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[L~A]

The Q&A from the Feb. 17 investor meeting was only available in Japanese until today, but now, Nintendo has put the English version on its website.

Link: http://www.nintendo.co.jp/ir/en/library/events/150217qa/index.html

 

[Volotaire]

Thank you. I'll read this later today.

 

[69wpm]

I am sorry to say this for the people who are working very hard to make instruction manuals for our games, but my impression is that only around 5 percent of consumers bother to read the instruction manual when they start playing a video game.

And thus, Miiverse was born.

Good read, thanks for mentioning it.

 

[samn]

On another front, we have witnessed one single software title completely change the entire picture of our business many times. I believe one of the most impressive stories was the time when people thought the Game Boy platform was virtually over. However, a software title called "Pokémon" turned things around for the platform and ended up creating the biggest annual sales for Game Boy in the latter half of the platform’s eventual lifecycle. Therefore, we do not believe that the situation so far means that there will not be a bright future. However, we should learn from our experiences of not being able to perfectly respond to certain social changes such as changes in the way consumers collect and receive information.

Still clinging to that blackboard...

 

[FryHole]

The last one is the System Development Division, where I am now in charge. It creates fundamental parts of software development such as the network, system software, OS, SDK (Software Development Kit) and libraries. As I am the only board member who has a background as a programmer, I am in charge of this division. In future, I would like to find a suitable person to take on this role in order for me to fully concentrate on my presidential tasks.

Iwata still in the trenches gawd bless him, long may it continue.

 

[JoeM86]

Still clinging to that blackboard...

He's saying it can, not that it always will. He's stating a historical example of it.

Relax

 

[MilesTeg]

He's saying it can, not that it always will. He's stating a historical example of it.

Relax

Do we really need to be reminded of Pokemon and Gameboy every time though? I mean, does Nintendo have a video game like Pokemon that they plan to release overseas anytime soon to increase hardware sales? Otherwise this is irrelevant. This just seems like the current stock answer any time someone asks what the plan is with Wii U and 3DS. It's getting pretty embarrassing.

 

[BY2K]

Do we really need to be reminded of Pokemon and Gameboy every time though? I mean, does Nintendo have a video game like Pokemon that they plan to release overseas anytime soon to increase hardware sales? Otherwise this is irrelevant. This just seems like the current stock answer any time someone asks what the plan is with Wii U and 3DS. It's getting pretty embarrassing.

Yokai Watch?

 

[KojiKnight]

Iwata still in the trenches gawd bless him, long may it continue.

Man is a beast.

 

[Jaded Alyx]

And thus, Miiverse was born.

Good read, thanks for mentioning it.

Well, digital manuals are still a thing.

 

[neilka]

I've been saying for years that Nintendo's main problem is not being able to perfectly respond to certain social changes such as changes in the way consumers collect and receive information

 

[SicSemperTyrannis]

Do we really need to be reminded of Pokemon and Gameboy every time though? I mean, does Nintendo have a video game like Pokemon that they plan to release overseas anytime soon to increase hardware sales? Otherwise this is irrelevant. This just seems like the current stock answer any time someone asks what the plan is with Wii U and 3DS. It's getting pretty embarrassing.

I think the more important thing here isn't whether they have a Pokemon level game to bring to the Wii U, but rather that when Pokemon turned the Gameboy around there was virtually no competition and the Gameboy was priced much more reasonably for the common-folk to impulse purchase. Those two things are in stark contrast to the Wii U's current predicament.

 

[Jackano]

In addition, our development team has been testing various forms of amiibo other than plastic figures. We hope we can propose amiibo products in various forms in the future.

(in addition to the cards too)
Amiibo items-like gashapons? Amiibo jewelry? Amiibo-tamagotchis?

 

[JoeM86]

(in addition to the cards too)
Amiibo items-like gashapons? Amiibo jewelry? Amiibo-tamagotchis?

Amiibo eye implants

Do we really need to be reminded of Pokemon and Gameboy every time though? I mean, does Nintendo have a video game like Pokemon that they plan to release overseas anytime soon to increase hardware sales? Otherwise this is irrelevant. This just seems like the current stock answer any time someone asks what the plan is with Wii U and 3DS. It's getting pretty embarrassing.

Yes, we do. It can happen, that's what he's saying. A game can boost sales.

 

[Jackano]

However, with recent technological advances, technologies for both systems are becoming more similar. Also, just because they are home consoles does not mean today that they can consume as much electricity as they possibly can. In fact, we have already been proactively working to reduce the consumption of electricity since the Wii era. Furthermore, the Wii U GamePad has a large screen, a battery pack, control inputs and wireless modules inside, so in technological terms, it required very similar know-how to that required for developing a handheld device.

This is bullshit Satoru, this is bullshit! This is holding back -at a cost- the main home console unit technology. I understand the gamepad must be power-consumption efficient, but not the main unit!
This doesn't make any sense particularly in regard of - having the console included in the product lines of 3rd party;
- I bet not a single consumer survey will place power consumption as a top priority point when it comes to the decision to buy a hardware.

 

[sakipon]

(in addition to the cards too)
Amiibo items-like gashapons? Amiibo jewelry? Amiibo-tamagotchis?

I do like the idea of using jewelry, like Peach themed, Animal Crossing symbols, Zelda symbols, something subtle yet elegant, and comes with amiibo functionality. But what I'm imagining wouldn't look like toys, so they'd probably end up too expensive.

 

[guggnichso]

This is bullshit Satoru, this is bullshit! This is holding back -at a cost- the main home console unit technology. I understand the gamepad must be power-consumption efficient, but not the main unit!
This doesn't make any sense particularly in regard of - having the console included in the product lines of 3rd party;
- I bet not a single consumer survey will place power consumption as a top priority point when it comes to the decision to buy a hardware.

http://www.tape.tv/public-image-limited/videos/dont-ask-me-1

 

[MilesTeg]

Regarding New Nintendo 3DS, the quantity that was produced before the end of last year or the amount that was delivered to consumers, was limited, and overseas, in Europe or the U.S. for example, it takes longer than in Japan for the products to be produced in China and to actually arrive and be lined up in stores. Hence, we had to make a difficult decision on whether it was acceptable or not to cause a worldwide shortage of New Nintendo 3DS. As a result, (based on the different diffusion levels of the preceding models,) we made the decision to launch it in 2015 in Europe and the U.S. In hindsight, the actual results and the reactions to the launch of New Nintendo 3DS tell me that you are absolutely correct in assuming that the results would have been different if it were launched within 2014. In addition, the fact that putting effort into attracting attention to New Nintendo 3DS became an obstacle to selling Wii U in Japan has made us once again understand the difficulty in staggering the sales peaks. We have many issues to reflect on, and I think we could have tried harder. However, beyond that, I believe that although the traditional practice of selling things and the belief that products will sell well if you advertise broadly and make attractive discount offers, worked five or ten years ago, it is no longer applicable in this present day.

So in this section Iwata seemingly admits that they goofed in not bringing N3DS/XL to the US and EU for the holidays. It looks to me that Iwata didn't have a ton of faith in the new model overseas, but now based on initial results he is admitting that was a mistake.

He then goes on to say that advertising broadly with attractive discount offers is a thing of the past. Well, this is directly refuted by the results of Xbox One over the holidays. In fact, it can also be argued that N3DSXL initial excitement in NA is a direct result of "broad" advertising considering Nintendo advertised the console and games during prime time hours of currently two of the most popular TV shows in The Walking Dead and Better Call Saul. This was the best advertising Nintendo has done in some time, yet here is Iwata downplaying this type of advertisement.

Later on he talks about products that people buy despite the high price. Well, Apple is a big one here, and last time I checked they were still advertising heavily on TV and to "broad" audiences.

Iwata also then shares his views on MH4 initial success overseas. He believes it's because the community spread the word. Well, guess what. This game was also advertised on TV overseas with N3DSXL during prime time hours, and the game has great reviews. Of course it's gonna do better when reviews are the most favorable yet and advertisement is at it's peak.

 

[TheMoon]

Fascinating read. It might be one of the best Q&As out there, despite not containing any "news" this time. I'm excited about the future.

 

[_Clash_]

I enjoyed this portion of his response when asked about corporate strategy

For any video games, it is also very important to encourage the players to continue something. I think all the game players can agree that they voluntarily continue their mission because of the rewards they can receive in the form of output as a result of their input. In that regard, Nintendo has been going through a form of severe training to get into shape. So, how can we take advantage of such strengths? How can we leverage our ability to create something brand new by creating both hardware and software, which we are also good at? What will be the new course that we can take by using our strengths? By repeatedly asking these questions, we started to review the possibilities and concluded that we should first make a proposal related to "health" and the theme of "sleep" and "fatigue" because we would be able to capitalize on our strengths. Let me assure you that Nintendo is not trying to distance itself from video games. We have never ever lost our passion for video games and will continue to make them. On the other hand, if people inside the company think that Nintendo is a company which cannot make anything other than video games, and believe that video game controllers remain a certain way because that is the way they have been for 30 years, video games should be created in a certain way or video games must start with a tutorial, end in a particular way and have a lot of hard-at-work elements in between, a high mental wall would stand in front of us when we tried to create a brand new video game genre with which many people would be amazed or when we try to create an unprecedented user interface that pleasantly surprises people. I have been constantly asking myself whether being bound by such ideas really does us any good when we are actually required to think out of the box and have a broader perspective, so we have redefined our definition of entertainment as "things which improve people’s QOL in enjoyable ways" and encouraged our developers to take on this challenge. As a result, just as I expected, people started to make various proposals. I cannot elaborate on anything new today as these proposals are yet to take on a concrete shape, but people inside the company have started to make proposals by asking me whether they are in line with the company’s vision. This is something Nintendo has to keep on doing for the long run. Our strategy for the next 10 years is to change the definition of entertainment and expand the area that Nintendo can do business in, and with this strategy, I believe we can capitalize on our strengths.

TL DR; Nintendo gonna Nintendo

 

[MilesTeg]

Yes, we do. It can happen, that's what he's saying. A game can boost sales.

What he is saying is that one game can revive a platform, not simply boost sales. It's been regurgitated time and time again with no indication that current Nintendo is able to create that game. I mean, Pokemon is one of the biggest franchises ever. You shouldn't be just casually throwing that name around as if Nintendo could make the new "Pokemon" next week, or as if Nintendo has numerous upcoming games that they feel could be the next "Pokemon".

 

[QaaQer]

And thus, Miiverse was born.

Good read, thanks for mentioning it.

5%? Good lord, no wonder game designers assume players are brain dead.

Also explains streamlining and fi.

 

[Jackano]

http://www.tape.tv/public-image-limited/videos/dont-ask-me-1

I'm sure it was fun but oops, this video isn't available in my country!

the Software Planning & Development Division, that I used to manage and now a member of the board of directors, Mr. Shinya Takahashi, is in charge.

So that's the new guy who, if I understand correctly, will have to prevent software-drought in the future.

The last one is the System Development Division, where I am now in charge.

So they still don't have their own Mark Cerny. They didn't even have someone there! Which makes me fear how short-sighted may be their future platform and OS design if this is still the same people that were in charge of the Wii/3DS/Wii U SDK. Except this time, multiple hardware and multiple generation could be impacted at once. Quick, someone, send your resumes!

 

[Mpl90]

I do like the idea of using jewelry, like Peach themed, Animal Crossing symbols, Zelda symbols, something subtle yet elegant, and comes with amiibo functionality. But what I'm imagining wouldn't look like toys, so they'd probably end up too expensive.

Amiibo t-shirts are the future, mang. Wear them to have the same attire as your character in the game (based on the t-shirt).

...Actually, wait, that's a fine idea honestly lol.

 

[Mpl90]

I'm sure it was fun but oops, this video isn't available in my country!



So that's the new guy who, if I understand correctly, will have to prevent software-drought in the future.


So they still don't have their own Mark Cerny. They didn't even have someone there! Which makes me fear how short-sighted may be their future platform and OS design if this is still the same people that were in charge of the Wii/3DS/Wii U SDK. Except this time, multiple hardware and multiple generation could be impacted at once. Quick, someone, send your resumes!

Isn't Iwata a guy who made prodigious things when he was young, though?

 

[Azure Dream]

Specifically, the real issue seemed to be that people inside the company appeared to be obsessed with the belief that Nintendo is a company that makes video games and should make nothing else. This is one of the reasons we revised our definition of entertainment and why I announced that Nintendo’s goal for the next 10 years is to "improve people’s QOL in enjoyable ways."

As a result, such a misbelief that Nintendo is solely a video game company that can make games and nothing else has waned a bit inside the company. They have started to think more broadly about what they can do at the company. Nintendo celebrated its 125th anniversary last year. We were originally a traditional Japanese Hanafuda playing card company. We then started making western-style playing cards too. Many of us, me included, must have played Nintendo’s playing cards and Hanafuda in our childhood. Nintendo later became a toy company. [Etc.]

I know that nowhere does this say "we're going to stop making games," he does mean "in addition, we're going to do other things." He even spells that out later on. But this still makes me squirm somehow. Compared to their competitors, Nintendo is a relatively tiny company that can only split its attention so far. So for there to be a big push into all these unique directions he wants to take it, under the vague header of "Quality of Life," resources have to be taken from their game development, at least initially.

 

[Vampirolol]

So they still don't have their own Mark Cerny.

Iwata is a genius programmer and knows how good games are made, he is the Cernyiest man in Nintendo right now.

 

[GhostTrick]

Years ago, there were two different hardware divisions - one for handheld devices and one for home consoles, with few personnel interactions. In fact, we had to use completely different technologies for handheld and home console development at that time. Technologies that were suitable for handheld devices or home consoles had nearly nothing in common, so it was reasonable to divide hardware development into two divisions. However, with recent technological advances, technologies for both systems are becoming more similar. Also, just because they are home consoles does not mean today that they can consume as much electricity as they possibly can. In fact, we have already been proactively working to reduce the consumption of electricity since the Wii era. Furthermore, the Wii U GamePad has a large screen, a battery pack, control inputs and wireless modules inside, so in technological terms, it required very similar know-how to that required for developing a handheld device. Based on such experiences, we had been working toward consolidating the two divisions for a while and started the process two years ago.

To me, it points out that both hardware will now use similar architecture, from a hardware point of view. And going ARM just helps them to reduce power consumption as they wish.

Basically, expect their next home console to be slower than even Xbox One.
I wouldn't be surprised if it was their handheld hardware with more cores and higher clocks.

 

[LeleSocho]

So they still don't have their own Mark Cerny.

lol, it's Cerny that is the "Iwata" of Sony not the other way around.

 

[Fourth Storm]

To me, it points out that both hardware will now use similar architecture, from a hardware point of view. And going ARM just helps them to reduce power consumption as they wish.

Basically, expect their next home console to be slower than even Xbox One.
I wouldn't be surprised if it was their handheld hardware with more cores and higher clocks.

Oh boy, another low power console. This certainly does seem to point to that. :/

 

[Jackano]

Isn't Iwata a guy who made prodigious things when he was young, though?

Yes, but:
- He admitted a couple weeks ago to not be as aware of the latest technical things as before (which is understandable);
- He admits in this Q&A this can be mixed forever with his presidential duties (obvious, too).

Having a mastermind (which requires to be up-to-date to all kind of technical stuff as well as game software development) on top of this seems, at least to me, to be of paramount importance. IMO you have to have a guy 100% committed to this, while Iwata is the president, and not fully technical anymore.

 

[GhostTrick]

Oh boy, another low power console. This certainly does seem to point to that. :/

This is basically what I have been saying for a moment
People expecting 2tflops GPUs in their next console are set for a massive disappointement and should pray for at least 1tflops

As far as I'm concerned, I expect their home console to be 4 to 8 times their handheld horsepower with recent comments, which means 2/4 times more cores and 2 times the clock.

With an optimistic for 2016 expectation, the handheld should be a 128gflops hardware and the home console a 512 to 1024gflops.

 

[Impotaku]

I'm not suprised so few bother to read the manuals nowdays the digital ones are pretty rubbish to use, not only do you have to pull yourself out of the game to read it but thanks to the way it's displayed on he 3DS screen it's messy to read as you can only fit so much info per screen. The only advantage it has over a paper manual is it can't be lost as it's in the software, there have been times in the past where i have needed the manual open and looking at the screen the same time, now you can't do that you have to keep suspending the game going to the home screen and then booting up the manual it's a total chore.

 

[maxcriden]

This is basically what I have been saying for a moment
People expecting 2tflops GPUs in their next console are set for a massive disappointement and should pray for at least 1tflops

As far as I'm concerned, I expect their home console to be 4 to 8 times their handheld horsepower with recent comments, which means 2/4 times more cores and 2 times the clock.

With an optimistic for 2016 expectation, the handheld should be a 128gflops hardware and the home console a 512 to 1024gflops.

How comparable to the current Wii U do you expect the new hardware to be, then? Just curious, thanks.

 

[Beren the Empty-Handed]

Thank you for posting this! It was a good read.

5% of people read those old manuals? It's like I'm at a funeral nobody else came to.

I think they could still do paper manuals. Then at the start of the game it just asks you if you've read the manual. If you say Yes, you play the game without any help. If you say No, you have Fi inflicted onto you for the whole game. Can we have this, please?

 

[GhostTrick]

How comparable to the current Wii U do you expect the new hardware to be, then? Just curious, thanks.

With the optimistic option ? On par with Wii U but for 480p/540p screen. And when I say on par, I mean it, in term of horsepower, not in term of how the games look. Vita was comparable to PS3 and 3DS to Wii in term of what was displaying, but not in term of hardware capabilities.

Now, that's the optimistic view... from my view ?
The same way 3DS was to Wii or Vita to PS3. Basically, it looks like a Wii U game, but it's not.
But I'm pretty much a pessimistic/realistic guy, especially after these Wii U speculation threads

 

[Herb Alpert]

low power home console again, huh?
They'd better not fuck the launch software-wise.

I am not too confident. :/

 

[B4s5C]

With an optimistic for 2016 expectation, the handheld should be a 128gflops hardware and the home console a 512 to 1024gflops.

So, 2 Wii U's duct taped together?

 

[GhostTrick]

So, 2 Wii U's duct taped together?

More like 4 to 8

 

[Herb Alpert]

More like 4 to 8

and the competition will obliterate these specs, and the cycle will begin again. no third party support, software drought, devs laughing at the console, etc.
I hope they have found a way to break this vicious circle.

 

[Eolz]

Yes, but:
- He admitted a couple weeks ago to not be as aware of the latest technical things as before (which is understandable);
- He admits in this Q&A this can be mixed forever with his presidential duties (obvious, too).

Having a mastermind (which requires to be up-to-date to all kind of technical stuff as well as game software development) on top of this seems, at least to me, to be of paramount importance. IMO you have to have a guy 100% committed to this, while Iwata is the president, and not fully technical anymore.

You know, not every good programmer/hardware/etc guy (or girl) likes to be popular. They have lots of people knowing how to work with hardware, they just have different philosophies.
What Iwata is saying is that he needs to find not only someone who is really good with hardware (already exists), but also good in management, communication with partners, etc. Until he finds or grows the perfect person, he prefers to be there instead.

And it'd be silly to think that no one informs him of smaller details that are more up to date.

Spoiler

Not as silly as saying Cerny is the best evar and Nintendo can't do shit without someone like him

 

[Fourth Storm]

More like 4 to 8

My guess is the bare minimum it takes to render games like Super Mario 3D World in 1080p.

 

[Kacho]

and the competition will obliterate these specs, and the cycle will begin again. no third party support, software drought, devs laughing at the console, etc.
I hope they have found a way to break this vicious circle.

Hopefully the speculation regarding being able to play the handheld games on the console turns out to be true. That's where most of the important japanese third party games are these days. I don't think it solves all of their issues, but it'll definitely help.

 

[Beartruck]

They're worried about power consumption? Nintendo, the only power I'm worried about is if you can keep the lights on!

They really just need to make the system as powerful as it needs to be so developers can actually port their games easily to their system. It wouldn't solve their problems with 3rd parties, but a company could at least port a game then without having to rewrite the entire thing to fit on Nintendo's super special butterfly of a system.

 

[GhostTrick]

and the competition will obliterate these specs, and the cycle will begin again. no third party support, software drought, devs laughing at the console, etc.
I hope they have found a way to break this vicious circle.

Even if Nintendo released a console that is 8 times more powerful than PS4, there'll be no 3rd party support. Wii U was a lot less powerful than PS4 but on par with PS3 and 360. Yet, there were no 3rd party support or ports from these two platforms.

The main point to have similar architecture with their handheld is to share 100% of its library. There goes your software drought.

My guess is the bare minimum it takes to render games like Super Mario 3D World in 1080p.

Basically this. My guess is that their handheld aims to render games like SM3DW in 480p or 540p while their home console will aim for 1080p.

 

[BGBW]

This is bullshit Satoru, this is bullshit! This is holding back -at a cost- the main home console unit technology. I understand the gamepad must be power-consumption efficient, but not the main unit!
This doesn't make any sense particularly in regard of - having the console included in the product lines of 3rd party;
- I bet not a single consumer survey will place power consumption as a top priority point when it comes to the decision to buy a hardware.

In the UK lots of products show their energy efficiency:

If the government said that consoles must do the same that big A on Nintendo's system may be a big plus, especially with rising energy bills

At the moment though it's a weird aspect to Nintendo's hardware design because they don't even advertise it. You'd only really know the Wii U is energy efficient if you follow the company closely. They never once mention it in their advertising or packaging. For something that is apparently so important they are awfully quiet about it.

 

[thisisvlad]

I enjoyed the discussion of Nintendo's development organizational structure, seems like reshaping this model has been a large internal focus for Iwata.

Most of all, this Q&A gives the impression that Nintendo is prepared to revisit their assumptions and long-held beliefs in order to better compete in the short/long-term:

We know there is criticism that our decision-making or transformation is slow in this field or our activities are not sophisticated, but we would like to take forward steps by considering everything thoroughly and with confidence that our future approach will work.

 

[TriangularDuck]

To me, it points out that both hardware will now use similar architecture, from a hardware point of view. And going ARM just helps them to reduce power consumption as they wish.

Basically, expect their next home console to be slower than even Xbox One.
I wouldn't be surprised if it was their handheld hardware with more cores and higher clocks.

With the way the Japanese market is going, I will be extremely surprised if Nintendo's next console isn't some form of hybrid between portable and home console, perhaps something that docks into a cradle with extra storage and video ports.

 

[Herb Alpert]

Even if Nintendo released a console that is 8 times more powerful than PS4, there'll be no 3rd party support. Wii U was a lot less powerful than PS4 but on par with PS3 and 360. Yet, there were no 3rd party support or ports from these two platforms.

The main point to have similar architecture with their handheld is to share 100% of its library. There goes your software drought.

I still think that if WiiU had been immediately perceived more powerful than PS360, its reception by general audience would had been less catastrophic. but, what's done is done, and I agree that third party support, at least from the west, won't be back. And I personnally can live with that.

I just hope they find a way to survive without this support. And the shared architecture could indeed be one solution. I hope they will go strong on indies too.

 

[axisofweevils]

I like Iwata pointing out that more people are starting to understand his old GDC "Devaluing of games" speech. At the time, it seemed like a lot of people deliberately missed the point.