Amidst all the talk of the next XBox and the PS3, Nintendo has shocked the gaming world by announcing that it will be putting off development of its next system in order to focus on the GameCube. An article in the "Nihon Keizai Shimbun" claims Nintendo president Satoru Iwata has postponed work on the company's future console, codenamed N5, in favor of the development of GameCube peripherals. Apparently Nintendo believes that it has to maximize the GameCube experience before it can begin work on a successor.
Considering that the Nintendo DS announcement came only last week it is likely that this change in plans may have to do with the need to focus on the new product and to work on further ways of connecting the GBA and DS to GameCube. Analysts claim that the move demonstrates that Nintendo, recognizing its biggest current asset in the gaming market, is taking the handheld challenge very seriously. Especially when that is coming from their own turf from fellow Japanese rivals Sony.
Although many, no doubt, will be quick to see the end of Nintendo hardware production, you have to bear in mind that the company has already set a date for its next system, it may be a bit later than its competition but the N5 is now set for a 2007 release.
The move is not definitely a bad one but definitely carries significant risks. Shielding the handheld market from the variety of suitors who plan to challenge Nintendo's dominance in the field is a good move but only if it doesn't create insurmountable problems for the console section of the company. Such a delay in the production of the next-gen console will mean that the company will be left with the GameCube fighting an uneven battle against far more advanced competition for 1 or even 2 years.
Does this mean Nintendo is conceding that it will always be in third place in the console wars and is focusing in maintaining its first place in the handheld market or is this another shrewd move from the experienced giant? I will leave you with Mr. Iwata's words so that you can judge for yourselves, ...customers are fully satisfied with the performance of the current model.
