Nintendo have finally put all the rumours about their possible withdrawal from the console hardware market to rest by announcing their next console, to be released in 2005.
Rumours of a Nintendo retreat seemed even more plausible when analysts suggested that they are likely to miss their target for GC and software unit sales. It is believed that Nintendo will fall 10 per cent short of the 10 million GC unit target they set for themselves for the year, also missing the 55 million software unit mark.
Even so President Satoru Iwata claims When we withdraw from the home game console, that's when we withdraw from the video game business.
Nintendo's flagship console, the GameCube, had a very poor holiday season, unlike the PS2 which Sony claims sold 8.5 million units during the shopping season, up 24 per cent from last year, and that accumulated shipments topped 50 million units worldwide.
According to Iwata the main reason behind Sony's lead is time. The PlayStation 2 debuted one-and-a-half years ahead of the GameCube. If we had launched the GameCube at the same time as PlayStation 2, the result would have been different. Be that as it may, Nintendo are still falling behind their contemporary rival, Microsoft's XBox.
In order to face this current battle Nintendo plans for 2003 include the release of new Pokemon games for GameCube which will enable users to play the game on the Game Boy Advance, too, by transferring the data back and forth between the two consoles.
Our focus for 2003 is to offer new types of games which allow consumers to play both on the GameCube and Game Boy Advance, said Iwata.
Iwata's plans for the future include ensuring that the next-generation of gaming consoles will begin with Nintendo's offering, we are developing a new home video game console with a plan to release the new system around the same time as rival makers do, he said, adding We will get ready for a (new) battle in 2005 although foreign game developers are now saying that rival next-generation systems won't come until 2006.
That fight will be fought much later, for now Nintendo have to focus on their advantages, which include a strong game lineup, a solid console and a very efficient business model which allows them to make a decent profit even while being overtaken by their rivals. All these reasons may help keep Nintendo in the console hardware market for a while longer.
