TGS 2003: Keynote reflections

TOKYO--This morning at the 2003 Tokyo Game Show, Nintendo president Satoru Iwata's keynote speech packed the house. He lived up to expectations with two new product announcements: a wireless adaptor for the Game Boy Advance (see previous GameSpot coverage posted earlier today) and a new low-cost console specifically for the Chinese market.

Iwata opened his speech by reminiscing about Nintendo's first console, the Famicon (NES in the US), and then traced the subsequent development of the console industry, developing a thesis that many modern games are too complex for average users.

As proof, he pointed to the overseas and domestic success of the Pokémon games. He explained that these games, though easy to learn, are deep, and he suggested that this is the model for Nintendo's game development efforts. Iwata then segued into the first of two new product announcements: a wireless adaptor for the Game Boy Advance that will retail for 4,800 yen (about $43).

Nintendo felt that existing standards such as Bluetooth were not well suited for the demands of wireless gaming, so its new product will use a proprietary wireless standard developed in cooperation with Motorola. The product will be launched in concert with two new GBA Pokémon games: Pokémon Fire Red and Pokémon Leaf Green. In addition to head-to-head wireless gaming, Iwata also suggested that the new wireless adaptor might be used to receive data from "broadcast stations" in game shops or other locations.

Iwata then turned to China, remarking on the difficulty of transplanting existing business models to this market and describing a number of ways in which Nintendo will tackle the problem. The most important piece of Nintendo's China strategy is a new low-cost, compact console, which will sell for 498 yuan ($60) and has been dubbed the iQue. A new company incorporated in China, Shinyu Technology Ltd., will manage all Nintendo's China initiatives.

Though Mr. Iwata didn't comment on the iQue's specs directly, he did say that it would play localized versions of Nintendo games for the SNES and Nintendo 64 platforms--but not GC games. Software titles will retail for 48 yuan (about $6)--a price point low enough that it may give Nintendo a fighting chance against pirated software. Nintendo also plans to experiment with online software distribution in China, and Mr. Iwata said that this service would launch in limited areas in late October.

Finally, Nintendo expressed plans to invest in the Chinese software development industry, finding local developers to develop games for the Chinese market.