Perrin Kaplan 4 page interview; Summary with interesting points - News

by VGChartz Staff , posted on 22 February 2007 / 1,395 ViewsSummary:
- Perrin thinks Live is impressive, as was PS2 appeal.
- Claims Wii support is "probably" strongest since SNES - although N64 had strong support initially
- Debate about Q1 - Are games like SSX, Sonic, Mario Party 8, Wario Ware, Wii Play enough to meet the needs of gamers, casuals and non-gamers until April (when Super Paper Mario comes out)?
- Expectations vs. Reality of sales
- No dates for Mario, Metroid, Smash Brothers, but they will be 'released soon', interestingly she mentioned more channels will be released soon - and this interview is apparently before NPD data for January and the everybody votes channel was released because neither are cited, and both would be triumphs for Nintendo's policies...at least in terms of P.R.
- Will there be hardware upgrades? Answer is...maybe

Other generalities are glossed over as well
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Perrin Kaplan: Wii Features Rolled Out at 'Pace That Makes Sense'

While hardcore gamers want to see everything the Wii can offer right now (you know, like actual online gameplay...) NoA VP Perrin Kaplan told us during DICE that Nintendo is selectively rolling features out to make it palatable to the mass market consumer. Also, could a Wii hardware revision be in the works? Massive interview awaits...


GameDaily BIZ: The Wii did quite well this holiday season. At last count Nintendo sold over 3.19 million units worldwide. Did you expect to sell that many or did that level of success surprise you a bit? Profile

Perrin Kaplan: We actually projected really strong numbers like that before our launch, because any public company needs to do that... But again it was a really high risk to bring out something that innovative and different and we are really kind of in awe that consumers are so high on the product. I mean we had hoped for it, but when you do something that different you never really know how people are going to react, and the fact that everybody—teens, dads, moms, cousins, young kids—everybody is totally into it, and then the DS is selling extremely well... we're kind of in awe of all of it. It's a great, great thing and I think it means a lot of good things for the whole industry.


BIZ: That was actually something that Doug Lowenstein talked about earlier today in his speech. He said that the industry needs to take more risks, and shouldn't rely on the same type of content over and over. And he specifically mentioned the Wii and Will Wright's Spore...


PK: Well, consumers are really savvy. They've been enjoying [what the games industry offers] for a long time, but I don't think [purchase patterns] reflected a healthier appetite. Buying games has been sort of staying level, but I don't think people were feeling inspired. In fact, some of the core gamers were like, "I thought I was getting bored and I wasn't sure, and now I realize I was totally getting bored. And I now I feel reinvigorated." And those who've left gaming, we need them to come back in order for the industry to grow, and then those who've never played, we really want them to enter the fold because it's very fun. So yeah, we've got to get risky and get out there, and obviously sometimes it works and sometimes it doesn't.


BIZ: Nintendo built up a lot of momentum over the holiday season, but what's the plan to keep that momentum alive and well? Inevitably there's going to be a lull, so how do you keep the buzz around the Wii and people buying it?


PK: Well, there's various buzz now. If you look on the Internet, there's everything from how to hold your own Wii party to how to do a Mii parade to change Mii codes to how to lose weight... all these different branches that have come off this tree. So the momentum has not slowed down. Conan O'Brien and Serena Williams were just playing Wii Sports tennis on TV the other night; that's the kind of stuff you thought would only happen during launch and it's still fast and furious. There's a lot, a lot of talk about it. You have to remember that even though you played the Wii many months ago, it's still new to a lot of people; there's a lot of "eurekas" to be had by a lot of consumers. So for us I think it's just about continuing to get the product out there, letting people have a chance to touch and feel it themselves and play it, because hearing about it is one thing; seeing someone play it is another exciting thing; and the third thing is if you play it yourself, for the most part, 99% of the time, people are like "I love this!"


BIZ: How much credit would you give Nintendo's marketing team for this early success? You've had some unique marketing where you took the Wii to an AARP convention, advertised with Oprah...


PK: Yeah, a lot of that actually started with the DS with Brain Age and Nintendogs and our efforts to try to take those products and populate it into different kinds of audiences. You know, the AARP thing was a little bit tough at first. They were like, "We don't really want to talk to you because we're all grandparents and we already buy stuff for our kids," and so we said, "No we want to talk to you about you." It took several attempts for them to finally say, "So why do you want to talk to us?" And it's because we have products for them as well now; so it really started with the DS and has continued on with the Wii. But I will say, at the end of the day if you have a poor product it doesn't matter how great your marketing is. I think our marketing efforts have been stupendous but it has only been icing on top of a really great cake, not in absence of a really great product.


BIZ: Getting back to my point about the lull and keeping momentum, though, the Q1 lineup for the Wii looks pretty anemic, honestly. And long droughts were a problem with the GameCube. Reggie Fils-Aime recently declared that there would be no droughts on the Wii, but it's as if we're starting to feel a drought already right now. I mean, when are we going to see Metroid or Mario?


PK: Well, first of all, number one you're a hardcore gamer, and we're selling to the masses as well. As I had mentioned earlier, there are millions of people who have yet to even experience Wii Sports. We've got 27 products between January and June, which gives people a lot to choose from, and that doesn't even include all of the Virtual Console games. You know, we've got Metroid and Super Mario Galaxy, and Super Smash Bros. and a lot of other really cool products... Elebits for example is getting really rave reviews and it's a really cool product. So we have about 2/3 of our products coming from third parties, which is really healthy; so while you, a core gamer are kind of waiting for our next product, there's still tons for people to experience and to find. And a lot of the hardcore products are going to continue to come and come soon.


BIZ: Ok then, so what is the expected release timeframe for Metroid and Mario?


PK: I wish I could tell you. You will learn soon.


BIZ: How many new IPs would you say Nintendo has in the works for the Wii right now? Is there a certain quota you have for introducing new properties?


PK: I wish it was as simple as that, but it's really not. When you're in the business of art... I don't think an artists sits down and says, "I'm going to create this many masterpieces this year." I mean, we do try to plan the year so that we've got sort of flagpole products that are launched during key times in the year to keep people engaged and bring them something new, but we don't sit down and say we're going to do X number. If you were to ask [Shigeru] Miyamoto and his team, creativity blooms at the time it blooms and they're constantly working and there are a certain number of games that I think they do try to accomplish creating, but it's really in reverse; it's an art, not a science.

BIZ: But can you confirm if there are any unannounced new IPs in the works right now ?


PK: I can't... but you'll learn more soon! There's also a lot to be said about the channels program we have on the Wii. That's a whole different aspect of introducing new things that are not specifically IP oriented—different, new experiences and things that have never been done before. So that part is cool too.


BIZ: One of Nintendo's stated goals has been to broaden the market, to reach old, young and everyone in between. But what evidence do you have, or demographic data that shows you're succeeding in this endeavor?


PK: We have a lot of research that's showing us that we're making great inroads with both the DS and the Wii, and that we're holding steady with those who love gaming. So for us, it was a really high risk thing to do, but we're seeing the pie get bigger and that's exciting for us. So we're just going to keep going headstrong in reaching all the different audiences.


BIZ: I find the senior segment a bit more interesting, because I wonder if they really will latch onto it. For example, I had my mom test out the Wii, and she's now turning 60 and has some arthritis. And she was mildly entertained with Wii Sports but after just a couple minutes she complained that she couldn't play it for more than a few minutes because the arthritis would act up.


PK: That's interesting; we all have a lot of personal anecdotes and we've been getting a lot of letters and phone calls and we've seen stories that are actually to the contrary. So I'm kind of hoping and thinking that she might be a unique case. We've got a lot of people that are using it for therapy believe it or not. One gal that's just finishing all of her cancer treatment, and one side of her body doesn't work as well, and she's been using [the Wii] to really help keep her engaged and get her going. We've seen people using it obviously for weight loss as well. But the seniors that we have also spent time with really feel like it keeps them stimulated and the research is showing us that's true. I mean, their attachment rate is going to be slower than a hardcore gamer's... but we just launched and we're already seeing that we're making progress.


BIZ: Why is Nintendo planning on releasing a DVD enabled Wii so long after the launch of the console? I don't think many people will care. What's the point?


PK: I think it's just to give them a choice. We've not yet come out with a firm date; we haven't talked about it too much. It's not the top thing on our list.


BIZ: Unless that's part of the plan for a new Wii hardware revision that would incorporate DVD playback as well?


PK: There are always lots of things in the future.


BIZ: Well, Nintendo does love to tinker with hardware, with three different versions of GBA and DS & DS Lite, etc.


PK: Yeah, we do, we do. If you think about the portable market, how many years that's been given legs for... we're talking like almost 17 years of portable gaming with Game Boy.


BIZ: But does the hardware revision model lend itself to the console market also? You relaunched the GBA as the GBA SP, the DS as the DS Lite, so can that be applied to consoles like the Wii?


PK: Sure, absolutely. You'll see the ways in which we do that.


BIZ: Let's talk about Nintendo's online plans. Obviously you have some cool stuff with the Weather Channel, News Channel, Opera browser, etc., but in terms of online gameplay Nintendo continues to lag behind. There are still no games to play online on the Wii, everyone hates those friend codes... how will Nintendo's online plans evolve?


PK: Some of that friend code stuff is really built for the mass consumer, not just the gaming world. The Wii has tons of different offerings and a lot of it was brand new. The remote, brand new. The way in which it interfaces with the screen, brand new. The channel concept, brand new. And I think if we launched it and plunked it down and said to the absolutely uninitiated, "Here's 18 things it can do," I can guarantee you it would stay in the box. It's just too intimidating. So we really strategically wanted to roll out having nearly a year talking about the remote and getting people ready, why it's unique, because it is the Einstein of the system.


And then talking about the different things the box can do and then entering with the Virtual Console piece of it and the Wii Shop channel, introducing the channels one a time—the Mii channel has taken off and people really love that. Then ultimately we did weather, news and there's a lot more to come, but we're kind of rolling it out in a fashion that is consumable for people who are not highly experienced—and also giving you guys a chance to really explore it. And online stuff has come in the Pokemon game that has launched in Japan, and it definitely will come here and I think people will be very pleased with it. But I also think we've seen other companies launch with the entire menu of stuff, and I don't think all of it gets utilized at the start.

BIZ: The frustrating part of it though is that there are a lot of great things Nintendo could do online, and for gamers who value online play as a key component of the game experience they'll probably look elsewhere for that. Most would look to the 360 and Xbox Live. Doesn't that concern you?


PK: But I also think we're talking a little bit apples and oranges. What the Wii offers is uniquely different than the other systems. Those two systems are much more similar to each other. Wii might be a second purchase in the home for people who already own or purchased one of the other two, or people who will buy just a Wii will buy a Wii only and not have the other two. I think we feel pretty confident about our position; at the time online comes [to the Wii] I think people will be pleased with it. But for people who are hardcore gamers nothing can ever come fast enough for them, ever. I mean even when we announced a mass market price, which has been a blow away [success], hardcore gamers even complained about that. And it's just because you are all very educated about it and have a really huge appetite and want everything now. And having things at that pace is overwhelming for a lot of the other consumers, so we've tried to roll things out at a pace that makes sense... So online stuff will be coming soon and hopefully you all will be really pleased with it. And if you're really, really into online I can bet that you'd be playing it on all the systems.


BIZ: We're obviously going to see the most innovation from Nintendo itself on the Wii, but does Nintendo give third parties development guidelines or is it up to them to come up with innovative schemes for the Wii's controls?


PK: We don't give guidelines; that's like one artist telling another what to do. What we do is act as a resource to help them through; if they have ideas, how to implement them, how to better it, things that they can adjust to make it happen. But the creative element... if you talk to different developers, they're so excited because there are things that they can do that they could never do before and that's been happening on the DS as well. It's been a tougher thing for people to get their arms around—the dual screen—but there are great products coming out for it now that really exemplify the capabilities there. And on the Wii Elebits is a really great game... I could go down the whole list. I think EA has really embraced the Wii; they're very excited about what can be done with Tiger Woods' golf game. I think people finally really feel unleashed in terms of what they can do [in development] and they can do it for not as much cost-wise. You can create something stupendous and have it be really successful without having put $40 million into it.


BIZ: Would you say that this is the best third party support Nintendo's gotten since the SNES?


PK: Probably. It was pretty robust on the N64 but that was also still a cartridge based, but I think [the current third party support] feels pretty darn good... It's good times for everybody.


BIZ: What are your thoughts on all the negativity Sony's been facing lately? How would you assess the PS3's situation?


PK: I think they're really being faced with a hard time perception-wise and I have empathy for them in that. I think they may have hit a couple of market things not as precisely as they wanted to. It's been a challenge for them, but they're an experienced company, and there should be enough [room] for everybody. What Nintendo is doing is completely different. So when people compare us, I really say it's apples to oranges. We wish them the absolute best of luck; we've had challenges before too. It's a tough time for them... but I have no worries that they will figure themselves out.


BIZ: You can say it's apples to oranges, but at the end of the day, there's only a certain number of consumer dollars out there and even if the consoles are very different, you're still competing for those same consumer dollars.


PK: Yeah, but what we've done is we've increased the pie by having this expanded audience. You're getting people who are buying game systems who: a) never purchased it; and b) would never consider the other two, because of the simplicity of what we have to offer. That's absolutely apples to oranges. Sony can never own that customer. We, on the other hand, probably would be a second system purchase for the person who's really into all those complex games.


BIZ: Can you name a few things about Sony and Microsoft that they may have done a better job at than Nintendo and a few things where perhaps they could improve and learn from Nintendo?


PK: You're asking me?


BIZ: Yes...


PK: God, I'm so not interested in comparisons. I hate to let you down, but every company has its strong features. I know what we've spent time doing in terms of analyzing how to make the industry grow and how to make consumers really have a good time, and our energies have been so focused there. But I have ultimate respect for some of the people at both of the other companies that it kind of defeats the point. I know you love to see us in a bull ring...


BIZ: I'm not necessarily asking you to bash them, but just looking at it as fair as you possibly can...


PK: I think Sony showed the world with PS2 that it was possible for millions and millions of homes to own a [video game] system; they did it. I think for Microsoft, Xbox Live is very strong; they've done very well with it. And I think the Wii is a whole different ball game and we're having a blast.

BIZ: And do you think there are things that Nintendo has done that they could learn from?


PK: I think they're inspired by the remote and I think they're inspired by the simplicity and fun of what it is we've been able to do, and I'm sure out of that comes some learning. We all learn from each other.


BIZ: Is it Nintendo's goal to become #1 in the gaming space again, or does that even matter since the company is hugely profitable and obviously as a business that's what matters most?


PK: We've never had a time that we haven't been profitable. It depends on how you define #1...


BIZ: Well in terms of market share and selling more systems than Sony or Microsoft over the next 5 years...


PK: I will tell you our priorities are to continue to do what we've been doing for all of these years, ever since we've been in business, and that's to remain profitable. The other companies have yet to accomplish that really... so we've remained #1 in terms of that since the get go. As far as market share and units, coming out of the holiday we've sold the most hardware and the most software, so I think we're #1 there. But sure, we'd love to have it all and I think we can have it all. What's most important, however, is to be a healthy, profitable company... Microsoft is probably the only company that could have survived in this business this long having lost as much money as they did. They're trying to do some creative and innovative things and we give them credit for that.


BIZ: The DS has been more successful probably than Nintendo ever imagined it would be. Is Nintendo already working on ways to improve on that formula, on a 'DS2' perhaps?


PK: Whenever we launch a system we're always working on the next thing. There's never a time that Nintendo rested on its laurels. We're always trying to create and recreate. You know, we did it with the DS Lite. The DS was a fabulous product, had a really great start, had a little bit of slowing and then started to pick back up with Nintendogs, but what really took it into a different stratosphere was redesigning it. And I think that's what we wanted to do all along; it just took time to do it and get it right. And now we can't even keep it on the shelves; it's just awesome ... But yes, we are always working on our next console and next portable.


BIZ: What could Nintendo do to improve the DS formula though? It's not like they're going to add a third screen...


PK: Well, let me ask you this: Had you ever personally conceived of having two screens?


BIZ: I do remember the Game & Watch systems from the early '80s, so it wasn't inconceivable.


PK: Ok, but it wasn't something commonly thought of. In fact when it was first introduced people thought it was interesting but maybe a little bit odd. So you're saying, "What can we possibly do?" ... Nintendo is expertised at going places that others wouldn't have thought of. I'm fairly sure we can figure out how to keep innovating and doing different things.


BIZ: With the DS doing as well as it is, is the Game Boy line forgotten, or is a true GBA successor in the works, and if so when will we hear about it?


PK: It's interesting... I saw a girl this morning playing Game Boy Advance, which is such a great product, so no, we have not gotten rid of Game Boy. But our focus is really on driving the DS business, making sure that's in as many homes as possible, especially with the unique and innovative software we've been offering like the Brain games and whatnot. So, none of the valued names that Nintendo owns disappear; we just are making sure we don't flood the marketplace with too many different options. I think we at one point did that, so we're driving DS right this minute but we'll see what the future holds.


BIZ: What are your thoughts on the PSP? To its credit, unlike the Game Gear, the Lynx and other handhelds it's managed to not get killed off by a Nintendo portable...


PK: I'd say we have a pretty darn good stronghold over PSP right now.


BIZ: Right, but the PSP has managed to survive and do OK for itself...


PK: We'll see, we'll see... I think it's the best of the benign that had come into the marketplace. We don't see consumers embracing the PSP in a mass way that we're seeing them embrace DS Lite; we're really pleased with our continued performance. What I think will happen with them I really couldn't say, but what I can say is we have a very strong lead.


BIZ: It is almost a different market though. Your apples to oranges talk could be applied to PSP vs. DS too since the PSP is very multimedia focused and has other functionality.


PK: Right, I can agree with you... but in terms of the [portable] pie we really are happy with our share of it.


BIZ: So with the Wii out now and doing well, should we consider the GameCube to be on its death bed? Third party support is at a trickle it would seem, and Nintendo doesn't have anything planned for it in 2007, does it?


PK: You know, just like the PS2 sold really well this past holiday, GameCube is a great starter system—price, ease, games, cost of games. Every one of the consoles has had its cycle and every single one of them has become a great starter system at the last leg of its cycle, and that's where GameCube's at.


BIZ: Ok, but the Wii is arguably a good starter system and it's backwards compatible with GameCube...


PK: True. Are we producing any more GameCubes? No. But do we have the inventory there for people to still purchase? Yes.


BIZ: But do you have the software support?


PK: We have so many games. You're a core gamer; you wouldn't buy a GameCube. It's not aimed at you anymore. So for the new people as a starter system, how many games are there for them to pick from? Plenty. ... I mean, I wasn't the first to buy an iPod; by the time I bought it, it came to a price where I wanted it to be and a look the way I wanted it to look. So we're not selling GameCube to the people who are hardcore players and want all the gadgetry; we're going after the people who never really bought a system before, or finally it's at a price that they can afford for their family.


BIZ: My point is that from a first-party perspective, just like Microsoft doesn't put out new original Xbox games, Nintendo is no longer supporting GameCube. Can you confirm that?


PK: Right, that's correct. But it's still a great starter system because of all the great games that were made that are still available. That's the normal cycle for all products.


BIZ: Thanks for your time today, Perrin.

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