those of us who studied econ 101 know that one of the fundamental reasons for the existence of a firm is to make a profit. Only Microsoft and their Xbox, and Sony and their PSP bend this rule.
Hehe. Based on your avoidence of my question, I will assume my statement regarding your market share analysis is valid.
You are correct in that Nintendo exists to make money. And yet I cannot help but notice the Gamecube costs a mere $99. This is at least $50 less than any competitor. How strange. Perhaps this is just because Nintendo is such a nice company! Or perhaps there is some very simple econ 101 principal at play here?
Hey at least we aren't having a Mac vs. PC argument.
just like to specify different guest here.
nintendo designed the cube with price in mind. m$ have the xbox basically as an ad/test run combo type thing.
that means they always intended to lose money on the xbox, this is well documented.
with sony, maintaining dominance is important, the old PS2 hardware is also cheaper, as inevitably it is cheaper to produce. sony are relying that overall buyers of the PS2 will buy enough software to offset losses on the actual console.
with nintendo the cube is alot cheaper, and seeing as they are very successful on the 1st party software front they make plenty of money from the cube.
summary
hardware
1)cube is alleged to still make a profit even at its current price, or atleast only make a small loss.
2)XBOX was losing money when it was released, and is now making huge losses on hardware front
3)sony are taking losses on PS2 sales, how large small these are I haven't heard, of have forgotten.
software
1)nintendo have fewer machines out than sony, but due to a large volume of quality 1st party titles (at least they sell well) means they do make a profit on software side.
they also have higher licensing for 3rd parties, which prolly accounts for low 3rd party support
2)Xbox, few 1st party games, HALO obviously is huge though, I imagine they make a comparable profit to nintendo on the software front, give or take 50% at a complete guess
3)sony obviously have huge market share, I imagine they make a heck of a lot on software.
overall
1)taking the above, and then piracy on XBOX and PS2, I imagine PS2>GC?XBOX.
nintendo are nice and healthy, have a few Billion in the bank, they also have their next console basically made.
media don't know about games, mainstream media reporting on video games is rarely anything but poor.
as well as a still profit making home console nintendo have software, portable gaming and investments blah blah blah.
be very surprised if nintendo do a sega in the foreseeable future, obviosuly its possible, but then its equally possible for the same to happen to microsoft or sony.
anyhoo, rant over, as is my lunch break :/ damn! ![]()
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