Yamauchi Says "Stop Playing Boring Games"

Nintendo Company Limited President Hiroshi Yamauchi gave his annual speech to kick off the Nintendo SpaceWorld expo by repeating the N64 battle cry: Quality over quantity. Nintendo believes it's got the formula for success, and that its 64DD and upcoming N64 titles will revitalize a boring, drab market.

Read on to see exactly what the future holds for Nintendo and the industry, according to Yamauchi:

"The Prospects of the Entertainment Market" - Nintendo President Hiroshi Yamauchi, November 21, 1997.

"N64 overseas feedback - it's been highly regarded. However, in Japan, the feedback isn't as good as being anticipated because, as some say, of the limited games so far. Maybe it's because there are no role-playing games.

"But the domestic video game market, it's not driven mainly by console/TV games. Not a situation actually centered with TV games. What is the future for TV games in the Japanese market? How will this market transform and be changed?

"Today, in front of you, I'd like to talk about the prospect for the future market. And those in this business…this exhibition can be divided in two parts…Today, the place is not very crowded, but tomorrow, there will be a large number of Pokemon users to fill the show floor. We will provide a present of the 151st monster, Mu. The new cartridges, gold version and silver version of Game Boy Pocket Monster, will be shown this year. The present of Mu - when we announced it, we received already 160,000 applications to come here to see this special Pocket Monster. This place will be flooded with visitors the next two days.

"The recent TV game market is losing momentum. Naturally, it's because of too many boring or too complicated software that ordinary users can't enjoy playing. Such games are flooding the market. One TV game hardware maker decided to buy back software from the retailers (Sony buyback). The quantity, I heard, was very small. So, this is just a drop in the bucket and wouldn't make an impact in the market. There is too much trash software in the market. There is a big need to change the quality of the software. In launching N64 two years ago, I asserted the qualitative change to be brought about by it.

"As we have yet to present enough tricks, we have not been able to realize the anticipated results. However, there is no doubt that we have to make qualitative changes in games. If we can change the quality, the number of the available software titles can be as little as one-tenth the current figure. Somebody says there are a small number of titles available for Nintendo 64 and others say we do not have enough RPG. But it is not the issue this industry can afford to worry about now."The future market for games will be quite different, as we've seen a big change in the entertainment market this year. As we have seen with Pocket Monster and Tamagotchi, they saved the market and played a significant role. These two products have indicated several different aspects, but nurturing, trading, collection, and addition will be the four important elements from this point on. I cannot say I'll be 100 percent correct about this. But, let me tell you about these four key words. The word "nurturing" became popular with Tamagotchi. There are several types of nurturing.

"Tamagotchi is the type of game that asks the player to nurture and raise the chicken. Raise, feed, and take care, and get pleasure from the game. It's a new type of game for the users. It's portable and therefore this became very popular in the market very quickly.

"In the Pocket Monster - the nurture and raising is different from that of Tamagotchi. The Pocket Monsters grow stronger by fighting with each other. You grow monsters by yourself and your friends grow them and friends can exchange them by a communications cable.

"Talking about new types of nurturing, as long as I know, the game called Cabbage is being developed by Mr. Shigesato Itoi. In it, you also nurture, but he is trying to make it a different nurturing than Pocket Monster or Tamagotchi can realize. I believe that is the way game creation should be.

"The reality is, however, imitation nurturing games appear on the market, one after another, which is no good. Existing TV game machines are not suitable for nurturing games. The nurturing games, in the real sense, cannot be created on conventional game machines on TV.

"Software developers - if they keep on making imitation nurturing games, it will hurt. Let me move to the other key words - exchanging and collecting.

"The trading concept has been, for the first time, realized by Pocket Monsters. Among all the joys and pleasures, the popular thing is trading monsters with friends. The communication cable for Game Boy is used for trading. So, the kids can exchange their own monsters and can also use the cable to play against each other. This isn't something TV games can do.

"To tell the truth, the communication cable was originally created for competing with your friends. There are talks about communication games using the telephone network. But you can't see the face of your partner and can't feel the mood. Communications through the Game Boy is fun because you are with the player.

"Mr. Tajiri knew it. And then, Mr. Ishihara gave Mr. Tajiri advice and driving forces. These two gentlemen have proposed the communication cable of Game Boy as the best device for trading. The game, Pocket Monster, was thus created and frantically welcomed by the children.

"Simple collection can be done by existing TV games. However, collection becomes really fun when it can be done along with trading.

"Talking about addition, N64DD is being shown today. But due to delay in software development, I am sorry we can't sell it until three months later than the original schedule.

"The addition is an important element for 64DD. The Mu present is a good example of the addition. Users bring the cartridge and the new monster is added. The so-called Phantom Monster, Mu, is added."Bad software in the marketplace won't sell, no matter what. Even when you have good software, significant sales will last, in most cases, just three weeks or so. The software is what everyone talks about and it will sell fast. Critical data as to how much volume can be sold or how much should be stocked cannot be made easily. Having a big risk, but with no profit, the distributors are facing the crisis of collapse. Simultaneously, the majority of software makers are not making a profit. Neither of them is doing fine. The situation, in fact, is worsening.

"The idea of addition is to provide the users with the opportunity in which he/she can enjoy the same game for a longer period of time. More specifically, after we have introduced one 64DD software title, users can get new bonus games, characters, and games, etc., out from vending machines that we install at retail outlets. In this new environment, users will find new interests which existing TV games cannot provide.

"We can't have a bright future prospect for the TV video games right now. This is why we are to offer 64DD, to bring about qualitative change in games. Without introducing unique new ideas, we can't persuade users to accept the 64DD, and that is why it's taking a long time to launch the system. As for the price, I want to make it as cheap as possible, but I can't say how much it will be right now. We would like to make the notable difference with the existing TV games. In the current game development community, the number of excellent creators isn't increasing. So, the more games they make, the more bad games are there.

"We have said that we will sell a selected number of quality software. Against this, there was criticism about the number of titles or lack of RPGs. But RPGs have already faced the wall. Pocket Monster is a kind of RPG but continues to keep its popularity for a very long time while all the other RPG games complete their lives within three weeks or so. Against the flooding software titles, we have started the battle with a few titles. What will the judgment by the users be? We will know tomorrow. The qualitative change by N64 is now about to be seen very quickly."The Pokemon Stadium on the show floor combines the Game Boy and N64. For the first time, you can play games with Game Boy in the outdoors and play it at home with N64. There are other creators, though the number is not very many, who are working on their new ideas. For example, Mr. Sonobe, well-known for his Derby Stallion game, is working on a Derby Stallion game for N64, which will be connected with Game Boy. I believe the games like Derby Stallion will display their real worth in the new system that I described right now, rather than the existing TV games.

"Now, the game industry is facing the turning point for the developers toward the next year and thereafter. The current TV game market is just the setting sun, and it must realize the changes. I believe the overseas TV game markets are fine compared with Japan, but we can't be optimistic. It, too, is facing the turning point, I think.

"I want people all over the world to play Pokemon. First in the US. But people in different countries have different tastes. So changes must be made, and we are working on that.

"The market of video games has been expanded by children. But they are getting tired of complicated games and the ones that force you just to stay in front of the TV set for a long time.

"What shall TV games do? We can hardly find new ideas. Some try to make it more like movies, and others try to depend upon popular characters or promotional tie-ins. If we can't break out of the conventional ideas, everyone will agree it will be the end of the video game business. A few years ago, when it was said that the TV game business was invulnerable and where there were all TV games, I repeatedly said that the TV games industry would perish if such things continued. I also said, 'Now, it may be OK as there's no alternative, but soon we have to face the big change.' I believe the games will make changes from this point on.

"Nintendo has analyzed the reason for the success of Pokemon. How could it succeed and why are the core users children? Mr. Ishihara pointed out the Pokemon has the strong appeal as a game but that Pokemon Card (merchandising product) has been selling in a great volume and that the age of the card users is relatively high. If merchandising products can sell, thanks to the popular characters in the games, that's fine. But at Nintendo, we believe we have to make tricks in which we'll, of course, make quality games but at the same time make somewhat related products like card games in order to realize the synergy. It will take such synergism in order to appeal to wider users.

"We want to form the new entertainment market. Some of the answers are the Pocket Camera, 64DD, and the new world of software created by the combination of 64DD and Game Boy. Everything is connected with each other and will expand the new horizon of the entertainment world. Nintendo should be proud itself as it is the only company in Japan which can do this. We will do our best.

"As time is up, I would like to conclude my speech by asking all of you for your further help for us.

"Thank you very much."