The short story:
Merrick reiterates that Hardware/HDTV isn't important, attacks Microsoft, says he hopes Revolution will be cheaper than Xbox 360, states that there's a high chance for Nintendo to attain world leadership in late 2007 (if their strategy works out), disses mobile phone gaming.
The long story (translation):
Nintendo skips high-tech race with Sony and Microsoft
October 24th 2005 The market for video games is preparing for a quantum leap: Sony, Microsoft and Nintendo are about to release the next generation of video consoles shortly. While Sony and Microsoft are taking on a fierce battle for the fastest processor or the best graphics, Nintendo deliberately heads down a different path. "Our approach lies in opening up to new users - not new technology", says Jim Merrick, NoE's head of marketing.
"Hardware is irrelevant"
While Microsoft and Sony gear up their gaming consoles to turn into multimedia devices that also allow users to listen to music, watch films or surfing the net, Nintendo is reclaiming their roots. "Nintendo is an entertainment company. We don't own any film studios and we are no hardware company either. The Revolution is capable to play DVD films - but that isn't an important functions to us. We offer good interactive entertainment instead. But that's not a question of the hardware or power. This is all irrelevant. It's all about the games", Merrick said.
"Nothing for average people"
The problem of the industry according to Merrick: "An average person today can't make head or tails of a video game." Instead of the usual input devices (controllers), Nintendo would be focussing on a sort of remote device similar to TV remotes average people are used to. "Wenn thinking about a gamer today, you picture a pale tennager, drinking cola and eating chips. This shouldn't be." A way in the direction of new users would be Nintendogs. "In Japan, more than a half of the registered Nintendogs gamers is female. Additionally the age spread is much greater", Merrick says. In Germany, Nintendo sold 50,000 Nintendogs games in the first eight days after release.
The company traditionally has a strong position among young consumers, backed up by games like 'Pokemon' or 'Mario'. "The youngest gamers are 4 to 5 years old. We won't give up our position for this group, but we also want to score with older people. In Japan, brain training games are strong with gamers who are 35 years or older. That are not the people that are traditionally referred to as video gamers", Merrick says.
Revolution cheaper than Xbox 360
Beside the games, the price is also supposed to broaden the user base: "We are very aware of the price sensitivity of the gaming market, especially when going for the mass market. I strongly hope that the Revolution will be cheaper than the 400 Euros of the Xbox 360.", Merrick says. The new Microsoft console is that expensive, because it supports HDTV, for example. "But only few people are benefitting from that. We won't do that", Merrick says. However, in one area, Microsoft has set new standards: building online communities. "Nintendo is also going to establish an online community. But we don't wont to make the mistake of monetarizing the service first and put in value for the customers only later. We want to go the other way with our mobile console Nintendo DS: when we're starting the online service for the game 'Mario Kart', it is free for the gamers", says Merrick. The online games for the Nintendo DS, which has sold 200,000 units so far in Germany, are not regarded as a self-contained source of income, but as a catalyst, to sell more games. "With the Nintendo-'Revolution', not all online games will be free for the users", Merrick notes.
"We don't worry too much about Xbox 360"
For christmas season, Nintendo doesn't intend to lower the price for their current console Gamecube at 99 Euros. Nintendo sold 800,000 consoles in Germany so far and is expecting good christmas sales - even with the Gamecube at the end of its lifespan and a strong competitor with the Xbox 360. "We don't worry too much about Xbox 360. The supply will be limited and the types of games offered won't appeal to all target groups. There will always be a group of technology fans, that buys any next-generation console on release. But there won't be an impact on the mass market - at least not until they see what is offered to them by Sony and Nintendo next year. When our strategy of expanding on the customer base works out, we have a very good chance to achieve world leadership by late 2007", Merrick hopes. Since March, the company has sold about 1,5 million Nintendo DS. They want to have sold 3 million DS in Europe by end of the year.
Merrick hasn't high hopes for games for mobile phones, though. "Every year mobile gaming is expected to go big business. This didn't happen so far. Only few consumers buy cell phone games. Most consumers play the games already preinstalled on their cell phone. So far we didn't see any mobile phone which our games could be played on properly. The second generation of the Nokia N-Gage was much better than the first generation, but its reputation is already tarnished.
They always seem to do things one or two generations too late. To me down playing power is just not smart. 
