Reggie talks about Apple, innovating, and more in new interview
Reggie Fils-Aime on Apple and their technology…
“There’s been no data to suggest an encroachment on our business. The iPhone has been out on the marketplace for just a couple of years. In the last two years we’ve set two records on our DS business, last year selling over 11.2 million units. So there’s been no evidence that we’ve lost any business to that competitor.
On the other hand, we recognize that consumers have a limited amount of entertainment time, and anything that takes entertainment time away from the Nintendo DS, DSi and Wii is a competitor. And so from that standpoint, we need to build experiences that are compelling and sticky, and that consumers can get excited about. That’s our challenge.”
Reggie on innovating to stay ahead of the times…
“We’ve already been innovating on hardware. First, we’ve sold over 27 million pieces of Wii hardware just here in the U.S. Every single one is motion controller-enabled and that’s been a key point of difference for us. On top of that we’ve already launched our second generation of motion control with Wii MotionPlus, and we’ve sold about 10 million pieces of that accessory. So we already have a pace and a rhythm of bringing great motion-enabled experiences to consumers.
Our competition will face their own challenges. They’ll have to create compelling software. They’ll need to offer it at a price point that makes sense. They will be separately challenged because the motion-enabled part of their business will only be a small part of their line. For us, it’s core to what we do.”
Reggie on whether Nintendo should be expected to see big innovative jumps in the future…
“Absolutely, we pride ourselves on the big innovative jump, typically in the area of the consumer experience. The way we approach that innovation, because we have hardware developers working side by side with software developers, is that when the software developer comes forward with an idea that can’t be executed on the current platform, that’s when we start thinking seriously about the next system. We’re not there yet, from a Wii perspective.”
Reggie on the idea that consoles are becoming obsolete…
“There are still new experiences that can best be brought to a consumer with a controller, coupled with a piece of hardware, coupled with a compelling piece of software. Yes, the world is moving more and more digital–and so are we. We’ve got great WiiWare content, and we’ve done a fantastic business with our Virtual Console. But fundamentally, for those big games, for those experiences that are truly innovative, we do think a controller coupled with software, coupled with hardware is necessary to bring it to life.”
Reggie on Nintendo being slower to implement social/video features in their systems (Facebook, Twitter, Netflix)…
“The way that we think about these new experiences is, for us, they need to make sense with the system and from a consumer-experience standpoint. For example, take Facebook. The ability to take a pictures and manipulate it on your DSi or DSi XL and upload it immediately to Facebook, for us, was just a great seamless experience.
The Netflix application is going through its final testing right now and is on track to launch in the spring. Similarly, it’s going to be a fantastic seamless experience as well. That’s because the Wii already comes Wi-Fi-enabled, and with great Internet-connection capability. The consumer won’t have to pay incrementally: as long as they have a high-speed Internet connection and a Netflix subscription, it’s free.”
Reggie on the virtual goods business and the idea of selling clothing/accessories for Miis…
“We don’t think it’s an idea that creates value for the consumer. Consumers love to make Mii’s and that has been core to the Wii experience. We don’t believe selling clothes or hats is something that the consumers will find valuable. And candidly, if you really challenge the competitors who are playing in this space, I think they would be hard-pressed to show any true value from a consumer standpoint.
What we think is important is providing real experiences. So the content drives that. We think that providing information through the Wii and through the DS and DSi is going to be a critical opportunity for us. We’re doing that now through the Nintendo Channel, we’re doing that through a self-produced video segment called ‘Nintendo Week.’ So we think those initiatives provide a lot more consumer value rather than trying to sell ‘wearables’ and action items for your avatar.”
Reggie on technology such as HD and 3D…
“For us, technology is not an endpoint. Technology is an enabler for fantastic consumer experiences. So from a hardware standpoint, we are always looking at technology. But in the end, the technology has to enable a new, unique experience.
So when people talk about high definition for the Wii console, our feedback is that that by itself will not create a brand new experience. Therefore, we’re not interested. What we have to push for are groundbreaking new experiences. Technology has to enable it, not to be a means all by itself.”
