Too damned lazy to read the words of NOA's head honcho? We've got a recap for you, with some pretty candid stuff!
The following are some quick quotes and highlights of Peter MacDougall's speech at the Gerard Klauer Mattison Conference on Oct. 30, 2002.
The video game industry is being looked at in a new light, "... an industry which a few years ago was called 'obsolete' and the same industry which today they say is virtually recession-proof."
A mere handful of "top sellers" dominate the industry. The Top 10 games tend to account for nearly 50% of the total revenue for the top thirty games. "So far this year, the proportion is running at historic highs; through September, the top 10 games represented 56 percent of the top 30 total."
"Among all game sales, the percentage of units carrying mature ratings has gone from about six percent two years ago to over 12 percent last year. Thus far in 2002, among only the top 30 sellers, the number is almost 25 percent."
The cost of developing a top video game is well in excess of several million now, with at least one costing more than $10 Million. Game development companies are dying or getting absorbed by larger companies, and "many are looking for a life preserver … something to rescue them from the burden of money-losing hardware or the hundreds of games that are released and then quickly forgotten. Today’s popular life preserver is called online gaming."
Nintendo on "Online" ...
"Serious money is required to maintain the technology of a networked game, not to mention the regular infusion of new content to refresh player interest. Our master game designer, Shigeru Miyamoto, says that if he truly applied himself to an online project, it would significantly reduce the number of games he develops – because its design would never end. Beyond creative and maintenance resources, we also have to find out just where online gamers will come from.
If online play grows our market in real numbers, that’s wonderful. If, however, it merely cannibalizes existing hardcore players, the payoff may disappoint. Now, we at Nintendo don’t want to be seen as naysayers. After all, Nintendo GameCube is fully adaptable to handle both broadband and modem-enabled network games. In fact, our first such product, Sega’s excellent Phantasy Star Online just went on sale. But bottom line, if you look at online games today … promise? Yes. Life preserver? Not yet."
"We’ve created a joint venture with both Sega and Namco called “Triforce” to migrate the Nintendo GameCube technology to arcades. Not only is Nintendo GameCube’s combination of high power and low cost ideal for cutting-edge, site-based applications but there’s a game payoff for Nintendo as well.
In the same time period that many of those new thrillers hit the arcades, Nintendo GameCube versions will be released for play at home. The first of such projects - the high-speed racer F-Zero - arrives in the front half of next year."
Metroid Prime is the talk of the Internet when it comes to mature titles, and Nintendo is backing that release with "our largest, game-specific budget in over three years. As just one example, beginning November 1st, moviegoers in 6,000 theatres nationwide will start “getting primed”’ with a one-minute spot on the big screen; at the same time, TV viewers will be seeing the same one-minute spot on their not-quite-so-big screens at home."
In addition to the release of the Platinum GameCube, Cube Clubs, and DVD teaser discs, Nintendo is also sponsoring the U.S.S.A. Snowboarding Grand Prix (likely in conjunction with 1080: Avalanche), partnering with Heineken, and initiating other outside-the-home advertising programs. Nintendo is aggressively targeting the mature gamer, in light of the fact that 25% of the top sellers are mature titles this year. They liken themselves to Disney, who can still be a family-friendly company with Mario, Pokemon, etc., while still appealing to the older gamer.
Metroid isn't the only game getting the theater trailer treatment. "Look for new software launches that include our exclusive snowboarder 1080: Avalanche for Nintendo GameCube, and dozens of titles from our third party partners, most notably, the Nintendo GameCube debut of The Legend of Zelda. Theater goers will begin seeing game trailers in the month of December, providing yet another reason to request the Nintendo GameCube system this holiday season."
Nintendo is in the software business - to stay. Nintendo is in the handheld business - to stay. And Nintendo is most certainly in the home console business - to stay. Work is well underway on the successor technology to both Game Boy Advance and Nintendo GameCube.
